| name | ff - Fundraising (Financial) |
| description | Raise investment capital through investor outreach, pitch preparation, term sheet negotiation, and due diligence |
| output | {"format":"prose"} |
Fundraising (Financial)
Input: $ARGUMENTS
Interpretations
Before executing, identify which interpretation matches the user's input:
Interpretation 1 — Run a fundraising process: The user is ready to raise capital and needs end-to-end guidance through investor outreach, pitch preparation, term negotiation, and closing.
Interpretation 2 — Assess fundraising readiness: The user is considering raising but is unsure whether now is the right time, what stage they are at, or how much to raise.
Interpretation 3 — Fix a stalled fundraise: The user is mid-process but struggling — not getting meetings, failing to close, or receiving unfavorable terms — and needs to diagnose and adjust their approach.
If ambiguous, ask: "I can help with running a full fundraising process, assessing whether you're ready to raise, or diagnosing a stalled fundraise — which fits?"
If clear from context, proceed with the matching interpretation.
Overview
Raise investment capital through investor outreach, pitch preparation, term sheet negotiation, and due diligence
Steps
Step 1: Assess fundraising readiness
Determine if now is the right time to raise:
- Evaluate business readiness
- Is there a compelling story to tell?
- Are metrics trending in right direction?
- Is there clear use of funds?
- Can you show progress since last milestone?
- Assess runway and urgency
- How much runway remains?
- How long will fundraising take?
- What's the cost of waiting vs raising now?
- Evaluate team readiness
- Can founders dedicate time (50%+ for 3-6 months)?
- Is supporting team in place to maintain operations?
- Are you emotionally prepared for rejection?
- Define funding requirements
- How much to raise?
- What will funds be used for?
- What milestones will this achieve?
- What's the target valuation range?
- Decide go/no-go
- If not ready, what needs to happen first?
Step 2: Develop fundraising strategy
Create plan for the fundraising process:
- Define target investor profile
- Stage focus (pre-seed, seed, A, etc.)
- Sector expertise
- Check size
- Value-add priorities
- Geographic preferences
- Set timeline
- Target close date
- Work backward for key milestones
- Build in buffer for delays
- Consider market timing
- Determine round structure
- Equity vs convertible (SAFE, note)
- Target valuation or cap
- Round size (target and max)
- Plan the process
- How many investors to target?
- Parallel vs sequential approach?
- How to create momentum?
- Assign roles
- Who leads investor communication?
- Who manages process?
- Who maintains operations?
Step 3: Build investor pipeline
Identify and prioritize potential investors:
- Research potential investors
- VC databases (Crunchbase, PitchBook)
- AngelList, LinkedIn
- Portfolio company research
- Accelerator/incubator networks
- Personal network
- Apply filters
- Stage match
- Sector fit
- Check size appropriate
- Geographic alignment
- Recent activity level
- Prioritize targets
- Tier 1: Best fit, pursue aggressively
- Tier 2: Good fit, pursue actively
- Tier 3: Possible fit, pursue opportunistically
- Map connections
- Who do you know who knows them?
- Any portfolio company connections?
- Warm intro possibilities?
- Create tracking system
- Investor name and firm
- Contact and intro path
- Status and next steps
- Notes from interactions
Step 4: Prepare pitch materials
Create compelling materials for investors:
- Craft the narrative
- What's the hook?
- What's the journey?
- Why now? Why you?
- What's the big vision?
- Build pitch deck
- Problem, solution, product
- Traction and metrics
- Market and competition
- Team and ask
- Iterate based on feedback
- Prepare financial model
- Revenue projections (3-5 years)
- Cost structure and burn
- Funding use breakdown
- Key assumptions
- Create executive summary
- One-page overview
- For cold outreach and forwards
- Set up data room
- Corporate documents
- Financials
- Contracts and legal
- Product information
- Prepare founder for pitch
- Practice delivery
- Anticipate questions
- Prepare for objections
Step 5: Execute outreach and meetings
Run the fundraising process:
- Initiate outreach
- Warm intros first (much higher conversion)
- Personalized cold outreach if needed
- Accelerator/program connections
- Event networking
- Manage first meetings
- Clear, concise pitch
- Leave time for discussion
- Ask questions, understand their perspective
- Gauge interest and fit
- Progress interested investors
- Send follow-up materials
- Schedule partner meetings
- Provide requested information
- Address concerns directly
- Create momentum
- Run parallel processes
- Share appropriate interest indicators
- Set reasonable timelines
- Don't bluff about competing offers
- Track everything
- Update status after every interaction
- Note feedback and objections
- Identify patterns
- Adjust approach based on learning
Step 6: Negotiate term sheet
Work toward signed term sheet:
- Receive and evaluate term sheets
- Compare to market terms
- Identify key issues
- Understand all provisions
- Consult with lawyer
- Negotiate terms
- Focus on what matters most
- Valuation is not everything
- Consider control provisions
- Think long-term partnership
- Key areas to negotiate
- Valuation and ownership
- Option pool size and timing
- Liquidation preference
- Board composition
- Protective provisions
- Handle multiple term sheets
- Don't be greedy
- Move quickly
- Be transparent about process
- Choose best partner, not just best price
- Sign term sheet
- Understand it's usually non-binding
- Except exclusivity clause
- Prepare for due diligence
Step 7: Complete due diligence
Support investor's diligence process:
- Understand diligence scope
- What will they review?
- Who will they talk to?
- What's the timeline?
- What are key concerns?
- Provide requested materials
- Respond quickly and completely
- Organize data room access
- Prepare for customer/reference calls
- Brief team on what to expect
- Manage issues that arise
- Be proactive about problems
- Have explanations ready
- Propose solutions
- Don't hide issues (they'll find them)
- Track progress
- Keep checklist of requests
- Note outstanding items
- Maintain timeline
- Escalate delays
- Technical/product diligence
- Prepare for technical deep dive
- Have architecture documentation
- Be ready for code review
Step 8: Close the round
Execute final documentation and funding:
- Negotiate definitive documents
- Stock purchase agreement
- Investors' rights agreement
- Voting agreement
- Right of first refusal agreement
- Certificate of incorporation amendments
- Review with counsel
- Ensure terms match term sheet
- Understand all provisions
- Negotiate final issues
- Prepare for signing
- Schedule signing date
- Confirm wire instructions
- Update cap table
- Prepare board consents
- Execute closing
- Sign all documents
- Wire funds
- Issue stock certificates
- File any required documents
- Post-closing
- Send investor updates
- Add to board/information rights
- Announce (if appropriate)
- Thank everyone involved
When to Use
- Need significant capital for growth that debt won't provide
- Have product-market fit signals and growth potential
- Ready to give up equity for capital and strategic support
- Can demonstrate meaningful milestones since last raise
- Have 6+ months runway remaining (not desperate)
- Management team can dedicate time to fundraising
- Clear use of funds that will create value
Verification
- Raised at appropriate stage with right investors
- Terms are fair and market-standard
- Enough capital raised to reach next milestone
- Relationship with investors is positive
- Process was efficient (reasonable time to close)
- Team maintained business operations during raise
