Fundraising Best Practices and Pitfalls

After reviewing 7,000 seed pitch decks, we noticed that most common “best practices” actually backfire: - Decks emphasising milestones were 30% less likely to raise. - Overemphasising advisors led to a 40% lower chance of funding. - Decks highlighting tax benefits like SEIS/EIS had a 40% lower success rate. - Repeated mentions of ROI reduced raise success rates by up to 50%. What actually worked: - Decks that discussed customer LTVs were 2x more likely to raise. - Including a clear hiring plan (especially for engineering roles) improved success rates by 35%. - Decks that explicitly quantified cost or time savings increased their raise success rates by 50%. The best decks focused on clear metrics, growth plans and customer value, not vague milestones or big-name advisors.

As a founder who raised a $500K pre-seed 💰 Here are my biggest (updated) takeaways about fundraising: 1) 𝐄𝐚𝐫𝐥𝐲 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐛𝐞𝐭 𝐨𝐧 𝐲𝐨𝐮, 𝐧𝐨𝐭 𝐲𝐨𝐮𝐫 𝐢𝐝𝐞𝐚. It’s about trust...they need to believe you can figure it out and make it happen. You matter more than your pitch deck. 2) 𝐃𝐨𝐧'𝐭 𝐰𝐚𝐬𝐭𝐞 𝐭𝐢𝐦𝐞 𝐨𝐧 𝐕𝐂𝐬 𝐭𝐨𝐨 𝐞𝐚𝐫𝐥𝐲. Unless you have multiple exits or significant traction, focus on your product and users. Early VC calls should be about understanding the milestones you’ll need to hit. Don’t ask for money, ask: “At what point would a business like ours be exciting to you?” They’ll tell you. 3) 𝐑𝐚𝐢𝐬𝐞 𝐚 𝐬𝐦𝐚𝐥𝐥𝐞𝐫 𝐫𝐨𝐮𝐧𝐝 𝐟𝐢𝐫𝐬𝐭. Don’t aim for a $4M seed round out of the gate. Too many founders try and fail. Start with angels or your personal network. 4) 𝐘𝐨𝐮 𝐝𝐨𝐧'𝐭 𝐧𝐞𝐞𝐝 𝐨𝐮𝐭𝐬𝐢𝐝𝐞 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐭𝐨 𝐛𝐮𝐢𝐥𝐝 𝐲𝐨𝐮𝐫 𝐌𝐕𝐏. If you think you do, you’re probably not being resourceful enough. 5) 𝐅𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠 𝐭𝐚𝐤𝐞𝐬 𝐥𝐨𝐧𝐠𝐞𝐫 𝐭𝐡𝐚𝐧 𝐲𝐨𝐮 𝐭𝐡𝐢𝐧𝐤. Plan accordingly, and don’t underestimate the time commitment. 6) 𝐃𝐨𝐧’𝐭 𝐭𝐚𝐤𝐞 𝐫𝐞𝐣𝐞𝐜𝐭𝐢𝐨𝐧 𝐩𝐞𝐫𝐬𝐨𝐧𝐚𝐥𝐥𝐲. I made this mistake early on. A “no” isn’t always about you. Sometimes it’s about them—investors often like to appear wealthier than they really are. 7) 𝐑𝐚𝐢𝐬𝐢𝐧𝐠 𝐦𝐨𝐧𝐞𝐲 𝐰𝐡𝐞𝐧 𝐲𝐨𝐮’𝐫𝐞 𝐝𝐞𝐬𝐩𝐞𝐫𝐚𝐭𝐞 𝐢𝐬 𝐚 𝐥𝐨𝐬𝐢𝐧𝐠 𝐠𝐚𝐦𝐞. I know sometimes this is hard to avoid but investors can sense desperation from a mile away. Walk into meetings with confidence, believing they’re lucky to get on your cap table. 8) 𝐊𝐞𝐞𝐩 𝐲𝐨𝐮𝐫 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐮𝐩𝐝𝐚𝐭𝐞𝐝. Investors are people, and knowing others are excited about your idea gives them comfort. Set expectations upfront, send regular updates, and don’t just rely on email...pick up the damn phone. 9) 𝐑𝐢𝐝𝐞 𝐭𝐡𝐞 𝐦𝐨𝐦𝐞𝐧𝐭𝐮𝐦. When you secure one investment, it’s the best time to close another. Keep the energy going. This is underrated. 10) 𝐒𝐮𝐜𝐜𝐞𝐬𝐬 𝐚𝐧𝐝 𝐟𝐚𝐢𝐥𝐮𝐫𝐞 𝐥𝐨𝐨𝐤 𝐭𝐡𝐞 𝐬𝐚𝐦𝐞 𝐚𝐭 𝐟𝐢𝐫𝐬𝐭. Both are full of “no’s.” The difference in a successful raise is they didn't give up. To all the founders out there fundraising...Stay positive, stay persistent, and keep building. 💙 #startups #venturecapital #fundraising

Want to fail at fundraising? Do this: 🔨 Bombard contacts relentlessly. 🚫 Ask without getting permission first. 🙉 Ignore preferences and boundaries. 💔 Damage relationships with pushy tactics. 💸 Chase quick cash. Forget relationships. 🏧 Treat your database like an ATM. ⏳ Waste time on uninterested prospects. Want to succeed? Do this instead: 🎯 Take the time to build genuine connections. 🎯 Listen more. Talk less. 🎯 Tailor your approach to each person's interests. 🎯 Get permission before asking. 🎯 Share inspiring stories of impact. 🎯 Offer multiple ways to get involved. 🎯 Express sincere gratitude for every gift. 🎯 Provide regular updates, not just appeals. 🎯 Show people who give the important role they play in the mission. 🎯 Build a community, not just a donor list. Remember, great fundraising isn't about the money. It's about the mission and the people who believe in it.

Lessons Learned from 11 Fundraising Rounds in 8 Years When my son recently asked how many fundraising rounds I’ve led over my career, I had to pause and think. It turns out I’ve spent nearly half of the past 25 years raising capital. As the co-founder and CEO of Suja Life, I led 11 fundraising rounds in eight years. Along the way, I made plenty of mistakes—many with hindsight, could have been avoided. Here are my top fundraising lessons learned, shared with the hope that emerging CPG founders can navigate this process with a little less chaos than I did! 1. Gross Margin is King Gross margins aren’t just numbers—they’re lifelines. At Suja, acquiring our organic produce distributor, Jack Family Farms, helped us reduce costs, improve margins, and rely less on external capital. In our early years, low gross margins increased our total fundraising needs by a staggering 55%. Healthy gross margins aren’t just attractive to investors—they’re essential for long-term sustainability. 2. Nail Your Investor Deck and Financial Model Your pitch deck is your first handshake with investors. Keep it concise, visually compelling, and grounded in realistic financials. At Rowdy, SKU-level forecasting showed investors we understood our business. A bottom-up financial model (forecasting retailers by doors, units, and weekly velocity) increases forecast predictability, builds trust and demonstrates you’re prepared for growth. 3. Avoid Over-Dilution Dilution is a silent killer of founder happiness. Low valuations, early mistakes, pushy early team members and unanticipated cash needs can erode your limited ownership levels. Achieving a big win but owning a small slice is frustrating.  Ideally, the founding team should strive to retain 50% of equity by the time of exit. 4. Timing is Everything Closing rounds in “headwinds” is virtually impossible. Raising capital is far easier when market conditions align with your brand’s momentum. At Suja, we learned to act while investor appetite was strong. Waiting too long can mean missed opportunities, unfavorable valuations, or lost investor interest. Raising money while managing dilution may feel like a high-wire act but its and area where "value" is created. 5. Understanding the “Why” that Angels Invest  Angels invest in three things: the founder, the product and the opportunity. It’s personal—they often know the founder and believe in their tenacity and integrity. Cold outreach rarely works. Tap into your network to find Angels who already trust you, as relationships are essential for early-stage fundraising. Angel Funnel Template When brainstorming potential investors, I’ve found the attached Angel Funnel template to be helpful: Identify 4 names for each of 15 groups and you'll end up with over 60 warm prospects! Your Turn What’s one thing you wish you had known before your first fundraising round? Let me know in the comments! CPG Brand Accelerator CPG Vibes Startup CPG Brandjectory #ConsumerGoods #FundraisingTips

After years of fundraising for my own startups and guiding startups through fundraising, I've seen some important patterns emerge. Here are some common pitfalls to avoid: 1. Rushing the process Founders often underestimate the time it takes to raise capital. They sprint out of the gate, burning through their network in weeks. Pace yourself. Fundraising is a marathon, not a sprint. 2. Neglecting your existing business In the pursuit of new capital, don't forget about your current customers and operations. Your business shouldn't grind to a halt because you're fundraising. 3. Overvaluing your company Be realistic. Inflated valuations might feel good in the short term, but they can haunt you in future rounds. It's better to grow into a valuation than to shrink into one. 4. Lack of preparation I've seen founders stumble on basic questions about their financials or market size. Know your numbers cold. Anticipate tough questions and practice your responses. 5. Ignoring investor fit Not all money is created equal. The right investors bring more than just capital. They bring expertise, networks, and alignment with your vision. Don't chase every check. 6. Failing to build relationships early The best fundraising relationships often start long before you need the money. Cultivate investor relationships when you're not actively raising. 7. Inconsistent messaging Ensure your pitch, deck, and financials tell a cohesive story. Inconsistencies raise red flags for investors. 8. Neglecting due diligence Some founders get so excited about a term sheet that they skip proper due diligence on the investor. This can lead to misaligned partnerships down the road. Remember, fundraising is a skill. Like any skill, it improves with practice and experience. Learn from these pitfalls, but don't let them paralyze you. Every fundraising journey is unique. What other pitfalls have you encountered in your fundraising experiences?

Fundraising in India is a beautiful, brutal dance. After 15 years of knocking on doors, writing proposals, and building relationships in the charity space, I've learned that money follows trust, not just need. And trust is earned in whispers, not shouts. Most fundraisers think it's about the pitch. The perfect slide deck. The heart-wrenching story. The immaculate impact metrics. But that's just the costume you wear to the real party. The truth is messier. More human. More honest. First, nobody cares about your organization. They care about the problem you're solving. Stop talking about your NGO's journey and start talking about the journey of the people you serve. Your founder's story matters less than the story of the girl who can now read because of your work. Second, relationships outlast transactions. I've watched fundraisers chase cheques like they're chasing buses – desperate to catch the next one, forgetting that the real journey happens when you're walking together. The donor who gives you ₹10,000 today could give you ₹10 crores in a decade if you treat them like a partner, not an ATM. Third, most Indian donors don't want innovation. They want reliability. They've seen too many NGOs come and go, too many promises evaporate. They're tired of funding pilots that never take flight. Show them consistency before you show them creativity. Fourth, your finance team is your secret weapon. In a country where trust in institutions is fragile, your ability to account for every rupee isn't just good practice – it's your survival strategy. I've seen brilliant programs collapse because someone couldn't explain where the money went. Not because of corruption, but because of chaos. And finally, the hardest truth: fundraising isn't about money. It's about meaning. People don't give to causes; they give to become the person they want to be. The businessman who funds your education program isn't just building schools – he's rewriting his own story, becoming the hero his childhood self needed. I've sat across from millionaires and watched them cry when they talk about their mothers. I've seen corporate leaders who manage thousands of crores struggle to write a personal cheque for ₹5,000. I've witnessed wealthy donors argue over a ₹500 expense while approving ₹50 lakhs in the same meeting. Because money isn't rational. It's emotional. It's cultural. It's complicated. The fundraisers who thrive in India aren't the ones with the fanciest degrees or the most polished English. They're the ones who understand that in this country, giving is deeply personal, profoundly spiritual, and incredibly relational. So stop treating fundraising like a Western import that needs to be implemented. Start treating it like what it is – a conversation about values that's been happening on this soil for thousands of years. Because when you get it right, you're not just raising funds. You're raising hope.

I reviewed a deck, and even though it was excellent, it still had ten of the most common mistakes I see. Consider this just some of the items on your deck checklist: 1️⃣ Put contact info (name, title, email, website) on the cover slide. No exceptions. 2️⃣ Add a footnote or source to every stat. Build credibility. Bonus: Create an appendix slide with all sources, including the links. (This is in addition to citations on the slide.) 3️⃣ Move dense data to the appendix. I love seeing the math, but let me dig into that after I see the conclusions. 4️⃣ Show your most up-to-date numbers. And if you’ve been around for a while, show me the historical ones too. Not showing one (or both) is a 🚩. PS - Growth figures tell good stories. Use them. 5️⃣ Break down the use of funds. Exactly where is the money going - be specific. Hint - I want the funds going to revenue-driving activities. 6️⃣ Align financial projections across milestones and the use of funds. Example: if you’re raising $1MM for 24 months of runway to reach 100 users and $5MM in revenue, your financial model should show the same revenue and user count 2 years from now. 7️⃣ Explain every acronym. Never assume the investor knows your terms. 8️⃣ If you’re raising to build something specific, the roadmap better show that build occurring in the same time period as this fundraise’s runway. 9️⃣ If you talk about potential acquirers, explain precisely why they’d buy you based on history and/or business alignment. Not just vibes. PS - Just because people partner with you doesn’t mean they want to own you. 🔟 Leave out marketing speak and CTAs in your investor deck. This is not a landing page, and your investor is not necessarily your customer. The best decks are clear, well-sourced, aligned, and anticipate objections. Think: Simplicity over spectacle. Basics over buzzwords. Clarity over clutter. That’s how you build investor trust and confidence.

“Why is fundraising such a nightmare for founders?” Because most treat it like a desperate sale, not a strategic partnership: Some founders raise capital like they're selling a house without a realtor. Painful, takes forever, usually ends with accepting whatever offer comes along. Picture the typical fundraising journey: You clean up your pitch deck and start talking to everyone about raising money. Some investors lean in, others back away. You get excited about potential yes's, then crushed when they go quiet. Months pass, word spreads that you've been "on the market" with no takers. Your confidence erodes with each follow-up email. Finally someone bites, but at terms below what you wanted. Sound familiar? Here's how the best fundraisers actually do it: Phase 1: Build relationships before you need them. Spend 3-6 months having "non-fundraising" conversations with target investors. Meet them at conferences, get introduced through mutual connections. Share high-level market insights and vision, not detailed company metrics. Get to know them as people, let them get to know you as a leader. When they ask for deeper dives? "I'm not raising yet, but I'll reach out when I am." This builds genuine relationships without the pressure of sudden transactions. Phase 2: Execute a concentrated roadshow. Set a specific start date for fundraising. Schedule 40+ meetings across 4-6 weeks maximum. Your early meetings generate initial term sheets. Your later meetings get more competitive as word spreads about interest. You close with multiple options, not desperation. The timeline difference is everything: 6 months of relationship building, 6 weeks of execution. Most founders do the opposite: 6 weeks of prep, 6 months of painful execution. This isn't just about tactics. It's the conscious shift from scarcity to abundance mindset. When you're not desperate, investors sense that confidence. When you have options, every conversation improves your position. This approach requires discipline and genuine relationship building: Timing conversations, managing competitive dynamics, and maintaining authenticity while building strategic relationships requires experience. But it transforms fundraising from painful necessity into strategic advantage. If you're preparing for a raise, & want guidance on implementing this approach? Let's talk - my DMs are always open. - Proud to coach with Inside-Out Leadership : executive coaching by trained coaches who have founded, funded, scaled, & sold their own companies.

Ever wondered why fundraising suddenly feels harder, even for the best nonprofits? Global donations are shrinking. Priorities are shifting. And what once worked… just doesn’t anymore. That’s why I wanted to start a real conversation, not just about survival, but about how we’re adapting. How are NGOs like ours navigating this trying time? It is already 8+ months since USAID was terminated, major donors tightening their belts, it’s no longer business as usual. We’re all asking the same question: “How do we keep the mission alive when the money slows down?” My thoughts: Most people think fundraising is about asking for more. But in seasons like this, it’s really about earning more trust and showing more value. Donors are being more intentional. And that’s not bad news; it’s an invitation to do things differently. When we as NGOS ignore this shift, we risk: – Burning out our donor base with repetitive asks. – Miss opportunities to build community-led support. – Lose relevance because we failed to adapt our story to the times. So, here are 5 ways to fundraise differently in a shifting donor landscape: 1️⃣ Rethink your value story. Don’t just say what you need, show what difference your donor creates. Make them the hero. 2️⃣ Go smaller to grow stronger. Build deep, personal relationships with mid-level and recurring donors instead of just chasing one big grant. 3️⃣ Diversify your income. Explore corporate collaborations, social enterprise models, or community crowdfunding- it’s time to get creative. 4️⃣ Show radical transparency. Donors give when they trust. Let them see where every dollar goes, and what transformation it drives. 5️⃣ Invest in storytelling. Data informs, but stories move people. Keep your mission human, visual, and real. The future of fundraising won’t belong to the biggest NGOs. It will belong to the most adaptable, authentic, and community-driven. How is your organization navigating this new fundraising era? I’d love to learn from your experience too.