Best Practices for Tech Startup Fundraising

As a founder who raised a $500K pre-seed 💰 Here are my biggest (updated) takeaways about fundraising: 1) 𝐄𝐚𝐫𝐥𝐲 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐛𝐞𝐭 𝐨𝐧 𝐲𝐨𝐮, 𝐧𝐨𝐭 𝐲𝐨𝐮𝐫 𝐢𝐝𝐞𝐚. It’s about trust...they need to believe you can figure it out and make it happen. You matter more than your pitch deck. 2) 𝐃𝐨𝐧'𝐭 𝐰𝐚𝐬𝐭𝐞 𝐭𝐢𝐦𝐞 𝐨𝐧 𝐕𝐂𝐬 𝐭𝐨𝐨 𝐞𝐚𝐫𝐥𝐲. Unless you have multiple exits or significant traction, focus on your product and users. Early VC calls should be about understanding the milestones you’ll need to hit. Don’t ask for money, ask: “At what point would a business like ours be exciting to you?” They’ll tell you. 3) 𝐑𝐚𝐢𝐬𝐞 𝐚 𝐬𝐦𝐚𝐥𝐥𝐞𝐫 𝐫𝐨𝐮𝐧𝐝 𝐟𝐢𝐫𝐬𝐭. Don’t aim for a $4M seed round out of the gate. Too many founders try and fail. Start with angels or your personal network. 4) 𝐘𝐨𝐮 𝐝𝐨𝐧'𝐭 𝐧𝐞𝐞𝐝 𝐨𝐮𝐭𝐬𝐢𝐝𝐞 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐭𝐨 𝐛𝐮𝐢𝐥𝐝 𝐲𝐨𝐮𝐫 𝐌𝐕𝐏. If you think you do, you’re probably not being resourceful enough. 5) 𝐅𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠 𝐭𝐚𝐤𝐞𝐬 𝐥𝐨𝐧𝐠𝐞𝐫 𝐭𝐡𝐚𝐧 𝐲𝐨𝐮 𝐭𝐡𝐢𝐧𝐤. Plan accordingly, and don’t underestimate the time commitment. 6) 𝐃𝐨𝐧’𝐭 𝐭𝐚𝐤𝐞 𝐫𝐞𝐣𝐞𝐜𝐭𝐢𝐨𝐧 𝐩𝐞𝐫𝐬𝐨𝐧𝐚𝐥𝐥𝐲. I made this mistake early on. A “no” isn’t always about you. Sometimes it’s about them—investors often like to appear wealthier than they really are. 7) 𝐑𝐚𝐢𝐬𝐢𝐧𝐠 𝐦𝐨𝐧𝐞𝐲 𝐰𝐡𝐞𝐧 𝐲𝐨𝐮’𝐫𝐞 𝐝𝐞𝐬𝐩𝐞𝐫𝐚𝐭𝐞 𝐢𝐬 𝐚 𝐥𝐨𝐬𝐢𝐧𝐠 𝐠𝐚𝐦𝐞. I know sometimes this is hard to avoid but investors can sense desperation from a mile away. Walk into meetings with confidence, believing they’re lucky to get on your cap table. 8) 𝐊𝐞𝐞𝐩 𝐲𝐨𝐮𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐮𝐩𝐝𝐚𝐭𝐞𝐝. Investors are people, and knowing others are excited about your idea gives them comfort. Set expectations upfront, send regular updates, and don’t just rely on email...pick up the damn phone. 9) 𝐑𝐢𝐝𝐞 𝐭𝐡𝐞 𝐦𝐨𝐦𝐞𝐧𝐭𝐮𝐦. When you secure one investment, it’s the best time to close another. Keep the energy going. This is underrated. 10) 𝐒𝐮𝐜𝐜𝐞𝐬𝐬 𝐚𝐧𝐝 𝐟𝐚𝐢𝐥𝐮𝐫𝐞 𝐥𝐨𝐨𝐤 𝐭𝐡𝐞 𝐬𝐚𝐦𝐞 𝐚𝐭 𝐟𝐢𝐫𝐬𝐭. Both are full of “no’s.” The difference in a successful raise is they didn't give up. To all the founders out there fundraising...Stay positive, stay persistent, and keep building. 💙 #startups #venturecapital #fundraising

Trying to find your perfect investor? Here’s a deep-dive on how to do it: Every fundraising founder has a goal. They want to: → raise as much as possible → from the best investor → as fast as possible → on the best terms. So, what’s the best way to achieve that?  Optimize for a few important variables: You have to minimize the number of pitch meetings Move through due diligence quickly. The only way to successfully do both of those things: Only talk to investors that are a perfect fit to invest. __ 4 components make an investor the perfect fit: 1️⃣ Investment stage They have to be able to invest at your startup’s stage of maturity. I can’t tell you how many Seed-stage founders I know who have told me they’re talking to VC firms that only invest at Series B and beyond. They think “that firm writes big checks, so it’ll be easy for them to make a small investment in us.” But that just isn’t how it works 99% of the time. That firm is just gathering market intelligence. They want to tell their LPs (the VC firm’s investors) that they “assessed 2,000 deals this year and only invested in < 1%.” That’s great for them, but it’s bad for you. 2️⃣ Market The best way to breeze through due diligence? Talk to an investor who already understands how your market works. They’ll know what questions to ask. They’ll know what actually matters. When you start out with more shared understanding, it helps the pitch go much more smoothly because you don’t have to give them a crash course on the basics of your customers. If they don’t have a history of investing in your market, they’ll take forever in due diligence. 3️⃣ Strategy & operations This means your overall GTM approach, business model and how you want to build strategic moats. If you’re building a marketplace but they’ve never invested in one before, they’ll have a harder time getting excited because they don’t have the right mental frameworks to analyze the opportunity. Sometimes you can get beyond this, but due diligence usually takes much longer as they get comfortable. 4️⃣ Technology This one is pretty obvious – if you’re an AI startup building a foundational model and they don’t have anyone on their team / in their network that understands the technology, they’re pretty unlikely to invest. You ideally want investors who have previously invested in adjacent technologies so it will be easier for them to complete any technical diligence. __ So, how do you find those investors? It’s actually pretty simple: you look at their portfolio. Start by looking for startups that are similar across those 4 criteria. You want to find the most similar startups that aren’t your competitors. Then see who backed them at your stage. This approach takes a bit more time up front, but saves you countless hours pitching bad-fit investors and hearing “no” after weeks of trying to convince them. It’s worth the effort. I promise. —— Was this helpful? 👍 like and ♻️ repost it to help other founders!

In 30 years in corporate finance, I’ve: • Raised $100+ billion in debt capital • Raised $100+ million in equity capital • Helped a startup raise $2 million without a website, business plan, and staff If you want to raise money for your startup, here’s exactly how I would do it: 1. Plan Fundraising begins with a solid business plan. No one will give you money if you don’t have a clear roadmap for your startup. Make sure to: • Detail your business model • Identify your target market • Outline financial projections Remember — it can’t be a risky bet in the eye of the investor. 2. Nail Your Value Proposition Your positioning is crucial to get backed. Make sure you have a unique value proposition that sets you apart in the market. How do you do this? • Identify your unique offering • Show how you meet a need or solve a problem • Differentiate yourself from competitors Be the diamond in the rough that investors are seeking. 3. Dial in Finances Make sure you know your numbers like the back of your hand. • Understand your financial projections • Know your key metrics • Demonstrate financial viability Remember, nothing speaks louder to investors than robust financials. 4. Research Your Investor Tailoring your pitch to potential investors can pay dividends. It takes a bit more time but the effort will be worth it. • Understand each investor's interests • Know their investment thesis • Familiarize yourself with their portfolio Don't go in blind. Arm yourself with research. 5. Perfect Your Pitch A compelling pitch can make or break your fundraising journey. Nail yours with a • Captivating startup story • Well-articulated business plan • Robust financial arguments Your pitch is your time to shine. Make sure you nail it. 6. Network Fundraising is no different to business — your network makes a world of a difference. And by networking, you’ll open doors to new, potential investors. Grow your network by: • Sharing high-quality insights on LinkedIn • Attending industry events • Connecting with interesting investors online Familiarity beats cold outreach any day of the week. 7. Be Patient Don’t expect results overnight. Fundraising is a marathon, not a sprint. • Keep patient during the process • Learn from rejections • Refine your approach It's not about the speed, it's about the finish line. 8. Post-Investment Relationship The fundraising process doesn't end with a cheque. You never when you’ll need to raise the next round, so always make sure to: • Build strong relationships with investors • Update them regularly • Value their advice Maintaining good relationships is always important but it’s especially relevant when dealing with investors. Those were my tips for any startup looking to raise money. I hope you got some value out of this. Feel free to drop a follow for more content like this. #business #startup #fundraising

Listen - I talk to founders who have just raised, every week. Here's what I know. 𝗥𝗮𝗶𝘀𝗶𝗻𝗴 𝗮 𝗿𝗼𝘂𝗻𝗱 𝗶𝘀 𝗮 𝘀𝗲𝗰𝗼𝗻𝗱 𝗳𝘂𝗹𝗹-𝘁𝗶𝗺𝗲 𝗷𝗼𝗯 𝗳𝗼𝗿 𝟲 𝗺𝗼𝗻𝘁𝗵𝘀. Most founders think fundraising means "talking to investors a few hours a week." That's why 70% take 9+ months to 2 years, raise less than planned, and accept worse terms. 𝗧𝗵𝗲 𝗿𝗲𝗮𝗹 𝗻𝘂𝗺𝗯𝗲𝗿𝘀: → 15-20 hours/week for 6 months → 400+ hours total time investment → Peak weeks require 25+ hours → 2 weeks of full-time meetings during execution 𝗪𝗵𝗮𝘁 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝘁𝗮𝗸𝗲𝘀 𝘁𝗶𝗺𝗲: • Network building: 3+ hours per relationship meeting • Investor research: 20+ minutes per quality target • Intro requests: 15+ minutes each for personalization • Meeting prep: 25+ minutes per investor • Follow-up and pipeline management: 2+ hours daily during execution 𝗧𝗵𝗲 𝗵𝗮𝗿𝗱 𝘁𝗿𝘂𝘁𝗵: You're choosing between doing fundraising right or running your business optimally. You can't do both simultaneously. 𝗦𝘂𝗰𝗰𝗲𝘀𝘀𝗳𝘂𝗹 𝗳𝗼𝘂𝗻𝗱𝗲𝗿𝘀: ✅ Plan their business to run without them for months ✅ Delegate operations to their team ✅ Treat fundraising like building a product - systematic and professional ✅ Accept the temporary sacrifice for long-term runway 𝗧𝗵𝗲 𝗼𝗻𝗲𝘀 𝘄𝗵𝗼 𝘀𝘁𝗿𝘂𝗴𝗴𝗹𝗲: ❌ Try to "squeeze in" fundraising around normal operations ❌ Send generic emails and hope for the best ❌ Take whatever meetings they can get ❌ Wonder why they have limited options 𝗕𝗼𝘁𝘁𝗼𝗺 𝗹𝗶𝗻𝗲: If you're not prepared to treat fundraising as a second full-time job, don't start the process. Either commit fully, delay until you can, or accept that you'll get mediocre results. 𝗪𝗵𝗮𝘁'𝘀 𝗯𝗲𝗲𝗻 𝘆𝗼𝘂𝗿 𝗲𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲? How much time did your last fundraise actually take? #fundraising  #startups  #venturecapital  #founders  #seriesA #seed --------------------- Hi! I'm Helena. I'm a fundraising expert. I help US startups successfully raise their Seed and Series A rounds. If you're raising, let's talk. This is what I do.

📝 FOUNDER fundraising hack = write an investment memo for VCs (template linked below). Raising VC is a multi-step sales process. First you need to convince a single partner to invest, and then that partner needs to bring your deal to Investment Committee (IC) to convince the other partners. The initial VC partner (aka deal champion) will write an investment memo to convince the other partners to vote for your deal during IC. If a VC will write their own memo, why write one for them? Three reasons: 1. Control the frame = dictate how your story is told 2. Signal insider status = show you understand how VCs think 3. Reduce friction to $$$ = VCs will copy/paste from your memo to theirs 😂 🪟 Control the frame There are good ways and bad ways to frame your startup. It's possible that a well-meaning VC will write a memo that frames your startup in sub-optimal ways. The less experience and domain knowledge a VC has, the higher the risk. You want to arm your deal champion with ammo to tell a bullet-proof investment story. Don't leave this up to chance. Write a memo and share it with the VC to make sure they hit the right talking points in their own memo. 🥼 Signal insider status I love when founders provide a written memo alongside the usual pitch deck and financial model. It shows they're clued in to the game. They understand how VC firms work. They're an insider. VCs want to invest in insiders, because insiders are more likely to raise subsequent financing and get to an exit. Outsiders are learning how the game works for the first time and will make rookie mistakes on the VC's dollar. Don't be an outsider. 💵 Reduce friction to $$$ You know how great product companies obsessively reduce the # of clicks a customer needs to make before paying for the product? Speed matters. A 2006 Amazon study found that every 100ms in added page load time cost them 1% in sales. VC is no different. The faster you can make the diligence process, the more likely you'll be able to raise capital. Your fundraising collateral is your product, and a memo is a key way to reduce time to funding (TTF). Every VC will have a set of questions during diligence. Answer them up front in a memo, and watch your prospective investors eyes light up. Deals can be a grueling process involving several late/all-nighters, so the deal team will be thankful if you save them work and make their lives easier. Here is a link to the investment memo template I use. Feel free to repurpose for your own needs: https://lnkd.in/ekGBjGWs

I asked 8 founders that have attracted more than $4B in VC funding how to run a smart fundraising process. Here are my five favorite lessons: 1. Keep investors warm. Even when you’re not fundraising, it’s worth carving out time to talk to venture capitalists. Use it as a chance to hone your storytelling skills, discover potential weaknesses, and gauge which investors are most interested in what you’re building. 2. Run a tight process. When you are ready to raise a round, do it with conviction. Raising in a half-heartened manner is a recipe for a drawn-out process with little momentum. 3. Raise on story or metrics – not both. Focus your fundraise on either a galvanizing narrative or your strong numbers. If you try to tell both stories simultaneously, you may end up with a vaguer and less compelling pitch. 4. Optimize for the right partners, not the highest valuation. It may be tempting to go with the term sheet that values your startup most highly. Often, that’s the wrong decision. Instead of optimizing for valuation, pick the investors that can do the most to help your business over the coming years. 5. You only need a few yeses. Rejection is an inevitable part of fundraising. Even the hottest companies are unlikely to be a fit for everyone. When you’re in the midst of a tough raise, it’s worth remembering that you only need a couple of yeses to close a round. Find the true believers! Thanks to Christina Cacioppo, Immad Akhund, Jack Altman, Mathilde Collin, Trae Stephens, Avlok K., David Hsu, and Pedro Franceschi for weighing in! You can learn much more in this Generalist guide: https://lnkd.in/eskQpspb

Fall fundraising season is about to start. Over the last 6+ years, I’ve worked with 300+ startups as they’ve raised $1B+ in follow-on funding. Doing the basics really well can make all the difference and make the process suck a little less: → Do Your Research. Instead of reaching out to every “top tier” fund, take the time to identify the ones that are the strongest fit for your company. Dive into firms’ theses and what individual investors are writing and sharing. → Run Your Fundraise Like A Sales Process. That means setting up a CRM, building a target list, preparing materials ahead of time, and time-blocking 2–3 weeks for first meetings. → Tier Your Investor List. Don’t lead with your top-choice funds. Use the first few meetings (after plenty of pitch practice) to test your narrative. Pay attention to where investors lean in, push back, or ask questions. Fundraising is a continuous, iterative process → Activate Your Network. Share your target list with current investors, angels, advisors, and founder friends. You’ll be surprised how many warm introductions you can get through your immediate network. Work these connections! → Get Clear About Your Pipeline. Don’t chase and waste time following-up investors who don’t want to invest. Active investors will lean in, ask questions, respond quickly, set up next steps. If they’re not, they’re out. → Re-Engage With Momentum. Every big customer win, strategic hire, or new VC commitment is a reason to update your nurture list. Momentum gets people off the fence. Happy fundriaisng!! What other tips would you add? 🫶🏽💜