The habits you need to unlearn for a successful fundraise
Parent Post
Fundraising is weird
Fundraising is weird.
You need to channel the very things that make you good at company-building (focused problem solving, transparency, humility) and present them as part of the storytelling process.
Do not toss away your natural strengths and create artificial ones that don’t fit.
Given how hot the
Given how hot the fundraising environment is right now, it seems like the last thing anyone needs is more advice on how to raise.
But fundraising is still hard, and data shows it’s even harder for certain groups.
Here’s what to unlearn before pitching:
Focus can be your
Focus can be your secret
Show them enthusiasm and let them dream, even if you know that you won’t be entering that space for a while.
As a founder, there isn’t a benefit to being a party pooper if investors see a bunch of adjacent opportunities.
Let them do the mental exercise of “where can this go,” just don’t let that up-end your product road map.
Don’t overcorrectNever overplay your
Don’t overcorrect
Never overplay your hand in fundraising.
When adopting a different “fundraising personality,” there is a real danger that you could swing in the opposite direction and start saying bonkers things like “Just got off the phone with Elon. He’s begging to get in the round.”
It is helpful to learn that absurd statements of overconfidence are just as bad as saying, “Oh man, things aren’t looking good, please give me money.”
Ideally, find great investorsUnfortunately,
Ideally, find great investors
Unfortunately, this last “lesson” isn’t always helpful, but if you have options, find the right investor. Finding the right investor makes pitching feel more like having a conversation.
Great investors can see the vision whether you pitch A-to-Z or Z-to-A.
They can spot a stellar team out of a lineup and they know the difference between “dream with me” and focus. To the extent you can, find and work with those investors.
When you go to raise capital, remember to focus on the things that make you a great founder.
Tell your company’s story
Tell your company’s story from Z to A
Most of us start with A.
But the issue is you’ve likely tuned out somewhere around B or C. And an investor definitely left the Zoom mentally, if not physically.
Pitch the end state — “Z” — first. This is the long-term, if-everything-goes-right vision.
Once investors see how the world looks different you win, then they’re interested in whether we can execute.
Pitch the “team” in
Pitch the “team” in “I”
Emphasize what your credentials mean to the business.
You can talk about how your experience or credentials help the business, instead of just sharing your credentials. The former feels like you’re emphasizing the business, not just how impressed you are with yourself.