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- ♞ Highlighting Stability
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Highlighting Stability
Many founders aim to reduce the perceived risk when pitching their startup by presenting it as a “sure” bet. The reality, however, is that this is often done by presenting the market or customers in a certain light, which, while reducing risk, also reduces upside or creates concern around your understanding of the market/reality of your predictions.
One way to actually reduce risk is to highlight the stability of your company itself. This is a strategy that I see very few founders use, but it can have a significant impact on your fundraising. Here are a few things you can do immediately to highlight the stability of your company…
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Talk about founder relationships - One of the top reasons companies fail is that founders break up. If you’ve worked with your founders before and had success with other projects, companies, etc., mention this. It seems insignificant, but for many investors, we are concerned about the longevity of teams, and this helps put that to rest.
Talk about past experiences - If you’ve grown a startup before, mention that and talk about your success or lessons learned. Being able to show that you’ve been here before provides a level of confidence and stability that many companies are missing.
Use growth metrics - Many founders talk about their company as if they are at the starting blocks, waiting for money to take off. They can even do this at Series A or later when they present their company as stalled (a snapshot of the present) and then talk about how the money being raised can take them to a future vision. Instead, always talk about your company as already moving upwards; this way, investors know that you are already guiding a moving ship. Their money isn’t forcing you to do something new. It also highlights what you already have, the stable base that you are growing upon.
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