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Never rely on external resources to do your fundraising for you
Occasionally, in my role As a consultant, I have been approached by companies that have fundraising plans that do not involve the CEO or a member of the founding team in the fundraising process. From one perspective, I can understand that: VC fundraising, from the outside, looks like a lot of sales, and if you have a good salesperson, why not let them do what they do best?
The thing is, while salespeople are good at sales, the VC fundraising process is very different from landing a customer. You are trying to find alignment between the company and your long-term partner and will have significant input into your future startup. And if there are discrepancies between the sales process and the due diligence within the company (and there will be, because the sales team has a different long-term view of what success looks like), this can cause the whole deal to fall apart.
In the early stages of fundraising, there are many good reasons why the founding team should run the fundraising process. In this article, I explain why letting anyone but the CEO handle fundraising is a terrible idea.
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