VC Minute – quick advice to help startup founders fundraise better.
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One note of caution. It’s incredibly important. You do not overstate the commitments in your round. If you state that you have a million committed, there better be a million dollars worth of capital in that pool, ready to party.
This is not the place for fake it till you make it. There’s no faster way to kill your pool party than to lie.
When you misrepresent relationships or commitments and an investor uncovers that, you’ve ruined that relationship. They’ve left the party and not only are they not coming back, but any time, your name and your company comes up, they’re warning others.
Don’t overplay your hand here.
If you really want to test somebody’s commitment, ask them to use their name. If they’re hesitant on that, then they’re not committed.
You will do better by showing that your funding round is coming together check by check, person by person, than overstating this too quickly.
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