The Zen of fundraising

When investing in companies through FastIgnite, I usually sell my super-secret value-add as opposed to just cash. See, cash is not that hard to get if you know how to ask for it and there aren’t any obvious reasons for investors to say “no.”

Much of the fundraising advice entrepreneurs get is extremely tactical, e.g., say the following thing on this slide or don’t say “platform”, etc. This may make a first meeting with investors go better but usually leads to disillusionment and a pass later on in the process. It’s a lose-lose proposition. Both sides spend precious time and go nowhere.

I prefer a more fundamental approach, one that attempts to help build a business with fundraising simply an artifact of that broader goal. A founding team must discover its core strength and the reason why they, as opposed to the other dozen smart teams going after similar ideas, are going to win. This requires intellectual honesty and emotional maturity. It’s hard work. It may point out significant holes in a team’s capabilities or issues with the company’s business model. Then the work gets harder. Companies that face these challenges come out stronger and much better prepared to raise money and grow.

Here are a few of my posts I tend to refer founders to over and over. I hope you find them helpful.

About Simeon Simeonov

I'm an entrepreneur, hacker, angel investor and reformed VC. I am currently Founder & CTO of Swoop, a search advertising platform. Through FastIgnite I invest in and work with a few great startups to get more done with less. Learn more, follow @simeons on Twitter and connect with me on LinkedIn.
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