Why the “Why” is Important

Explaining Why you started the company can establish a relationship with potential investors.

Often in preparing a presentation for investors, it is suggested that the entrepreneur spend time explaining “why” they started their company. But why? If investors are only concerned about the potential risks and rewards, why does “why” matter? It matters because of the third “R” that investors are interested in — Relationship. In their judgment, Risk, Reward, and the Relationship, the three R’s, must all pass a very high threshold. The “why” provides a glimpse into the future relationship.