Thank You, We got $1M investment!

and How do you really sell an Audi A5….

It’s not everyday event that I’m getting a “thank you” call from founders, but when it happens, it fills my heart with joy. This one was truly unique.

A couple of months ago I met with an eccentric business Founder and his introvert yet talented co-founder and CTO. They were looking for seed investment with no success for a long period of time. The team pitched me on a their enterprise technology, a highly sophisticated platform with many modules and capabilities. They described every module to the detail until I completely forgot what they were selling. It looked like every module is a company on its own.

When they finished the pitch. I was quite blunt. “Guys, you will not be able to raise money this way!”. “You are all over the place!”. “You need to focus on the main solution and stop selling me every component on its own”. I described how I would have positioned their product and company, and went on my way, assuming that they will think that I’m just another “smart-ass” VC that does not understand them… ;-)

A couple of weeks later I got a phone call, “Motti?”. “Yes” I replied.

“I just called to say thank you. We’ve been in the market for a long time and nobody gave us such a direct feedback. Because of you, we are going to completely change our focus and the way we pitch our company. We were like a rookie car salesmen trying to sell an Audi A5 by opening the hood and describing every part and piston. We realized that we need to sell a Car; look, this is and Audi A5, it’s a wonderful car, sit in it, feel it enjoy it”.

I was so happy to receive this call. He got it right.

The other day these guys received a $1M investment. That night I received a message from the founder and this is a direct quote:

“I just want you to know, that our victory today happened a lot because you showed us the way. Thank you. Please write down on a small piece of paper, when I will be exiting $1B I will mention you”

My reply was short “You deserve it!”

So, if you are a founder trying to raise money, remember to focus on the main message. Investors are not “buying” car parts, they buy into you and your laser-sharp-vision.

OK, my job here is done.

Dropping the mic ;-)