What Answers You MUST Have When Investors Ask About Your Customers
How Well do you Know Your Customers?
Before an Investor hands you a few million dollars, they’re most likely going to want to talk to a few customers of yours, that is, if you have them already. Paul Judge, Founder and CTO at Purewire Inc. and today, an investor says that:
“It’s become so sexy to pitch to investors nowadays that people forget to first go talk to customers. I have people pitch me, and when I ask what customers think about this, they tell me they don’t know. So why are you talking to investors right now?”
He claims that he needs proof that the startup is solving a “Valuable Problem” — meaning that customers are willing to pay for the solution.
So before you talk to Investors — it’s time to talk to some key customers and get the story from them so that you can tell your “User Stories” to the Investors in an accurate way. I’m not talking about market size, numbers and demographics here — rather the intimate knowledge of your customers’ stories — where they were when they “found you” and what has changed in their lives since engaging with you?