How to Build a Support Network

Over the past decade, I have participated in over 70 fundraises and $350m+ in funding. I have been a founder myself, worked with my portfolio companies as a VC, and now serve as an advisor.

What I have come to realise from being involved in so many fundraising efforts and seeing it from all sides is that the reality of fundraising is extremely stressful. Even the most successful fundraises I have seen did not feel easy. During the process, there were always moments where it felt like it was going to fail:

• Investors randomly pulling out
• Getting push back for the 2-3 major questions of the round
• Something going wrong in the business taking the founder’s time

In reality, during the fundraising process it will always be hard to know if its going well or not. The problem I see however, is that founders never prepare and set themselves up for when these realities will hit.

And when you don’t prepare properly for this you get destroyed by the fundraise, causing burnout, low energy and even sometime the complete collapse of your fundraise.

One of the most important aspects of fundraising prep is making sure you have the right mindset and support network for when you go out to fundraise.

Here’s 4 things you should set-up:

1. Business Support

Fundraising can be a time-consuming and resource-intensive endeavor. Even for successful founders who can manage to find 15-20% extra work to push forward with fundraising, it's important to find others who can help share the workload during the busiest times of the fundraising process (usually during launch or late due diligence phases).

This is necessary for two reasons:

• To ensure that you don't burn out from trying to build the business and fundraise simultaneously.
• To ensure that the business continues to grow and that you can provide the right updates at the right time.

Therefore, it's crucial to have a strong support network of co-founders or employees who can lead and take some of your load off when you officially start the fundraising process. They should understand that while you may not always be there for the business operationally, you are working to secure funding to help the business grow in the future.

2. Fundraising Support

Fundraising can be mentally challenging, especially when you are constantly being rejected by investors. It's common to feel drained and constantly behind during the process, where you don’t ever feel like it will end or even be successful.

To cope with this stress, it's important to have a mentor or support from an investor or advisor with fundraising experience. They can offer external insights of course, but also provide a safe space for you to share your feelings week-to-week.

As part of my work with founders after they launch their fundraising, I often serve as a sounding board for them. I listen to everything that has happened during their week of fundraising and offer support.

Sometimes, all you need is someone to listen and help you work through the stress. Without it you can feel lost in the motions which could cause the collapse of your fundraise.

3. Emotional Support

Fundraising is emotionally draining and isolating. It's important to prepare your co-founders, family, and close friends for the launch so they can understand what you're going through and provide emotional support when needed.

To maintain balance, it's crucial to spend time with people who aren't involved in your business. I recommend taking two walks a week with your significant other, family member, close friend, or alone to step away from the fundraising process. It doesn't need to be a long walk, but make sure you give yourself enough space.

Engaging in a hobby that provides mental space is also a great option. For me, it's Muay Thai boxing, but for you, it could be reading a book, playing a different sport, or even cooking!

4. Your mindset

Your mindset is the most important factor in your fundraising efforts. You need to be mentally strong and happy to handle the challenges that come your way. While I cannot cover everything in this single issue, I will provide a more detailed guide later. For now, keep the following in mind:

• Do not let your mental health depend on the success of your business or fundraising.
• Recognize that you are the prize, and an investor rejecting you does not diminish your worth.
• Research alternative plans in case your fundraising efforts fail. This will help reduce your fear of failure.