Challenge: Investors are declining to invest in us because they lack conviction on our GTM.
Advice:
Accept Rejection and Keep Moving Forward: It's normal for even the best companies to be passed on by a few investors. If 2-3 investors are telling you this, don’t be discouraged. Keep scheduling more meetings and presenting your pitch.
Refine Your Narrative: Rethink how you’re presenting your GTM strategy. Your pitch needs to be compelling and demonstrate a near-term opportunity that hasn’t been possible before. Explain why this opportunity is now viable due to a fundamental change in the market.
Highlight Technical Difficulty and Advantage: Emphasize that you’re tackling something technically difficult and that you have a unique technical advantage. Show how this differentiates you from competitors and why you are uniquely positioned to succeed.
Show Long-Term Potential: Explain the long-term potential of your company, particularly the network effects that could help you scale into a $10 billion company. Investors need to see the massive growth potential and how you plan to achieve it.
Inject a Sense of Urgency (FOMO): Create a sense of urgency and fear of missing out (FOMO). Make it clear that your success is inevitable and that you’re moving forward with or without them. Show strong traction and significant milestones that indicate your momentum.
Quantify Your Pipeline: Show your qualified pipeline and the size of the contracts you're engaging with. Provide detailed metrics to illustrate the potential value. Even if you can’t quantify the exact price, quantify your impact. For example, demonstrate a business impact assessment like "We'd drive $10 million in cost savings." This shows that you are addressing a legitimate pain point.
Demonstrate Business Impact: Clearly articulate the business impact of your solution. Show how your product or service solves significant problems for your customers. Use specific examples and data to illustrate the positive outcomes, such as cost savings, revenue generation, or efficiency improvements.