Hyperline’s Post

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.

🚀 The Final Stretch of Fundraising: Closing Your Round with Confidence 🚀 Founders, you’re almost there – you’ve prepared, pitched, and secured that all-important verbal commitment. But remember: a verbal "yes" isn’t a signed check! Deals can still fall through, so this is the time to keep pushing. Here’s how to make sure your hard work pays off: 1️⃣ Move Fast: As soon as you get the commitment, have your documents ready to go. 2️⃣ Choose the Right Funding Instrument: SAFEs and Convertible Notes can be signed quickly, while priced equity rounds can take a month or more. Be prepared! 3️⃣ Stay Organized: Track every investor, every commitment, and every document. 4️⃣ Relentlessly Follow Up: Your job isn’t done until the funds are in the bank. 5️⃣ Prepare for Surprises: Yes, people back out – it’s normal. Stay flexible. Looking for support? Platforms like The Valley can help connect you with co-founders and investors while offering 500+ resources, templates, and pitch deck guides to accelerate your journey. Fundraising can be challenging, but you're not alone, and the right connections and resources can make all the difference. Keep going – you’re closer to your vision than ever! 💪💼 Read full article :https://lnkd.in/e2VYKrpX #Fundraising #StartupLife #InvestorRelations #ClosingDeals #StartupJourney

At FundingHero, our mission is clear: perfect the art of fundraising with the expertise of Jim Shirley, a CFO experienced in raising debt and equity financing and been part of two high-growth exits worth hundreds of millions. Our High-Growth Fundraising Accelerator is meticulously designed to provide you with essential skills and robust support, ensuring you secure the investment needed to propel your business forward. Why Choose FundingHero? - Focused on High Growth: We specialise on raising to rapidly scale. - In-Depth Expertise: Benefit from deep dives and insights from a published author and strategic CFO, not just general curriculum. - Personalised Support: With a maximum of 8 seats, our accelerator offers a super-focused and personalised experience. Cohort 3 starts on 20th September 2024, and we only have up to 8 seats available for this exclusive experience. Don’t miss out on this opportunity to work closely with industry experts who know the path to navigate from raising, scaling to exiting and can take your fundraising game to the next level! 👉 Register your interest here: https://lnkd.in/eqrV-EmZ #FundingHero #FundraisingAccelerator #Cohort3 #StartupSuccess #InvestmentReady #HighGrowth

A little over a year ago, we decided to approach fundraising for clients differently. Instead of focusing on quantity, mass emails, endless pitch meetings, we focused on quality. We set out to build a targeted, precise strategy to connect with the right investors, not just any investor. I never thought I’d face so much pushback... “Why don’t you just email more people?” “Fundraising is a numbers game; why narrow your focus?” “Aren’t you afraid of missing opportunities?” At first, I second-guessed myself. Was I overthinking it? Should I stick to what everyone else was doing? Then I realized two things: 1. History has shown that doing what “everyone else does” isn’t always the best move (look at the countless opportunities lost by founders because of outdated systems). 2. You’re the one building the future of your business/fund; no one else lives with the results of your capital raising strategy. Act accordingly. Remember: Throwing spaghetti at the wall and hoping something sticks isn’t a strategy; it’s an expensive mistake. Precision engineering wins every time. ✌️ P.S. I’m not trying to spark a debate about capital raising strategies, just sharing what I’ve learned over time! What’s been your biggest challenge in raising capital lately?

Day 10: Timing Your Fundraise – The Key to Securing Capital Successfully Welcome back to our 15-Day Series on Fundraising Simplified! Today, we’re focusing on a crucial element of your funding journey: Timing. Knowing when to start fundraising and aligning it with key milestones can make all the difference in securing the capital you need—on your terms. Why Timing Matters- Runway Management: Start fundraising 6-9 months before you need the funds to avoid rushing decisions or accepting unfavorable terms. Aligning with Milestones: Investors expect tangible progress. Traction metrics like revenue, user growth, or partnerships signal that you’re ready for the next stage. Market and Seasonal Trends: Fundraising activity slows during holidays (e.g., December, August). Focus your efforts in Q1 and Q3 when investors are most active. 4 Key Steps to Time Your Fundraise Perfectly- Define Your Milestones: Secure measurable traction, such as product-market fit, revenue growth, or customer acquisition. Organize Financials: Know your Burn Rate, Runway, and other key metrics to showcase financial discipline. Engage Investors Early: Build relationships before you need funding. Share regular updates to keep them informed. Start Before You Need It: Begin fundraising while you still have enough runway to negotiate confidently. Key Takeaway The best time to fundraise is when you can showcase strong traction and have enough runway to remain in control. Plan ahead, align with milestones, and approach investors when you’re ready to make your case. Stay tuned for Day 11, where we’ll dive into another essential topic for your funding journey! #Fundraising #Day10of15 #TimingYourFundraise #StartupFunding #FundingSeries

Got an interesting question recently from a founder who had their first VC pitch coming up—no deck, just verbal, and they were concerned about how to present themselves if they aren't currently raising Here’s the thing: when you’re in a situation like this, where you’re pitching one VC or a small group, you need to shift your mindset. You’re not in a position where you’re trying to convince them to invest. You should be approaching it like, “Hey, I’m not fundraising yet. I’m happy to share what we’re doing, but I’m not in a rush to raise money right now.” You want to make it feel like you’re the one evaluating them as much as they’re evaluating you. Especially with angel groups or smaller investors - you can’t come across as desperate. Go in with confidence, knowing you’ve got something valuable, and that you’re better than needing to impress them. The founder’s other concern was what if they don’t have a solid CAC number yet? My take: It’s okay not to have every metric locked down. You can still give a thoughtful answer. The key is to own your numbers, even if they aren’t final. Something like: “We don’t have 100% solid numbers yet, but here’s what we know so far. We’ve done X, and we’re modeling CAC based on this. Our initial tests show this, and even if we double the CAC, we still see this being a strong business.” You’re giving them context, showing you’ve thought through it and that you’re on top of the business even if the specifics are still evolving. One more tip: if you’re pitching to a group especially over Zoom with a bunch of people throwing questions at you - don’t get rattled. Multiple people are going to be thinking of different angles, asking questions left and right. You won’t have every single answer off the top of your head, and that’s fine. What matters is that you can talk about the topic with confidence and guide them through your thought process. At the end of the day, it’s less about having the perfect answer and more about showing that you know your business inside and out.

𝟮𝟬𝟮𝟰 𝗶𝘀 (𝗮𝗹𝗺𝗼𝘀𝘁) 𝗮 𝘄𝗿𝗮𝗽! 𝗔𝗿𝗲 𝘆𝗼𝘂 𝗽𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝘁𝗼 𝗿𝗮𝗶𝘀𝗲 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗶𝗻 𝟮𝟬𝟮𝟱? 𝗪𝗵𝗮𝘁’𝘀 𝘁𝗵𝗲 𝗯𝗲𝘀𝘁 𝗺𝗼𝗻𝘁𝗵 𝘁𝗼 𝘀𝗲𝗰𝘂𝗿𝗲 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 📅 Timing can be essential for your fundraising success. Did you know that VCs are busiest reviewing pitch decks in March, October, and November? In our latest insight piece, we explore the ideal timing for investor outreach, weighing the two opposing perspectives within the VC industry. 𝗞𝗲𝘆 𝘁𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀 𝗳𝗼𝗿 𝗳𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗶𝗻𝗴 𝘁𝗶𝗺𝗶𝗻𝗴: One perspective is that funding is possible year-round—raise once your company is ready and in a good spot to start the process. For those who believe in timing: ▶️ 𝗔𝘃𝗼𝗶𝗱 𝘁𝗵𝗲 𝗤4 𝗧𝗿𝗮𝗽: Fundraising often spikes in October and November but drops off sharply in December. If you can’t close by late November, be prepared for momentum to slow during the holidays. ▶️ 𝗣𝗲𝗮𝗸 𝗺𝗼𝗻𝘁𝗵𝘀: October, November, and March are the busiest months for VCs reviewing pitch decks. Stay ahead of the competition by starting early. ▶️ 𝗦𝘁𝗮𝗻𝗱 𝗼𝘂𝘁 𝗶𝗻 𝗝𝗮𝗻𝘂𝗮𝗿𝘆, 𝗙𝗲𝗯𝗿𝘂𝗮𝗿𝘆, 𝗝𝘂𝗹𝘆, 𝗔𝘂𝗴𝘂𝘀𝘁: Consider taking an anti-cyclical approach as these quieter months see less competition for VC attention, giving you the chance to shine with your pitch. ▶️ 𝗣𝗹𝗮𝗻 𝘀𝗺𝗮𝗿𝘁: From initiating fundraising to receiving funds, expect a timeline of 6–9 months. While timing helps, it’s your readiness and narrative that close the deal. Any other experiences with timing in fundraising? Full article in comments. #StartupFunding #VentureCapital #Fundraising #SeriesA #Capvisory

Confidence in fundraising doesn’t happen by chance; it is earned through careful preparation and strategic execution. In my latest article, I share how founders can approach fundraising in a way that not only inspires confidence but also builds lasting relationships with investors.From creating exclusivity to refining your pitch, every decision you make plays a role in your success. You can find the article here: https://bit.ly/3CWBCLR

🎯 3 Critical Mistakes Founders Make When Raising Capital After helping founders raise over $370M, here are the pitfalls you need to avoid: 1. Leading with Valuation Instead of starting with your number, focus on demonstrating value and market opportunity first. Let the metrics speak for themselves. 2. Insufficient Investor Research Each investor has unique investment criteria. Understanding their portfolio, check sizes, and industry focus saves everyone time and increases your success rate. 3. Weak Follow-up System 80% of deals close after the 5th touchpoint, yet most founders give up after 2-3 attempts. Build a systematic follow-up process that keeps you top of mind. 💡 Pro Tip: Before your next investor meeting, research their last 3 investments and find common patterns. This insight is pure gold for your pitch. What's been your biggest challenge in the fundraising process? #StartupAdvice #VentureCapital #Fundraising #FounderTips

#Fundraising Q&A 44-18 Hi! Chief Fundraising Officers and industry key players! Q1 💡 What's the best way to conduct cold outreach to investors for the first time? Do's: Warm intros from another investor, VC, Portfolio founder or provider, Apply through Form Applications or Cold Emails. Don'ts: Send connection requests on LinkedIn with a biblical blurb. Q2 💡 I have my first pitch meeting. What should I do? Do's: Don’t present a Deck, prepare to present the business case in 10 minutes, allow 10-15 minutes for questions and answers, and leave 5 minutes for matchmaking and next steps. Don'ts: Project a deck and give a boring presentation on information that the investor should have already read. Lack of clarity on the problem, opportunity, or product, Unclear competitive advantage,⁠ Vagueness or evasiveness. Q3 💡 Round size and investment project planning. Do's: Our investment project will give us a runway of 24 months to build 1,2,3 and reach x, y, z milestones before XX months. Don'ts: We are raising $2M to invest in product marketing and team. Q4 💡 Exits. What is the best strategy? Do's: Either I buy you or somebody buys us. Don'ts: IPO or we haven’t thought about it. To learn more about how investors think, how they decide to take a first meeting with you, how they conduct due diligence, and how they negotiate an investment round, access to #FundraisingDepot 👇