Why Should We Invest In You?
Spoiler alert. Investors, be they angels, a VC fund, or a family office, invest. That is what they do. The question you have to help them answer is not, “Should we invest?” but instead is, “Why should we invest in you?”.
On the surface, this sounds pretty obvious. Yet, it’s often absent in the pitch decks and presentations I hear and see. This is especially true with seed-stage investments. Most founders talk about their products, the market, their use of funds. All of which are important and rightfully part of a good presentation. But they don’t answer the fundamental question of why they represent the very best investment option.
Not making that argument is a huge missed opportunity. More than ever since most investor meetings are via Zoom, reading the room and establishing some chemistry is limited. I believe this is causing a slowing of the process. It’s taking more time and requiring more meetings before there is a decision.
In my opinion and experience, some overlooked critical factors should be part of every investor conversation. I will list them below then delve a bit deeper into each:
- A point of difference.
- A defined path to monetization.
- A recognition that an investor has the right to make money.
- The path forward for the investor.
