The basics: - Fundraising is hard in both senses: hard like lifting a heavy weight, and hard like solving a puzzle. - Be in "fundraising mode" or not, don’t mix the two. - Get introductions to investors, cold emails rarely work. - Treat investors as saying "no" until they explicitly say "yes". Effective fundraising strategies: - You should always talk to investors in parallel rather than serially. - Never leave a meeting with an investor without asking what happens next. - Focus on getting the first commitment, it often triggers others. - The biggest factor in most investors' opinions of you is the opinion of other investors. - If someone makes you an acceptable offer, take it. If you have multiple, take the best. - Don’t reject an acceptable offer in the hope of getting a better one in the future. - Close committed money quickly, deals aren’t done until the money is in the bank. - Avoid investors who don’t "lead" rounds early in the process. Managing the process: - Have multiple plans depending on how much you can raise. - Underestimate how much you want to raise initially. - Be profitable if you can, it gives you a stronger negotiating position. - Don’t optimize for valuation, focus on getting good investors and the right amount of money. - Have one person (usually the CEO) handle fundraising to minimize distraction. Preparing for fundraising: - Create an executive summary and possibly a pitch deck. - Be ready to explain your plans and progress concisely. - Stop fundraising when it stops working, don’t waste time on unlikely prospects. What to avoid: - Don’t get addicted to fundraising, focus on building your company. - Don’t raise too much money, it can set unrealistic expectations. - Be nice to investors, even when they reject you. - Don’t make fundraising too complicated, keep it simple and focused. Looking ahead: - Assume the money you raise will be the last you ever raise. - The bar for future fundraising will be higher, plan accordingly. - Don’t let expenses grow too fast after raising money.