Simple stories

Building a company has a lot of nuance and dealing with people and technology is complex. But when it comes to fundraising from venture capitalists (and others) a big advantage is to have a simple story of what you are going to do. Not shallow, but simple (and ambitious).

To take every different variable affecting the future into account when making an investment decision is not possible. Thus investment decisions, in practice, are based on a combination of a plausible stories of the future and numbers.

Three advantages of a simple story are:

  1. easier for an investor to understand when reading a pitch deck (increases the chance of an initial meeting)
  2. helps focus the investor on the right things
  3. makes it easier for the investor to re-tell your story to other partners at the venture firm (higher likelihood of getting to “yes!”).

Author: Henrik Torstensson

Partner at Alliance VC. Investing in Nordic early-stage tech startups.

One thought on “Simple stories”

Leave a Reply