Proactive Cap Table Management Boosts Fundraising Success

FUNDRAISING ON SUCCES FEE Most founders & VC GPs think all fundraising agents charge retainers. Many actually work on success fees without upfront payments. I can share a database of 77 fundraising advisors who work without retainers. 👉 Get the full database of 77 fundraising advisors without retainers for free: VCconf.com/?2213&5178 This database is available for free until the virtual VC Conf on March 31 (Zoom + live stream). Current regs: 649 investors, 2345 startups, 402 fundraising advisors. Here's how a fundraising advisor helped a startup double revenue while raising capital. One SaaS founder hired Mountside Ventures – a London-based advisory firm that charges zero upfront. 100% success fee. They only get paid when you close During the raise, 40+ investors were asking questions simultaneously. Mountside embedded into the founder's finance and data team, built the entire investor data room, and ran the process end-to-end. The result: they raised at a higher valuation than expected, closed significantly faster – and doubled revenue during the fundraise. Because the founders weren't buried in investor decks and follow-up emails. They were running the company. The cost of NOT hiring an advisor isn't just a longer timeline. It's the deals you don't close, the hires you don't make, and the product updates that don't ship – because your CEO is doing 200 investor calls instead of building. Data included in the 77-advisor-without-retainers list: – email, LinkedIn – min/max success fee % – how much was raised in the last 12 months – region focus – 13 client types they work with

Most startups fail to raise for one simple reason: they try to invent their own fundraising rules. Fundraising is a market. Markets have rules. After raising capital myself and advising founders through the process, one pattern shows up again and again: many founders treat raising capital like an ideological exercise. It isn’t. Fundraising is not about proving your vision is right. It is about aligning with the capital market that actually exists. Understand the environment first. Understand VCs. Understand launchpads. Understand token raises. Understand equity. Understand grants. Every funding path has its own mechanics, expectations, and signals. Once you understand the landscape, pick the path you can live with and push it until you get a result. If investors expect a complete data room, build it. If they want a business plan, write it. If they want proof of commercialization, go get it — even if that means personally reaching out on LinkedIn to close the first deals. If you need a clean corporate structure in order to sell equity, then incorporate and take care of it. If the fastest path to capital is equity, accept it. Pragmatism wins. Fundraising does not reward purity. It rewards founders who understand the market and execute within it. The goal is simple: get funded. Decide what you are realistically willing to do to reach that outcome, and then do it. Capital flows to founders who move within the rules of the market they are raising in. Anything else is just theory.

For many first-time life sciences founders, there comes an inflection point: Do you bring on a fundraising "advisor" — or a fundraising "co-founder?" It’s not semantics. It’s a long-term strategic decision with real cap table and signaling consequences. At a high level, the trade-off is simple: Equity preservation vs. perceived commitment. But the implications go much deeper. Equity Efficiency Advisor: Typically 0.1%–1.0% equity, vesting over 1–2 years. You preserve meaningful ownership for future hires and investors. Co-Founder: Often 20%–50% equity. In today’s 2026 market, giving away a near-equal split for what is fundamentally a phase (fundraising) can become a permanent and expensive mistake. Remember: Fundraising is temporary, equity is forever. Investor Signaling & Credibility Advisor: A reputable advisor signals preparation and professionalism. They are a force multiplier — not a replacement for the CEO. Co-Founder (brought in primarily to raise capital): This can raise red flags. Investors expect the CEO to lead the fundraise. Delegating that responsibility entirely may suggest lack of conviction or leadership. Operational Focus vs. Long-Term Value Advisor: Can handle investor mapping, deck refinement, financial modeling, and process management — allowing the founder to stay focused on product, clinical milestones, and BD. Scalable and flexible. Co-Founder: Provides emotional partnership and shared burden — which is valuable. But if their contribution doesn’t extend meaningfully beyond the raise, they risk becoming long-term cap table drag — something later-stage investors scrutinize heavily. Risk Mitigation Advisor: Lower structural risk. If it’s not working, you part ways. Minimal damage. Co-Founder: High structural risk. Without strong reverse vesting, an early departure can create a cap table nightmare that complicates future Series A or B financing. The reality: Fundraising is a skillset. Co-founding is a life decision. For high-growth life sciences startups trying to maintain a clean cap table and strong investor signaling, the advisor route is often the more strategic choice. Curious how others have navigated this decision. For a more detailed discussion, check out this quick read: https://lnkd.in/eSJcC9Dx

If you’re raising for a startup or VC fund – I can share a database of 77 fundraising advisors without retainers (only success fee). 👉 Get free access to the full database of 77 fundraising advisors without retainers by registering to the Virtual VC Conf (also free): VCconf.com/?982&172 👉 Like & comment "𝐈'𝐦 𝐢𝐧" after registration to get chances of winning startup/VC books. @Max Pog has gifted 500+ books at their previous VC Zoom events and will gift more to random commenters There's a common belief in venture: if a founder needs an advisor to fundraise, they can't sell their own story. And if they can't sell to an investor – how will they sell the product to customers? The same logic applies to VC fund managers. LPs often see a placement agent as a negative signal – "What's wrong with this manager?" But look at the reality on both sides: 𝐈𝐟 𝐲𝐨𝐮'𝐫𝐞 𝐚 𝐬𝐭𝐚𝐫𝐭𝐮𝐩 𝐟𝐨𝐮𝐧𝐝𝐞𝐫: The average fundraise conversion rate is about 5%. You pitch 200 investors to get 10 checks. Most raises take 3-8 months – when you're not building, not talking to customers, not hiring. Every month you spend fundraising is a month your competitor is building. 𝐈𝐟 𝐲𝐨𝐮'𝐫𝐞 𝐚𝐧 𝐞𝐦𝐞𝐫𝐠𝐢𝐧𝐠 𝐕𝐂 𝐦𝐚𝐧𝐚𝐠𝐞𝐫: 1,200+ emerging managers compete for LP capital in the US alone. Established managers take 85% of all dollars. The average fundraise stretches to 18-24 months. A good advisor doesn't replace you in the room. They get you into the room faster. Here's what the best fundraising advisors actually do: → Open doors to investors you can't reach through cold outreach → Help structure the round and position the narrative → Build professional data rooms and marketing materials → Shorten your timeline so you can get back to building Marc Andreessen says a warm intro is the first test of a founder. But the real test is results. And if the right advisor helps you close a $10M round 3 months faster – that's a win! Data included: – email, LinkedIn – min/max success fee % – how much was raised in the last 12 months – region focus – 13 client types they work with

Taking money from the wrong investor can destroy a company faster than running out of money. And most founders realize this only after the deal is already signed. Raising capital has become a badge of honor in the startup world. But the uncomfortable truth is this: not all money is the same. A sharp reminder we picked up from insights shared by Eric Partaker. Angel investors can be incredible. But the wrong one? They write a small check and suddenly feel entitled to run your company. Messages every week with “ideas.” Pressure to change direction. Opinions on decisions they were never meant to make. Venture capital is even more powerful. It can turn a small startup into a rocket ship. But rockets only work when the business model supports explosive growth. VCs need massive outcomes. They are not aiming for steady, profitable companies. They are looking for companies that can return their fund many times over. If your business is designed for sustainable growth, venture capital can push you into dangerous territory. More hiring. More spending. More pressure to grow faster than the fundamentals allow. Then there is private equity. Perfect if your goal is to sell. Brutal if your dream is to build something long term. Strategic investors come with their own tradeoffs. They understand the industry better than anyone, but their strategy will always come before yours. They might restrict who you can sell to. They might influence product direction. And sometimes they might even build a competing version themselves. The big lesson for founders is simple. Raising money is not just a financial decision. It is a strategic partnership that shapes your company’s future. The investors you choose will influence your speed, your freedom, and even your exit. Smart founders do not just ask investors for capital. They ask themselves a much harder question first: What kind of company are we trying to build? Because once you choose your investors, you have already chosen the game you are going to play. Insight inspired by thoughts shared by Eric Partaker. Link in comments.

Everyone talks about "access" in venture. Most people think it means getting into hot deals. That's not what access is. That's the result of access. Here's what actually earns it: 1. Speed. The best rounds close in days, not weeks. If you need three meetings and a partner vote, you're already out. Founders remember who moved fast when it mattered. 2. Reputation for adding value. Not "I can help with intros." Everyone says that. I mean a track record of actually doing something useful after you wire money. Founders talk. A lot. 3. Relationships built before the round. The investors who get into the best deals aren't meeting founders for the first time during fundraising. They've been around for months. Sometimes years. Offering help when there was nothing to invest in. 4. Being easy to work with. Sounds simple. It's rare. No weird terms. No games. No last-minute renegotiations. 5. Saying no quickly. This one surprises people. But founders respect investors who pass fast and explain why. It builds trust. And trust compounds. You need to remember... Access isn't about fighting for allocation in the moment. It's about everything you did in the months and years before the round opened. By the time a hot company is raising, the cap table is already half-decided. The investors who get in aren't lucky. They earned the right to be in the room. Most people focus on the deal. The best investors focus on the relationship. That's the difference.

It can be daunting when you are an early-stage tech founder starting to think about raising equity. How much do you need? What are you trying to achieve? Who should I be speaking to?  What’s the difference between pre-seed and seed? I get asked these questions a lot. Founders often think funding stages are just about how much money you raise. They’re not. Each stage is really about proving a different thing to investors. And many of the mistakes I see founders make in their initial fundraises come from misunderstanding that. Here's a simple way to think about the different fundraising rounds: Pre-seed → prove the idea Seed → prove the business Series A → prove it scales 🚀 Pre-seed: prove the idea At pre-seed, investors are mostly backing the founders and the problem. They’re asking: Is this worth building? At this stage, you don’t need to know all the answers But you do need evidence someone cares about the problem today. The mistake I often see is founders pitching a huge future vision without giving any evidence that the problem is real today. At this stage, investors want to see things like: ➡️ Early users ➡️ Customer conversations ➡️ Pilots or testing ➡️ Some sign that somebody will pay for what you are building The numbers are usually simple: • Burn • Runway • A basic financial model 🚀 Seed: prove the business By the time you get to seed, you have proved the idea and now you are ready to move the business forward. Now investors want to know: Can this become a real business? This is where early commercial traction matters. Things like: ➡️ Early revenue ➡️ Paying customers ➡️ A repeatable way to win customers Another mistake I see founders make here is focusing too much on the pitch deck. Good looking slides are nice to have but don’t convince investors without evidence. What investors really want to see is: • What you’ve learned from customers • How the model is evolving • Whether growth is starting to happen Seed funding is about turning an idea into a commercial engine. This is a key stage in your business growth cycle. And it’s usually where failure hits. 🚀 Multiple Seed Rounds Sometimes, it will take longer to reach the milestones you need for a full Series A round. It is likely that you will raise multiple seed rounds. And there are so many names for this stage: ➡️ Seed + ➡️ Seed Extension ➡️ Second seed This is funding to extend your cash runway and give the business time to prove datapoints for a Series A round. As you extend your seed funding, investors take a closer look at “red flags” to give confidence that the business is building momentum and isn’t hitting significant roadblocks. There will be a great expectation of financial reporting and forecasting. Investors will want to understand your financial assumptions and want to see evidence to back this up. The more seed rounds you have, the more dilution you will suffer.

Most founders have no idea their state government wants to write them a check. When Jess Lynch I started building FoundersEdge - a pre-seed fund built by founders, for founders - we thought we had a pretty good handle on the funding landscape. I'm based in Massachusetts, she's in Connecticut. We knew about MassVentures. We knew about Connecticut Innovations. We knew our backyards be we had no idea of the extent of funding available to founders. As we dug into the ecosystem, we kept stumbling onto state-level programs we'd never heard of - direct investment funds, co-investment vehicles, fund-of-funds programs, accelerator grants — spread across nearly every state in the country. Some writing checks as small as $50K. Others going up to $5M. Many specifically targeting pre-seed and seed stage companies in technology. Almost nobody talks about these. They don't show up in the usual "how to fundraise" threads. VCs rarely mention them. And founders are leaving real money on the table. So we did what any slightly obsessive operators would do: we built a spreadsheet. Thanks for the assist Claude! We compiled every state-level venture and startup funding program we could find. It's not perfect, and we're still adding to it, but it's already one of the most comprehensive lists we've seen. We're making this list available because we believe the best thing founders can do for each other is share access. That's the whole thesis behind our fund, and it starts with something as simple as making sure people know what's out there. Drop a comment or DM and I'll share the full list. And if you know a founder raising capital or an emerging fund manager who could benefit from this, tag them below.

The Early-Stage Fundraising Pitch and Close: How To Convert Interest into Investment. Part 6 - The Ultimate Guide to DIY #Fundraising for Early-Stage Tech, Digital and Product #Startups (UK & US).👇 https://lnkd.in/eaRT275s

Every founder raising capital builds a pitch deck. Most spend weeks on it. They agonize over font choices, narrative flow, the perfect market size slide. And then they send it out and hear... nothing. There's a reason for that. And it's not that your deck is bad. Investors See Hundreds of Decks a Week At the Series A and B stages, a partner at an active venture fund might review 50 to 100 decks in a single week. Every single one of them includes a slide that says some version of the same thing: "Strong product-market fit. Customers love us. High retention." Those claims aren't lies. But they're indistinguishable from each other. When every founder makes the same claim, no claim carries weight. The deck is no longer a differentiator. It's the price of entry. What Actually Moves Investors Investors aren't skeptical people. They want to believe. They're actively hoping to find the company worth backing. What they need is a reason to believe that goes beyond the founder's own word. The most powerful thing you can put in front of an investor isn't a well-designed slide. It's a real customer, unprompted, describing in specific detail how your product changed their business. Not a quote on a slide. Not a logo wall. A real person, on camera, saying: "Before we started using this, we were spending 20 hours a week on this problem. Now it takes 45 minutes." That's not a claim. That's evidence. The Credibility Gap Pitch decks have a built-in credibility problem: they're created by the people who most want you to invest. Investors know this. Everything in a deck has been curated, polished, and optimized to persuade. Customer interviews don't have that problem. A customer has no financial stake in your fundraise. When they show up on video and tell an honest story about your product, that carries a different kind of weight entirely. It's the difference between a restaurant owner saying their food is great and a stranger at the next table turning around to tell you the same thing. What This Means for Your Raise This doesn't mean you stop building a deck. You still need one. But founders who close rounds faster in today's market are the ones who show up with both: a tight narrative deck and a library of verifiable customer proof. The deck gets you in the room. The customer evidence keeps you there. If you have 25 customers who love your product and you haven't captured that on video, you're leaving your strongest asset on the table. The Practical Next Step Start by identifying your best 10 to 15 customers. The ones who would enthusiastically say yes to a short recorded conversation. Then ask yourself: if an investor could watch a 3-minute video of any one of these customers talking about your product, which one would close the deal? That's the conversation you need to capture. And capturing it is more straightforward than most founders realize.