Startup fundraising: Finding true believers vs. convincing skeptics

Excerpts from Pull the Plug or Keep Searching for the Believer? When Fundraising is Tough. by David Beisel:

My partners and I at NextView talk a lot about how fundraising is about finding the true believers rather than convincing the skeptics. The energy that it takes persuading someone who starts with a bias not to invest is much better suited searching for additional prospects who want to believe in what you’re building. We’ve observed it repeatedly in our portfolio as Founder/CEOs seek additional rounds of financing: the engaged skeptics just never quite get there, but the entrepreneurs who cast the nets wide enough find someone who believes.

Because of this learning, we counsel our seed companies when raising a Series A to run a full & synchronized process with a broad array of firm sizes, types, and shades to determine what profile will become believers. It’s not until you have had a broad array of conversations are you able to tease out the profile of (and subsequently specific) firm(s) which will be attracted to your company.

One thought on “Startup fundraising: Finding true believers vs. convincing skeptics

  1. Pingback: There are only two ways to raise money for a startup | A Founder's Notebook

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s