Written By: Janine Kick
A founder asked me the other day what they can say to an investor to get their attention right away and it got me thinking… What are the most powerful phrases? Now before we get into it, let it be said, you should only use these phrases if they’re true for your company. I am in no way suggesting any white lies should be shared! That said, the following statements are some attractive sound bites that ought to encourage any investor to lean in and take note.
“We’re addressing a massive archaic industry.”
Investors tend to want to invest in new concepts in untapped markets, not the ‘Uber for…” Oftentimes, the newest and largest concepts are found in some of the most outdated markets.
“We’re focused on industry X but we’re being pulled into adjacent markets, Y and Z.”
This tells an investor that 1) you’re focused and 2) your product is not only working in your market but the need is far greater. Users in adjacent markets are looking for solutions and are finding you.
“We have great unit economics.”
This signals to an investor that you’re acquiring customers at a low cost and keeping them. In other words, your product is sticky therefore increasing your margin.
“It’s getting hard to keep up with demand.”
What you’re really saying is that you have a backlog of demand ready for the taking. Making growth much more attainable and formulaic.
“I need to hire more engineers.”
This tells an investor you are solving problems from a technical perspective which is a long-term fix and ultimately will keep headcount costs down.
“Our NPS is 75.”
Having a net promoter score of 50+ is significant. This tells investors your customers are your biggest fans and you’ve likely found product-market-fit.
“We’re not raising right now.”
This is the holy grail. It’s no secret that the best time to raise capital is when you don’t need capital. It’s also no secret that people do business with people and it’s much easier to build relationships when you aren’t asking for something. If you find yourself in a situation where you can say you aren’t raising this tells an investor your company is operating efficiently likely derived from predictable revenue.
While these phrases are powerful, I don’t want to overstate them. Making them accurate and unique to you and your organization by playing to your strengths is always the best way to gain attention from investors.
Kerosene Ventures – Helping Great Founders Raise Capital