The journey of a startup founder is fraught with challenges, and securing funding is often at the top of the list. Pitching to investors is an art form, where every word counts and the difference between securing a lifeline for your business and walking away empty-handed can hinge on your choice of phrases. In the high-stakes world of startup financing, certain phrases can be the kiss of death to potential investors. Let’s explore these verbal pitfalls and how to navigate the funding landscape more effectively.

1. “We Don’t Have Any Competitors”

Claiming to have no competitors is a red flag for investors. It suggests a lack of understanding of your market or an overly narrow definition of competition. Every successful business solves a problem, and it’s unlikely yours is the only solution out there. Instead, acknowledge your competitors and highlight what sets your startup apart. This shows you’ve done your homework and understand the competitive landscape.

2. “Our Projections Are Conservative”

While you might think this phrase demonstrates prudence, it often raises doubts about your confidence in your business model or your understanding of the market. Investors are looking for startups with the potential for significant growth. Focus on providing realistic, data-backed projections that reflect both optimism and a grounded understanding of your market.

3. “We Just Need 1% of the Market”

Capturing even a small fraction of a large market can seem like a low-risk, high-reward strategy. However, this phrase can suggest a lack of a targeted go-to-market strategy. Investors prefer to see a focused approach to capturing a specific segment of the market where you can realistically achieve dominance and scale.

4. “Trust Me”

Trust is earned, not given, especially in the world of startup investing. This phrase can come across as evasive, especially if you’re not backing up your claims with data, customer testimonials, or a track record of execution. Build trust by being transparent, providing evidence, and acknowledging the risks and how you plan to mitigate them.

5. “It’s a Billion-Dollar Idea”

While confidence is key, overhyping your idea without the execution plan to back it up can be off-putting. Investors hear claims of billion-dollar ideas frequently and are more interested in how you plan to get there. Articulate a clear, step-by-step plan on how you intend to grow your business into a major player in your industry.

6. “We Plan to Pivot Soon”

Pivoting is not uncommon in the startup world, but mentioning it during a pitch can raise concerns about the viability of your current model. It may signal to investors that you’re not fully committed or confident in your business. If a pivot is on the horizon, focus on the opportunity it presents and the research and reasoning behind the shift.

7. “You’d Be a Fool Not to Invest”

This phrase, or any variation of it, can come across as arrogant and disrespectful. Successful relationships with investors are built on mutual respect and understanding. A more effective approach is to outline the unique opportunity your startup represents and why it aligns with the investor’s portfolio and interests.

Navigating the Path to Funding

Securing funding is as much about avoiding mistakes as it is about impressing potential investors. By steering clear of these phrases and focusing on a strong, data-backed narrative, you can increase your chances of winning the support you need. Remember, investors are not just investing in your idea—they’re investing in you. Demonstrate your understanding of the market, your readiness to adapt, and your unwavering commitment to your vision. With the right approach, you can turn your pitch into a compelling story that captures the imagination and confidence of those holding the purse strings.

By Stanislav Kondrashov