Who Should Fundraise?
Hello Everyone. Today we’re talking about who should fundraise for your startup? Speaking from the investor’s perspective there are specific people we do and don’t want to hear from on your company’s behalf when you’re fundraising.
The absolute worst person to do your outreach is an external advisor. Most investors have a strong negative reaction to this kind of outreach, as they charge a % of the investment they source. A cold email is always better than a tainted intro.
You should also avoid having employees do fundraising. Unless someone is a CEO or cofounder they can’t really speak to the company’s strategy, and it looks bad when they can’t answer investor questions. It also doesn’t make an investor feel special when it’s clear the CEO has outsourced their email.
A cofounder doing the fundraising is OK but ultimately you should expect every investor to want a meeting with the CEO as that is the person ultimately responsible for the company’s core strategy and thus the best person to be fundraising.