Handbook
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Fundraising
Preparing to Fundraise
The work before the pitch matters most. Here's how to prepare for a successful raise.
Most of fundraising success is determined before you take the first meeting. Preparation—your materials, your story, your warm introductions—determines whether investors take you seriously.
Here’s how to prepare properly.
Getting Your House in Order
Company Setup
Before raising, ensure basics are handled:
Legal structure:
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Delaware C-Corp (standard for VC)
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Clean cap table
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Proper incorporation documents
Equity:
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Founder equity properly issued
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83(b) elections filed
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Option pool established
IP and contracts:
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IP assigned to company
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Key contracts in place
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No outstanding legal issues
Investors will diligence these. Problems create friction or kill deals.
Financial Hygiene
Clean financials:
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Proper bookkeeping
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Understandable P&L
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Clear revenue tracking
Metrics:
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Key metrics tracked
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Data accessible
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Story supported by numbers
Team Alignment
Before fundraising:
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Founders aligned on vision and strategy
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Roles clear
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Equity and expectations settled
Investor meetings will test alignment. Don’t discover misalignment in a partner meeting.
Building Your Materials
The Pitch Deck
10-15 slides covering:
1.
Title: Company, tagline
2.
Problem: What pain you solve
3.
Solution: How you solve it
4.
Product: What you’ve built
5.
Traction: Progress and momentum
6.
Market: Size and opportunity
7.
Business model: How you make money
8.
Competition: How you win
9.
Team: Why you can do this
10.
Ask: What you’re raising and why
More detail on deck in separate article.
The Executive Summary
One-page overview:
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Problem/solution
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Key metrics
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Market size
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Team highlights
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Raise amount
For introductions and quick context.
Data Room
Documents investors will request:
Corporate:
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Articles of incorporation
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Cap table
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Founder agreements
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Board minutes
Financial:
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Historical financials
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Projections
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Metrics detail
Legal:
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Material contracts
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IP documentation
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Pending legal issues
Product:
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Product roadmap
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Technical architecture (if relevant)
Have these ready before you start. Delays kill momentum.
Financial Model
Simple model showing:
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Revenue projections (realistic)
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Expense plan
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Cash flow
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Key assumptions
Investors will challenge assumptions. Know your numbers.
Crafting Your Story
The Narrative Arc
Your pitch should tell a story:
Setup: The world has this problem
Tension: Current solutions fail because
Resolution: We solve it this way
Stakes: If we succeed, here’s the outcome
Why now: This is the moment because
Why us: We’re the team to do it
Facts alone don’t persuade. Stories do.
Your Origin Story
Why you started this company:
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Personal experience with the problem
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Unique insight you developed
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Previous work that led here
Make it authentic. Investors invest in people.
Your Unfair Advantage
What makes you uniquely positioned:
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Domain expertise
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Technical advantage
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Relationships/network
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Previous success
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Unique insight
Everyone claims advantages. Prove yours.
Building Your Investor List
Research Investors
Find investors who:
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Invest in your stage
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Invest in your sector
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Write checks your size
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Have relevant portfolio companies
Research methods:
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Crunchbase
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LinkedIn
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Portfolio websites
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Twitter/social
Tier Your List
Tier 1: Dream investors. Strong fit. Warm intro possible.
Tier 2: Good fit. Would take money from. Intro possible.
Tier 3: Acceptable. Less ideal fit. Backup options.
Focus energy on Tier 1, but have depth.
Warm Introductions
Cold outreach rarely works. Warm intros are essential.
Sources:
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Your investors/angels
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Portfolio founders
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Mutual connections
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Advisors
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Fellow founders
Making the ask:
“I’m raising a [seed round]. Would you be willing to intro me to [specific investor] at [firm]?”
Make it specific and easy for them.
Practice and Refinement
Practice the Pitch
Rehearse until it’s natural:
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Present to advisors
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Practice with other founders
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Record yourself
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Time it (10-15 minutes)
You should be able to pitch without slides.
Anticipate Questions
Common questions:
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Why this market?
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Why now?
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Why you?
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How do you acquire customers?
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What are the unit economics?
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Who’s the competition?
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What’s the biggest risk?
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What would you do with the money?
Have clear, concise answers.
Refine Based on Feedback
After practice sessions:
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What questions came up?
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Where did you stumble?
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What didn’t land?
Iterate on content and delivery.
Timeline Planning
Typical Timeline
2-3 months before: Preparation
4-8 weeks: Active fundraising
2-4 weeks: Due diligence and close
Plan for 3-6 months total.
Parallel Processing
Run the process in parallel:
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Initial meetings with many investors
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Partner meetings with interested ones
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Create competitive dynamic
Serial processing takes too long.
Managing Runway
Don’t start with 2 months of runway.
Start fundraising when you have:
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6+ months runway
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Time to complete process
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Cushion for things taking longer
Mental Preparation
It’s a Numbers Game
Most investors will say no. That’s normal.
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Many won’t be a fit
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Timing may be wrong
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Competition for their attention
One yes is all you need.
Rejection Isn’t Personal
Investors pass for many reasons:
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Not their area
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Already have competitor
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Fund dynamics
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Portfolio balance
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Thesis mismatch
Learn from feedback but don’t internalize every no.
Stay Focused on the Business
Fundraising is distracting. But the business must continue:
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Keep building
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Keep selling
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Keep the team focused
Metrics going up during the raise is the best fundraising strategy.
Key Takeaways
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Most fundraising success is determined by preparation, not pitching ability
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Get basics in order: legal, financial, team alignment
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Build core materials: deck, executive summary, data room, financial model
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Craft a compelling narrative: setup, tension, resolution, why now, why you
•
Build tiered investor list matched to stage, sector, and check size
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Warm introductions are essential—cold outreach rarely works
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Practice until the pitch is natural; anticipate common questions
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Plan for 3-6 months; have 6+ months runway when you start
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Process in parallel; serial approaches take too long
•
Stay focused on the business—metrics going up is the best fundraising strategy
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Running an Efficient Fundraising Process