Most founders don't succeed in fundraising because they don't understand the investor herd dynamics. Investors are social animals; they feel more comfortable being part of a group than being the lone wolf. Bad founders don't understand this; they don't read between the lines; they think ‘NOs’ are ‘Yes’, so they never turn those ‘NOs’ into a “REAL YES”. Firstly, let's talk about ways investors tell you No, without telling you No:

• “I’m in as soon as you have a lead”

• “We’re closing our round now, we’ll let you know”

• “We’re in for $250k as soon as you have $1M committed”

Armed with that knowledge, let's see how a good founder uses it to her advantage:

Week 1

• Founder: I’m raising $1M seed, but I don't have commitments yet

• Investor 1: That's great; I like the team, and I like the market. I’m in as soon as you raise more

• Founder (thinking 🤔):  umm, that's a no 

• Founder: Thank you. What would be your average check size?

• Investor 1: $100k

• Founder: I’m raising a $1M seed and I have $100k soft circled. Are you interested?

• Investor 2: That's great; count me in for the same.

• Founder (thinking 🤔): That's ok, but I still can't go back to #1 until he feels like he’s about to lose out.

Week 2 to 4: The founder meets with 20 other investors, then goes back to investor #1

• Founder: I’m raising a $1M seed, and I have all of it committed, but I still think you can add value. I really like XYZ about you.

• Investor 2: I’d love to invest if you’d still have me.