To learn how to get investors to say yes, click here to watch Sharon Zehavi’s webinar.
According to the latest figures, global venture capital funding fell dramatically across all stages in the first quarter of 2023. This news comes while the recent Silicon Valley Bank collapse has tech startup founders increasingly nervous about where they’ll find their next round of funding.
Global funding in Q1 totaled just $76 billion, marking a 53% decline year over year from $162 billion in the first quarter of 2022. Reports indicate that investors across each stage scaled back, with every funding stage down 44%-54% year over year.
Securing funding has always been a major hurdle for tech startups, but a downmarket presents even more challenges for startup founders looking to attract investors.
On May 9, Sharon Zehavi led a webinar for Founders Network on how to get startup investors to say yes. Sharon is the co-founder of 360 Start-up Partners, which helps early-stage startups with investor and user acquisition. Her webinar provided insights on using neuromarketing when pitching startup investors.
“The truth is plenty of really bad ideas or really simple, dumb ideas get a lot of money and really good world-changing ideas can get none,” Sharon says. “It has nothing to do with the idea. It has everything to do with your ability to influence, convince, and build trust. If you’re neglecting that and you’re only focusing on the idea, you’re always going to lose.”
In her webinar, Sharon also covered:
- The one biggest mistake founders make when pitching to potential investors
- Why great ideas get ignored while not-so-great ideas can raise millions
- The fundamentals of neuro-marketing and why they are essential to your pitch
- How to control perception and master positioning
- Clear action items and simple takeaways to start leveraging the primal rules of persuasion today
What is neuromarketing
Neuromarketing is a field of study that combines neuroscience, psychology, and marketing to understand how the brain responds to marketing stimuli. It can be applied to attract startup investors by leveraging insights from the field to create compelling and effective messages that appeal to the emotions, motivations, and decision-making processes of potential investors.
“You can leverage neuromarketing to get attention from potential investors,” Sharon says. “It’s about how to position yourself through your deck and through your presentation in a way that an investor would look at you as an opportunity rather than a risk.”
Tell a compelling story
The human brain is wired to respond to stories. Effective neuromarketing uses storytelling techniques to create a compelling narrative that captures the imagination of potential startup investors. This includes sharing the story of your startup’s journey, highlighting the problem you’re solving, and explaining why your solution is unique and impactful. Use emotional triggers, such as personal anecdotes, to engage with investors on an emotional level and create a memorable impression.
“Investors are looking for a bunch of different things, but ultimately, it’s the idea of recognizing an opportunity versus a risk,” Sharon says. “Often tech founders spend most of their energy on development because they think that the idea will sell itself. But there are successful startup founders who can get investment before they even have an MVP. They just say, here’s the concept. This is what I believe in. This is the value. And they get money before they have to spend their own.”
Trust and Credibility
Startup founders can use neuromarketing techniques, such as consistent branding, professional design, and clear communication, to build trust and credibility with potential startup investors. Highlight your team’s expertise, qualifications, and track record. Use language that conveys confidence, transparency, and integrity. Avoid jargon or complex technical terms that may confuse or alienate potential investors.
“They want to trust you and your team to be able to execute on it because trust is a critical factor in investor decision-making,” Sharon says. “I’ve seen plenty of startups where they have a great idea. But they don’t get money because nobody trusts them and their team to be able to execute on it.”