Chis Anen, MBA’s Post

The most important fundraising conversations are often the one's where you do NOT get a check. They are breadcrumb trails to conversations that will convert to investment. For starters, the inability to close a round does not mean the company has fatal flaws. The difference between a check/no check can be very subtle Yes, you often kiss many frogs before finding a prince/princess in fundraising. But it is also vital to ask those that went deep into discovery, but did not participate, "Why?". And don't settle for "it's just to early", or "we just don't invest in this space". If that were true, they would not have gone deep into diligence. VC's don't like wasting time. Keep peeling the onion back until you get an answer that makes sense. Tell the investor you have thick skin, and that they will not hurt your feelings. Explain that you realize there is always room for improvement in the pitch, company, offering, etc., and you NEED to learn and grow from the interaction. At minimum, they will respect this, and remember the self awareness when you come back to them in your next raise. And then when you get an answer that makes sense, take take an honest inventory of the assessment. Especially if you are hearing it over and over again. I had a client (we will call him Adam), who went out for a series B last year. He was not able to close the round. He heard a lot of lame excuses why. But he refused to settle for those bogus answers. He was relentless in his search for honest feedback. And he got it. The issue was very fixable. It was related to the leadership team, or lack thereof in this case. Adam is a very responsible Founder/CEO. He had taken the company through product development, reg. approval, and into commercialization with only two other C Suite execs (a sales leader & a CTO) on his team. He was keeping the burn low, while still driving innovation & establishing ARR. VC's were concerned that there was not a CFO on board to take the company to the next level. -> Who was going to establish key metrics/KPI's etc to drive revenue acceleration? -> Who was going to set up the ERP? -> Who was developing the financial models, forecasting, capital allocation strategies, etc, which aid in short and long term strategic planning? All valid concerns. In February, I helped Adam hire a CFO. As soon as that individual started, they kicked off a > $30M round. Adam now has 3 term sheets, all tier 1 VC shops, whom want to take the entire round. Problem solved... The answer is not always this simple. But it is there if you are willing to keeping looking for it, and willing to address it when you find it.

3 Common Fundraising Mistakes & How to Fix 🚩💡 It may sound simple, but these mistakes can seriously delay your raise or reduce your chances of raising at all. 🚩 1 - Wrong expectations and thinking it will be “fast”. I’ve met many founders who tell me, “I’m starting my raise now and want it closed next month.” That’s not how raising works. Raising a Seed Round usually takes 3-9 months. Starting from the time you decide to raise capital to create a story and pitch deck, meeting with investors, and closing capital. 💡Fix: Most raises will take at least 6 months; plan your runway and burn accordingly. 🚩 2- Raising “exactly” what you need. Most “oversubscribed” rounds you hear about were smaller rounds that filled and leveraged that momentum to raise more. This means that if you want to raise a large amount ($5M+) and you go out to raise this with no investors in, it will be VERY DIFFICULT to raise that.  However, if you start your raise at, say, $2M, the delta from your target raise to what you’ve actually raised is smaller. Once you get your first check, you can raise $2M much quicker, which builds momentum for future raises. 💡 Fix: Aim to raise 25-50% less than you’d like. Then, as you fill that smaller round, take on more capital at that valuation or consider raising your valuation with this momentum. 🚩 3 - Not building an investor network sooner. If you're going out to officially raise and don’t have at least 20 investors you have known for a while on a friendly basis, your raise will take much longer. You MUST build your connections to investors BEFORE you go out to raise. Not building relationships with investors in a friendly manner first, then raising quickly, NEVER happens. Think—give value first, build genuine relationships, and then when you go out to raise money, don’t pitch those VCs but ask who they know who may be interested. 💡 Fix: Start building your network of at least 25 investors now. Post content online, host meetups, attend conferences and meet investors in person. If you like these tips, give me a follow or send me a DM about working with tbv on advisory.

How to build momentum in your round via stage setting. This will transform your fundraise. You need to build and maintain momentum during your fundraising. If you read many of my posts, you’ll know a large part of this comes from the right prep. And how you build a: → Functioning, mapped out network → With 100+ warm connections → Where you launch properly But what about during your fundraise? How do you keep the investors on their toes? And always moving them forward in your fundraise? You do this by making the investor feel like they are either 2 things: 1. They are a stage behind everyone else and need to catch-up quick 2. They are a stage ahead everyone, but other investors are catching-up This is how you want investors to feel when they are speaking to you. You do this via 5 ways: 1️⃣ Have an organised process You need to make sure investors know that you running an organised process. And will be updating them as it goes 2️⃣ Understanding proper comms This is a whole beast in itself, but you need to understand the nuances of communication. And how: → Different words → Off the cuff comments → The way you come across non-verbally All define how an investors feels about you and your round. A large part of this is also how you end your calls. You need to make sure you are setting the stage for how you follow-up. Otherwise it can come across as desperate. 3️⃣ Focus on one stage per investors Depending on where that investor is in your process compared to the rest. You need to set the stage of where they are to you. Are they ahead of the pack? Then make them feel like everyone else is moving ahead quick. Are they behind? Then make them realise they may lose you if they keep stalling. 4️⃣ Have a weekly process management meeting This is something that everyone founder should do. Yet I see most never doing this. Every Monday you should have a 30min meeting with your co-founder/advisors. Sit down and go 1-by-1 through your CRM and set next steps for EVERY investor. You need to be on top of everything. 5️⃣ Focus week-by-week Think of your fundraise in weekly stages. And using the above 4 points make the investors feel like every week your raise is moving along. You can’t make them feel like the momentum is stalling! These are the 5 best ways to keep momentum in your round. P.S. No founders do this. Be the difference. This is the way. ♻️ Repost if you think this was helpful :)

Raising funds? Here’s a short video to know where your metrics need to be. The days of the 2021 fundraising frenzy, where companies "didn't even need metrics to raise" are long gone. This was a key takeaway from our recent webinar with Bobby Pinero, CEO of Equals and former Head of Finance at Intercom and Stan Massueras, former GM EMEA of Lattice and former VP Sales at Intercom. Every business is different, but we’ve pulled together a framework to help you gauge where your metrics *should* be to lock in your next round. Bobby broke it down like this: 1️⃣ Series A - $1M ARR The classic line: “Series A means $1M ARR.” At this stage, you’ve laid the groundwork, and things are starting to look repeatable. You’re raising to scale, but let's be honest, there’s still some guesswork. Your key job? Prove it’s going to scale. Key metrics: Conversion rate, pipeline metrics—anything that instills confidence you’ll 3x or 5x the business within a year. 2️⃣ Series B - $5M ARR Series B is where you show off your ability to scale. You’ve deployed the initial capital, it’s working, and now you need more fuel for the fire. 3️⃣ Series C - $20M ARR Series C is basically Series B on steroids—same playbook, but now you’ve got way more conviction (and you should too). Bottom line: Your metrics need to tell a compelling story, one that investors can’t resist buying into. To follow your day-to-day metrics and make your (future) investors very happy, Hyperline is here. 🎥 Webinar replay available in comment (Don't miss our CEO's film-making talents at 1:30 – thanks, Lucas! 😭)

Fundraising isn’t just about getting a "yes" from investors—it’s about strategy, positioning, and building momentum. Here are three key insights to help you navigate the process effectively: 1. Don’t Say You’re Raising (When You’re Raising) Timing is everything. Creating competitive tension among investors requires the right momentum, and saying you’re raising prematurely can backfire. If you communicate that you’re raising and fail to close, it can hurt your chances for success. Pro Tip: Start conversations early and proactively. The best time to raise is when you don’t need the money. Use this golden sentence to set the tone: "We’re in a good financial position and don’t need the money. We’re open to conversations but only if it’s the right partner for the long term." This signals confidence, stability, and a focus on finding the right fit. 2. Should You Use Your Pitch Deck in the Intro Call? Most first-time founders jump straight into presentation mode during intro calls, but this can create an unbalanced dynamic. Instead, try to keep the conversation flowing both ways. Ask the VC about their mandate and thoughts on your space. This approach allows you to learn about them while weaving their insights into your pitch. Deciding whether to send the pitch deck in advance depends on the rapport you’ve already established. If it’s the first interaction, hold off. After the call, you can refine the deck based on what you’ve learned before sending it. 3. Term Sheets: Binding in Practice While term sheets are technically non-binding, they carry significant weight in the VC world. The industry runs on trust, and early-stage VCs who back out of a term sheet without a valid reason risk damaging their reputation. The only legitimate reasons to walk away are findings during due diligence that reveal material risks or discrepancies in financials. For founders, this means signing a term sheet is a critical milestone—one that signals serious commitment. --- Fundraising is a strategic process. From initial calls to closing the deal, every step matters. For a detailed breakdown of the entire fundraising journey, check out our latest video in our Fundraising Secrets series: https://lnkd.in/gK85SBdk

Fundraising doesn't end with the pitch—it's all about what happens next. In this article, we highlight the dos and don’ts of investor follow-ups to help you close your fundraising deals. Read more here - https://lnkd.in/dC4kuSYv #Pitchwise #Startup #Fundraising

The one thing I wish I knew before I started fundraising? It’s all a number’s game. Fundraising is an emotional rollercoaster, especially when you’re 30 meetings in and still haven’t secured a single check. But if you’ve got a viable product and you’re refining your pitch each time, then you’re actually 30 meetings closer to winning. Think about it like this 👇 If you’re trying to raise $1M, you’ll probably need 4 checks: - 1 lead investor for $500k - 1 follow-on investor for $250k - 1 follow-on investor for $150k - $100k in smaller checks from angels and friends and family I’ve learned to expect a conversion rate between 3-5% meeting-to-check close rate. Let’s assume you have 300 funds on your target list (and, as an underrepresented founder, you should). Expect about 1/3 of those funds to grant you a meeting. So that’s 100 meetings. You only need 4 of those 100 investors to write you a check. 25 meetings per check. Of course, these numbers aren’t set in stone. For some founders, it’ll take more; for others, it’ll take less. The point is to think of think of every meeting as another step closer to eventually closing your round. If you’re 30 meetings in, you have 70 more to go. As you sharpen your pitch, as you refine your deck, as your product continues to improve and your company gains more traction, you’re going to run into an investor who is willing to invest. And once you get that first check, it’s much easier to get follow-on investments. Fundraising is tough, but the key is not to get discouraged by early rejections - which is easier said than done. Instead, look at it as a numbers game: every meeting brings you closer to success, and if you keep pushing, one day, you’ll win. For all my fundraising founders, how many meetings did it take you to get your first check?

Great breakdown Toby Egbuna. Founders actively raising, please read to best prepare you for what's ahead. Having the right strategy and mindset greatly increases your likelihood of a successful raise.

Great way to think about it! The only thing I would add is that don't wait to contact all 300 of those people on your contact list. Do it all at once! If there's a second big mistake I hear about, it's people building their list of "300" contacts over time, and contacting them over a period that lasts anywhere from 3 months to a full year. There's no point in that. Hit all of them up at once. Get those 100 meetings done over the course of 2 to 4 weeks...MAX. This way, you get immediate feedback from your "VC market". If you can't raise the money you need after reaching out to 300 VCs on your target list, either (1) you're doing a bad job at pitching, or (2) your idea isn't VC-investible. If it's the former, that'll work itself out over the course of reaching out to 300 people. Anybody deserving of being a startup founder should be taking feedback from each of those meetings and making their next pitch better. So one shouldn't be worried about that being the problem. So in all likelihood, if you reach out to 300 people, and you don't raise any money, then it means your idea isn't VC-investible. And that either means you need to change your idea or raise money outside of venture capital. And that's okay. Believe me, the last thing you want to do is raise VC money for a non-VC-worthy idea. So, I repeat: do not wait to reach this conclusion. Get the momentum and immediate feedback you need from VCs by reaching out to all of them...AT ONCE. This will give you the information, feedback, and even the leverage you need to raise the money your business needs.

There’s a growing set of resources that teach you how to fundraise once you’ve started, but not much that answers a very common question: Where do I start? If you’re thinking about fundraising for your startup and asking you’re asking the same question. here’s a simple framework that you can use: When I started to raise our pre-seed for Chezie, I was lost. I knew that we needed money, but I didn’t know much else after that. After a few days, I realized that I needed to answer the ‘where do I start?’ question with 3 new questions: how much, who, and when. 1. How much do I need to raise? Every investor conversation ends with an ask → I’m raising XX thousand dollars to reach YY milestone in ZZ time (usually 18-24 months). Investors won’t take you seriously if you can’t back up that number. So how do you know how much you need to raise? Work backwards! Figure out how much you need to pay your team for 18 months. Assuming 2 co-founders are making $75k and 2 engineers making $125k a year, you need $600 to cover payroll and another $120k to cover taxes/benefits → $720k total Payroll will probably be 80-90% of your monthly spend. The rest will go to software subscriptions like Gmail and admin expenses like legal counsel. Let’s assume $5k/month for those → $90k total. That’s 720+90 = $810k total. Let’s assume that things don’t go totally as planned (they won’t) and add a ~25% buffer. You need $1M for an 18-month runway. 2. Who am I going to raise money from?' This depends on how much money you need and on who’s in your network. At a high level, you can think about it this way: - $0-100k → accelerators, friends and family, pitch competitions (or any combination of these) - $100k-250k → angels + the above - $250k-1M → VC + the above 3. When do I need to raise? I’ve always approached fundraising with a desire to have next-stage milestones at my current stage. So if you’re pre-seed, you should try to get to seed-stage milestones. At the very least, raise when you have a product to show investors and some signs of customers willing to pay you. At best, raise when you have legitimate traction - anywhere from $50-250k revenue - and an idea of how you’ll get to the next milestone of $1M ARR. OR… don’t raise at all. Just had to throw that in there. This is not concrete; every company and founder is different. But, if you’re an underrepresented founder thinking about raising and unsure where to start, hopefully, this helps! #fundraising #blackfounders #startups