“I just don’t understand, why these investors do not come forward to help startups. We have been meeting them, delivering investor pitch, time and again, and yet no one shows any commitment to invest”.
Little more nudge and the frustration comes outpouring. The founder is convinced and emotionally profoundly attached to the product that has been developed after months of hard labour. Nothing can be better and state of the art regarding technology.
So the question is why is the product not selling? The response – if investors give us money, we will sell big numbers.
So why are they not funding? Don’t know. Hold on, did they just shrug off? It seems that your story has made little sense to them.
So who made the pitch? Pat came to the response I made.
Anyone else besides you? “No. They are not business savvy and do not have communication skill”.
Speaking to a seed investor and a Venture Capitalist, I learned that they pay extraordinary attention to the startup team. They look for alignment, a conviction in the product or service as a collective whole. Assessment is made on the level of energy, enthusiasm, and commitment to make things happen. What is not appealing is a show of a team like statues behind the founder.
Remember, interest is an emotional trigger to listen and pay attention. Before you bombard the investors with data and logic and rationale, pay full attention to risk perceptions that get built based on over-reliance on a single founder.
So work on a shared story, how each one is connected and what does success mean to each member. Are you paying attention to body language aspects while presenting to the investors? Remember enthusiasm and energy creates the magnet of appeal.