♞ Raise Your Investor Standards

Let’s be honest: most VCs are a giant time sink

Building something customers love matters a thousand times more than yet another coffee chat. But if you’re going to fundraise, let’s set the record straight: lowering the bar on who gets a seat on your cap table is a huge mistake.

I was in a meeting last week where an advisor mentioned that a founder wanted to sign the paperwork and get it done so they could return to building the business. For many founders, fundraising can be a distraction from what they truly love to do: innovating.

Here’s the truth: anyone who ends up on your cap table has earned the right to own a piece of your hard work. Why would you give that privilege to someone who isn’t going to make you better?

Here’s what to keep in mind:

• Don’t settle for “minimal dilution + biggest check.” It’s tempting, and yes, if you’re just filling out a round, fine. But if you’re talking about a lead investor, that’s a low bar.

• You don’t need to love them — but you do need confidence. They should push you to build the best version of your company and be a steady voice when things inevitably get rough.

• Do real diligence. Not a couple of reference calls. Go deep. Talk to the founders they backed who struggled, not just the success stories.

VCs talk a lot about picking the right founders. The truth is, you need to be even pickier about picking the right VCs. Notching a deal just to get one done is the fastest way to regret your cap table.

So treat fundraising like marriage: you wouldn’t say yes to the first person who asks, just because it’s convenient. Don’t say yes to the first term sheet, either.

Take your time to find the right investors, treat the process like you would finding your lifelong partner, because that VC will be right alongside you for the next 10+ years.

Are you looking to grow your business? Here is how I can help:

📱 Book a Strategy Call to get 1:1 feedback on your pitch, pitch deck and/or fundraising strategy. (If you need general startup advice, then reply to this email, and I’ll let you know if/how I can help.)

Onwards and Upwards,

Liam Gill