How can I expedite investor decisions?
Value a definitive "No" over prolonged indecision.
If after >3 meetings nothing is moving - it’s not worth your time.
Gauge investor interest early.
You can ask them what their interest is on a 0-10 scale. If they give you a high number, ask “what’s your timing” and “who needs to be involved to make this decision”?
Set firm deadlines based on their timelines, emphasizing limited availability.
Do investors who write smaller checks conduct quicker diligence?
Determine the number of decision-makers involved; you need to do that many meetings to get a check.
Smaller funds typically have shorter diligence periods, while larger funds may take up to 6 weeks.
What should I say when asked about my fundraising status?
Use "late-stage diligence" to signal that you’ve had multiple meetings with other investors.
If you haven’t had 2nd or 3rd meetings - saying “we’re getting pulled into 2nd and 3rd meetings”.
How should I respond to inquiries about other investors?
Don’t tell them who else you are talking to!
Avoid disclosing firms or names to prevent potential collusion.
Emphasize seeking independently interested investors.
“As a rule, we don’t disclose the names of other funds. We’re looking for investors who are independently interested”
How should I optimize introductions to VCs?
Pursue a diverse mix of investors, including big funds and smaller check writers.
Strategically approach introductions, leveraging contacts without disclosing your identity initially.
One strategy: have a contact email investors about your company and not mention your name - to ask if the investor is interested in meeting with you. If the investor says yes, have your contact email you and CC the investor: “I know you’re busy - but if you have time, meet with this VC.”
Compile a target list and seek advice for connections outside your network.
If you want to consolidate your meetings with small check investors, you can say “we’re overwhelmed with interest - can you tell us your check size and how many checks you have written over the last 12mo?” and do a webinar with everyone who fits your criteria.
Should I update VCs from previous interactions?
Yes, provide updates with key highlights to maintain interest.
Aim for concise updates with 3-4 key bullet points, signaling interest in reconnecting.
What's the expected timeframe for fundraising?
Allocate approximately 3 months for the fundraising process, prioritizing engagements with large funds.
What questions can I ask VCs during meetings?
Inquire about their average check size and recent investment activity to gauge alignment.