Fundraising Fundamentals

What investors actually underwrite

Team, market, traction, and the shape of the risk.

The four questions

Every investment memo answers the same four questions:

  1. Why this market? Is it big, growing, and reachable?
  2. Why this team? Do you have earned insight and the ability to execute?
  3. Why now? What changed that makes this possible today?
  4. Why will it compound? What gets stronger as you grow?

Evidence beats adjectives

"Strong growth" is a claim. "$180k MRR growing 11% month over month for nine consecutive months, 3% logo churn" is evidence.

Own the risks

Every company has three or four real risks. Investors will find them. Naming them yourself — with your plan to reduce each — converts a credibility problem into a credibility asset.

Key takeaways

  • Investors buy a thesis about the future, evidenced by the present
  • Name your risks before the investor does

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