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- Don't Remove Risk From Your Pitch
Don't Remove Risk From Your Pitch
Read time 1.9 minutes
A common mistake that I see with founders pitching is that they believe they are making their company more “fundable” by creating a pitch that makes it seem like a ZERO-risk idea.
This is a major mistake.
Venture Capitalists want to invest in ideas that can 100x their money. They want to find the next Google, Facebook, Apple, etc. They are smart enough to know that all of these companies are at high risk at the pre-seed/seed stage. There is no $1B+ company that was a guaranteed success from the moment it was started.
When you pitch your company as zero-risk, you are doing one of two things:
Underselling the potential of your company - The way you can communicate it as lower risk is by pitching a narrower idea than what you actually hope to execute. This means that investors won’t see the 100x potential that you do.
Lying - If you are lying, then investors won’t trust you, or they will think you aren’t qualified to run the business as you don’t understand the associated risks. Either way, this doesn't work out well for you long-term.
So the next time you pitch, find the right balance of potential and risk, but NEVER pitch the idea as if it's a guaranteed success; that will set off alarms for every investor.
Do you pitch your startup as zero-risk? |
Are you looking to grow your business? Here is how I can help:
📱 Book a Strategy Call to get 1:1 feedback on your pitch, pitch deck and/or fundraising strategy. (If you need general startup advice, then reply to this email, and I’ll let you know if/how I can help.)
Onwards and Upwards,
