"The Powerful Secret to Getting Investment: Don't Forget to Ask for Money!"

Name: "The Powerful Secret to Getting Investment: Don't Forget to Ask for Money!"
Uploaded: 2023-10-03T13:29:44+00:00
Duration: 59 s
Channel: Jason M. Lemkin
Description: An angel investor reveals that 70% of startup pitches never ask for money, ending instead with generic questions. He breaks down how investors evaluate…

3 Oct 2023 · 1 min

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An angel investor reveals that 70% of startup pitches never ask for money, ending instead with generic questions. He breaks down how investors evaluate pitches through three mental frames, with the most common being outright rejection, and explains why founders must make an explicit request for capital.

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This is, I think, the really interesting one, um, and I can kind of share some personal stories about this. In your pitch, you actually have to ask for money. You would be shocked at how many pitches people do and they don't ask for money. Um, I think that it's on the order of 70% where the pitch is done, the founder asks if there are any questions, Investor says no, the meeting ends, no money was ever asked for. Now, I want to put you into the mindset of an investor for a second. I've been an angel investor for, I don't know, 7 years. There are 3 mindsets I have when I'm listening to a pitch. Mindset 1 is, I will never fund this company. Most common: "We'll never fund this company." Mindset 2 is, "I will definitely fund this company."