Today, we’re talking about dealing with lots of investor interest. If you’re lucky enough to be in a position of strength and getting lots of inbound demand for your fundraise — that’s great — but it’s easy to let the inbound emails you’re receiving dictate your process.
Now, the risk of an unmanaged process is one investor will get ahead of the others and give you a term sheet early. Then you could be under a lot of pressure to accept terms or an investor which are far from ideal.
A position of strength means we have a shot at getting the very best investors, so be sure to do the outreach to your top list and spend time with those you like. Having multiple conversations approaching their close, with people you want to be involved, will make it much easier to make a good decision in a pressurized situation.