Never depend on exterior sources to do your fundraising for you
Occasionally, in my function as an expert, I am come close to by business that have a strategy in position for their fundraising that does not include the CEO or a participant of the starting group running factor on the fundraising procedure. From one point of view, I can recognize that: VC fundraising does, from the outdoors, look a great deal like sales, and also if you have a great sales representative, why not allow them do what they do finest?
The concern is that while salesmen are terrific at sales, the VC fundraising procedure is extremely various than landing a consumer. You’re attempting to locate a placement in between the business and also a lasting companion that will certainly have a considerable quantity of input right into the future of your start-up. And if there are inconsistencies in between the sales procedure and also the much deeper due persistance right into the business (and also there will certainly be, due to the fact that the sales group has a various long-lasting point of view on what success appears like), that can make the entire bargain crumble.
There are a number of truly excellent reasons that, at the earliest phases of fundraising, the starting group need to be running the fundraising procedure. In this post, I simplify and also clarify why it’s a terrible concept to allow any individual yet the CEO do the fundraising.