I Know Nothing About Raising Capital But I Want to Raise Capital. Where Do I Start?

Look, I get it.

You're sitting there with a killer idea, but your bank account isn't exactly matching your ambition.

I've been there. Let me save you months of painful mistakes.

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The Brutal Truth About Raising Capital

Here's what nobody tells you upfront:

• 99% of investors will ignore you
• Your first pitch will suck
• You're probably asking for the wrong amount

But that's okay. We all start somewhere.

Before You Even Think About Investors

Stop everything. Do this first:

1. Get Your House in Order:

• Clean financial records
• Clear business model
• Actual customers (even just a few)
• Proof that someone wants what you're selling

2. Know Your Numbers Cold:

• Revenue (if any)
• Growth rate
• Market size
• Customer acquisition cost
• Lifetime value

The Money Menu (Pick Your Weapon)

Let's break down your options:

1. Friends and Family

• Easiest to get
• Most flexible terms
• Can ruin Thanksgiving dinner

2. Angel Investors

• Usually write checks between $10K-$100K
• Can move fast
• Actually want to help you succeed

3. Venture Capital

• Big checks ($500K+)
• Need serious traction
• Want massive returns

4. Crowdfunding

• Great for consumer products
• Tests market demand
• Marketing built in

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The "Zero to Pitch" Framework

Here's exactly what to do:

1. Week 1-2: Research

• Study 10 competitors
• Read their funding news
• Join startup groups

2. Week 3-4: Build Your Story

• Write your pitch deck
• Practice it 100 times
• Record yourself

3. Week 5-6: Network

• LinkedIn outreach
• Startup events
• Ask for introductions

The Pitch Deck That Actually Works

Keep it simple, stupid:

• Problem (make it bleed)
• Solution (make it obvious)
• Market size (make it big)
• Business model (make it clear)
• Team (make it impressive)
• Traction (make it real)
• Ask (make it specific)

Red Flags That Scream "Amateur"

Don't do these:

• Asking for an NDA before pitching
• Having no skin in the game
• Showing 5-year projections that go to the moon
• Claiming you have no competition

Frequently Asked Questions

How much should I raise?18 months of runway + growth money

What's a fair valuation?Revenue × 5 (if profitable)Revenue × 10-20 (if high growth)

Do I need a co-founder?Not required, but it helps. Solo founders have it harder.

The Real Talk About Timing

Here's when you're ready:

• Have paying customers
• Growing month over month
• Clear path to more growth
• Just need gas for the fire

The Follow-Up Formula

After the pitch:

• Send a thank you within 24 hours
• Follow up every 2 weeks
• Always have new progress to share
• Know when to move on

Your First Steps (Do These Today)

1. Write down your numbers
2. List 20 potential investors
3. Create your first pitch deck draft

The Money Mindset

Remember:

• Investors bet on lines, not dots
• Show progress over time
• Build relationships before you need them

Bottom Line

Raising capital isn't about being perfect.

It's about being prepared and persistent.

Start small, learn fast, and keep pushing.

Remember: Everyone raising capital started by knowing nothing about raising capital.

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