You can read it here.
Today, in the final part of our series, we’re addressing two key questions: How do you excite investors about change? And how do you persuade them that you are their best opportunity to seize the benefits of this transformation?
If you followed our advice in part one, you’ve convinced your prospective investor that a big change is taking place. And this change will create winners and losers.
For the losers, suffering. For the winners, success.
Prove to investors that utopia exists – and they should want to get there
In part one, you told them that if they embrace change, they will be a winner. Now, show them what they stand to win.
Will a major shift within a sector or market provide a better risk/return profile? Perhaps they will ride a high-growth theme from the ground floor. Will they profit from an orchard of low-hanging fruit?
Pictures are powerful. Make investors picture the prize. Help them desire it. Whatever form this utopia takes, leave them in no doubt that this prize is real.
Outline the challenges investors will face on their journey
If you did the last part right, prospective investors are salivating, imagining the prize.
But – what’s this?
They can’t have it?
Time to explain why they can’t simply reach out and grab the win.
Tell them. Be explicit. Which obstacles must be overcome?
Not only does this tension make them want the prize even more – it sets up the final stage of the narrative…
Demonstrate you have the skills to make the journey possible
Having teased them with forbidden fruit, it’s time to release the tension.
Show them why you are the best-placed firm to get them a taste.
Prove that you can overcome the challenges blocking their path. For example:
- Do you have the right expertise to capture the upside? Yes, and here are examples where this has been a competitive advantage.
- Can you create value for portfolio companies in local markets and specialist industries? Yes, we have on-the-ground teams of specialists. Plus, here are some case studies demonstrating how we have already taken advantage of this change for our investors.
- Do you have the right government and industry connections? Yes, and here is a case study detailing how our network of connections helped portfolio companies access new supply chains.
This is where it all comes together. This is why you and your fund exist – to help investors navigate change and reach utopia.
In conclusion: embrace the power of narrative
Storytelling techniques are powerful tools for every fund manager.
This narrative excites investors about change and solidifies your importance at the centre of it.
- Start your marketing deck with a big change – and give it a name if you can
- Although the world has changed, tell the investor that the way they used to do things was logical – treat their past decisions with respect!
- Show them that this change will create winners and losers
- Show them the utopia that awaits the winners
- Describe the challenges investors might face on the road to utopia
- Demonstrate you have the skills and experience to take them on this journey
If you haven’t already, read part one: “Change my mind – I dare you!”, for more details on steps one through three.
Feel free to get in touch if you want to know more about how we construct investment-winning narratives or visit us online.
