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- đ How to maximize investor interest
đ How to maximize investor interest
3 tactics, 2 traps and 1 tool to maximize investor interest
Hello founders!
Welcome to âTactical Tipsâ by Jerel and Shuo at DECODE, where we cover one new idea to help you build and grow your startup â every week in <5 minutes!
Today, weâll be answering the question: âHow to maximize investor interest?â and continuing from our previous issue on how to optimize the fundraising process.
And hereâs 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, todayâs newsletter is for you.
đ„ Inside this issue:
â
3 tactics to maximize investor interest
â
2 traps to avoid
â
1 tool to leverage
đLetâs dive in.
Need personalized advice on fundraising or just want to talk? Grab 20 mins with me hereâhappy to help and make intros if itâs the right fit or feature you in future newsletters.
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3 tactics to maximize investor interest
đ€ 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 conversationsâmentioning âIâm talking to 37 VCsâ damages credibility and is worse than saying nothing
đ„ Convince each investor theyâre the favorite
Tailor the pitch to highlight why theyâre the perfect fitâhighlight their strengths, differentiation and past investments
Emphasize their specific added value (Eg. âWe know you can make a difference in our business given your background in ___ and how youâve helped ___ startup with ___â)
Do references from founders theyâve backed and mention great things heard
Downplay money as a decision-making factor
â° Run a tight term sheet timeline
Ensure next steps are clear after every meeting
Set an exact due date for term sheetsâuse 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
đšStaggering 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 simultaneouslyâan early term sheet forces a rushed decision or risks seeming manipulative
Line up investor timelines from the start and run a tight process
đšReading VC meeting vibes too soon
VCs hide their true intentionsâpositive or friendly doesnât mean interest; negative or tough doesnât mean no
Choosing the âbestâ partner is irrelevant until all term sheets are on the table
1 tool to leverage
đ Best practice on choosing investors
Donât rely solely on money or valuationâat 10% difference, choose the right person(not just firm); at 30%, choose the best offer.
Local investors = More valueâespecially for your first funding round.
Leverage tools like Sydecar to compile small investor checks.
Bonus: 1 trend to spark startup ideas
đš AI is transforming work orchestrationâand ticketing systems arenât 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 designâAI-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.
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