Thread by @Melt_Dem

1/ the crypto fundraising scene is *crazy* right now.

there's so much money chasing every deal, so many new funds, and every day i get a text, call, or email from at least 2-3 founders asking for help navigating the landscape.

some insights from 6 years and 200 deals

2/ you get what you optimize for.

if you optimize for valuation and raise a lot quickly, expectations will be high. raising too much and spending too much spirals very quickly.

there aren't many B / C investors, so be careful of the barbell. valuation isn't everything.

3/ don't raise without a STRONG lead! i've done way too many deals where i end up doing a TON of heavy lifting as an angel.

due diligence your investors. know what each investor is bringing to the table. get intros to founders in their portfolio.

bad investors are poison.

4/ look at your investor's fund to understand where you fit in. if they're a $100M fund writing you a $500k check, you're not going to move the needle for them. if they're a $50M fund writing you a $5M check, you're 10% of the fund.

it amazes me that people don't get this.

5/ look at how they work with their portfolio companies and whether or not that works for your style.

some firms do a lot of events and networking with their portfolio. that was the approach i built at @DCGco where its all about the network.

some are less hands on.

6/ some funds and investors are hands on, sometimes in a constructive way, and sometimes in a destructive way.

it's YOUR company. it's YOUR vision. we're here to help YOU and your team bring it to life.

challenge your investors to show you their value before you take the check.

7/ don't be afraid to ask them who they like to invest with and ask for intros. i've worked with over 2,000 different investors and firms.

some i LOVE working with

some i don't

and some i actively avoid

ask your investors who they like to work with and why!

8/ one important thing is what perspectives you're adding to your brain trust when you bring in new investors.

bring in people who challenge you. seek out investors who have a different perspective. don't construct an echo chamber of ppl just like you.

9/ and lastly, *never* work with assholes.

i've made this mistake - working with founders who are assholes.

you end up spending a lot of time with these people going through amazing highs and crushing lows. it just saps your energy. you don't need that.

10/ AND - if you're raising, i'd love to talk to you! DMs are always open.

our team @CoinSharesCo Ventures is always happy to trade notes, make intros, and help where we can