Ultimate Guide to Fundraising

📅 Why Are You Fundraising?

Before anything else, ask yourself:

• What are you raising for?

• How much do you actually need?

• How long will it last?

Write down five real reasons why this capital matters:

• [Reason 1]

• [Reason 2]

• [Reason 3]

• [Reason 4]

• [Reason 5]

Most reasons fall into one of these categories:

• Scale operations (e.g., hire team, expand markets)

• Reduce costs (e.g., bulk production, automation)

• Leverage a network (e.g., get intros, close deals faster)

Fundraising isn't just about money—it's about speed, credibility, and leverage.

🔎 What Kind of Investor Should You Target?

Founders often waste time targeting the wrong capital. Here’s a breakdown:

Self-Funding

Keep full control. Bootstrapping shows grit and de-risks early-stage investor conversations.

Friends & Family

High trust, but comes with emotional risk. Make the risks crystal clear.

Crowdfunding

Great for product-led startups. Also builds early evangelists and traction signals.

Accelerators

Offer mentorship, structure, intros, and urgency. Look for programs with active alumni networks.

Angel Investors

Hands-on. Early believers. Often founders themselves. High risk tolerance.

Venture Capitalists (VCs)

Look for high-return outcomes ($100M-$1B+). VCs bring structure, networks, and follow-on firepower.

🔍 Build Your Investor List Like a Pro

Start building your investor CRM 3–6 months before you raise.

Target investors who:

• Have invested in your space or adjacent markets

• Are actively deploying capital

• Write checks at your stage

• Align with your founder background or thesis

Avoid chasing ghosts. Use filters like:

• Geography

• Check size

• Sector

• Founder fit (solo, underrepresented, technical, etc.)

Warm intros beat cold emails. Leverage:

• Portfolio founders

• Existing investors

• Advisors or operators

🎨 Crafting a High-Converting Pitch Deck

Your pitch deck should be short, visual, and high-signal. Aim for:

1. Cover Slide

2. Summary Slide (traction, ask, quick pitch)

3. Problem

4. Solution

5. Market Size

6. Product (screenshots or demo)

7. Business Model

8. Go-to-Market Plan

9. Traction + Milestones

10. Team

11. Financials & Fundraising Ask

Design Tips:

• Use <20 words per slide

• Include 1 clear visual per slide

• Match fonts, colors, and margins

• No animations unless demoing something step-by-step

🎬 Master the Pitch

Practice with:

• Fellow founders

• Friendly investors

• Your team

Common investor questions:

• Why now?

• Why you?

• How big is the opportunity?

• What do you know that others don’t?

• How will you acquire customers?

• What’s the exit?

📈 Understanding the Term Sheet

A term sheet is a non-binding outline of the investment. Key terms include:

• Valuation (pre/post-money)

• Liquidation preferences

• Voting rights / board seats

• Option pool

• Founder vesting

• Anti-dilution clauses

Negotiate like it’s your last deal, but keep it founder-friendly. Default to standard YC/Series Seed docs when possible.

✅ Due Diligence Checklist

Investors will want:

• Cap table (fully diluted)

• Legal docs (incorporation, IP assignments)

• Financials (P&L, runway model, cash flow)

• Customer metrics (LTV, CAC, retention)

• References (team, advisors, prior investors)

Pro tip: organize a "data room" in Notion or Google Drive. Make it easy for investors to say yes.

🫳️ Post-Investment: What Happens After You Close

After the wire hits:

• Send investor updates monthly or quarterly

• Track KPIs and share roadmap wins

• Schedule board or strategy syncs

• Keep investors engaged pre-next round

Remember: fundraising is the start of the relationship, not the end.

🌐 Legal, Cap Tables, and Governance

• Use clean documents (SAFE, Convertible Note, Equity)

• Keep your cap table updated and transparent

• Understand dilution and ownership math

• Plan future option pools upfront

Tools: Pulley, Carta, Captable.io

❓ FAQ

Q: How early should I start prepping? A: 6 months before the raise. Start pipeline, pitch, and data room early.

Q: How much should I raise? A: Enough for 18-24 months runway plus a 20% buffer.

Q: What’s a realistic valuation? A: Benchmark based on your stage, revenue, and comparable deals.

Q: How long does fundraising take? A: 3–8 weeks for active rounds; 2–3 months including prep.

Q: What’s the best way to start? A: Start soft-circling existing connections, then build momentum with lead investors.