Fundraising Truths That You Need to Know
An article we liked from Thought Leader Jason Lemkin of SaaStr:
6 Brutal Truths About Fundraising 
Q: What’s the Brutal Truth About Fundraising for Startups?
The brutal truths are:
- Everyone wants to fund the same thing. The earlier stage you are, the more different folks will come to different conclusions based on very limited data. E.g., just the team. Or just a few customers. But almost everyone is still looking for the same thing. Unicorns. They just may roll the dice differently in the early days based on whatever tiny signs of pre-success you may have. More on that here.
- Pattern matching is rampant. If you are really going to “meet” with 1,000+ founders a year, that’s really too much to process. There are good types of pattern matching, and bad types. Bad types create huge hurdles to founders that do not look, act and talk like privileged founders. “Stripe for _____” or “3 great young engineers from Stanford.”
- You are just a product. And so are VCs themselves. You may just 1 shot at it, but investors need to make 20–40 per fund. So each start-up they invest in is a bet, and really, a product. And their own investors (the LPs) literally view VC firms as different...
Read the rest of this article at saastr.com...
Thanks for this article excerpt to Jason Lemkin, Founder at SaaStr.
Photo by Christian Dubovan on Unsplash
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