How do you raise funding for a seed or pre-seed startup in 2022?
Fundraising is one of the hardest things in the world to do. VCs often speak about it, but only true grit founders know just how hard it is to really raise capital. It's brutal and only the top 1% of founders are really going to make it so get ready as it's going to be a bumpy ride.
Just how hard it is?
I've spoken to a lot of VC's who often tell me they themselves are not really sure what they are doing, this especially goes for pre-seed or seed stage companies. Not to be named a number of them claim its about pure luck and taking a gamble. "it's always to jump on the back of Y combinator" was said in the past.
Ways to do it
I would say the best way to do it is to start building up relationships with a bunch of VCs early on. Whether they are angels or simply VCs that invest in the space you're looking at (say it's SAAS) focus on a pool of them. Also, make sure they do focus on your own geographic location.
Create a time bomb pressure like closing round
Nobody wants to miss the best ticket in town. Making it sound like one could be your best bet. If VCs or angels are willing to even take you to a meeting with your company at an early stage it means they are interested in the space if not the company. Make sure you take it and be very clear about when the closing date of the round it, if they miss it this is up to them and not up to you. Make sure you have a bunch of them in the mix. Momentum is everything when your trying to raise capital.
Don't give up
This may be an obvious one but do not give up no matter how hard. It's not going to be easy and you may win or may not win, but it's worth the fight. I always found that past entrepreneurs were easier to talk to being one myself they understood my train of thought and just how hard it really was to accomplish this goal. They were more likely to give you the chance, but corporate investors were the most challenging. this is because they had a bunch of red tape they had to jump over and it was not their fault.
I will get some podcasts with VCs going so you guys can all hear the truth about fundraising and some tips.