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Fundraising Tip for Founders: Revamp Your Storytelling Skills

An article we liked from Thought Leader James Currier of NFX:

The 23 Rules of Storytelling For Fundraising

As a Founder, you are the Chief Storyteller.  Storytelling Skills

You need to convince investors, employees, customers, partners, and journalists to give you the resources you need — you do that with your story, your narrative.

A story is not about tricking people into doing what you want. It’s about understanding your audience, empathizing with how they see the world and what they want, and then inspiring them using words that mean something to them.

When you are fundraising, we have observed specific storytelling techniques that will motivate your VC audience to invest. To be a world-class Founder, here are our top 23 rules for great storytelling.

1. Brevity: Only Call Out What’s Important

Listeners can’t hear what’s important when you talk too much or put too much in your deck. Telling a good story isn’t about spewing out everything on your mind and letting them sort through the mess. It isn’t about bludgeoning the listener with so many sentences that they love you.

Saying less is better. Figure out what’s important and what’s not. Emphasize what’s important. As a listener, I just want the important pieces from you.

It turns out that there are only a few elements of your story that are important in motivating an investor to invest. Here’s a quick list. You should emphasize these:

  1. Sector. Explain clearly what the company does and for what customer.
  2. Business model. How do you make money? Who buys, for how much, and how frequently?
  3. Traction numbers: Revenues, retention, unit economics, CAC, LTV…
  4. Team. What makes your team unique for this opportunity?
  5. Timing. Why couldn’t it be done before? What changed recently?
  6. Unique insights you have. What others don’t understand about the customer or the technology.
  7. Competition. Why you will win, or why both you and your competition can win.
  8. Business design. Why your network effects or other defensibilities will make you win.
  9. Market. The massive hidden market you’ve found (Total Addressable Market or TAM)
  10. Go to Market. How you get to $100M+ in revenue with a bottoms-up calculation.

These elements are emphasized in a tool like BriefLink, which helps Founders craft their story.

2. Constantly Adjust Your Story to Your Audience

Some Founders think, “I’ll write down our story in a deck or a Brief, and then I’m done, and we’ll go tell that story to everyone. ”

That is not the case at all. You have to adjust your story and tell it slightly differently every time.

Each time you start to tell your story again, you’ve got to be able to judge the room and speak to what they’re interested in, only including only the key details that are relevant for that audience. You need to adjust your...

Read the rest of this article at nfx.com...

Thanks for this article excerpt to James Currier, General Partner at NFX.

Photo by RODNAE Productions from Pexels

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