The single most common reason founders don't raise isn't that investors don't like their idea. It's that they pitched before they were ready. The tale is almost always the same: they're in conversations before they can answer the basic questions clearly.

Now, let's get a little more detailed on what "too early" actually means.

Before you talk to an investor, you should at least have your deck reviewed by a few different people. There's a difference between a deck you put together using AI that can do the job and one that you just threw together on PowerPoint with no real direction. Too early also looks like not knowing how much you're raising or what milestone it will get you to. All of these are massive red flags to an investor.

The worst part about this is that going too early has a cost, and it's not just no. I've talked about this recently, but going too early means that you burn a relationship. I have to tell this to the founders that I work with. I don't want to introduce you to an investor, even though I know you would be a good fit, too early, because that could burn your opportunity in the long run. The founder who came in unprepared six months ago and is back again better have a clear story about what changed and why it changed because of intentional work, not just the passage of time.

I think another painful aspect of this is that some founders have gone too early and don't realize that they went too early. An investor might tell you, "Hey, come back when you're ready," and that's encouragement, and it's supposed to be kind, but that's an investor who probably is mentally moved on. The founders who actually come back and get funded are the ones who treat "come back when you're ready" as a specific assignment, not a vague invitation.

This is one of the biggest reasons why I'm hosting the Raise Ready cohort this summer. I want to make sure that founders can be ready to raise their capital. I'm bringing together venture capitalists, angel investors, and startup operators. I want to make sure that you as a founder can talk to the people who fund startups before you start raising. If you're actively raising, this isn't going to put you in a position so you can get some deals closed within a couple of weeks. Book a Raise Ready call to learn more and even get a list of investors perfect for your startup.

The time you spend getting fundable before you pitch is not lost time. It's the difference between pitching 50 investors and getting two meetings versus pitching 20 investors and getting 12 meetings. The math always works out better for the founder who did the work first.

The work in this reframe looks like expanding your team, possibly. You might need to add a member or two to fill some gaps. It looks like spending time with customers. Some founders pitch investors without having talked to at least 50 customers, which is a huge red flag. You need to know the market that you're working in. You also need to have a plan for how you can use the capital. If an investor does give you $500,000 or a million dollars, they want to know the plan you have for that cash. The plan can't be something like upgrading the office chairs or buying some more software. It needs to be very specific and detailed.

if you are reading this and you're not sure whether you're ready, you're probably not ready, and that's perfectly fine. Founders who are genuinely ready don't usually feel uncertain. You will feel prepared, so if you're not there yet, this is exactly what we can talk about. You can be a part of our Raise Ready cohort this summer. This gives you a chance to get in the room with real investors who are writing checks and have the conversation about being a fundable startup.

Who's on your list right now? Reply and tell me.

🎙️ Chris