VC PANHANDLING OR THE FINE ART OF ASKING STRANGERS FOR MONEY

I’m part of an Impact Accelerator that teaches you everything you need to know to launch a successful startup. Perfecting your pitch to investors is an important part of those classes. A pitch is basically the fine art of briefly, distinctly, and passionately explaining your story so that strangers will give you money. I call it VC Panhandling. It helps me to find some humor in what can be a nerve-racking process when I’m delivering my pitch.

For most people, death is preferable to public speaking. I don’t mind public speaking, but I do hate asking people for money. Fortunately, I discovered a scientific experiment that makes pitching for start-up funds far less painful for me.

Recently, I came across an NPR interview about the relationship that giving money to others has on our well-being. Elizabeth Dunn, a professor of psychology at the University of British Columbia in Canada, has concluded that giving money away is a potential key to emotional well-being. According to her scientific research, it really is better to give than to receive, and spending money on others makes us happier.

“We found that people who were assigned to spend money on other people were significantly happier than those who were assigned to spend it on themselves,” said Professor Dunn.

So, the next time you’re pitching to a single venture investor, or a room full of folks who could potentially fund your start-up, think about Professor Dunn’s theory. You’re not asking a roomful of strangers for money, you’re providing them with a once in a lifetime chance to increase their happiness.