Thread by @hwbhatti

Raising as a first-time founder is hard.

I have raised $15 million dollars and invested in multiple start-ups.

Here are 10 lessons to avoid costly mistakes and raise your next round:

1. Team > Idea.

Your idea matters.

Your team's ability to execute matters even more.

Investors see dozens of pitches.

What sets pitches apart is the team's ability to execute.

Showcase that by using traction & past track record.

2. Stop building investor relationships before you raise.

As a first-time founder, I was told to spend time building them.

But it is the wrong advice.

It feels fake, takes time away from building the company, and may negatively impact your valuation.

3. Amateurs pitch. Pros tell stories.

Anyone can put numbers and facts on a slide deck.

The best founders weave facts, numbers, and emotions together to paint a compelling vision of the future.

4. Build a million-dollar deck.

The best decks condense the complexity of your idea into a simple presentation that any VC can understand easily.

Things to include:

• Problem: What is wrong with the status quo?

• Solution: How are you solving the problem?

• Metrics: Any traction?

• Market: How big is this opportunity today?

• Competition: Who else is working in this space?

• Team: Why are you the team to do this?

• Vision: How do you become huge?

• Fund use: What is the round going to be used for?

5. You can't build a 10x company without 10x talent.

Convince the best out there to join you on your journey.

If you can get a few to commit, you're virtually guaranteed to raise a strong round.

6. Don't raise too much.

Raising too much can bite you when things go wrong.

Build a financial model to figure out how much money you need for your next milestones.

Add 6 months to the number and raise that amount.

7. Create a solid diligence package.

Somethings to include:

• Pitch Deck
• Financial Model
• Cap Table
• Incorporation documents
• GTM strategy
• Tech vision
• Product demo or mockups

Make it easy for investors to find the information they need.

8. Don't pitch to every VC.

Find your VC-company fit.

Do your research. Understand what they care about.

Example: Look at their company portfolio to see what excites them.

9. Create a sense of urgency.

Fear of missing out is a real thing for investors.

Create a timeline and run a tight process.

Provide investors with enough information to keep them hooked & moving through the process.

Don't ever look desperate for money in your conversations.

10. Be your biggest cheerleader.

9/10 VCs will reject your pitch, find the 1 that will say yes.

The first time I raised, 90% of VCs said no.

The last time I raised, I had to double the round size.

Best of luck with your raise and feel free to reach out.

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