Money is abundant—real value isn’t.

What it means to be a startup fundamentally changed since the '90s bubble. But founders still chase high valuations.

Last year, global VC transactions hit $445 billion.

That's a huge amount of cash chasing deals.

But here's the reality - a lot? of it isn't doing start-ups any favours long-term.

Money's not the issue. Everyone wants to be an investor. The real question is - can they bring more to the table than just capital?

Investors who offer more than a fat cheque are rare and valuable. Alongside capital, most founders need guidance, connections, and operational support. That's what scales.?

Look at Stripe. When they raised in 2020, Andreessen Horowitz wrote a cheque and opened doors to every major fintech player. That's the difference between a funder and a partner.

65% of start-ups fail due to poor advice and scaling issues. The right investor could solve these problems. But too many founders are dazzled by big cheques, not big value.

Founders need to use this leverage. Demand proof of value; don’t just settle for capital alone.? Of course you want the money, but showing you have higher expectations will make you stand out from other founders who are prepared to raise money at all costs. This is where reverse pitching comes in.

So what is reverse pitching?

Reverse pitching flips the script.

Its where founders ask investors: "What's your value beyond the cheque?"

As a founder, you need to think about the access you get beyond just the capital itself. When Notion raised $50 million in 2020, they didn't just take the highest bid. They reverse pitched.

They asked investors about their experience scaling SaaS companies, their network in the productivity space, and their approach to board governance.

Index Ventures won the deal not because of their cheque size, but because of their track record with companies like Dropbox and their hands-on approach to scaling.

Where capital is abundant, the real differentiator is expertise.

"The best investors are like great coaches. They don't just give you resources; they help you see around corners." - Reid Hoffman, co-founder of LinkedIn

The power shift is real.

Technological advancement has dramatically lowered the cost of entry for founders. You don’t need to configure your own servers any more, thanks to cloud hosting, and advancements in AI are helping founders build a lot more with a lot less.?

What’s more, traditional VC is not the only way of raising funding. Crowdfunding, angels, accelerators and venture studios all provide an alternative.All this means founders are much less dependent on VCs than they were 5-to-10 years ago.

They have options.

Tobi Lütke played it smart with Shopify's Series A. He picked Bessemer Venture Partners despite them offering a? lower valuation to others.

Why? Bessemer knew e-commerce inside out and had scaled similar businesses.

This power shift is forcing VCs to up their game.

Look at Andreessen Horowitz. They've built a whole ecosystem around founder support.

Next time you're pitching, try flipping the script.

Make the VCs pitch you. Their response will tell you everything about what they bring to the table. Remember, you're not just taking money. You're choosing a partner for your start-up journey, which will probably be another 10 years of your life. Choose wisely.

How does reverse pitching work?

It’s all about asking the right questions.

Remember, it should be a win-win. If your business makes money, so does the investor.

Be very clear on what your startup needs to scale, other than capital.

Always have a bigger picture in mind - where do you see your business in 5 years? Can they take you there?

"The best investors help you build a better company, not just hand over cash."

Keep these 5 important questions in mind:

• "Have they scaled start-ups successfully?"
• "Who in their network can actually help my start-up? Can they make those introductions happen?"
• "What's their operational support like? How has it helped their portfolio?"
• "What about board dynamics? What's their philosophy there?"
• "What's their track record in your industry? Have they added real value?"

Alignment matters.

Marc Benioff? –"The best investors are like co-founders. They roll up their sleeves and help build the company."

So, next time you're in the hot seat, flip the script.

Ask your investors to pitch you and see how they respond. You might be pleasantly surprised how they rise to the challenge.