4️⃣

Part 4 Some 🤦‍♂️ fundraising mistakes

Raising a seed round of financing from a venture capitalist can be a challenging process for early-stage founders. Early stage venture capital is often subjective and irrational, making it difficult to understand without clear-cut answers.

This is why learning from others can be so helpful.To help you avoid some common mistakes, here are some of the things to keep in mind:

Optimizing for valuation or unrealistically valuation expectations
Pitching to growth investors for seed capital, or seed capital from growth investors
Hiring the right resumes, wrong people
Trying to make everything look perfect and hiding risks.
Signing a term sheet before reviewing with a lawyer
Don’t forget to do reference checks on board members
Picking the right fund, but not the right partner
Underestimating the amount of time it takes to fundraise
Not optimizing for FOMO
Being underprepared for due diligence
Don’t fundraising when the business is not ready (if you can avoid it)
Being secretive to the point that you lose trust
Financials projections don’t exist, don’t match your story, are too optimistic or not optimistic enough.