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Fundraising 101: How to trigger FOMO among VCs

Let’s go beyond the high-level fundraising advice that fills VC blogs. If you have a compelling business and have educated yourself on crafting a pitch deck and getting warm intros to VCs, there are still specific questions about the strategy to follow for your fundraise.

How can you make your round “hot” and trigger a fear of missing out (FOMO) among investors? How can you fundraise faster to reduce the distraction it has on running your business?

“You’re trying to make a market for your equity. In order to make a market you need multiple people lining up at the same time.”
Unsurprisingly, I’ve noticed that experienced founders tend to be more systematic in the tactics they employ to raise capital. So I asked several who have raised tens (or hundreds) of millions in VC funding to share specific strategies for raising money on their terms. Here’s their advice.

(The three high-profile CEOs who agreed to share their specific playbooks requested anonymity so VCs don’t know which is theirs. I’ve nicknamed them Founder A, Founder B, and Founder C.)

Have additional fundraising tactics to share? Email me at eric.peckham@techcrunch.com.

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You need to create a market for your shares

“You’re trying to make a market for your equity. In order to make a market, you need multiple people lining up at the same time.”

That advice from Atrium CEO Justin Kan (a co-founder of companies like Twitch and former partner at Y Combinator) was reiterated by all the entrepreneurs I interviewed. Fundraising should be a sprint, not a marathon, otherwise the loss of momentum will make it more difficult.



from TechCrunch https://tcrn.ch/2XgufVY

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shashi pathipaka
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