The CEO also advises on running the raise, such as using warm introductions to reach investors, building a list of target funds, and leveraging social proof. During the closing process, he recommends running a short process with a deadline, negotiating the valuation upwards, and optimizing for great partners rather than the highest possible valuation. After closing the round, he reminds founders that raising money is just one step in the journey of building a great product and that they should be prepared for a long and difficult journey.
Key takeaways:
- Fundraising should be approached as a project that requires significant time and systematic planning.
- Practicing and sharing your pitch with mentors, advisors, and friends for feedback is crucial.
- Warm introductions are key to reaching out to investors, and social proof can significantly boost your credibility.
- When closing the process, it's important to run a short process with a deadline, negotiate the valuation upwards, and optimize for getting great people as partners.