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- What is the fundraising process?
Fundraising Process
Read time 2.0 minutes.
One of the biggest misconceptions I see from founders is thinking that raising venture money is a single pitch meeting followed by a yes or no. In reality, it’s a multi-step journey where every stage has its own hurdles and gatekeepers. Let me walk you through what actually happens.
This is a high level overview of the process you will undergo:
1. The First Screen
Your first conversation will almost always be with an Analyst or Associate. Their role isn’t to decide—it’s to filter. They’re asking: Does this fit our thesis? Is there enough traction to be worth taking upstairs? Most founders who get an intro don’t make it past this filter.
2. The Internal Gauntlet
If you clear the first hurdle, your deal gets discussed at the fund’s weekly partner meeting. This is where a yes means more meetings. You’ll often find yourself doing second, third, or even fourth calls with different members of the team. Each one is trying to poke holes in the story.
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3. Due Diligence
Once there’s enough interest, things get serious. The fund will dig into your numbers, your contracts, your technology, and even your customers. Their goal is to test whether what you pitched holds up under pressure. This is often where founders realize they should have cleaned up their data room months earlier.
4. The Investment Committee (IC)
This is the big one. You’ll present directly to the partners who actually make the decisions. Think of this as your final exam: one to three hours, covering the vision, the traction, the risks, and the upside. At this stage, even tiny weaknesses get magnified.
5. The Term Sheet
If you’ve made it this far—and very few do—you’ll get an offer. But remember: the process doesn’t end with the signature. Negotiating and closing can take weeks, sometimes months.
The Brutal Math
Only about 1–2% of companies that start this journey walk away with a term sheet. That means if you take 100 first meetings, maybe one or two will result in an actual deal.
Treat fundraising as a funnel, not a meeting. Your job is to maintain control of your story throughout each stage so that, by the time you reach IC, the decision feels inevitable.
Can you pitch your company in under 30 seconds? |
Onwards and Upwards,
