First things first, when it comes to fundraising for your startup, it’s important to tell your story. Founder Fundraising’s Robbie Crabtree believes that a founder’s personal narrative, also known as the “founder story,” is a crucial element in building trust-based relationships with investors. So where do you begin?
1. Your Founder Story
Your founder story should focus on what makes you unique and special. Take some time to reflect on your journey, from how you got to where you are now to why you care deeply about the problem your product solves. By sharing your personal experiences and motivations, you can create a connection with investors and demonstrate your passion for your startup.
To start crafting your founder story, Robbie suggests beginning with your experiences when you were around ten years old, as this age often evokes childhood memories. Instead of typing it out, try recording yourself speaking about your journey. This method typically results in 20 to 60 minutes of content that can be condensed into a concise and compelling personal history.
2. Your Vision Story
While your founder story focuses on your personal journey, your vision story paints the bigger picture of what your startup aims to achieve. Robbie emphasizes the importance of emotional storytelling in the vision story. Instead of trying to prove you are right, focus on piquing investors’ curiosity by suggesting, “What if I’m right?”
Your vision story should aim to excite and inspire investors, making them imagine themselves on the right side of history and as the ones who saw your startup’s potential. Make your pitch big, bold, and ambitious to capture the attention and excitement of venture capitalists.
3. Telling Your Two Stories
Both the founder story and the vision story should be able to stand alone as separate narratives. However, it’s also beneficial to structure them in a way that they can be seamlessly told as one cohesive story. Building on our fascination with cliffhangers in movies and TV, use this technique to transition from your personal journey to pitching your company.
4. Perfecting Your Pitch Deck
A well-crafted pitch deck is essential in presenting your startup to investors. However, Robbie suggests avoiding preset formulas and instead tailoring your deck to your specific startup and audience. Here are some dos and don’ts for creating a compelling deck:
Do: Start Strong with an Opening Hook
The first slide of your pitch deck is crucial. Grab the investors’ attention within the first three to five seconds to capture their curiosity. Make sure it is easy to understand and engages the audience right away.
Don’t: Stick to the Problem/Solution Binary
Avoid the common problem/solution structure that many founders use. This approach may make you sound like every other founder out there. Stand out from the noise by taking a different approach.
Do: Plant a Flag
Use attention-grabbing statements, shocking statistics, traction numbers, or quotes from customers early in your deck to capture investors’ interest and curiosity.
Don’t: Attempt to Appeal to Everyone
Remember that your story should have filters. Not every investor should find your pitch amazing, as it is essential to appeal to a specific audience who aligns with your startup’s vision and mission.
Do: Create Intrigue
Each slide should invite investors to want to learn more. Make them say, “Tell me more” by presenting compelling information and ideas.
Don’t: Go Too Text-Heavy
Avoid text-heavy slides that overwhelm the audience. Strike a balance between visuals and succinct, impactful information to maintain their attention.
Presenting Your Pitch Deck
The headlines or titles of each slide should express the overall story arc of your presentation. If someone were to pick up your deck and read only the headlines, they should be able to understand the narrative. The first slide should feature a one-line description or tagline that encapsulates your startup’s essence and captures curiosity.
Robbie suggests using pitch decks as follow-on tools rather than making the initial meeting a pitch. The first meeting should focus on equipping investors to become your champions, allowing them to share your story as they move forward.
Crafting a compelling founder story and vision story, along with a well-crafted pitch deck, is crucial in attracting investors and securing funding for your startup. By sharing your journey and making a bold and emotional appeal, you can captivate and inspire venture capitalists. Remember to tailor your approach and use storytelling techniques to engage investors and leave a lasting impression.
