Why Investors Say No (And How to Make Them Bet on You)

April 3, 2025

You’ve got the numbers. Early customers love your product. On paper, investors should be throwing money at you, but they’re not.

Why?

Because investors don’t invest in spreadsheets. They invest in stories, people, and possibility.

In this episode of The Storytellers Edge, we're breaking down a four-step storytelling framework that helps investors feel the opportunity, not just understand it. You’ll learn why most founders get this wrong and how to make your pitch unforgettable.

Mistake #1: Pitching Facts Instead of Belief

You walk in with a polished deck, pro formas, and a bunch of numbers all moving up and to the right.

But here’s the thing, they’re not writing checks for your projections. They’re writing checks for belief.

Investors know your projections are optimistic guesses at best. What they’re looking for is an emotional feeling that your idea is worth betting on.

Mistake #2: Missing the Three Critical Questions

Investors are always silently asking themselves:

  • Why this? Is this problem actually big enough and urgent enough to care about?
  • Why now? Why is this the moment to bet on this?
  • Why you? Are you really the one to pull this off?

If you can’t answer those questions clearly and emotionally, you’re walking out with polite nods, not checks.

Here's the Fix: The Four-Part Storytelling Framework

Here’s how:

  1. Story
    Make it personal. Investors aren’t just buying your product or service, they’re buying you.
    Your story doesn’t have to be dramatic, but it needs to be real and grounded.
  2. Stakes
    Clarify the conflict. What’s at risk if the problem doesn’t get solved?
    Is it millions in churn? Operational chaos? Industry disruption? Show the burn. Make it specific. Make it urgent.
    Pro tip: The amygdala lights up when it senses conflict. Use it to your advantage.
  3. Solution
    Show, don’t just explain. Investors don’t want better, they want different.
    Contrast is your friend here. Frame your solution as a breakthrough, not just an improvement.
    Instead of “We help streamline HR onboarding,” say “We shrink six weeks of HR paperwork hell into two clicks. No training required.”
    Make them feel the pain, then show them the escape.
  4. Scale
    Paint the future. Investors need to see the endgame, not just the first chapter.
    They’re betting on what your solution will become, not just what it is right now.
    Use vivid, concrete language to describe your vision.
    “We’re not building a tool. We’re building the rails every telehealth company will need to operate securely at scale.”

How to Test If Your Story is Actually Landing

Before you step into the room, do this:

Record Your Pitch

  • Talk like a human. Don’t over-rehearse. Just hit record and go.

Get a Transcript

  • Use something like Fathom.ai to catch every word.

Get Feedback from Someone Outside Your Industry

  • If they say “tell me more,” you’re good.
  • If they say “huh?” … go back and simplify.

The Bottom Line

If your message isn’t landing, it’s not your idea—it’s your explanation.

Answer the three critical questions. Use the framework. Test early.

Takeaways

• Investors don’t invest in spreadsheets. They invest in stories, people, and possibility.
• Your pitch needs to hit four beats: Story, Stakes, Solution, Scale.
• Test your story before you pitch. If it’s not clear, it’s not ready.
• Confidence comes from clarity. Clarity comes from owning your story deeply.

Hey there, I'm Ginger!

I’m a lifelong learner, a sucker for storytelling frameworks, and a pattern-recognition nerd who helps smart people simplify complex ideas.

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