Understanding the VC mindset

With increasing competition for capital, founders must take a closer look at investor psychology

  • There is no ‘apprenticeship model’ for funding; it’s often just dive straight in, sink or swim. This is now a high-risk approach where your instincts are not necessarily going to help.
  • Fundraising is a strategic sales process — not dissimilar to a big-ticket enterprise sale. Whilst technically you are selling a commodity (shares in your company) you are actually selling value. Both business and personal.
  • As VC is by far the biggest element of the funding pie, understanding (i) how they make money, and (ii) the psychology that is at play at Partner level, is crucial.
  • Your job as CEO is to present the lowest risk proposition at every stage, with the biggest opportunity profile.
  • Fundraising has become more than just an important skill; it is now a strategic competency that startup founders must master. Learning from others that have early-stage experience is a real accelerant. Find someone who can help guide, coach and support you through the entire process.

Founder & CEO of UK startup to scaleup advisory firm Duet Partners

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