The 7 Types of Support You Need while Fundraising
Fundraising is already an extremely difficult undertaking, and it’s especially hard if you try to be a hero and do it own your own. In today’s newsletter, I’m breaking down the different types of support that are essential for raising capital.
1) Your Team
First, let's talk about support from your team. Not getting them to help with fundraising per se, but really understanding the scope of what you're about to tackle.
As an early-stage founder, so many things run through you. But as you shift focus to full-time fundraising, it's essential that your team is prepared to pick up the slack.
However, some team members might not fully understand the enormity of the time and commitment that fundraising requires. It's vital to have a discussion ensuring everyone is on the same page. They need to be prepared to help with some of your responsibilities and recognize in advance that you’ll be focusing a lot of your energy on fundraising activities that might not appear core to the business.
Once they commit to this support, it can be much each easier for you to focus on your fundraise and crush it.
2) Friends & Family
It's also important to seek support from your family, partner, and friends. They should be aware that your responsibilities at home and capacity as a friend will likely be affected.
You'll be dedicating a lot of your emotional effort and time to fundraising, and this frequently means your relationships will take a temporary hit. Their understanding of these ups and downs is crucial.
3) Peers
On the tactical sidem I highly recommend finding peers who have experience with fundraising, especially CEOs and founders who have recently gone through it. They can offer both detailed information and emotional support.
Very few people in this world understand the pressure of fundraising and running a company simultaneously. Having people on your side who can help guide you along and relate to what you're going through can be a very helpful source of support.
4) Experts
Gaining a deep understanding of what you're about to dive into is critical. I find that a lot of first-time founders feel like they understand what fundraising is all about - asking people for money to put into your company so that you can grow. But the devil’s in the details and small mistakes can be costly.
Look for experts in your network who have a strong grasp of fundraising, including CEOs who have raised capital before and investors who can offer a friendly ear.
These people will be worth their weight in gold as a friendly mentor, or even as a formal advisor to help you get through the process of fundraising. They can provide invaluable insights, help decipher / interpret what investors are saying, and guide you through the fundraising process.
5) Practice Partners
Find practice partners who can give you candid feedback on your live pitch, deck, data room, and other materials before your first set of VC outreach and meetings.
Founders often hear the advice of tiering their meetings and speaking to the less-desirable VCs first to get practice out of the way, but I think that’s a waste of a shot on goal.
Practice with someone who has context about fundraising and startups to get those first-time jitters and mistakes out of your system.
6) Organizational, Accountability, and Operational Support
Fundraising isn’t fun and most founders aren’t comfortable with all that it requires. As you start going out to raise capital, there will be tons of tasks you need to stay on top of. At the same time, you’ll constantly be pulled back into your core business activities.
Having a consistent accountability partner will keep you focused and organized. This could be a coach you hire, a team member, or another CEO who checks in with you regularly to ensure you stay on task.
What are the processes that are live right now? What are the last conversations that you had? What are the follow-ups that need to be executed? Having a partner to help you stay on top of these things will help force you to actually execute and push your fundraise along.
Look for operational support to handle the many small tasks associated with fundraising, like researching targets or writing emails. You might consider hiring a junior team member or an executive assistant for this purpose.
Working with a recruiting partner like Agent to onboard an overseas assistant can provide you with the necessary support at a fraction of the cost for a local hire.
7) Fundraising Prep Bootcamp: Fundraise with Confidence (FWC)
I developed my fundraising prep bootcamp in response to all the challenges that founders face when fundraising. The 10th cohort of Fundraise With Confidence starts in just 2 weeks (April 15).
Each module is carefully designed to give you the support and processes you need to execute a successful fundraise, including expert feedback, investor research/CRMs, VC guests, accountability systems, practice reps, and more. These are the same processes and tools I’ve used to help founders raise over $311M from top investors.
Applications for FWC close on Monday, April 8 and I encourage you to apply now before the cohort fills up, especially if you’re gearing up for a fundraise within the next 3-6 months.
Raising capital requires more than just a solo effort; it takes a village. There's no award for getting to the answer slower on your own!