This Christmas, I saw two mistakes made by fundraising founders. I often think about this, as a VC and a founder at the same time. Would I make this mistake? What can I do to stop myself making that mistake?
Both mistakes are worth sharing, so you don’t accidentally make the same ones as well. Each one betrayed inexperience – and they were such easy mistakes to avoid!
Christmas Day
The first was that someone sent me their fundraising deck on Christmas Day.
Wait. I know what you’re thinking. Doesn’t this show dedication?
It may to some, but I’d argue it brings worse doubts to mind. It made me question the founder’s prioritisation skills and work efficiency. Not to mention, on a family day for many, it was a bit depressing.
It’s important that everyone takes time to rest and recover. This is especially true of founders, who have roles that require 110% of what they imagined they would offer.
Christmas Day is one of the only days the Western World shares as a public holiday. If you are a Western founder (like this individual), take the opportunity to switch off for the day! Or at least put your emails on a 24-48 hour time delay.
Sending your fundraising deck on Christmas Day risks raising doubts in an investor’s mind. It isn’t worth it! You have 364 other days of the year to fire off your pitch deck!
Unsolicited WhatsApp
The second mistake started off better, before taking a turn for the worse.
A founder sent me their deck by cold email before NYE, with a decent cover email. So far, so good. When I was back from holiday, I was going to pick up with him and ask for a call.
But the guy couldn’t wait while I was on holiday. In my out of office reply, I provide my mobile number for ‘urgent issues’. I specifically state that fundraising is not one of these and I will reply when I get back.
But this founder, just two hours after sending me his deck, sent me 4 half page WhatsApp messages about his business followed by 3 voice notes. I watched as the messages came through on my watch (I didn’t open WhatsApp as I was with my daughter).
The founder’s approach made me fundamentally doubt his sales ability. To sell anything, you have to know the tempo and approach to take with your interlocutor. You also have to know when to take no for an answer.
Some people may think this approach shows hustle. Get hold of the investor any way you can. But fund raising is a game. And like any game, there are rules to the way it is played.
When a VC doesn’t know you, and you have sent them a cold email, let the system do its thing. I would have replied. Now, I have deep doubts about his sales ability and I’m struggling to shrug them off.
So that’s it!
Two simple things not to do.
Instead:
- Feel free to send a cold email (up to 300 words) to VCs with your deck. If your business is decent and relevant, you will get a reply from most VCs. Wait a couple of weeks, and feel free to send a follow up (in case the VC missed the email). Keep comms to email until you are in a proper two-way conversation, unless you were introduced via WhatsApp etc.
- Send your deck on the 364 days of the year that are not Christmas Day (if you and your investor are Western). You will get the same bang for your buck on other days, with less risk of doubts arising. I personally think the start of the 2nd week of January is a great time to begin a fund raise (people are back, rested, and with 3+ months of no holiday interruptions to come).
Simple and effective 🙂
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