Implementing Your Fundraising Strategy
Practical approaches to investor outreach, updates, and valuation
Implementing Your Fundraising Strategy
When approaching fundraising, founders should focus on identifying a lead investor first. Once secured, others will typically follow. Target outreach strategically, avoiding summer and holiday periods when decision-makers are harder to reach.
Effective Cold Outreach
Cold outreach can be effective when personalized and targeted. Generic templates rarely succeed, but thoughtful messages that reference the investor's thesis or portfolio companies can break through. Founders should consider using a sequence approach:
- Day 1: Initial personalized outreach
- Day 3: Generic nudge follow-up
- Day 7: Pattern-breaking follow-up with humor or creative approach
Monthly Investor Updates
For monthly investor updates the following should be included:
- A brief reminder of your business and mission
- Key metrics and KPIs showing growth
- Recent wins and challenges
- Specific asks for help beyond funding
These updates serve multiple purposes: keeping potential investors warm, demonstrating consistent execution, and building trust through transparency.
Valuation Considerations
Regarding valuation, remember that smaller funds (less than 50M Dollars) tend to be more valuation-sensitive. While valuation matters, optimization for marginal increases might delay progress. At the seed stage, securing the right partners often outweighs extracting every possible dollar of valuation.
Consider the total package:
- Valuation and dilution
- Board composition and control
- Investor reputation and track record
- Speed to close
- Follow-on capacity for future rounds
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