Dr. Thomas J. Powell explains that investors back pitches that clearly solve a real, personally-recognized problem. He uses the Odyssey hero-journey analogy—one becomes a hero by solving a problem—to argue founders should present their product as addressing a specific pain point. He gives a concrete example: an investor who struggles with no-shows would fund a calendar system that automatically reminds and ensures appointments happen, especially if the solution works without extra staff.
Chapters
So it is the Odyssey, right? One of the oldest stories, if not the oldest story they've been telling, at least in the Western civilization, which is you've got someone who's out there in kind of a total mess up, and until there's a problem to solve, he can't be the hero. So the hero is about solving a problem and going on that journey, right? And so that's where this comes in. So if I as an investor have identified that I want to have a calendar system that works a certain way and is able to call people back and make sure that they are on time for their appointments and it happens with or without my staff in there, because it's a pain point for me and someone brings that idea and a solution to me, I'm going to write a check because I personally experience that problem and if I can have an ease of understanding it, then I will write that check. Because I'm like, man, if I can solve this and it's a big problem and these guys show that they can do it, and then we have an opportunity, right? So is it fair to say you'll invest in things that are solutions for you, solutions for problems that I've recognized?