How to Fundraise Without Becoming a Person You Hate
Fundraising isn't always fun. It can be a long, agonizing, and often emotional process. Emails go unanswered; pitches fall on deaf ears; and many times investors just don't get it. This constant feedback loop (or lack thereof) can be taxing on even the most seasoned pro and can push founders to believe that they have to change and become more aggressive, tougher, and do anything possible to get to that yes. Don't fall into this trap. Here's how to remain true to yourself and feel confident in your own story and pitch.
Don't "play the part" of a founder. Founders come in all shapes and sizes, so be the real YOU during the process. It's very uncomfortable to pretend to be something you're not, and it becomes nearly impossible to live up to your potential because you're so focused on keeping up with the facade. It all goes back to trust. If you're inauthentic, people won't trust you. And without trust, there is no relationship. I know I always invest in people first, businesses second. Research shows that our instincts tell us to ask ourselves two questions when we first meet someone, "Can I trust this person?" and "can I respect this person?" We look to a person's warmth and competence to answer these two questions.
Look for the small wins. We know what big wins are after a pitch meeting, but it's just as essential to look for small wins to help you get ready to refine and try again. Sometimes an ah-ha phrase will emerge from the meeting, and your small win is that you picked up on a new way to communicate your message that will be more impactful. Other small wins: get an intro to an investor that may be a better fit or to a potential customer, or it may turn into an advising relationship. These are all parts of the process and appreciating the small wins will help keep you on track.
Be confident in your value. Remind yourself that you are offering investors the chance to be part of this amazing company—you're not begging for money. Build your confidence by paying close attention to your successes in life and how you accomplished them—you can't argue with facts. Not too long ago, I was giving a big speech to three hundred managers and was really nervous. A close friend told me to think back to a time when I gave a good speech. I visualized that speech and recalled how I prepared for it, what I said and how I said it and it made me feel far more confident. To develop your own evidence-based confidence, start to write down moments when you've created value or earned a big or small win. Ask yourself these questions: 1) When have I done something difficult and survived? 2) When have I made a solid pitch? 3) What process have I used when making successful decisions?
When they go low, stay high. The sad reality is, there are [insert negative word] investors. When the person on the other side of the table isn't playing nice, your first instinct may be to mirror that behavior. Don't. Instead of becoming defensive, ask yourself: Is this someone I want on my team anyway? You're giving up ownership and control in your company, and you want to make sure that your investors' goals, values, reputation and track record match up with your own. Never compromise your values for a check.
If you’re interested in going deeper on this topic, Randi Zuckerberg and I recorded a webinar on how to fundraise like a pro. Check it out here!
Need a template to create a pitch deck, click here!