8 proven strategies for startup fundraising

Fundraising for your start-up ?? is hard.?

I’ve personally seen hundreds of startup pitches and invested in quite a few…

Here are 8 actionable strategies that work before you start raising and once you’re in the process ????

Before you start

1. Fundraising = selling

Use existing investor pipeline/CRM templates and step-by-step guides to build a strong process. My friend Jenny Fielding at Everywhere Fund put together this great presentation and template a few years ago that I highly recommend ??

2. Find the right investors

Explore investor lists in your industry and fundraising stage (see resource links below). Personalize your pitch to align with their background and shared interests/passion.

Top fundraising lists: ??

• Findfunding by Pascal Unger provides an early-stage investor database based on primary stage focus, investment focus and other parameters.
• Leadpicker created an AI-Powered VC Sheet with 50k VC websites and Linkedin profiles.
• Shai Goldman , made list of new VC funds at/below $200M in size.
• Brian Ortiz , SaaS & Startup Growth Re-Imagined and Angel Investor, shared a list of European Venture Capital funds.
• Maximilian Fleitmann , CEO of BaseTemplates, prepared a list of the Top 10 Fundraising Websites for Startups.
• CryptoRank founder Fedor Matviiv , ranks the list of crypto investors based on market performance, investments and other crucial metrics.
• Nixon Gwilt Law, founded by Carrie Nixon and Rebecca E. Gwilt published the 2023 annual list of female founder-focused funds
• CTVC, founded by Kim Zou and Mark Taylor developed a running list of climate VCs that includes 180+ climate investors.?
• Signal is the investing network for Founders, VCs, Scouts, and Angels.

3. Relationships matter

Strive for warm intros to well-suited investors (see #2). Identify potential connections at the fund/angel you're targeting. Make it effortless for them by sending a simple, forwardable email to your introducer. Double opt-in intros ensure alignment for all parties involved.

4. Don’t email Elon Musk

Of course you want to talk to Elon or Ben Horowitz but they may not be the right person to start with! Lots of funds have scouts who search for deal flow - approach them (I’m a scout for Hans Tung at? Notable Capital , Aly Lovett at Radian Capital and Julian Roeoes at Picus Capital ) and can show deals.

Bonus ?? tip: approach the associates and analysts at the funds - their job is to source deals!?

5. Prepare and practice

Before launching your fundraising campaign, introduce your idea to potential investors for feedback and pitch refinement. Seek input from "friendly" investors or friends to fine-tune your message. Focus on perfecting your elevator pitch, deck, and email outreach.

While you’re raising ??

1. Understand market behavior

Research typical valuations for your stage, sector, and company. Be realistic and avoid expecting astronomical valuations unless you're Elon Musk or Sam Altman. Additionally, don't anticipate investors to sign NDAs.?

2. Be honest and transparent

If you don’t have customers yet, say so. If you have revenue, say how much. Don’t inflate your progress. Share decks readily. I personally prefer PDFs so I can save them.?

3. Insist respectfully

Follow up with potential investors and seek clear responses from them. If they decline, inquire if you can keep them informed of your progress. Avoid spamming and limit follow-up emails to a maximum of two attempts if there is no response

4. Run a tight ship

Set your realistic fundraising goal and try to get there within 90 days. Don’t be out raising all the time - you’ll never have time to build the business.

5. Once you’ve closed your round: Build, build, build

Anything else that has worked for you? Post in the comments below!???

#fundraising #startups #networking