Having investment document after investment document passing across my desk each day gives me a good insight into the ones that talk the right language. Investor Language.
Most are full of Product or Company Language.
This is the language we have traditionally used when we portray our company or products to the market. You know the talk. Features, benefits technical specs and of course all the verbage the marketing department produces. This language is company-centric not investor-centric.
In addition there is often a lot of techno speak, terminology, industry language and marketing “fluff” on page after page of the Offer Document or Information Memorandum.
Most prospective investors become confused and are turned off when they read an abundance of “Product” or “Company” based language. They perceive the document seeking investment is out of touch with reality.
“Product” or “Company” based language also has a tendancy to sometimes be selfish and egotistical meaning it extols the greatness of the entrepreneur seeking to raise capital rather than profiling the investment opportunity. Any form of bragging instantly creates resistance and disbelief in the mind of prospective investors
Investor Language clearly communicates …
1) What pain or problem does this investment opportunity solve?
2) How will it make money?
3) How will I get my money back
With in the document it clearly describes things the investor is looking for. Negative outcomes, barriers, risks, constraints, sticking points and pain points. The document communicates how these issues will be met and resolved within an investment context.
Investor language resonates with the reader. It doesnt require them to go through complex mental gymnastics to figure out if this investment opportunity would fit well in their investment portfolio.
Investor language can make an investment decision obvious.