Quick Monday morning fundraising tip. Talking to VCs before you’re ready to start fundraising is a great way to increase your chances of raising your next round. BUT you have to set the context ahead of time - you’re not raising at the moment, just looking for feedback. When you approach VCs they always think you are fundraising - make sure to emphasize you aren't. Ask the VC where you should be in 6-12 months if you want to raise X millions of dollars. What KPIs should you hit? What would make them excited to invest when the time comes? You can even get started on this right after you close a round. At this point, you’ve already got a pitch in hand, and you’ve practiced it enough to have an easy conversation without the pressure of trying to close. Use this strategy to gain clarity on a path forward, build trust, and set the stage for a future conversation. When you follow up, you can remind them of their advice, show how you’ve executed on it, and prove you’re a founder who delivers.
One golden rule. Start talking to investors when you don't need their money. Strong relationships often leads to easier and faster closure.
That may very well be, but what about founders that don't have time to talk to XYZ vc's...
Mark Suster wrote this a decade ago and still as relevant as ever https://bothsidesofthetable.com/invest-in-lines-not-dots-611f36491d73
Fantastic advice. It helped me understand what is my North Star and what I should concentrate my efforts on. Also- coming from non-investor side it helps to understand the other side, their paradigm and how they evaluate a business from a different lense
Agree, this approach really works. Talking to VCs early for feedback helps set you up for a smoother fundraising process down the line 👍
Or maybe try even establishing pilots with companies in similar boats that might be in the VC's portfolio 😉
Excellent advice. The same applies to lenders.
Coffee meetings (what we call them at Socap.ai) for the win. Just please-please-please don't pull out your pitch-deck! :)
Founder & CEO @ Boatscribe - yacht charter metasearch | Make life easier for sailors ⛵ and travellers worldwide 🌐
2dThe most important thing in feedback is that it will get specific numbers when that “it’s too early for us” turns into a “good fit for us”