The Last Three Mistakes Made By Startup Founders When Raising Money

Tim Jackson
Aug 2, 2019 · 12 min read
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Hey, time to fundraise. Where’s the lipstick?

You’re still at risk for a few months as you try to convert interested VCs into signed documents and cash in the bank

It’s not the end. It’s not the beginning of the end. But it’s the end of the beginning


Mistake #5: You forget to manage cash during your fundraising

The buyer took advantage of her vulnerability by giving the price a savage haircut

Mistake #6: Give your investors unpleasant surprises during the due diligence

The VC’s bipolar journey between greed and fear is especially agonising during the negotiation period

Mistake #7: Try to use logic to negotiate the valuation and terms

You’ll never increase the valuation with a better spreadsheet

A credible competing investor: that’s what prompts a second offer

It only takes a text or a two-minute call to shoot your credibility out of the sky forever.



All these activities are like agonising over lipstick colours for your pig.


About me

About this publication

Startup Grind

Stories, tips, and learnings from and for startups around…

Tim Jackson

Written by

Startup founder, former Economist and FT journalist, CEO coach, and seed VC at www.walking.vc

Startup Grind

Stories, tips, and learnings from and for startups around the world. Welcoming submissions re: startup education, tech trends, product, design, hiring, growth, investing, and more. Interested in submitting? Visit our submission form here: https://airtable.com/shrShpeN89HrzCzOB

Tim Jackson

Written by

Startup founder, former Economist and FT journalist, CEO coach, and seed VC at www.walking.vc

Startup Grind

Stories, tips, and learnings from and for startups around the world. Welcoming submissions re: startup education, tech trends, product, design, hiring, growth, investing, and more. Interested in submitting? Visit our submission form here: https://airtable.com/shrShpeN89HrzCzOB

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