Holding your head up high when reaching out to investors: 8 tips for startup founders

As time goes by from your last round, raising capital becomes a pressing need, but ironically, the more you need it the harder it is to get. Investors don’t want to invest when they sense weakness in the company or the founder. So the worse thing you can do as a founder is signal weakness or neediness to potential investors. 

To raise capital, you need to shine with optimism, inspire with your vision of the future, and display the leadership traits needed to turn your startup into a big and successful company. You might see your remaining runway shrinking, and self-doubt and anxiety start to loom, but no matter what happens, you must remain contained and strong, otherwise you are driving investors away. 

This inner strength will display itself in all of your communications with an investor, even in your initial outreach to them. On the other hand, when you feel weak or confused, you will tend to signal it to the investor. 

Here are a few things that you can do to communicate with investors like a leader:  

1. Be mindful of your time: 

• If an investor expresses interest in meeting you, do not offer to be widely available and to adjust to the investor’s schedule. 
• Offer a 30-minute meeting for the first call, no more.
• Stick to the scheduled time and don’t let the meeting spill over. 

2. Be brief and focused: 

Don’t ramble or go off a tangent. Make sure you know how to communicate the important points about your startup and vision in the most effective and concise way. 

3. Do not be apologetic

Don’t apologize for mistakes or setbacks. Don’t hedge your statements. Don’t speak about your weaknesses unless it is truly necessary. 

4. Be yourself

Stick to your own style and language. Be the best version of yourself, not of anyone else. 

5. Have a system of reaching new investors: 

Consistently growing your investor network gives you confidence, as you do not feel like too much depends on the decision of a certain investor.

6. Don’t rush to share your information

Share information only as needed to communicate and move the conversation forward to the next step. Maintain a healthy level of curiosity and tension in your communication with investors. 

7. Focus on the bigger picture:

Speak about the future, the larger impact, and the grand vision of your startup.

8. Avoid language and phrases that display weakness:

• Use phrases and language that demonstrate your leadership, and not the contrary. For example, consider replacing ”sorry about that” with “thanks for understanding”. 
• Cut out expressions of self-doubt and confusion (consider replacing “I think there is a real chance that”  with “I believe that” ) 
• Don’t keep saying “thank you” more than you must - generally once in each discussion or email. 

In conclusion, remember that this is yours. You’re building this company and bringing a vision to life. The direction, tone, and narrative are all in your hands. As you step out to raise capital, communicate like the leader you are – with conviction, clarity, and confidence.