A collection of insider tips from our "How I Raised It" podcast On Foundersuite’s podcast, we take an open-source approach to sharing knowledge about the wild ride of funding a startup. We asked both veteran and emerging founders to spill their secrets on everything from finding your dream VC to knowing when to make the ask –– and how to slay your pitch. Regardless of where you are in the process, we’ve uncovered some excellent –– and sometimes unexpected –– advice to help you master your raise. “How I Raised It ,” Here’s a compendium of some of the best ideas we’ve heard so far. Entrepreneurs, buckle up: we’re about to accelerate your learning. Finding Your Perfect Match Rousseau Kazi of collaborative decision-making platform believes it’s important to look for “subjective” qualities in an investor. “We’re not only building a product; we're building a company,” he says. “So it was important that I found someone that I knew was aligned with me, who cared about diversity and inclusion, and who recognized my strengths –– but also would push me on my weaknesses.” Look for investors who align with your values . Threads founder Andrew Farah suggests , and not being intimidated if some of them actually hate your pitch. . Some firms want to take on companies that spark big feelings. “The thing that you never want to feel as an investor is ‘meh,’” Andrew says. Safe to say he doesn’t have that problem, since he counts partner , Mark Suster of and as backers. Density taking as many meetings with different people from a particular firm as you can Contention can be attractive Founders Fund Cyan Banister Upfront Ventures Jason Calacanis When fundraising for his ethical meat startup , Hawaiian rancher Jack Beutell quickly realized that traditional VCs and angels weren’t the best fit. So he looked for people who were interested in grass-fed beef, impact investing, climate change or even just Hawaii in general. “We ended up succeeding primarily with high-net-worth individuals, fund managers and grocery CEOs who have some kind of connection to our work,” Jack says. Buck the system . Kunoa Cattle Company K.J. Miller, co-founder of inclusive cosmetics brand , . At one point, she says, “I reached out to every single woman from business school who listed herself as an angel investor and emailed every single one of them, no matter what she’d funded in the past. I was like, ‘You're a woman. You’ve probably worn makeup, and you might understand.’” Mented cast a wide net when seeking investors –– but made sure to leverage her network Susan Ho did just that with certain investors who initially turned down the pitch for her travel startup Journy. on her progress from time to time. After Susan revamped her business plan, a few of those VCs were eager to meet again. One such firm was Menlo Ventures, which eventually led her seed round. Unlike other investors who hadn’t even downloaded the app, one of Menlo’s principals had used Journy a few times and understood the potential. “It just felt like the right fit,” she says. Keep in touch . She’d call them with an update says Debbie Wei Mullin. At 500 Startups, she was told to expect about 100 meetings for every million she wanted to raise. for her specialty beverage company, . “About three-fourths of those were with actual VCs and about a fourth were to get leads to VCs,” she says. “Finding an investor who’s looking for a company just like yours is like finding a needle in a haystack,” Debbie estimates that she had about 200 meetings to raise the $3 million Copper Cow Coffee Perfecting Your Pitch (And The Deck, Too) “We almost never opened our presentation,” says Jessica Chang, founder of childcare platform . “We had one, but we went into every single pitch focused on engaging the investors’ issues. If we needed to pivot based on their interests, we did.” While later-round pitches might need to be more metrics-driven, the seed round is all about story, she says. “When you want to capture a room of investors, you really only have five minutes. Talk to them directly. Showcase your story and your passion.” First lesson of pitch decks? Don’t rely on pitch decks . WeeCare Matt Randall, co-founder of short-term life insurance startup , shares a tip from one of his mentors: “In the early days, you're pitching a vision. You're not pitching the numbers you currently have or anything like that.” In his fundraising decks, Matt “Take the feedback you get from your first meetings and figure out how to improve upon it,” says Yin Wu, who raised a $3 million seed round for her crypto startup . , and had a succinct answer for each one by the next meeting. Spot focuses on storytelling and describing why the company will succeed. He doesn’t even include revenue numbers. Don’t approach dream investors until your pitch is nailed down. Dirt Protocol She wrote down a list of common questions investors asked It took serial entrepreneur Andrew Hoag 14 months to refine his pitch for his brainchild, . “In the beginning, ,” he says. “What wins an investment deal are the slides you take out of the deck, not the slides you put in it.” Teampay test the story, knowing it's going to change . Then simplify things “ ,” says Density’s Andrew Farah. “ If you don't, you won't be excited when the next slide comes up. But if you're stoked, that communicates volumes and dramatically improves the quality of your pitch.” A deck is your best friend You should love every sentence in your deck. Timing Is Everything says Jameson Toole of AI startup . Everyone's out enjoying the nice weather, so . At one point, I was like, “Don't try to raise money in the summer,” Fritz it’s noticeably harder to track people down in July and August I'm going to rent a boat, find all these VCs in Nantucket, and pitch them there. ” ’s Gregory Robinson : If it happens right away, be thankful but wary. Investors who lend money quickly might lock onto what I like to call a false consensus –– something they think makes the business work, but maybe it's not the bigger opportunity,” he says. The Mom Project cautions founders who want to raise capital in the earliest stages of their business “The biggest thing about raising money is not running out of time. When you're raising earlier, it'll take longer. One of founder Jeff Cripe’s goals was to raise a seed round immediately after completing the Techstars accelerator. “The program ended in September. he says. “Afterwards, it's nearly impossible to get a deal done. I knew it normally takes three to six months to raise a round. So I started raising pretty much as soon as we got into the program. It ended up working out pretty well for us.” Cargo We had been warned that if you're going to try and raise capital, you've got to raise it before Thanksgiving ,” Enrico Palmerino raised $4.5 million for his bookkeeping startup, , in two months by maintaining a packed schedule of . That helped him build a reputation of desirability and stoked competition among investors. Although he put everything else –– including most of his email inbox –– on the back burner, he , Enrico says: “Even if they sent me something at 10 p.m., they got it at 2 a.m.” Prepare to be busy –– really busy. Botkeeper three to four meetings per day always responded to requests from VCs within hours Aim High -- Apply For That Accelerator As a former M&A lawyer and crypto exec, ’s Johnny Reinsch . “I was like he says. But 500 Startups’ Sheel Monot managed to change his mind, Johnny explains. “Sheel said, ‘I don't really think you get it. I’ll help with debt and help deal with regulatory.’ He knew exactly what concerns I had –– we didn't have enough money to grow. Plus, we’re flirting with a bunch of highly regulated industries.” Qwil joined the program and raised a $5 million Series A shortly thereafter. “The 500 Startups fintech track, in particular, is great,” says Johnny. “It gives a stamp of approval to VCs.” Even business veterans can benefit. Qwil was skeptical about what an accelerator could do for him , dude, we don't really need to join an accelerator. We understand what we're doing,” “I would absolutely do Y Combinator again,” says Cameron Yarbrough, CEO and co-founder of . I would do it three more times. It was that good.” In addition to the invaluable guidance on building the right deck and approaching the right investors, he points to what he calls . “It creates positive pressure, which you really need early on,” he notes. Plus, “Many startups fail because they try to do too many things, rather than focus on a few they could do really well,” Cameron says. Torch the “batch phenomenon” –– the momentum that arises in a group of peers YC helps you decide what not to do . First-time founder Mile Selden of cellular agriculture startup found invaluable resources in a specialized accelerator, biotech-focused . He also leaned on “ , which I love,” says Mike. “I can't recommend that enough.” Finless Foods IndieBio support from founders of similar companies when the going got tough. It was 12 sets of mistakes for the price of one “Techstars encouraged us to , and send it out monthly to investors,” says Cargo founder Jeff Cripe. “I resisted for a while. But honestly, probably . We've .” do a newsletter 40 to 50 percent of the capital we've raised came as a result of those newsletters kept ourselves top of mind with investors Y Combinator, says Stephen Kuhl, CEO of sofa-in-a-box company , pushes founders to raise on SAFE notes. “It allows you to push off the conversation about valuation to a much later date, when you actually have traction.” That strategy also helps startups get money faster. That was key for Stephen and his co-founder, who were still tinkering with product design while completing the accelerator program –– and finishing business school to boot. “ . So we just raised on SAFE notes from people who were interested.” Those early investors helped Burrow raise its valuation from $7 million (pre-YC) to $12 million afterward. Play it SAFE. Burrow We couldn't afford to take two months off and raise full-time Think Outside The Round (And Other Non-Obvious Advice) As a repeat founder who’s also an angel investor, Bill Boebel with his companies. “ ,” Bill says. “We're going to invest every dollar we can.” That means that his startup might have zero in its bank account at some point. But at the same time, he says, “we're designing it profitably, which means we're in full control of our destiny. If we invest more than that, we're not in control. If we spend any less than that, we're not growing as quickly as we can.” chases the balance between growth and profitability I call it a ‘touch zero’ operating model Pingboard If it’s an option, Allie Magyar of event-planning platform suggests founders “If you get 10 angels, they may write checks for $25,000 apiece,” she says. “But then you're dealing with 10 different people with 10 different sets of questions, views and perspectives.” But at a fund? All of the investors contribute, and entrepreneurs only deal with a single point of contact. Hubb focus on funds instead of individual angels . Serial entrepreneur and founder Bob Moore says he doesn’t even consider raising another round until he feels like he has “a really strong universe of representative clients, all of who are willing to pick up the phone and say, ‘this thing changed my life,’” he says. Work toward becoming indispensable . Crossbeam That was Matthew Klein’s strategy when fundraising for his design and product development software, . “I really wanted somebody who was going to be hands on, rolling up their sleeves and helping us with product-market fit strategy,” he says. Find a great lead investor who isn’t too large if you’re a growing business. Backbone PLM Another tip? “We never were ‘out’ around the funding,” Matthew says. Instead, he while playing up the buzz around Backbone’s customers, like Stitch Fix, Warby Parker and Outdoor Voices. “We were starting to work with some exciting companies, and then we started getting a lot of excitement from top funds throughout the country.” Don’t promote the fact that you’re fundraising. focused on building rapport with potential investors “It’s hard to run a business at the same time that you're ,” says Ryan Boyko, who has raised more than $6 million for his dog DNA kit company, . He advises to “ . .” running a fundraising process Embark Vet either have a really wonderful co-founder who can keep everything moving forward, or hire somebody who can We lost opportunities to grow and to make good hires while I was busy fundraising Jessica Chang made a point of To raise funds for her company WeeCare, a platform connecting daycare providers and parents, she spent time building relationships kicking off her seed round. When she did, those investors already had context for the company and could see the progress it made. Her meetings were “mostly about updates and metrics,” says Jessica. “Investors had done a little bit of research, so they were excited about the daycare space.” starting conversations with potential investors before actually pitching them. before . founder Lewis Gersh would open investor meetings by throwing down a stack of postcards on the table and announcing that they were worth more than Google Adwords. “It would grab their attention and create a fun intro,” Lewis says. “ ” Create a memorable impression PebblePost Like let's go old school, let's have a discussion. Sean Byrnes says, noting that it’s vital to understand the fine print on any cap table. “As founders, we get kind of obsessed with dollar signs on a piece of paper.” The co-founder adds: “I believe in . . It’s an ego boost to say, But really all you're doing is constraining yourself and reducing optionality in the future.” “Terms are always more important than the amount of money in the valuation,” Outlier AI raising as little as possible That's how you control your own destiny I just raised 10 million. Nathan Beckord is the CEO of Foundersuite.com which makes software for raising capital. Foundersuite has helped entrepreneurs raise over $1.5 billion in seed and venture capital since 2016. This article is based on Foundersuite’s How I Raised It podcast , a behind-the-scenes look at how startup founders raise money.

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