If your CEO doesn’t show up for VCs, you’ll never raise money TechCrunch
Never rely on outside resources to do your fundraising for you
Occasionally, in my role as a consultant, I am approached by companies that have a plan in place for their fundraising that does not involve the CEO or a member of the founding team leading the fundraising process. From a certain point of view, I can understand that: from the outside, venture capital fundraising looks a lot like sales, and if you have a good salesman, why not let him do what he do best?
The problem is that while salespeople are great at selling, the process of raising VC funds is very different from getting a client. You try to find an alignment between the company and a long-term partner who will have a significant contribution in the future of your startup. And if there are discrepancies between the sales process and the deeper due diligence in the business (and there will be, because the sales team has a different long-term perspective on what success looks like ), this can cause the whole transaction to fail.
There are several very good reasons why, from the earliest stages of fundraising, the founding team should lead the fundraising process. In this article, I break it down and explain why it’s a bad idea to let anyone other than the CEO do the fundraising.