The smart but risky move only 1% of founders make
There’s something I often advise my founder clients to do when they’re fund-raising:
Include a slide with a list of “Reasons Why You Might Not Want To Invest.”
VC Harry Stebbings gives the same advice and yet, in thousands of pitches, he’s seen very few founders actually do it.
Seems counterintuitive, doesn’t it.
But psychologically, there are powerful advantages to this approach:
You, as the founder, are in a stronger position when you’re the one to proactively highlight negatives and risks. Former FBI negotiator Chris Voss calls it an “accusation audit.” I call it “embracing the elephant.”
Just because you don’t bring attention to elephants doesn’t mean investors aren’t thinking about them. They might not even be able to process what you’re saying because their internal monologue is blaring so loudly, “But the trunk isn’t long enough…”
So when you bring it up first, it does three things:
First, it takes away the friction of someone having to articulate their concerns (and the temptation to simply pass on the deal instead).
Second, it signals your ability to anticipate and deal with challenges — which creates a measure of certainty about future behavior.
Third, instead of making you a less attractive option, revealing your weaknesses has the opposite effect:
Of course, there are many tactics you can use during a presentation, but when the pressure is on, will you deliver with confidence and conviction? Only roleplay practice will guarantee that.
That’s what I teach in “The High-EQ Founder” program. Roleplaying these risky situations in a safe space, founders learn how to take a step back from their impulsive, emotional reactions and operate instead from a place of calm and control.
Does this approach intrigue you? Do you think you could present it with confidence? Reply in the comments and let me know, I’d love to hear!
When you’re ready to level up your leadership, here are two ways I can help:
