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Seek Investor Clarity When Fundraising
Hey Persuaders!
Seek Investor Clarity When Fundraising
Read time 1.9 minutes
A major mistake founders make when raising capital is failing to seek investor clarity!
Often, founders are so scared of being rejected that they are scared to ask the straightforward question, “Are you going to invest?”. The idea that by failing to directly make an investor give you an answer, you’ll continue to be able to turn a maybe into a yes is inherently flawed.
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The reality is that often when you are just dragging along semi-interested investors, you are wasting your time talking to people who are 99% sure they will pass instead of focusing on other investors or new outreach to investors who will invest in your company.
If you want to avoid this situation, follow these rules:
Never leave an investor meeting without knowing the next steps. It should be clear what the next step is to move towards an investment and when that will happen.
If you aren’t sure where an investor stands. Email asking if it’s fair to assume they aren’t interested. This will force them to either correct your faulty assumption and commit money or take the easy way to get out of your pipeline so you can focus on the real opportunities.
The greatest enemy you have when fundraising is a lack of clarity. When you don’t know who is in or out, it becomes difficult to run your fundraising process. It also makes you appear needy when consistently following up with investors.
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