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- š How to maximize investor interest
š How to maximize investor interest
3 tactics, 2 traps and 1 tool to maximize investor interest
Hello founders!
Welcome to āTactical Tipsā by Jerel and Shuo at DECODE, where we cover one new idea to help you build and grow your startup ā every week in <5 minutes!
Today, weāll be answering the question: āHow to maximize investor interest?ā and continuing from our previous issue on how to optimize the fundraising process.
And hereās more advice inspired by Kevin Ryan, who co-founded multiple companies including MongoDB and Business Insider, and raised $750M+.
If you're thinking about fundraising from VCs, todayās newsletter is for you.
 š„ Inside this issue:
ā
 3 tactics to maximize investor interest
ā
 2 traps to avoid 
ā
 1 tool to leverage  
šLetās dive in.
Need personalized advice on fundraising or just want to talk? Grab 20 mins with me hereāhappy to help and make intros if itās the right fit or feature you in future newsletters.
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3 tactics to maximize investor interest
š¤ Keep the round competitive and selective
- Signal a packed schedule (Eg. Convey hard stops and reschedule for additional meetings) 
- Hint at interests without naming names (Eg. Mention travel plans to SF or New York on a Monday to signal partner meetings) 
- Incentivize early commitments (Eg. Offer discounts for a small first tranche raised or commitments made before a certain date) 
- Indicate a selective round and limit to 5 active investor conversationsāmentioning āIām talking to 37 VCsā damages credibility and is worse than saying nothing 
š„ Convince each investor theyāre the favorite
- Tailor the pitch to highlight why theyāre the perfect fitāhighlight their strengths, differentiation and past investments 
- Emphasize their specific added value (Eg. āWe know you can make a difference in our business given your background in ___ and how youāve helped ___ startup with ___ā) 
- Do references from founders theyāve backed and mention great things heard 
- Downplay money as a decision-making factor 
ā° Run a tight term sheet timeline
- Ensure next steps are clear after every meeting 
- Set an exact due date for term sheetsāuse it to push back against attempts to rush decisions 
- Allow 3-4 weeks between the final meeting and term sheet deadline 
- Schedule for all terms sheets to arrive in the same ~1-week window to evaluate and negotiate 
2 traps to avoid
šØStaggering investor conversations too much
- Misaligned timelines = awkward gaps, lost momentum and blown opportunities 
- Maximize for both the number of offers and the chance they come simultaneouslyāan early term sheet forces a rushed decision or risks seeming manipulative 
- Line up investor timelines from the start and run a tight process 
šØReading VC meeting vibes too soon
- VCs hide their true intentionsāpositive or friendly doesnāt mean interest; negative or tough doesnāt mean no 
- Choosing the ābestā partner is irrelevant until all term sheets are on the table 
1 tool to leverage
š Best practice on choosing investors
- Donāt rely solely on money or valuationāat 10% difference, choose the right person(not just firm); at 30%, choose the best offer. 
- Local investors = More valueāespecially for your first funding round. 
- Leverage tools like Sydecar to compile small investor checks. 
Bonus: 1 trend to spark startup ideas
šØ AI is transforming work orchestrationāand ticketing systems arenāt ready
- Jira, Trello and Shortcut were built for human-only teams, not built for AI-human collaboration 
- AI is now resolving a growing share of engineering tickets via AI copilots and autonomous agents 
- 100% of Coinbase engineers already use Cursor to assist with fraud prevention, customer support, risk scoring, and designāAI-generated pull requests for Jira tickets are next 
- Ticketing systems that unify software development and customer experience will be invaluable as support tickets become fulfilled by low-cost AI-driven feature requests. 
| Startup Knowledge CheckWhich group of investors should you meet first when fundraising? | 
Hint: Read our past newsletter on how to optimize the fundraise process.
Continue learning
Other resources
- Apply to participate in Founders Pop-up Board Advisory and receive startup feedback from execs at Microsoft, Google, Meta, Reddit (Free) 
- Schedule for a consultation on structuring your equity-based compensation plan (Free). 
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| Still figuring out your startup idea?Take our free course ā Zero to Startup: How to Identify a Winning Idea Fast, where youāll receive 1 email per day over 5 days to help you get started! | 
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Stay tuned for more startup wisdom in next weekās edition!
