Over the past five years, I have interviewed more than 250 founders, investors, and advisors from all corners of the globe, with the aim of sharing their fundraising stories and experiences to educate emerging founders. Whether you need guidance on how to attract investors, tips for perfecting your pitch, or hacks for running a solid fundraising campaign, I spoke to someone who has been in your shoes. In this article, I highlight some of the most valuable advice I have gathered from the past year.
One important lesson is to avoid a one-size-fits-all approach to fundraising, as not every startup requires the traditional fundraising process. For instance, crowdfunding can be a viable option for some startups, as Miso Robotics’ Mike Bell learned when he raised $60 million for his Series C, D, and E rounds through crowdfunding alone. Finding the right investors is also crucial, and targeting experienced entrepreneurs, or “super founders,” for early investments can offer valuable feedback and recommendations that can open doors to more investors.
It is also prudent to ask for introductions and network with knowledgeable investors who can help guide you through the difficult process of building a company that is fundable and likely to succeed. Furthermore, inviting everyone to your party round can maximize fundraising potential, as Richard White discovered when he welcomed more than 90 investors, including top VC funds and industry bigwigs, to his Zoom app, Fathom.
When it comes to pitch meetings, setting up expectations ahead of time and maintaining a focus on what’s most crucial can help maintain investor interest, as Iddo Tal’s seven-step method for closing deals demonstrates. Also, understanding the value of partnerships with champions—whether they are employees, partners, or investors—can be essential for success.
Finally, building a strong foundation, from hiring the right team to managing finances and maintaining detailed documentation, is essential for building a successful startup and fundraising campaign. By following this practical advice, you can give your company the best chance of success.
