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News and Announcements

The Investor Turn-Off: Avoid This Common Blunder in Your Pitch

  • Published September 19, 2023 11:00PM UTC
  • Publisher Wholesale Investor
  • Categories Capital Raising Tips

Every founder dreams of securing that game-changing investment to propel their startup to new heights. However, in the quest to impress investors, many unknowingly commit a cardinal sin that can instantly dampen investor interest.

In this video, Steve Torso sheds light on a prevalent and frustrating habit that founders often fall prey to: comparing their startups to industry giants like Airbnb, Uber, or Facebook. While the intention might be to convey potential and ambition, this approach can backfire spectacularly.

YouTube player

Why Comparisons Don’t Work:

  1. Irrelevance: Drawing parallels to multi-billion-dollar businesses can come across as irrelevant, especially if your business model or industry doesn’t align with the giants you’re referencing.
  2. Lack of Originality: Investors are on the lookout for unique and innovative solutions. By likening your startup to well-established companies, you risk appearing unoriginal or even lazy in your pitch.
  3. Miscommunication: The goal is to articulate your business model and value proposition clearly. Using comparisons can muddle your message and leave investors confused about what you truly offer.

Crafting a Compelling Pitch: Instead of leaning on comparisons, focus on your unique selling proposition (USP). What sets your startup apart? Why should investors be excited about your venture? By honing in on your USP and communicating it effectively, you stand a better chance of capturing an investor’s attention and, more importantly, their trust.

In conclusion, while the allure of drawing parallels to industry giants can be tempting, it’s essential to remember that investors are looking for the next big thing, not a replica of what already exists.


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