6 Resources to Help You Fundraise

This week's tip: the six resources you need to help you fundraise

Fundraising in and of itself follows a pattern and has a similar process throughout every stage; in the end it's actually quite easy. However, it only becomes easy once you've done it many times.

Second or third-time founders tend to have more success fundraising because they have experience under their belt. They've already made mistakes and learned from them. They know what works and what doesn't.

But as a first-time founder, you don’t have the ability to try and fail as many times as possible. You need the money now and for this fundraise, not for the future.

In your quest for fundraising mastery you are then overloaded with a wealth of information, but you don't know which specific advice will work for you. Half of them are complete opposites of each other, even though they are all probably correct!

Even a successful seed-stage founder has only gone through two fundraises at most; their Series A would be their third funding round. In contrast, investors can go through three funding rounds within six months!

This is also why investors have a power dynamic over you. They've been through multiple funding rounds and have met every type of founder under the sun. They know how everything works, while you are left wondering what's next.

For this reason, I've found that fundraising can be one of the hardest parts of being a founder.

It's also why you have to upskill yourself with proven fundraising processes as well as how and why investors think the way they do.

Luckily, there are resources out there to help you.

Here’s six resources to help you:

1. Books

Books are a great starting point for giving yourself a baseline of how investors speak, their terminology, and why they think the way they do.

Venture Deals by Feld & Mendelson is a good starting point for understanding how VCs think. Another book I particularly liked was Zero to One by Peter Thiel.

While books can provide a solid foundation, they are just that. Don't expect to read these books and become an expert.

Read a few in your spare time, but don't spend all your time on them.

2. Investor blogs

Investor blogs provide direct access to how investors think about the world and communicate internally. I would recommend you to analyze the top 10 VCs you would like to invest in your company. By doing this, you can discover the keywords they use to describe the types of companies they invest in and see what they focus on over time.

For example, at Octopus Ventures, my old fund, "team building" and "changing the world" were popular discussion points for every investment we made. You should be able to explain how your company aligns with the key themes that the particular VC is honing into.

Other funds may prioritize different factors such as domain expertise of the founders, traction, coachability, or purpose. By researching their blogs, you can identify the key factors that they prioritize in their investments. This also gives you an opportunity to decide whether they are a good fit for your company.

3. Podcasts

Podcasts are a great way to hear how a VC speaks. You can hear how they discuss companies, the terminology they use and what makes them tick. This is great to have a general overview of VCs, but also for specific people that you may meet.

You can determine if you would like to work with them and if you would get along with them. Additionally, listening to VCs on podcasts can be a great opportunity to connect with them personally and show that you care about their viewpoints. For example, when you meet them, you could say something like,

"Hey, great to meet you. I loved what you said on {PODCAST}, especially {SPECIFIC POINT THEY MADE}. What we're building here hits on {SIMILAR POINTS}."

Some generic podcasts you can listen to include 20VC, Secret Leaders, and Venture Stories by Village Global.

4. Following experts on social media

Like myself ;) … but no.

Ben Horowitz, Marc Andreessen, Fred Wilson, and hundreds of others post on LinkedIn or Twitter every day. Follow as many as you can to learn about what we say and how we speak. Then, try to actually speak to as many of us as possible.

We’re a friendly bunch and the more conversations with us you have, the more likely you will get a better understanding of how you should speak to us.

5. Building relationships early

Building your network of investors is not just about raising funds. It also enables you to ask for help and understand where they see your company heading.

When building your network, your focus should not be solely on the money. Instead, concentrate on providing as much value as possible, so that when you need help they are more than willing to give you a helping hand.

By having these types of conversations you can see what the investors need from you before they will be willing to invest, as well as what makes them excited already.

6. Advisors

Advisors who have gone through your current situation can be incredibly valuable. They can share their experiences to help you understand each step you're taking and whether it's worth it.

For example, founders who are one or two steps ahead of you, or industry veterans who have scaled a similar company to yours can provide great insight.

Remember, you don't have to do this alone. Seek out help from those who have been there before.