What Should I Never say to an Investor?

What Should I Never say to an Investor? [What should I never say to an investor_What should I never say to an investor (1)] TL;DR: "I'm going to be raising capital for the first time — I know what I want to tell investors, but what should I avoid saying altogether?" More often than not, what we avoid saying to investors is as valuable as what we do say. With our best intentions, we often shoot ourselves in the foot making lofty assumptions or declarations that investors hear all the time and just start shaking their heads. Let's avoid that. --------------------------------------------------------------- Today’s Advice Sponsored by [Hustle Con](W8Z_Dtl18K_2KN4jPrZlZLzy40/*VyZWNz5RjQxfW8cMxkd7LC_RF0/5/f18dQhb0SfHs8X-gfQW8bzGcz2wqbgQW6P2KSQ51z46yVRqVCT7fMH_HV4hbtL618y1GN5KnrZ2D5RCsW7Dp3WG9kg82ZW3wnNNY8hz0YsW806yj370ml3sW3rc5_v6xgbt2VtxcnZ1PmLTcW2cyHpt2Kzn0dW7p8jZP1SFvddW3cbsCB75RYKsW2Q1LDj7JtJ1JVrkRJS5-VCBgW1gZ-928j-zLgW8PCNP-6Cxv8VW4N53-q4P6xtkW3y2vrM76VvwzW2CZjZ26jM5XfW3chsMw8MbMkNN3ZRXR8BMHpnN17SdCM6Q977W3yw6vq45Ly2MVkwRN48nZZF9W7nWMDZ2LBsTzW7t3X0Z7tW2g8W2GGDkv7v6zyMW7zB_Gl5mRgWyW93PcPN6k4HLtW4D1ph43nmYGMN40Kzc_B4_W2W9lld5f5Q4MlLMdSQk91_P_3f4lGdMh11) These are conservative forecasts The moment we open ourselves up to saying our estimates are "conservative" we risk the conversation pointing to whether our assumptions are actually "conservative", "aggressive" or just "wild-ass guesses". All estimates are guesses. Let's avoid giving them a label at all, and instead say "These estimates are based on our best assumptions across our entire business." Investors would rather know the assumptions are based on what we are most confident in. Also, whenever discussing forecasts, always focus on individual assumptions, not total forecasts — they are more defensible. If we just capture 1% of this market... "Just" capturing 1% of any market that's big enough for 1% to be meaningful isn't easy, so let's not make that sound like a layup. It also often suggests we're targeting the wrong initial market. We'd rather explain how we're going to capture a large percentage of a smaller market and work our way up to a larger market in time. It's more conceivable to say "We're going to capture 20% of the all-vegan non-carbonated energy drink market" than "1% of the beverage market". We're not worried about revenue now We may be deferring revenue generation a bit, but let's not say we're not thinking about it. A better response would be "Revenue is incredibly important to us, but right now we're going to exploit some opportunities to drive market share before cranking up revenue." Investors don't want to think we are blind to revenue, which is ultimately how they will earn a great return on their investment. Too often "Not thinking about revenue right now" is interchangeable with "We have no idea how this makes money." --------------------------------------------------------------- [sponsored-badge] It’s like a 2-day MBA without wasting 2 years and $100k That’s how a [Hustle Con](W8Z_Dtl18K_2KN4jPrZlZLzy40/*W1tJg_64Z4wzJW29Lwdc4L2wcl0/5/f18dQhb0SfHs8X-gfQW8bzGcz2wqbgQW6P2KSQ51z46yVRqVCT7fMH_HV4hbtL618y1GN5KnrZ2D5RCsW7Dp3WG9kg82ZW3wnNNY8hz0YsW806yj370ml3sW3rc5_v6xgbt2VtxcnZ1PmLTcW2cyHpt2Kzn0dW7p8jZP1SFvddW3cbsCB75RYKsW2Q1LDj7JtJ1JVrkRJS5-VCBgW1gZ-928j-zLgW8PCNP-6Cxv8VW4N53-q4P6xtkW3y2vrM76VvwzW2CZjZ26jM5XfW3chsMw8MbMkNN3ZRXR8BMHpnN17SdCM6Q977W3yw6vq45Ly2MVkwRN48nZZF9W7nWMDZ2LBsTzW7t3X0Z7tW2g8W2GGDkv7v6zyMW7zB_Gl5mRgWyW93PcPN6k4HLtW4D1ph43nmYGMN40Kzc_B4_W2W9lld5f5Q4MlLMf56wk1_PYpf3vxNS_11) attendee described the conference. Hustle Con is an annual two-day conference that brings together nearly 2,000 founders, entrepreneurs, business owners, and ambitious professionals. Why? To [learn growth tactics](W8Z_Dtl18K_2KN4jPrZlZLzy40/*W2k5BCY1SxWsyW7dH1tt5FY2NW0/5/f18dQhb0SfHs8X-gfQW8bzGcz2wqbgQW6P2KSQ51z46yVRqVCT7fMH_HV4hbtL618y1GN5KnrZ2D5RCsW7Dp3WG9kg82ZW3wnNNY8hz0YsW806yj370ml3sW3rc5_v6xgbt2VtxcnZ1PmLTcW2cyHpt2Kzn0dW7p8jZP1SFvddW3cbsCB75RYKsW2Q1LDj7JtJ1JVrkRJS5-VCBgW1gZ-928j-zLgW8PCNP-6Cxv8VW4N53-q4P6xtkW3y2vrM76VvwzW2CZjZ26jM5XfW3chsMw8MbMkNN3ZRXR8BMHpnN17SdCM6Q977W3yw6vq45Ly2MVkwRN48nZZF9W7nWMDZ2LBsTzW7t3X0Z7tW2g8W2GGDkv7v6zyMW7zB_Gl5mRgWyW93PcPN6k4HLtW4D1ph43nmYGMN40Kzc_B4_W2W9lld5f5Q4MlLMd-sXf1_P_Gf1mm1z711) from leading startup founders -- tactics anyone, technical or not, can implement immediately and see the outcome. It’s is a crash course in taking your business to the next level. This year, Hustle Con welcomes founders from ThirdLove, Hims, Strava, Lime, Calm, thredUP and many more. Founders will not only be on stage, but also up-close-and-personal during classroom breakout sessions on Day 2. The best part? The HC folks are extending early bird pricing for readers of Startup Therapy for the next 48 hours (until midnight tomorrow). Just enter the code STARTUPSDOTCOM to get your early bird pricing and snag an extra $40 off your ticket. [Join the tribe](W8Z_Dtl18K_2KN4jPrZlZLzy40/*W7Dj1-B2tsv_cW24bsZN1tFVgf0/5/f18dQhb0SfHs8X-gfQW8bzGcz2wqbgQW6P2KSQ51z46yVRqVCT7fMH_HV4hbtL618y1GN5KnrZ2D5RCsW7Dp3WG9kg82ZW3wnNNY8hz0YsW806yj370ml3sW3rc5_v6xgbt2VtxcnZ1PmLTcW2cyHpt2Kzn0dW7p8jZP1SFvddW3cbsCB75RYKsW2Q1LDj7JtJ1JVrkRJS5-VCBgW1gZ-928j-zLgW8PCNP-6Cxv8VW4N53-q4P6xtkW3y2vrM76VvwzW2CZjZ26jM5XfW3chsMw8MbMkNN3ZRXR8BMHpnN17SdCM6Q977W3yw6vq45Ly2MVkwRN48nZZF9W7nWMDZ2LBsTzW7t3X0Z7tW2g8W2GGDkv7v6zyMW7zB_Gl5mRgWyW93PcPN6k4HLtW4D1ph43nmYGMN40Kzc_B4_W2W9lld5f5Q4MlLMfcP5p1_P-9dsgDnQ11) December 2-3 at the Paramount Theater in Oakland, CA -- and don’t say we never did nothin’ for ya. [GET YOUR TICKET →](W8Z_Dtl18K_2KN4jPrZlZLzy40/*W50hG8R51k8_zW7nJtdF8z6BV_0/5/f18dQhb0Sq5C8YHrG2W2R-v8d5VQHwBW4VPzM15WJCL4W4R4zyW57mvFqW3BJFQw57Tg2gW5LrSfY2cSR0HW3nvJMz5mNLNsW9dSlS635rq6zW79-Msl4PfkPHVHMH0b2Fmf6_W1nnQd36G5wb1W5xD-502KDdbNW2GFmQX6B3ZfnW6CPP_31Nhj9qW5_N79W3hNbWQN3jZC_Y1BpsfW7vRb8y6D5--gW5RlSdT5xNCj8W8mGgzn313MGDN5zCy9r-qwbJW8JR3kM3Cy9QHW8jzD5K5Mt3MpW5zDh_f5yJmm2W8swPwV5G0L_rW3ldW_48Kl-T6N3xc7NbR37N-MKhXG3NGh7GW5hhfgq8lB597W3v6GH68s0V18N2-D_MKSdDxXW5B1xQR8mH79MW3RZTR28h5yh5W5K1fKY3mlFXdVdLGLC64T_-YN8vPYVNcWbVfW4Wpz-03b137nW5ZcPgz5Z8rZqW79YfPF7s-yPmW4-fH8d7sLf44Vj8tbN480Z0jW5N81HP8Nhp-wV_sMv26GRR4zW8BxMZp8d4GQDW2SSvtt3bGkNXN73Q0vR1-MK1f5t-yRp02) --------------------------------------------------------------- In Case You Missed It W8Z_Dtl18K_2KN4jPrZlZLzy40/*W8jzwB083-3fMW3W87wq2tV2QD0/5/f18dQhb0J5Y3ssx7V5QmhF8FJBRxW47cWMh22VWQvF1Q68LWp8PfW3R5hFj4cm2zwW4mKLS-4cQgwjW4fPfQf1JxwY5W1LzQ9j49HStVW1LwX9g3K8R8fW3z8QJh3F6bYHW43YflH43mytwW3M3Ddk1Gy1HBW43mydw4hJTXVW49qGH44cJ2xcW2fd1h32TNS6PW1G7tzp4kwdGKW3QP9D938cWfcW41zB8F4rfhnSW4ryW4S4krtPnW2xFYgG47FyZWW3SCT2J4hMpr6W22WPp01Sqj3WW49mm0f1VrlNSW3bBGDx3M91nVW45Q1bt45W3CcW329yK91QkRjwW2nRS3l3W38BZW2xyYRP2MVPhhW3XKDkN34ggyQW2Pvjnr3R4TymN2dPjMmcBlSxCvFpFDk7HW2xcWWd49M9mzW49HS1M3zd5XfW3T1f4S2m40KfW3T0khv5_Kg8YW15gBJz9gl4VWW5b8zPJ4Hznp7W4W3zh08JvzTQVWvKbR9bZCJbLjG042S8L5f16YkWd11 [What Are Investors Looking For?](W8Z_Dtl18K_2KN4jPrZlZLzy40/*VSx5y91DtB_VW2F6Nlk4hLcLb0/5/f18dQhb0J5K3yscxV5QldM8FJBRxW47cWMh22VWQvF1Q68LWp7_BW3R5hFj4cm2zwW4mKLS-4cQgwjW4fPfQf1JxwY5W1LzQ9j49HStVW1LwX9g3K8R8fW3z8QJh3F6bYJW41ZnhD4fLN6ZW1GDKJD3XYlpkW2k26-G3K76NrW45n5SR47TcH9W1Gy6Cq3dhBK0W2MGhZW2y2378W2w0dnD2nRWBhW3SyYLd2WtQj1W2p5qWX3dxYRtW23l8BQ4fQ0TRW1Zblq63CgPBjW21m7473R7LB9W4pFlzb4kK1rlW3SPrj-4hJRn3W1ZfP4N348wdfW2MvbNR4ksKpVW1Zs3Lp4hnlDyW2Rs6hl2vx3y2W2xrH804cMmTSDGb8D4vFpFTDk7H2xcWWdW49M9mz49HS1MW3zd5Xf3T1f4SW2m40Kf3T0khkW5_Kg8Y15gBJzW9gl4VW5b8zPJW4Hznp74W3zh0N8JvzTQWvKbRF9bZCJbjG04M2S8LL88xgj111) By understanding each of the key areas that investors react to, you can be better prepared to position your deal to be more attractive. You can also begin to understand why they may not be reacting the way you would expect them to. [How To Find Angel Investors.](W8Z_Dtl18K_2KN4jPrZlZLzy40/*W1MRBpn7RFM1XN5Jr-4Qy7fHc0/5/f18dQhb0J5Y3ssx8V5QmhF8FJBRxW47cWMh22VWQvF1Q68LWp8T_W3R5hFj4cm2zwW4mKLS-4cQgwjW4fPfQf1JxwY5W1LzQ9j49HStVW1LwX9g3K8R8fW3z8QJh3F6bYHW43Yfl-43mydpW41QPRt41S792W1GCtb63K9dG5W49RfxZ3R4SSxW3DQGFF2nT8K0W4t3sN33KbrCNW2YG6ft2sTwFRW1QxGVK2TS4r9W3T5Wxk3_-PSsW3ZDRTF2WMl97W3M3x7w4rF_HcW2vCyvC1-YtzgW30HlfK2-cG8qW32rMG63M2n8FW2t3p7947Rym8W2CLqRj4r6FzvW32gxf33R172YW2xHw9B1SdL3qW2HTyk93D_8JrW47yv1C3vfnkhN3SFSGFmtZkWCvFpFDk7HW2xcWWd49M9mzW49HS1M3zd5XfW3T1f4S2m40KfW3T0khw5_Kg8YW15gBJz9gl4VWW5b8zPJ4Hznp7W4W3zh08JvzTQVWvKbR9bZCJbLjG042S8K2f2YLGmb11) One of the hardest things to do is get your foot in the door. How do you find angel investors? How do you get angel investors to invest in your startup? Don’t worry, Founders. We’ve got you covered. [Will Investors Fund Just an Idea?](W8Z_Dtl18K_2KN4jPrZlZLzy40/*W4xjWKV253BYJW5P8dVS5XKTrj0/5/f18dQhb0S5fs8Z9b3TW5GYyXB2qwv31VqtgCG2shlGwMf5xtgXD6prW7cmS1s8pCQ6vW7b_fPy1ngWs5W4vgKM197KzmVW2ybRTX98zZXmW69_67C50F4lSW7mWzr35Ckq7WW5CR6nt7b_rDwW7d7cLr4r3tLGW634fgD2d5536W7MRy6C57-WqMW3H_Pty2DzCtRW1yC0MH7NH7cYW4HGk8n8s8xZCW77cMXg6_rgB_W7v3GjV82tcJSW11XRVv9lFht0W6BMb-d7qb0cWVStvkv1VV-vTW5SZ-3Y2n1HjFW8cRvSd6CyyJ8W8sPrMG75PrRsW925fv02LwDgGW3w-9Sp57zmMHW3bl4Fq1jWLg7W7BgbV_8k_gtrW2qt5C95SKS_XW40G3SS4fz4vdW1NFfl48P4zkHN2JbNchRzWwGW8q5y8b60LmY6W3fQyhT8s4bmxW1P9slz714h8QW1nzHJN7pQYsSW4FW1CM3wB42KW4tDK7W6KjcgHW2MB17X8fSRW5M9Xfws7s2GRTL3x549sBMH103) Startups get funded at all different stages, from the initial idea all the way up through proven traction. The problem is that the uninitiated don't quite understand what the difference is. W8Z_Dtl18K_2KN4jPrZlZLzy40/*W1v7kRJ51d86RW7-DzNb6NZj-J0/5/f18dQhb0S83f8Z99sHW5GYyXB2qwv31VqtgCG2shlGwMf5mldXD6prW7cmS1s8pCQ6vW7b_fPy1ngWs5W4vgKM197NtZSW5G172269zD6gW1Hlmp32Km0ZbW1LhNxQ6Dy4V9W7zLV652NnQ5KW4bQW_q6c44tLN2PjtRxwbLynW4lX1GV1RfTGrW8RS1MM7yPtgxW7sTBtJ7rq79bW8VRyZ22SvS_6W6kHWYS4n8N7hN1N5zVCq1zYmMl8Wm6mSB32W2FFDFc49hMTMW1L436S4c18QmN67VskGqDx0gW7v2Nk149S3BVW1Ytc6f8S4-PtW2T0DWS1HHknNN24KyPmSbDF6N4c72cvwKJnCV3qXWP3p7LfZW5DpFQ351L-dtW24PBjS4rWMVnW8y8x9Z25yw1dVj8tbN480Z0jW5N81HP8Nhp-wV_sMv26GRR4zW8BxMZp8d4GQDW2SSvtt3bGkNXN73Q0vR1-CfVf37s_Mf02 Thanks from the Startups Team, [Startups-employee-avatars_Wil-1] Wil Schroter Founder, CEO and Startup Sensei [Startups-employee-avatars_Ryan] Ryan RutanCMO and Man with the Golden Podcast Voice [T02DA5FEN-U02N4GT6N-948551120bc3-72] Jordan ReillySenior Graphic Designer and Illustrator Startups.com, 1322 Manning Parkway, Columbus, OH 43065, USA, (800) 997-9714 [Unsubscribe]( [Manage preferences](