For startups, fundraising is often one of the most exciting yet challenging parts of their journey. It involves winning over the right investors, showcasing your business at its best, and managing a complex multi-step process to close the deal successfully. At dups, we’ve guided countless founders through this process. Here’s an insider’s look at how it works and some tips to make it less daunting.

 

1. It all starts with preparation

Before you even think about reaching out to investors, preparation is key. This stage is where you set the foundation:

  • Your pitch deck matters more than you think: It’s often the first interaction investors have with your business. Keep it concise, 15 to 20 slides maximum, and focus on the essentials: the problem you’re solving, the market size and potential, the strength of your team, and key financial metrics such as Annual Recurring Revenue (ARR) or Customer Acquisition Cost (CAC). Read this article to learn more.
  • Understand your numbers: Be clear on how much you need to raise and how you’ll use the funds. Think of it this way: investors want to see how their money will take your business to the next level, not just help you “get by.”
  • Know your funding options: Are you going for equity, a convertible note, or a non-dilutive grant? Each has its pros and cons, and the right choice depends on where you are in your journey.

 

Dups’ tip: Don’t just make a deck; tell a story. VC funds see countless presentations; yours needs to stand out and make them curious enough to ask for more.

 

2. Finding the right investors

Not all investors are created equal, and not all will be the right fit for your business. The first step is determining the type of investor you should target (venture capital, business angels, banks etc.), which is usually mostly linked to the maturity of your business and the type of capital you are raising (i.e. debt vs. equity). Then, the next question is who to approach within that category and how to make contact. Here’s how to approach this part effectively:

  • Use your network: Introductions via trusted contacts often lead to much better outcomes than cold outreach. Go to events, reach out on LinkedIn, and get referrals when possible. If you must cold-email, ensure it’s personalized and provides a clear call to action.
  • Do your homework: Look at an investor’s portfolio. Have they invested in your sector before? Do they typically fund startups at your stage? Do they have the capacity to invest more in your next round(s). If they don’t fit your criteria, they probably aren’t a fit, and you should not waste time on them.
  • If you must cold-email, be concise: Nobody has time to read a novel. Limit your email to a few sentences, ensure it’s personalized, include your pitch deck, and highlight your unique value proposition early. Use bold, action-driven phrases like “We are closing X clients per month” or “We have tripled our revenue” to grab their attention

 

Dups’ tip: The best investors aren’t just a source of money; they bring expertise, connections, and credibility. Find someone who adds value beyond the check as they may very well sit on your board for years to come. 

 

3. Building interest

Once you’ve identified potential investors, the goal is to get them interested enough to dig deeper. This phase is all about creating momentum:

  • The first meeting sets the tone: Be prepared to clearly articulate your vision, numbers, and why you’re the right team for the job.
  • NDAs aren’t always necessary: Most investors won’t sign NDAs at the first interaction, especially VCs. Instead, be prepared with a “light” version of your data room that shares key highlights without disclosing confidential details too early.
  • Start building your data room early: Even at this stage, having an organized set of key documents (e.g., financials, customer metrics) makes you look professional and ready.
  • Gradually build FOMO (Fear of Missing Out): While it might sound cliché, creating a sense of urgency is an effective way to maintain momentum and convince investors to commit. FOMO has two key components:
    • Fundraising traction: Show that other investors are showing strong interest or already committing, which signals confidence in your business.
    • Operational traction: Demonstrate that your business is thriving even as you fundraise. For example, highlight recent milestones, such as a significant sales increase or new customer wins, to prove that now is the perfect time to invest.

 

Dups’ tip: Investors are busy. Be clear about next steps after every interaction to keep things moving forward.

 

4. Negotiations and Due Diligence

This stage is where things get serious. Investors will look closely at your business, and you’ll negotiate terms. Here’s what to expect:

  • Term sheet first: Before any deep dive, you’ll agree on key deal terms, board reprensentation, the valuation, and investment amount. This sets the framework for everything else.
  • Prepare for scrutiny: Investors will closely review your financial history, legal documents, customer contracts, and more. Organize your data room into key sections and ensure it’s clean, complete, and easy to navigate. Messy records or missing files can lead to delays or undermine trust with investors. Take a look at our data room checklist by clicking here.
  • Be ready to compromise: Negotiations are rarely one-sided. Know your non-negotiables, but be open to finding common ground. It’s all about finding the right balance between protecting the investors and keeping control.

 

Dups’ tip: This is where having advisors helps. They’ve been through it before and can help you avoid pitfalls. Choose advisors that have experience in fundraising to make sure they know what to negotiate and how to negotiate.

 

5. Closing the Deal

After the negotiations come the final steps:

  • Finalizing agreements: Shareholder agreements and legal documents must be clear, thorough, and protect the interests of all parties involved.
  • Completing the legals: Board approvals, notary meetings, and document signings; it’s not glamorous, but it’s necessary.
  • Funds transferred: Once everything’s signed, the money hits your account, and you’re ready to execute your plan.

 

Dups’ tip: Closing is just the start of the investor relationship. Keep them in the loop as you grow; communication builds trust.

 

Why fundraising is about more than money?

At dups, we believe that fundraising is more than just securing capital. It’s about finding the right partners who shares your vision and can help you achieve it. Yes, it’s a complex process, but with the right preparation and guidance, it doesn’t have to be overwhelming.

Whether it’s crafting the perfect pitch, building a strategy for negotiations, or navigating the due diligence maze, we’re dedicated to supporting founders succeed at every step.

Because at the end of the day, fundraising isn’t just about raising money : it’s about laying the groundwork for your company’s next big chapter and building long-term partnerships that drive lasting growth.

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