How to Convince Investors

Paul Graham’s essay How to Convince Investors argues that founders shouldn’t rely on persuasive pitching skills. Instead, build genuinely investable startups, then clearly explain why they’re worth funding.

“Let your startup do the work.”

Three Essential Elements

1. Formidable Founders

Investors decide quickly—often within minutes—whether founders seem like winners or losers. Formidability means being “justifiably confident” that you’ll achieve your goals despite obstacles.

Rather than faking confidence, inexperienced founders should ground their assurance in truth and deep domain expertise.

2. Promising Market

Investors need evidence of a “plausible path to owning a big piece of a big market.” The addressable market sets an upper bound on company size.

Startups don’t need to dominate an existing market immediately—they can start small and expand.

3. Evidence of Traction

Early-stage companies need to demonstrate promising potential. Later-stage ventures must show concrete results validating their business model.

The Secret

The secret to seeming formidable is authentic conviction. Founders must first convince themselves their startup deserves investment through rigorous evaluation.

When you genuinely believe in your venture and communicate that belief clearly—using straightforward language rather than marketing jargon—investors sense your authenticity.

My Takeaway

You can’t pitch your way to investment if the fundamentals aren’t there. Build something real, believe in it genuinely, and the pitch becomes a simple explanation rather than a sales job.

How do you build genuine conviction? I’d love to hear at persdre@gmail.com.