Bridging the Gap: Gaining Investor Trust
In this video, I discuss the importance of gaining investor trust when seeking funding for your business. I emphasize the need for transparency and being open about your progress and challenges. By presenting yourself as trustworthy, reliable, and realistic, you increase your chances of attracting investors. I also highlight the significance of managing your emotions and presenting yourself in a calm and composed manner. By following these strategies, you can create a positive impression and increase the likelihood of investors coming on board.
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If you're struggling to raise your first investment or your first round and the investors just won't come up the line although you're pitching well, let's put your business model to one side for a second and let's talk about you.
You're the big unknown. In here, nobody knows how you're going to react when you get 150,000, 500,000, a million pounds in your bank account.
No one knows how you're going to manage that, whether you'll become an egotistical maniac, whether you'll become the opposite. And you'll crumble under the pressure.
Maybe you'll feel like the investor got a good deal on you, and you got the bad deal, and they've got too much, and the relationship turns toxic.
You know, this is a real thing that investors think about. And I think that's the obvious of this. It's the great unknown.
So what can you do to bridge that gap? Well, the first one, and the most obvious one, is just transparency.
Being open and honest about where you are, your progress, but more importantly, your challenges. That, builds trust. In the moment where you're supposed to be talking about 10x and making millionaires, go to the moon on the stonky rocket.
If you're the one sitting there saying, well, these are my challenges. This is where I'm losing money. This is where I'm burning.
This is what I want. I want to improve. You all of a sudden come across as someone who's trustworthy, reliable and realistic and honest.
So consider how you're presenting yourself, how you come across. If it's frantic, desperate, rushed, agitated, frustrated. That isn't a great sign and it's a big signal for an investor to just give you some space.
So let's think about that and understand what you can do to help an investor come into your business. Especially when they're going to be the first person on the cap table.
Transcript
Show Transcript
If you're struggling to raise your first investment or your first round and the investors just won't come up the line although you're pitching well, let's put your business model to one side for a second and let's talk about you.
You're the big unknown. In here, nobody knows how you're going to react when you get 150,000, 500,000, a million pounds in your bank account.
No one knows how you're going to manage that, whether you'll become an egotistical maniac, whether you'll become the opposite. And you'll crumble under the pressure.
Maybe you'll feel like the investor got a good deal on you, and you got the bad deal, and they've got too much, and the relationship turns toxic.
You know, this is a real thing that investors think about. And I think that's the obvious of this. It's the great unknown.
So what can you do to bridge that gap? Well, the first one, and the most obvious one, is just transparency.
Being open and honest about where you are, your progress, but more importantly, your challenges. That, builds trust. In the moment where you're supposed to be talking about 10x and making millionaires, go to the moon on the stonky rocket.
If you're the one sitting there saying, well, these are my challenges. This is where I'm losing money. This is where I'm burning.
This is what I want. I want to improve. You all of a sudden come across as someone who's trustworthy, reliable and realistic and honest.
So consider how you're presenting yourself, how you come across. If it's frantic, desperate, rushed, agitated, frustrated. That isn't a great sign and it's a big signal for an investor to just give you some space.
So let's think about that and understand what you can do to help an investor come into your business. Especially when they're going to be the first person on the cap table.
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