The New Way of Raising Capital: Start With Why

If you wanted to raise capital for your company in the old days, it was all about convincing investors that your idea would be profitable.

You would get your pitch deck ready with all sorts of boring, and often irrelevant, numbers and statistics and then spend hours pitching your company to investors.

But now, in an era where people are inundated with information and starved for time, it’s all about telling a story that will resonate with the investor and capture their attention.

We believe storytelling should be the centerpiece of your business plans when raising capital.

That’s why we help companies connect to the ideal investors and partnerships through an elevated and interactive digital experience that focuses on your brand’s story.

What does this all mean?

It means that in order to convince a potential investor, they have to hear the “why” behind your idea.

You have to make them feel something and engage them with your story, or they’ll just forget about you and move on.

The old way of telling investors about how profitable your business would become has now become secondary in your pitch–you need a compelling, dramatic narrative that captures their attention from the get-go.

Deliver a captivating story that investors can visualize and believe in!

This blog post will outline some of the critical points you need to know about how storytelling is the key to successfully raising capital.

Using Storytelling to Bring Your Idea To Life

The key to making an idea come alive is storytelling.

You need to grab your audience’s attention from the very beginning and keep them on board with you.

And if you don’t tell this story correctly, investors will pass right by because they’re busy people who can’t afford to listen to every story.

So you need to be able to capture their attention from the get-go and keep them engaged with your story, or they’ll forget about it.

The key is delivering a captivating, compelling narrative that investors can visualize and believe in!

Why, Who, What

In the current day and age, storytelling is the key to getting investors behind your mission as a company.

You need a powerful, compelling story about why your company is even necessary for the current day and age and what makes it unique from all of the other companies out there.

One of the best ways to do this is to follow Simon Sinek, his famous “The Golden Circle” framework. Most famously described in his book “Start With Why.”

Below I will explain why it is crucial to dive into your companies, Why Who and What.

And why should you always…

…Start with the Why

People like Martin Luther King Jr., Steve Jobs, and the Wright Brothers all started with WHY.

They realized that people wouldn’t truly buy into a product, service, or idea until they understand its purpose.

They were clearly communicating their why, which is why these three individuals were able to impact society – not only because of their work ethic and passion but also because they influenced people with their big-picture ideas.

A why gives people a deeper fundamental reason to stand behind the bigger idea of why your company even exists.

If you can’t answer a fundamental “why,” then why is it even necessary that your company exists?

You may as well get back in line with all the other companies that don’t provide value to the world.

Who… Are You Creating This For?

If you don’t know who you are trying to reach, how do you know what they need?

For your investors to believe in your company, they need to understand the target audience you are trying to sell to.

What are their deepest wants and needs?

What are their pains?

How does your company provide a solution?

Successful companies focus on providing something that is of value to their target audience.

And this all starts with defining who your ideal customer is.

Tip: A great way to start with this is using something called a “Value Proposition Canvas.” This tool will guide you through the processes of defining who your ideal customer is and if your product has the potential to reach a customer-market fit.

What… Solutions Does Your Company Offer?

Lastly, you would start looking at the what behind your company.

Often companies start creating products purely from a technical standpoint because they think their features make sense.

Only to later find out that there is no actual need for the product.

I believe this is the main reason why you should always focus on your Why and Who first before you begin creating a product.

People buy into solutions to their problems, not things with “cool” technical features that impress techies.

A company that offers a solution will do better than selling just a product or service for its features.

This means you should be sure your company’s problem aligns with a more profound way for the consumer to connect with them.

Why Storytelling: Old vs. New

Storytelling is as old as time. It is not new or fancy.

On the contrary…

For decades we as humans have shared information through telling stories.

Just look at the countless medieval stories you’ve heard in your lifetime or the religious scriptures that shaped our society to what it is now.

They are all based on elaborate captivating stories intended to pass on arguably some of the most valuable information ever written.

Storytelling isn’t going anywhere, and it will be a massive part of our lives for years to come.

Have you ever been drawn into the time and place of the story? A moment where you felt the emotions of those doing like it was yourself?

It doesn’t even matter if they’re your own feelings or someone else’s. You can feel everything that is there in each moment as though you are right where something happens.

This is what stories can do.

We can put ourselves in the shoes of others.

We can connect with their background and their feelings.

Examples of Companies Who Have Used Storytelling Successfully

To tie this together, I’ve listed two examples of companies, that you have definitely heard of, that have used storytelling to connect with people ultimately.

And they have succeeded in doing so because of the emotional connection that stories provide us as human beings.

One prime example of a company that knows how to tell its story is Apple.

Apple is currently valued at around 800 billion dollars.

This means they are many times more valuable than the next most successful company in their space.

And it’s not only because of what they’ve created but how they have portrayed themselves through storytelling to connect with people.

Apple has managed to create a strong emotional connection that makes us want to buy their products.

They are using the power of storytelling to create a massive following, an army, if you will, that would defend their products with everything they’ve got.

Not because it’s simply the best product for them but also because “we believe in this company and we want to be part of this.”

Another excellent example of storytelling comes from Starbucks.

By showing the people behind their products and connecting with their audience emotionally, they have created a brand that stands for something more than just another coffee shop.

Starbucks has shown that they are there to give people the feeling of home, even when you’re far away from your own.

It’s all about how to effectively tell stories and how they can connect with people.

Tell Your Story With An Interactive Digital Experience

Here at The Main Stage, we’ve completely revolutionized the fundraising process.

One of our main focuses being, you guessed it right, storytelling.

Raising capital for your company has never been more exciting!

Forget boring pitch decks that lull your potential investors into a dull haze. And forget about spending days or even weeks getting said pitch decks ready.

The Main Stage’s invite-only Story Vault will help you present your strategic business plan through storytelling, and it only takes 30 minutes to set up.

Let investors learn everything about the deal at their own pace through our platform with informative video and engaging content.

Explore our platform at your leisure by 
signing up for a free trial here:

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