Fundraising for First-Time Founders: Put on Your Sales Hat 

For many first-time founders, raising venture capital is a mysterious process. Without a robust network of investors or a board to make introductions, it can be tough to even land meetings. However, one thing every founder knows how to do is sell (or they should!). So, for first-time founders, I recommend approaching fundraising as if it were a sales process. 

1. Prospecting: 

• Start local: Most regions have entrepreneurial support organizations that can help you understand the VC ecosystem and help make connections. This is a core piece of our Venture Support program at TechPoint. 

• Leverage your network. Ask fellow founders who they’ve met with and who might be a good fit for you. They can help with introductions, and they can also advise you on which investors to avoid, saving you time and effort.  

• Build your network. Attend investor-focused events and startup ecosystem events to learn from investors and increase your opportunities to touch base with them. TechPoint’s Venture Connect event brings together startups and investors for a full day of 1:1 meetings. The Venture Club of Indiana is another great resource in our state for connecting investors and founders. 

2. Getting the meeting: 

• Warm introductions are always the best route. Investors are far more likely to take a meeting when introduced by someone they trust and respect. Dig into your network and do your best to exhaust all potential connections. Pro tip: Research an investor’s portfolio to identify potential partner companies. If you can connect with a founder from one of those companies, you may get a warm introduction. Plus, you now have a potential partnership, so it’s a win-win! 

• If you have to go the cold outreach route, be authentic, concise, and do your homework. Investors are busy and often make snap judgements in seconds. Include your website, your LinkedIn profile, and a brief snapshot of where your company is today.  

• You might not get a response via email or a website form. LinkedIn messaging is another avenue, and at the very least they may recognize your name after seeing it more than once.  

3. Follow up and be persistent: 

• I am always surprised when founders don’t follow up with investors. You wouldn’t leave a sales prospect hanging, so treat investors the same way. Send the deck if you haven’t already, or send something else that was relevant to your conversation and ask about next steps.  

• If you don’t hear back within a week, send a polite check-in. If you’re asked for more information but not receiving clear signals about next steps, it may be a sign that they are stringing you along. Push for a decision – even if the answer is “no”- so you can move on and focus on other opportunities. 

• Be prompt and thorough when responding to diligence requests. Have a data room ready with at least your financial projections, historical financials, product roadmap, org chart, hiring plan, team bios and other key documents. It’ll make the process smoother and faster for everyone.  

• If you haven’t already, start a monthly stakeholder email to help investors stay updated on your progress. Ask to add investors to your distribution list so that you are consistently in their mailbox. This is a great way to stay in touch with them for future rounds as well.  

Treating your fundraising like a sales process isn’t just a smart strategy, it’s a necessity for first-time founders. By staying organized, leveraging your network and being persistent, you’ll improve your chances of finding the right investors and securing the capital your business needs to grow.