I hate the questions.
I hate asking friends for money.
I hate the lack of transparency.
These were the top frustrations shared by early-stage founders at a workshop yesterday at ATDC. I helped them reframe these challenges, and I’d love to hear your thoughts on how to make fundraising less burdensome in the comments.
- Reframe fundraising as finding partners in success. As a founder, you’re a wealth generator, driving growth, innovation, and job creation. You need financial fuel, and you are someone’s opportunity. As one attendee said, imagine having a rocketship company and not asking friends to invest early—how hurt would they be later?
- Address transparency by asking better questions. VCs are people too, and they may assume you know more about their process than you do. Start by qualifying them:
- Ask about deals they’ve done recently.
- Find out their typical entry stage, check size, and whether they prefer to lead or follow.
- If they lead, and they’re aligned with your sector, ask for advice on accelerating your business. If they often follow, ask for introductions to leads they know.
- Avoid unqualified VCs. Many founders hate answering endless questions from VCs who aren’t well-versed in their industry. Curious by nature, VCs love to learn, but that doesn’t mean you should spend weeks explaining your sector to them! Set a bar for who you engage with. Save your energy for those who truly fit your fundraising goals.
Thanks, Dr. Caroline M. Ford for the opportunity to connect with these engaging founders! Want to see get in some live fundraising practice?
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