Are you a storyteller? You better be if you want to build a successful startup
I have raised over $10 million from individuals in my career. Just people, not entities like angel groups, VC’s or others. If I included angel groups. VC’s and entities my company’s had partnered with, the number is north of $100 million. Let’s focus on people for the moment, not firms.
Raising money from people is by far the hardest thing to do. It takes a balance of experience, personality, and basic honesty. It also takes storytelling.
Here is a basic way to look at it; If YOU have $10,000 that you HAD to invest, what would make you want to do it with a particular company?
- An industry you understood or have an interest in.
- Meeting someone who you just “feel” is someone you can trust or like.
- Like or Love his/her Story.
I am reading a great book called “Billion Dollar Whale”, which is about Jho Low and how he swindled many firms and people out of a lot of money. It is a fascinating read that reminded me of just how much reality often becomes perception. Perception is very important when you raise money. Don’t get me wrong, I am not advocating lying to any potential investor, but you need to be able to communicate a story to them and a story that is both compelling and one based on the…
