Thread by @dunkhippo33

1) Tonight's thread is about investor excitement, which many founders misinterpret as fundraising-interest.

I can't tell you how many times I've seen so many investors get my portfolio cos excited about investing & then ghost or back out after committing.

A thread >>

2) The 1st time I saw this happen was to me - w my own startup. 1 investor said he was going to invest & confirmed by email. Later he told me he changed his mind.

Now when a portfolio co tells me about an investor who verbally committed, I take it w/ a grain of salt.

3) It's also not good enough to get fundraising docs signed.

I have a portfolio co who signed docs w an investor & they didn't send the $$ for *over a year*! (What the hell is wrong w/ ppl?)

So signed docs also mean nothing until the docs are signed & the money is sent.

4) So every time I hear about this type of thing happening, it's no surprise, but it's just appalling to me.

One of my portfolio cos somewhat recently pitched a bunch of investors, and I read the feedback of what happened at all the meetings, and here's a summary...

5) One firm originally agreed to write their biggest first check ever into the company, but then they backed out.

6) Several firms met, were super excited, and then completely ghosted. No response. Just dropped off the planet after meeting.

Unfortunately, this one is all too common. :(

7) One investor was eager to pre-empt the process but then stalled the whole way through.

8) One investor said it was not a good fit but would intro to potential customers. The investor didn't follow through and do introductions.

9) Lots of investors said that it wasn't a fit but they wanted to be helpful and to lean on them as a resource.

Although this sounds good, honestly, there isn't much most mainstream investors can help w, & many entrepreneurs become jaded from hearing this from every VC.

10) Unfortunately, this list of feedback happens w almost *every raise* I've seen -- from wildly successful raises to disappointing raises.

Unless a company is hot out of the gates, it usually takes a while for a startup to "become hot", and during that time, all this happens.

11) So if this has happened to you, just know that it happens to almost every founder. It's frustrating. It's annoying.

But if you really want to raise money, just keep pushing through.