How to craft a story that investors buy

3 tactics, 2 traps and 1 tool to craft stories that investors buy

Hello founders!

Welcome to ‘Tactical Tips’ by Jerel and Shuo at DECODE, where we cover one new idea to help you build and grow your startup – every week in <5 minutes!

Today, we’ll be answering the question: “How to craft a story that investors buy?

And here’s the advice from Siqi Chen, Founder and CEO at Runway, who is a 3x founder with 2x successful exits, and previously led product at Zynga and growth at Postmates

If you're thinking about fundraising in the next 6-12 months, then today’s newsletter is for you.

🔥 Inside this issue:

✅ 3 tactics to craft stories that investors buy
✅ 2 traps to avoid 
✅ 1 tool to leverage 

👇Let’s dive in.

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3 tactics to craft stories that investors buy

✈️ Structure the pitch as an emotional journey

  • Investors make decisions based on emotions, not facts. Take them through these stages:

    • Amusement - Start with humor or wit (“Hailing a cab can feel like waiting for a unicorn.”)

    • Curiosity - Intrigue with an unusual take (“What if you could get a ride with just a tap?”)

    • Surprise - Reveal an unexpected insight (“Uber turns anyone with a car into a driver, and is already working in 100+ cities.”

    • Awe - Show the massive potential (“Uber’s tech is reshaping transportation across industries from food delivery to freight”

    • Greed - Incite FOMO to make them want in (“Uber is set for explosive growth. This is your chance to be the first investor in a global transportation revolution.”)

  • Only include what drives emotions in your deck—move everything else to the appendix

🎯 Position as the underdog

  • Frame a dominant worldview as the antagonist—show what most people believe and why it's extremely reasonable

  • Contrast with an underdog worldview as the protagonist—highlight unique beliefs or hidden flaws that lead to a better outcome

  • Include 3 layers of narratives:

    • Action (What the events or facts are)

    • Emotion (How people feel about it)

    • View (The deeper belief system)

🔮 Sell the future, not just today

  • Investors aren’t buying today—they’re buying the future 

  • Organize into 3 sections: 

    • Origin (Why this problem matters personally)

    • Now (What has been built and achieved)

    • Future (How will today lead to a massive outcome tomorrow)

  • Sell the size of outcome if you win, not just likelihood of success

  • Great stories drive higher valuations

2 traps to avoid

🚨Thinking story is something to ‘add later’

  • Story isn’t an afterthought for marketing, fundraising, or recruiting—it’s the foundation  

  • Fragmented story = Disconnected brand = Missed opportunities (investors, customers, hires, etc)

  • Define the core purpose of the company, then align team culture, product priorities, hiring, and customer experience around it

🚨Blindly using the 10-slide template VCs recommend

  • Problem/solution/market slides ≠ storytelling

  • Great for VCs to screen fast, but not for winning a “yes” after

  • A story that sparks belief and emotion is what gets the check

1 tool to leverage

📖 Best practice on pitching investors

  • First question asked = reason for not investing—even if the pitch goes well

  • Proactively address questions asked and highlight why it still makes sense despite objections

  • Pitch decks are tools to tell stories—leverage Beautiful.ai or Visme to craft the decks

Bonus: 1 trend to spark startup ideas

💵 Open-source software (OSS) powers 96% of code and drives $8.8T in value

  • Two of the fastest-growing startups today, Cursor and Lovable, started as open-source.

  • OSS is structurally advantaged: lower costs from coding automation, increased transparency, and massive developer-driven network effects for distribution

  • Defensibility used to be hard—free, swappable code meant OSS has to convert usage → reliance → revenue

  • New models are emerging:

    • OSS core + AI upgrades: Paid tiers shift to high-value automation

    • Network management: OSS defines standards AI agents use to navigate third-party services—revenue comes from managing the network

    • Data engines: OSS tools collect unique, feedback-rich datasets that fuel AI models customers pay to improve

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