When founders start fundraising, the first instinct is usually: “Let’s pitch every VC out there.”
But here’s the truth: not all investors are right for your startup. Spraying your deck to every VC in India (or abroad) often leads to silence, wasted time, and unnecessary rejection.
If you want to raise smarter (and save yourself months of frustration), here’s how to think about it:
Decide: VC Isn’t Always the Answer
Venture capital sounds glamorous, but it comes with expectations of hypergrowth and 10x returns. That may not fit every founder’s journey.
VC is right for you if:
- You’re building in a massive market.
- Your model scales fast with more capital.
- You’re comfortable giving up equity + board control.
Angels may be better if:
- You’re still testing product-market fit.
- You need smaller checks and smart guidance.
- You want flexibility before committing to institutional money.
Do Your Due Diligence on VCs (Before They Do Theirs on You)
Don’t just email 200 investors. Research them the same way they research you.
Ask yourself:
- Stage Fit: Do they invest in pre-seed/seed, or only Series A+?
- Sector Focus: Do they even invest in your industry? (Edtech vs. SaaS vs. D2C)
- Check Size: Do they typically write $200k, $2M, or $20M checks?
- Portfolio: Have they backed competitors or complementary companies?
Example: If you’re raising ₹2 Cr seed, and the VC’s website says “Typical check size $10–20M” — you’re wasting time.
Quality > Quantity in Outreach
Investors can tell when they’re part of a mass mailer. A personalized, thoughtful email about why they specifically are a good fit stands out.
Instead of: “We’re raising $1M — here’s our deck.”
Try: “We noticed you’ve invested in early-stage healthtech. We’re building in gut health, with $50k MRR, and think there’s strong overlap with your thesis.”
Think Long-Term Relationship, Not Just Capital
An investor isn’t just a checkbook. They’ll be on your board, in your updates, and sometimes in your WhatsApp at midnight.
Ask other founders in their portfolio:
- Do they add value beyond the money?
- Are they supportive during rough patches?
- Do they push for unrealistic growth, or align with your pace?
Final Thoughts
Fundraising is not about chasing any money — it’s about finding the right money.
The best fundraise is when:
- Your business model matches the investor’s thesis,
- Your stage matches their check size, and
- You build a partnership, not just a transaction.
So before you send out your deck, slow down. Do your homework. And remember — the right investor can accelerate your journey, but the wrong one can derail it.
If you’re preparing for a raise and want clarity on how much to raise, from whom, and how to present it — I help founders build investor-ready models and decks. Let’s connect.