In the dynamic world of startups and innovation, terms like “disruptive,” “revolutionary,” and “breakthrough” are often thrown around. But are these terms always accurate, or are they just buzzwords that sound impressive? Steve Torso, the CEO & Co-Founder of Wholesale Investor, delves into the nuances of these terms and their implications in the capital raising process.

Every founder and innovator wants their product or service to be seen as unique, groundbreaking, and, yes, disruptive. They envision their offerings as game-changers that redefine industries, much like how electric vehicles are reshaping the automotive sector. However, the reality often differs from this vision.

While it’s natural for founders to view their products as revolutionary, it’s crucial to ensure these claims are substantiated. Labeling a product as “disruptive” when it merely offers an alternative to existing solutions can be misleading. For instance, electric vehicles don’t just provide an alternative mode of transport; they challenge the very foundation of the petroleum industry, rendering traditional petrol stations obsolete.

Founders often see the vast potential of their products. They dream of being the next Elon Musk, revolutionising entire industries. However, from an investor’s perspective, terms like “world’s only” or “breakthrough” can be red flags. Investors often encounter multiple pitches claiming similar unique attributes. Thus, making unsubstantiated claims can lead to skepticism and missed opportunities.

Steve Torso advises founders to be cautious with their choice of words. While passion and belief in one’s product are essential, it’s equally crucial to present a realistic picture to potential investors. Avoid overusing terms like “disruptive” or “world’s only” unless they can be genuinely substantiated. Instead, focus on the tangible benefits, the actual market gap being addressed, and the real-world impact of the product or service.

In the competitive world of startups and capital raising, authenticity and clarity are paramount. While it’s tempting to label every innovation as “disruptive” or “revolutionary,” it’s essential to ensure these claims stand up to scrutiny. By presenting a balanced and realistic picture, founders can build trust with investors and pave the way for successful collaborations.