news 
What Founders Get Wrong About Fundraising—And How To Fix It
Fundraising is one of the most misunderstood—and emotionally draining—parts of building a startup. Unfortunately, many founders believe that a polished pitch deck and good idea will get them funded, but investors don’t fund decks—they fund momentum. They don’t fund ideas; they fund execution.
I’ve had the opportunity to raise over $100 million across multiple ventures, invest in 40+ startups as an angel investor, and help numerous startups secure funding. This experience has taught me that many founders fail at fundraising due to misunderstandings about how the game is played.
Here are the biggest mistakes founders make and what successful fundraisers do differently.
Mistake #1: Asking Investors To Fund Ideas (Instead Of Showing Execution And Traction)
Many founders believe investors are searching for breakthrough ideas and will fund them solely based on their merit. However, that’s not how venture capital works. Momentum is often the best promise of potential. In the early stages, investors either fund your background or the early traction you can show. If you have previously built something impressive or demonstrated an ability to execute at a high level, that can often be enough. Without that history, the best thing you can do is build a fast-growing business and focus on creating momentum.
Focusing On The Business Until It’s Time To Focus On The Fundraise
The best fundraising strategy is building a great business. Having excellent numbers makes it much easier to convince investors. So, great founders worry about investors when it’s time for the fundraise and focus on building a fast-growing business first. Creating a fantastic company eliminates the need to rely on luck or connections.
Mistake #2: Not Researching Investors Before Pitching
Many founders waste their time pitching investors who are never going to fund them. Conduct research before reaching out to understand an investor’s focus, check size, and past investments. If you’re pitching a consumer SaaS company to a deep tech investor, you’ll have a bad time.
Building A Targeted Investor List Before You Start Fundraising
Only pitch investors whose focus and check size align with your business. This approach saves time and dramatically improves chances of success.
Mistake #3: Treating Fundraising Like Sales
Too many founders treat fundraising like a magic trick or rely on luck and connections. Successful fundraisers understand that fundraising is a sales process, not a trick. They qualify investors, follow up strategically, and handle objections just like a great salesperson would. Most investors will say no, but that’s okay. You only need a handful to take your company to the next level.
Playing By The Rules
The best founders don’t rely on luck or connections; they understand the game and play it well. They know that:
Most investors fund traction, not ideas.
Fundraising is about showing momentum and de-risking the choice for the investor.
The best founders position their round as an exclusive opportunity, making investors feel like they need to act fast or risk missing out.
If you’re preparing to raise your next round, ask yourself: Are you running a structured process, or just hoping for luck? Because in fundraising, hope is not a strategy—clean execution is.
