This blog will always be less than 1000 characters, which is just a bit more than Twitter and much more interesting.
At FRC we don’t work with professional fundraisers who fundraise on behalf of the startups we are considering to fund. There are 3 reasons for that:
1- At a very early stage, we base our investment decision on the founding team. Fundraising is a way to sell your team and your idea and if we can’t judge how convincing you can be at this exercise, we won’t know how convincing you can be to your future customers, key hires, and key partners.
2- In seed rounds (pre, seed, series A) All the money you are raising, down to the euro needs to be invested to make a product people want. The money you get in the early stage is too scarce to waste on fundraisers.
3- In case your fundraiser is asking to be paid in shares, well, same as money you are spending, very early in the process, a resource that will be very much needed when you scale
Those are the reasons why we systematically reject any fundraiser approach and we grade very poorly founders who delegate this job to any other employee/board member.