99% of VCs will never invest in you
And it's nothing personal. Most investors look at 1,000+ deals every year and invest in less than 1%.
Running a VC fund is a game of power law.
If you want to increase the odds,
treat fundraising like a targeted sales process.
𝗛𝗼𝘄 𝗱𝗼 𝘆𝗼𝘂 𝗳𝗶𝗻𝗱 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀?
Before pitching, clarify these criteria:
𝟭) 𝗦𝘁𝗮𝗴𝗲
Funds usually focus on 1-2 stages.
If it's not a fit, build a relationship, but don't spend time pitching.
𝟮) 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆
Identify the fund's thesis.
If it's not a fit, ask for a relevant referral or simply stay connected.
𝟯) 𝗙𝘂𝗻𝗱 𝗦𝗶𝘇𝗲
Ask about the current fund size.
VCs are looking for "fund returners". Adapt outreach to your target raise and TAM.
Ideally, all 3 overlap. 2 might work.
One or none - not so much.
It's all about the best use of your time.
Credit: Jonathan Crowder
Any pointers or comments?
#venturecapital #fundraising #founders #startups