| If you have Social Proof, you know you have it. If you are not sure, then you don't have it. Social Proof could mean:
- You are a Serial Entrepreneur
- A famous Business Angel invested in your company
- You graduated from a University with a great Alumni Network
- etc. Basically if a potential investor evaluates your Market, Traction or Business Model, then you already lost. If a potential investor invests, because he thinks other investors want to invest, then this is Social Proof. For example you are talking one hour with a potential investor: If you talk 90 % of the time about who else is investing and about how to structure the investment round, then you have Social Proof. If you instead talk 90 % of the time about how big the market is, what your revenue model will be any why your churn rate only decreased 2 % in the last month, then you don't have Social Proof. Also if the potential investors talks about making the investment bigger to increase your run rate and increase your leverage for a Series B, you have Social Proof. If instead the potential investors is asking you if you can decrease your burn rate or recommends you to raise a smaller amount, then you don't have Social Proof. EDIT: Added one paragraph |