Fundraising 101: Lessons from the Trenches

Richard Hadler here from Founders Capital. We scour Europe for the top 1% of Start-ups led by epic Founders, giving them access to our world-class investor & partner network to scale their ventures to heady heights.

The Art of Fundraising: Lessons From the Trenches

As an investor, I’ve had the privilege of working closely with founders as they navigate the often-daunting process of fundraising. From pre-seed pitches to Series A negotiations, I’ve seen it all. Over countless conversations, I’ve witnessed what works, what doesn’t, and how much of the journey is about learning by doing.

One thing is for sure: Fundraising is rarely smooth, even for the most seasoned entrepreneurs. It’s not just about having the right pitch deck; it’s about developing a skill set you refine over time.

In the fast-paced world of start-ups, raising capital is as much an art as it is a science. Whether you’re selling a bold vision or convincing an investor that your team can execute on ambitious plans, the path to securing funding can feel like an emotional rollercoaster.

But take heart: even the most successful founders stumbled through their first pitches. The secret lies in persistence, adaptability, and a willingness to learn from every interaction.

The Learning Curve of Fundraising

When I first started advising founders on raising capital, I took a methodical approach. I reached out to every founder I knew who had successfully raised money, asking them to share their dos, don’ts, and hard-earned lessons. The insights were as varied as the founders themselves, but one thing stood out: there’s no substitute for experience.

Fundraising is like learning to drive. You can read all the guides, memorise the rules, and listen to countless pieces of advice, but nothing compares to actually getting behind the wheel. Many founders told me how, in their early days, they floundered in meetings—struggling to articulate their stories within the rigid constraints of a 30-minute pitch. Every misstep, every awkward pause, and every tough question taught them something new. Over time, through relentless iteration, they got better.

Key Lessons for First-Time Fundraisers

Through these conversations—and my own observations—I’ve gathered a wealth of advice for first-time fundraisers. Here are the lessons that come up time and again, distilled into actionable takeaways:

Dos

• Treat fundraising like sales. Think of your investor outreach as a funnel. Track your progress methodically, from first contact to closing a deal. Metrics matter here just as much as they do in sales.
  

• Curate your investor list. Focus on decision-makers—partners who have the authority to write cheques—not associates who can only offer feedback.
  

• Leverage warm introductions. Founders who’ve successfully raised capital are your best allies. Ask for intros and advice; people are often more generous than you’d expect.

Don’ts

• Don’t get attached to a single VC. Keep your options open. Even the most enthusiastic investor can drop out unexpectedly, and you need a robust pipeline to avoid being caught off guard.
  

• Avoid VC-to-VC introductions unless they’re highly engaged. Passive referrals rarely lead to meaningful conversations.
  

• Don’t over-disclose your runway. While honesty is important, revealing too much about your financial position can weaken your negotiating power.

Critical Watch-Outs in Fundraising

While fundraising is about presenting your vision, it’s also about navigating the pitfalls that can derail even the most promising rounds. Here are some of the most common traps founders fall into and how to avoid them:

1) It’s a Long Process

Fundraising is rarely as quick as founders hope. Even hot startups can spend 3-6 months (or more) closing a round. If you’re not prepared, this can leave you in a precarious position, negotiating from a place of desperation.

Tip: Start early. Ideally, begin your fundraising efforts when you have 9-12 months of runway left. This gives you breathing room to negotiate on your terms.

2) First Impressions Matter

VCs often form an opinion within the first 10 minutes of a meeting. Your introduction, your energy, and your ability to answer early questions all play a critical role.

Tip: Practice extensively. Rehearse your opening pitch until it’s second nature, and focus on clarity when communicating your vision.

3) VCs Build a Narrative About You

Every meeting shapes a VC’s perception of your competence, vision, and ability to execute. Inconsistencies can raise red flags and derail the momentum of a deal.

Tip: Stay consistent. If you don’t know the answer to a question, admit it. Transparency builds trust; bluffing erodes it.

4) Your Answers Can Become Commitments

Be cautious about how you frame metrics, timelines, or other specifics. Investors often take your words as promises, and failing to meet those expectations later can harm your credibility.

Tip: Use aspirational language. Say things like “Our goal is” or “We’re targeting” to set expectations without locking yourself into absolutes.

5) Geographic Bias Is Real

Many VCs prefer to invest locally, particularly in regions like Silicon Valley where proximity often plays a role in decision-making.

Tip: If you’re not in a VC’s region, highlight your willingness to travel or establish a local presence if necessary.

6) Be Careful With Runway and Valuation

Revealing that you’re low on cash—or committing to a specific valuation too early—can put you in a weaker negotiating position.

Tip: Frame your financials as a strength. Emphasise how efficiently you’ve used resources and paint a picture of the scalability that new funds will enable.

Why Founders Need a Fundraising System

The most successful founders I’ve worked with treat fundraising like an operational process. They approach it with structure, discipline, and relentless focus. They build investor pipelines, track their progress meticulously, and treat every meeting as a learning opportunity.

But here’s the truth: you can’t shortcut the hard parts. Fundraising isn’t something you master overnight. It’s a craft honed through iteration, persistence, and reflection. Every no is a step closer to yes.

The Journey of Every Great Company Starts Here

If you’re in the midst of fundraising—or preparing to start—know that it’s normal to struggle at first. Even the most successful founders have stumbled through their initial pitches, learning and adapting as they went.

The key is to keep moving forward. Embrace the stumbles, reflect on the lessons, and refine your approach. After all, the best stories of entrepreneurial success often start with a founder who refused to give up—one meeting at a time.

This version provides richer detail and smoother transitions while maintaining an engaging and conversational tone. Let me know if there’s anything else you’d like to tweak!

If you’re a Founder and you are fundraising - we’d like to hear from you. Send over your deck to [email protected].

Until next time!

Cheers,

Rich

Co-Founder & General Partner
Founders Capital
+44 7900 500 367
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