Navigating the Fundraising Lion’s Den with Liz Bacelar

Fundraising is, quite simply, just not the same experience for women as it is for men. As a pioneering founder in fashion tech and longtime entrepreneur mentor, Liz Bacelar, Founder & CEO of Decoded Fashion, knows that firsthand.

“I see people going to the lion’s den way too often and being eaten, and mostly women,” said Liz. “Half of your meetings, you don’t know if they took a meeting with you because you’re cute, or if they feel bad for you, or because they want to have a drink with you, or if they want to show you off — there’s all kinds of funky dirty metrics that you’re not aware of. There’s this game, this locker room chatter, and you’re a not part of that.”

Liz shared her tactics and strategies for navigating the fundraising lion’s den as a woman. One quick strategy? Find a man to bring into the room, because it really changes the dynamics instantly!

Most crucially, it is important to do your homework and be educated about the people you are meeting with, so that you can avoid being blindsided by false metrics of success or your own wishful thinking. Liz recommends looking at the VC’s portfolio and making sure they have something to show for all their talk. Another tip is to call one of the fund’s portfolio companies and ask them directly about their experiences with their investors.

“A big misconception that early founders have is that meeting with VC’s is some metric of success, and getting your VC’s to tell you that your idea is good is some metric. It’s actually a stupid thing to move with them too early, because your idea gets stolen,” said Liz. “I’ve seen businesses crumble before they exist because that person met with the wrong VC and that VC gave it all to the founder he believed in. You have to be very careful who you meet with at that early stage.”

It is more powerful to be in a position where the VC needs you, rather than the other way around. Liz emphasized being careful with your pitch deck and holding onto it until you can get to know the VC and learn what kind of person he is.

“Once you give this deck with numbers to a VC, it’s almost like he saw you naked — the magic’s a little gone. And there’s a lot of power before you take that dress off!”

Instead of directly sending the entire deck to any potential investor, send a one sheet with no numbers or anything proprietary.

“Imagine your worst competitor getting that paper and reading it,” said Liz. “So make that paper with that in mind. That paper should be cool and enticing, almost like a marketing pitch or press pitch, and see if in the meantime you can get to know more about that person.”

And if you still don’t know enough, bring the deck to show on your owno computer at a meeting, then watch them carefully.

“Watch their reaction, watch the interest, ask them about their current investments, ask them if they like you,” said Liz. “Be attuned to what is actually happening, know what you want, not wishful thinking. If there’s real positive reaction to your idea, then ask them: ‘Why would you invest in me? I want to understand your reason.’ Don’t celebrate, try to understand if it’s real, and then decide if you should send the deck.”

Being in full control of your pitch deck gives you the leverage of a “FOMO machine” in the locker room.

To not only arm themselves in the lion’s den, but also to actually grow a business, women founders should be thoroughly aware of their own strengths. Liz recommends actually making a list of your personal and company “superpowers.” She refreshes her own list every year. Having such a list and knowing it well allows you to know what you can offer to others and the gaps you have that can be filled by potential partners.

In line with knowing your strengths, it is also “very serious” business to be in control of your own persona: to find your own personality and be very true to it. Liz’s persona of “the girl with leather pants and potty mouth” is very intentional.

“Imagine that you’re a cartoon or a reality TV personality. What do you like? How do you wear your hair, what kind of clothes do you wear, do you swear, are you sweet? It’s a brand, and you creating a company is creating your own personal brand,” said Liz. “If you nail down creating your brand, you know how to do that for your company too.”

All that said, your persona is not necessarily you 24/7. Liz still “takes off her persona” when she gets home.

“When I get home, I chit chat with my girls, I’m in my garden, you’d never recognize me. And when I take my train to New York, I put it back on. Then you’re in the fight, the warrior, and you go get it.”