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By no means depend on exterior sources to do your fundraising for you
Often, in my function as a guide, I’m approached by corporations which have a plan in place for his or her fundraising that doesn’t contain the CEO or a member of the founding group working level on the fundraising course of. From one perspective, I can perceive that: VC fundraising does, from the surface, look quite a bit like gross sales, and you probably have a superb salesperson, why not allow them to do what they do finest?
The problem is that whereas salespeople are nice at gross sales, the VC fundraising course of may be very totally different than touchdown a buyer. You’re looking for an alignment between the corporate and a long-term associate who can have a big quantity of enter into the way forward for your startup. And if there are discrepancies between the gross sales course of and the deeper due diligence into the corporate (and there shall be, as a result of the gross sales group has a special long-term perspective on what success appears like), that may make the entire deal crumble.
There are a number of actually good the explanation why, on the earliest levels of fundraising, the founding group needs to be working the fundraising course of. On this article, I break it down and clarify why it’s an terrible thought to let anybody however the CEO do the fundraising.
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