How to Craft a Startup Story
Chapter 1: Why Tell Stories?
The Importance of Storytelling
Storytelling is a key skill for any startup raising funding. In the early days of a startup, the product and team aren’t fully developed, and customers typically aren’t fully engaged. As such, investors look to the founders to understand the potential of the business. In this case, the founder who can articulate a clear vision of the company and fill in the gaps can win over the investor.
Such a skill also demonstrates to investors the ability to win over potential employees, future customers, and critical partners to make the business successful. If you can’t convince an investor of your story, you likely won’t be able to convince a customer to buy your product or service.
When talking to investors, the story comes into play when defining the problem you are solving. After that, the pitch goes to the specifics of the company (product, team, market) where the story form is less relevant.
While storytelling is an important part of gaining fundraising for your startup, be mindful not to wear this resource out. Using the storytelling technique throughout the whole pitch can end up dragging out the process. When an investor asks how many people are on the team, it’s best to give a straight-up number rather than a story that explains the history of hiring each team member. If the investor asks how the team got started on this project, a story is your go-to.
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