A startup founder takes on various roles including leader, ambassador, visionary, and fundraiser. For Robbie Crabtree and his company, Founder Fundraising, founders also need to become “chief storytelling officers” to effectively pitch their startup to investors. Robbie, a serial entrepreneur and former litigator, draws parallels between fundraising and a courtroom trial. He emphasizes the importance of understanding the different stages of fundraising to pitch well. Here are some pointers for each stage:
1. Pre-meeting: Tailor your pitch deck to the opportunity and consider creating multiple decks for different purposes. Equip potential investors with the necessary information to be your advocates. Develop a concise “explainer” version of your deck as a follow-up tool.
2. First meeting with an investor: Focus on building connections and having conversations rather than immediately asking for money. Establish rapport and common ground with the investor. Ask about their background and accomplishments to create a sense of reciprocity and make them feel comfortable.
3. Understand the investor’s process: Familiarize yourself with the specific VC firm’s decision-making process during the initial meetings. This knowledge will help you strategize accordingly and identify key decision-makers or champions who can provide support and guidance.
4. Ask for a second round: Don’t assume that investors will automatically ask for a second meeting. Take the initiative to ask if there is potential alignment and suggest setting up a second call to dive deeper into the fit. Be prepared to handle different responses, whether it’s a yes, maybe, or no.
5. Handle rejection gracefully: If you receive a rejection, thank the investor and express your interest in staying connected. Ask if they can introduce you to anyone who might be interested in your startup. Leverage your meetings to expand your network.
6. Schedule the next meeting: If you receive a positive response, immediately schedule the next meeting. Offer a range of dates and times. If the investor needs to check with their team, propose setting a call on the calendar that can be adjusted if necessary.
7. The second meeting: In this make-or-break stage, ensure you understand what the new contacts in the room already know about your startup. Ask them what your initial contact shared about your company to gauge their familiarity. Be prepared to answer tough questions and maintain a balanced conversation dynamic.
By following these tips, startup founders can navigate the fundraising process more effectively and increase their chances of securing investment for their startup.
