You Can't Spell Equity Without QUIT

You Can't Spell Equity Without QUIT

Lately, I’ve been speaking with many founders—both in the impact and traditional tech space—who are frustrated and looking for answers. The investment landscape is challenging, and while founders are searching for solutions, our team has found that the real answer lies in the questions being asked.

One of the biggest frustrations founders face is navigating the winding road of finding qualified investors while dealing with constantly shifting expectations. Angel investors, equity firms, and VCs each operate under their own set of rules, and without an experienced CFO, legal counsel, or investment banker, founders often struggle to qualify investors effectively.

The Three Key Investor Qualifications

If you’re a founder raising funds, here are three must-ask questions to determine whether an investor is worth your time:

  1. Are they qualified?
  2. Are they interested?
  3. Are they active?

Attention vs. Intention (And My Oil Money Wake-Up Call)

One of the biggest mistakes founders make is confusing attention with intention. Just because someone takes your call, asks for a deck, or shows initial enthusiasm doesn’t mean they have any real intention of investing. Many investors will take meetings, request more information, and then go silent—sometimes using this as a stalling tactic to lower your valuation or slow your momentum.

I learned this lesson the hard way.

One time, I was introduced to a group of investors who had all the right signals—big money, lots of connections, and a real interest in hearing my pitch. I spent weeks preparing my deck, refining my messaging, and getting every detail just right. The day finally came, and I gave the pitch of my life. The energy was electric, my delivery was flawless, and when I finished, they all clapped.

I thought, This is it! This is the moment!

Then, one of them smiled and said, “Wow, we love it! Incredible work. But… we only invest in oil.”

That was the moment I learned one of the most important fundraising lessons: Just because someone has lots of capital doesn’t mean they have lots of capital for you.

99% of Deals Fail—We Are Here to Change That

The harsh reality? 99% of deals fail within four years. That’s not an opinion—it’s a statistical fact.

But we are here to change that.

With tools like AI, LinkedIn, and other digital platforms, investors are more accessible than ever. The key is making sure you’re reaching the right ones. This means: ? Perfect your pitch. You need to be clear, concise, and compelling. ? Optimize your profile. Investors will look you up before taking a meeting—make sure your LinkedIn and online presence scream credibility. ? Treat fundraising like dating.

Design Your Ideal Investor

Think of it this way: If you were looking for a life partner, you wouldn’t settle for just anyone—you’d look for the right fit. The same applies to fundraising.

Ask yourself:

  • What experience should my investor have?
  • What relationships and industry connections do they bring?
  • Are they active or passive? Hands-on or just cutting a check?
  • Are they a mentor or a mentee?
  • Do they align with my company’s vision and values?

Think hard about the ideal investor profile, and then go find that person (or people). The right investor will not only bring capital but also strategic value, connections, and credibility.

Proof of Funds: A Must-Have

Real estate agents don’t show homes to buyers without proof of funds. Founders should adopt the same mindset when pitching their companies. If an investor is serious, they should be able to provide proof of funds or at least references from previous deals.

Asking for proof of funds isn’t rude—it’s necessary. A real investor will respect your professionalism and understand that your time is valuable. The wrong investor, however, may try to delay, deflect, or avoid giving a direct answer. That’s a red flag.

Founders, Don’t Quit—Lead with EQ

Too often, the fundraising process can feel like a one-sided power dynamic, where investors hold all the cards. But here’s the truth: investors may have the cash, but they don’t have all the power. They need great companies to invest in.

By leading with EQ (emotional intelligence) in the equity markets, founders can take control of the process:

? Ask the hard questions upfront.

? Require proof of funds before you pitch.

? Stop wasting time on those who can’t or won’t invest.

Raising capital is hard, but it’s even harder if you’re pitching to the wrong people. So before you get caught in endless meetings, remember this: You can’t spell equity without QUIT—but the only thing you should be quitting is wasting time on unqualified investors.

Let’s shift the narrative and build a more intentional, transparent, and founder-friendly investment landscape. Who’s with me?

Thank you for your valuable insight.

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