5 steps to fundraise without losing your mind_Pt 4

Step 4: Prepare a process

In fundraising, time is your enemy. This is because your startups’ attractiveness to investors has an expiration date. The longer you’re out fundraising, the lower your chances.  With that in mind, the most efficient thing to do is to stack your meetings into a few weeks. 

First, you rank investors into three tiers. Tier one represented the top five or so elite funds—those with the best reputations that who wrote the biggest checks and moved the fastest. The second tier involved around lesser-known funds that who still moved pretty fast. Finally, the third tier comprises low-hanging fruit you are not too serious about. Start at the bottom with tier-three funds and use those to practice your pitch. Then move to tier two. If—and only if—You achieved success (i.e., term sheet or partner meetings) within these tiers, move up to the big leagues. 

Second, you try to get in front of them. Now, investors don't respond to cold emails, but they do respond to warm intros. The best source of warm intros are CEOs in the portfolio of that investor. So look up all the top CEOs in your favorite investors' portfolio and grab a coffee with them. Build true organic relationships and then ask advice (not intros). They will organically offer their help and likely intros will follow. 

Lastly, generate buzz and hit the road. Try getting as much industry press as possible, attend conferences, anything to get in front of investors. Accelerators’ demo day is a good compliment to this. Remember that when you decide to take your first meeting, you should not be out there more than a month or two. With the right strategy, you can turn time from foe to friend.

Next: Be formidable