How listening helps during fundraising for your startup?
Listening is not just one of the most vital tasks, but tools that startup founders can harness to ensure their business success. This is especially true when it comes to fundraising.
The art and skill of listening will not only yield much better conversion rates in pitching during fundraising campaigns, but may significantly improve the terms you can raise money on, and the core metrics throughout your organization that facilitate future funding raising rounds.
Acing this pivotal part of startups is not just about finding the right appreciation and respect for the power of listening, but also learning how to listen better.
Why Listening Is So Important During Fundraising
Listening can make all the difference in successful investor meetings.
More than that, listening will prove the key to get into those investor meetings in the first place. From the data you collect, to how you pull it all together in your pitch deck, to your outreach messages and connecting with potential investors to get your pitch deck in front of them, listening will be critical.
This is inseparably intertwined with your overall business and sales success. Failure to show good listening skills when meeting with investors will not only jeopardize your chances of getting funding from them on its own, but is also a big red flag that you haven’t been listening to others from the beginning. That signals there may be serious flaws in the foundations of your company and all of your assumptions, products, and projections as well.
Understand how listening helps during fundraising is key to:
- Showing you respect your potential investors
- You have a real interest in what is important to them
- Getting the clues as to what they really want
- Understanding their concerns and objections and how to overcome them
The Cons Of Not Listening Well
There are many issues tied to not listening well. These include:
- Missing opportunities to build a better and stronger business with higher odds of success
- Leaner and less reliable data to report in your slides
- Not pitching the right investors in the right way
- Failure to produce a pitch deck that really nails what investors want to see
- Not being able to address objections and roadblocks to funding
Signs Someone Is Not Listening Well
What is it that will give away the fact that you are not listening well? What can you avoid doing that will suggest you are not being a good listener, or trigger the above issues and concerns?
- Multitasking, and being visibly distracted
- Allowing other interruptions
- Body language
- Verbally interrupting before someone else has finished speaking
- Taking the conversation on different tangents, suggesting you were thinking or pretending to listen instead of actually listening
Not paying attention to your investors can make a difference in nailing your pitch.
The Listening Test
It seems we have two ears and one mouth for a reason. Perhaps we should be listening at least twice as much as we speak. This 2:1 ratio is probably the best gauge of whether you are actually listening, and listening enough.
Practice this when practicing your pitch and presentation. Time it, or have someone else time you. How much of your presentations and meetings are speaking versus hearing.
Ways To Listen Better Applied For Fundraising
Start By Listening To Your Customers
The basis for any good company, let alone a good pitch is approaching and listening to customers in advance.
The best startups start out by going out to talk to and listen to their prospective customers. They often do this for months before even writing a single line of code, or forming an opinion about the best type of product to serve.
The more you can do this the better. It will give you deep clarity on the problem and your target audience. Nothing is more important when it comes to the foundation of a successful, sustainable, scalable, and fundable startup.
See How I Can Help You With Your Fundraising Efforts
- Fundraising Process : get guidance from A to Z.
- Materials : our team creates epic pitch decks and financial models
- Investor Access : connect with the right investors for your business and close them