Investors don’t trust you.
When investors meet a founder for the first time, they almost always assume that founder is full of sh*t.
And that’s because they’ve been burned before. They’ve met founders who talk big talk and turn out to have a big nothing business.
Or they’ve even invested in a company that sold them on half truths or lies.
I know you’re not doing that, but investors don’t know that.
So step 0 to fundraising is overcoming that hurdle.
And that comes down to two main things - both of which seem obvious.
The first is speaking honestly and humbly. Never over-selling, not using big buzzwords like “revolutionize”, “disrupt”, etc.
Just say stuff like it is, be humble and open to feedback and criticism, and investors will be willing to let their guard down a lot quicker.
The second is making it crystal clear what you’ve actually done.
There’s no such thing as overselling or over-emphasizing cold hard facts. If you have some traction, don’t write your deck like you’re idea-stage.
Investors get so much spam from inexperienced founders selling “companies” that are nothing but far-fetched concepts.
So when you fundraise, always make sure the first thing you do is make it clear that’s not you.
Some ways to do that:
Put things like traction or team qualifications in the subject of your email outreach
Put those things in the first slide of your deck (guide here)
Have as many real product photos in the deck as possible
Don’t use big silly buzzwords
Don’t be oddly secretive about traction-related information
Be curious and open to feedback
In meetings, let the investor do as much of the talking as possible
This stuff has been top of mind for me this week - I met one founder clearly lying about everything, and another very impressive founder who was under-selling himself and his traction.
If you’re curious how your deck is perceived, I always have my free audits open.
Good luck with everything and watch out for next Friday’s email!
Best,
Nathan