Ben Zises’ Post

There’s a lot of misinformation out there about fundraising ⚠️ Just last year, there was this wave of voices suggesting that founders don't need pitch decks. They said, "All you need is a warm intro and a compelling story, and investors will be lining up." 🤫 I watched this unfold from the sidelines, working quietly with founders who understood that fundraising isn't a one-trick pony. It's a dynamic process that requires a well-rounded approach. In 2023, we saw some promising results. 🚀 The founders who partnered with us achieved a 60% success rate. They recognized the importance of having all their ducks in a row, not just relying on warm introductions and stories. Now, the narrative has done a complete 180. Why? Because people have been burned. Even with the most impeccable warm intro, almost every investor these days is asking for a pitch deck. And here's where many faltered. They counted on their intros but forgot the importance of coming across as fully prepared. It's similar to having a captivating story but failing to capture investor attention with your pitch deck. What's the use of a great story if you can't get your foot in the door? I'm thrilled to see that in 2024, the market is maturing. People are starting to realize that fundraising isn't about taking shortcuts; it's about building a solid foundation. Success now comes to those who recognize the value of the three pillars: Story - Crafting a compelling narrative. Strategy - Executing a well-thought-out plan. Documents - Preparing a standout pitch deck and relevant materials. It's a more practical approach, and it's yielding more success. 🚀 Do you agree that the fundraising landscape is evolving for the better? Share your thoughts below. -- P.S. What do you think will be the next big change in fundraising strategy?

Fundraising for the first time is a daunting task. I have been preparing by collecting advice from various sources. Here’s what I have learned: ✅ Build relations with investors first. Never say you are fundraising in first contact with investors. At first meeting, don’t talk about fundraising talk about other stuff. ❌When reaching out to investors, always be transparent and say you are fundraising. Don’t waste any time, Get straight to the point. Try and close the deal as fast as possible.   ✅ Always send over pitch deck when contacting investors. They are very busy and want as much info as possible before setting up a meeting. ❌ Don’t send over pitch deck when contacting investors. What you want to do is spark interest and get that first meeting. Don’t give them a reason to say no.   ✅ Always communicate valuation as soon as possible. Best to get that out of the way now, so everyone is aligned. ❌Discussions about valuations should wait. You don’t want the valuation to be the first reason for a pass by the investor.   ✅ Raise as much as you can. Spend it and grow fast. Delay profitability. ❌Don’t raise. Bootstrap and focus on getting to profitability.   I understand good advice needs context. But still, this is all over the place. And a lot of the times contradicting. Did I miss anything? Prateek Sanjay Chris Saad James Green Robbie Crabtree Gian Seehra Malcolm Lewis

Last week, Courtney S. was invited to share her top tips for fundraising success with a room of eCommerce founders and innovators at eCommerce Expo. She delved into pitch decks, finding the right partner, what investors are looking for and much more. Here's a glimpse at Courtney’s top five fundraising tips: 💡 Network proactively – start building your network early before you are thinking about raising funds and attend events with fellow founders and potential investors. 💡 Own your pitch – the pitch is a great opportunity for investors to get to know you as a founder and to hear the story behind your business. Each investor will have a preferred structure; for Courtney, it's more of a discussion and time to get to know each other, rather than a formal pitch or a pitch deck. 💡 Organisation matters – no matter if you’re a pre-seed, pre-launch startup or a more established business, a well-organised data room with the relevant, key documents will leave a lasting impression with investors. 💡 Find the right fit – when raising funding, you're entering a long-term partnership with your investors so it’s vital that your visions align and that there’s mutual trust and respect. Think about whether you want generalist or specialist investors and who is going to truly add value to your business.    💡 Don’t forget the legals – the legal process can be time-consuming, so being organised and prepared is key. Make sure you start the fundraising process before you have any pressing cash needs, as it can sometimes take longer than expected.

There are three basic principles you can employ to make fundraising less of a beating: 1) Concisely nail your value proposition: what's the problem you solve, how many people have it, and how much will they pay to solve it? 2) Pitch the right investors. Find investors that invest at your stage and in your sector. 3) Don't oversell the first call. Demonstrate the value prop and fit...and you'll get a follow up to dig deeper into the opportunity Even if you master all 3 of these, it'll still be a beating, but hopefully somewhat less of one.

Founders...do you want to get better at fundraising? Of course you do! Here's a little homework for you. Go find someone doing a real estate syndicate or development deal and ask to see their deal room, deck and doc package. They include the exec summary, the pitch, the offering, the cap stack, the ask, the exit in the timeframe all laid out on paper/digitally typically in a book or some other fancy package/presentation. Everything the invest needs to be able to make a fast decision and allocate all at once. So many Founders are horrible at this. They send the deck with no ask, then the investor has to hunt them down to get more info and then the Founder want's to have a meeting but the investor doesn't want a meeting, they want the info... Just give it all to them at once in a deal room including a way for them to invest immediately and get quick answers to questions.

Only 10% of fundraising founders does this and 90% fails to understand this: 100% Want to get funds for their dream project. 90% immediately dive into fine-grained details. 80% try extremely hard but ultimately fail. 50% keep pushing, only to burn out and give up with time. 40% convincingly decide to never attempt fundraising again. 30% continue searching for alternative solutions, feeling stuck. 20% finally begin to reevaluate their funding goals and strategies. 10% take the necessary steps to reassess, adapt, and set more realistic goals. What sets this 10% apart and helps them get funded? So, what exactly does this successful 10% do differently? Why are they able to achieve what the 90% struggles with? ✅ 10% Learn from their Initial FAILURES: They analyze what didn't work and course correct before diving in again. ✅ 10% Remain FLEXIBLE: They keep their plans adaptable and remain open to changes based on feedback from potential investors and the market. ✅ 10% Execute STRATEGY Over Tactics: They focus on developing a proper fundraising strategy first before jumping into the minor details. A solid strategy is what attracts investors, rather than intricate, yet often undirected, details. ✅ 10% Take CALCULATED Risks: They carefully calculate their risks before making decisions. They ensure they have the energy, motivation, and resources to bounce back even if the situation doesn't turn out as expected. ✅ 10% CONSULT Experts: They don't shy away from seeking professional help. Be it a mentor or an expert in the field, they understand the importance of expert advice in making informed decisions. This 10% becomes the benchmark of success by setting and achieving realistic funding goals. That's how We Voice was able to close his round immediately after working with me, raising their first ticket. Want to become the 10%? I'm conducting a workshop, "Learn to Speak the Investors' Language," that will teach you how to get funded by altering just one or two pieces of key information. Attract investors and close your funding round with examples. Want to know more? DM "Fund" to get more details. #investing #founders