Level Up In 4 Minutes

Today we’re going to rewire your brain so you’re ready to raise capital.

So many founders are holding themselves back with these bad habits for no apparent reason.

When you do this stuff, investors don’t take you seriously and it’s costing you time, losing you money and slowing down your growth.

But first, know that it’s not your fault:

Founders have been subject to Investor BS Bingo for way too long

“Speaking VC” is a learned skill, but like a 6-year-old hanging around Uncle Lucas, you might find the things you learn aren’t always good.

We’re going to stop you from holding yourself back, and unlearn that crap you synthesized.

Here's how, step by step:

Step 1: Forget what you heard.

How you speak about your business matters just as much as your first impression.

If you sound like an amateur, you are one.

All these words on the left below? Forget them.

Change this… → …to THIS:

• If we raise, we will → Post-raise, we’ll…
• Contingent upon… → Once X happens…
• Startup → Emerging growth company / challenger / high-growth contender
• New paradigm → Existing, proven framework
• 1% of the market → 30% of the subsegment
• Monopoly → Unique strategic position 😉
• Stakeholder groups → Engaged community
• Revenue → Customer relationships

Why?

1. There’s no if’s in your growth path. A raise is a binary thing; the plan is happening, until the point that it isn’t. Forget your contingent-speak and bet on yourself.
2. Stop thinking you’re doing something revolutionary. You lose a lot more interest by looking pie-in-the-sky, than you will by showing how you’re unique but running a well-established, proven playbook. That’ll expose your true competitive moat.
3. A tiny community that loves you and pays you, is far more valuable than tons of people who don’t really care. Get 100 customers that love you, before you think about the next 900.

Step 2: Rewire your brain.

Most founders focus so much on closing the investment, that they start to see that as the near-term goal.

It isn’t, and they couldn’t be more wrong.

Doing the deal isn’t actually the end goal: growing the company and making your impact is.

Investment is just a means of getting to that goal.

With that in mind:

1. Stop putting investors on pedestals. They’re just normal people with lots of contacts and currently a bigger checkbook than you, often entrusted to them by others. And when they sign that subscription agreement, y’all are PARTNERS on an equal level, moving toward that goal together.
2. Stop saying Thank you at the end of a pitch. Just do an awesome job pitching, and you won’t be wasting anyone’s time.
3. Don’t wait around for investors to commit. The deal’s not done til the money’s in the bank. Amateurs keep chasing investors. Pros keep approaching more, and getting them on a passive update list if they’re not ready to buy yet.

Step 3: Focus on who’s always right.

One last rewire, but it’s the biggest replacement so we’ll unpack.

Investors will challenge you through little tidbits:

• I’m not sure that’s right
• We don’t exactly agree with you
• Are you sure?

Most founders counter skepticism with some version of “Well, we believe...”

That’s fighting water with oil, and you’re not going to do that anymore.

Instead, change “We believe…” → 100 potential customers said…

Even more valuable if they’re now paying customers.

VCs, angels, investors of all types can think what they want, but in pretty much all cases of capital raising, the customer is always right.

And your customers’ opinions trump investor beliefs.

If you don’t know what 100 customers (whether existing or potential) would say, then go speak with them.

For potential customers, ask questions like:

• What’s your biggest problem / challenge right now?
• Why is it such a big problem? How is it costing you money or giving you headaches?
• If we could wave a magic wand and just make it happen, then what could we do for you, that would be like a dream come true to solve that problem?
• What have you tried already to solve this? Why hasn’t it worked?

For existing customers, same thing just a bit more targeted. E.g. “What could we be doing better / that would make you totally OK with paying us 10x more?”

And whenever an investor disagrees with you, or asks you a question that you’re not really sure how to answer, try starting your response like this:

That’s a great point. Our [potential] customers have told us…

Summary

Investors aren’t always right.

Keep a good head on your shoulders.

You’re the one running this company, aren’t you?

They’re just the ones you let join the fun.

Keep the main thing, the main thing.