Ben Zises’ Post

5 tips for raising early-stage capital ... 1. way too many founders optimize their capital raise for external validation (investor 'quality') and/or risk reduction (raise size). the founders who raise successfully optimize for something dramatically different - likelihood of close. 2. there are 3 types of investors: 1) you aren't a fit for them, 2) they aren't a fit for you and 3) you are a fit for each other. the most efficient capital raisers identify and focus on #3 the fastest. the least efficient consistently tweak their messaging in hopes of 'converting' #1. 3. it's not about dilutive versus non-dilutive capital. it's more about dilutive to what? is it ownership/founder control, cash flows, etc.? all capital involves some tradeoff. if you want to optimize for (preservation of) ownership/control, you most likely have to sell some level of cash flow. if you want to optimize for cash flow, you most likely have to sell some level of ownership/control. 4. equity/debt crowdfunding = community round. if you have a robust community of supporters, then community-funding is most likely your path of least resistance to a raise, and it will most likely yield the most favorable terms (save that potentially of raise size). 5. the more compelling the value prop, the more likely the stakeholder is to 'invest'. as such, the most efficient path to capital for many companies is revenue from customers.

Fundraising is a tactic, not a goal. I've been seeing too many founders over-indexing on raising funds and forgetting that it's a means to an end. It’s time for founders to reevaluate the pursuit of funding. Don’t get me wrong—raising capital is an important milestone for a startup and can dramatically change the trajectory of your business. In fact, every dollar a startup can raise is a gift. Every opportunity you can get to pitch investors and raise funds should be well seized. But, it’s also tricky to pull off. Everything from your approach, to how you sell it, to even a bit of luck around the timing of the deal—especially compared to other opportunities investors have seen—has to all align in your favor. So don’t treat it like your goal — a founder that optimizes for fundraising above all else is likely not spending enough time on their customers or product. 

Shaping a Diverse Future in Venture Capital! “If you take a more honest approach to risk, your portfolio will be more diverse. It’s not charity, it’s opportunity.” —Lenore Champagne Beirne, founder of Bright Ventures Meet the trailblazers challenging the norms of the industry. From supporting underrepresented founders to prioritizing mental health, these visionaries are rewriting the rules. https://lnkd.in/gki8fJaS #venturecapital #ventureinvesting #investinwomen #womenfounders #womeninVC #womenventurecapitalists #womeninvestors

Q for VCs: How do you evaluate investing in founders who have never raised money before? 🤔 Raising money is already challenging, but lacking a reliable investor network makes it 10x harder.🔨🔨 This is a contentious debate in VC. If you’re investing in a founder who has never raised money from VCs, they’ll face a serious uphill battle in fundraising. The majority of startups that fail do so due to an inability to raise capital. So if your a founder that has never raised before: 🚨You need to put yourself out there!🚨 Whether it’s posting on social media 3x a day or attending three in-person events weekly, you have to start building your network. In 2024, if you're not doing this, you're nobody in your space. If nobody knows you, how can you raise money? And if you're not proficient at it and lack the aptitude for it, bring on a co-founder who can. Nothing is worse than complaining about the slow pace of fundraising or a round not progressing, yet putting in very little effort to raise money. I don’t have a problem investing in founders who haven’t, but if they aren’t putting in the work to build their network, it’s a major red flag for me. 🚩🚩 VCs can't raise money for you, advisors can't, colleagues can't. If you're the founder, you have to develop the skill of raising money. It's hard, and it's supposed to be! If it weren’t, building a startup would be much easier. 🔨🔨

While DEI programs are being attacked here, maybe we should look to our friends across the pond to dig in and be stealth. Diversity focused venture capital investor Impact X Founding Partner states “until underrepresented entrepreneurs reach economic parity….this work will continue to be very important” #diversityequityandinclusion #socialimpact #impactfund #philanthropy #nonprofit #reuters #funding #grants #entrepreneurs