Written by: Dan Dragicevich
Don Valentine once said, “The money flows as a function of the story, that’s how the money works…”
When it comes to raising venture capital, the ability to tell a compelling story is paramount. Investors are not just backing an idea; they are backing the people behind the idea and the potential impact that idea can have. A well-crafted story can transform a simple pitch into a persuasive and memorable experience that resonates with investors on an emotional level. Storytelling bridges the gap between the logical and the emotional, making the business proposition more relatable and the vision more tangible.
Don also goes on to mention that most founders simply cannot tell their company’s story. I will speak to hundreds of founders this year and the array of responses I get when I ask “Tell me about your business” is vast. If you’re a founder who feels they could enhance their storytelling skills I encourage you to check out the tips below!
Simplify, Simplify, Simplify: For an investor to believe your story, they must first understand it. At Kerosene, we spend a lot of time helping founders with this process and we have found that it’s not as easy as it seems, however, the more you can pull away from jargon, the better. An easy way to sense check this is if a 6th grader can understand your business, you’re on the right track.
10-Minute Pitch: Coinciding with simplifying your business is shortening your pitch. The best thing an investor will hear all day is when you tell them that your deck is 12 slides long and will only take 10 minutes to get through.
Engage your Audience: With the Zoom age upon us, it’s easier than ever to get distracted on a call. Think about it: how often have you been staring at another screen while someone else is talking? The best way to keep an investor’s attention is to bring them into the conversation. There are multiple ways to achieve this, but an easy way is to get them to talk about their experiences with the problem you’re solving.
Remember, a powerful story is meant to humanize you and your company, making it relatable and engaging. Investors are often looking for passionate, driven, and resilient founders who can navigate the challenges of building a business. By sharing personal anecdotes, challenges overcome, and the inspiration behind the venture, entrepreneurs can build a connection with investors that ultimately builds trust and credibility.
Kerosene Ventures: Helping Great Founders Raise Capital