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Hello {{First Name | founders}}!

Welcome to β€˜Tactical Tips’ by Jerel and Shuo at DECODE, where we cover one new idea to help you build and grow your startup – every week in <5 minutes!

Today, we’ll be answering the question: β€œHow to maximize investor interest?” and continuing from our previous issue on how to optimize the fundraising process.

And here’s 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, today’s newsletter is for you.

πŸ”₯ Inside this issue:

βœ… 3 tactics to maximize investor interest
βœ… 2 traps to avoidΒ 
βœ… 1 tool to leverageΒ 

πŸ‘‡Let’s dive in.

Need personalized advice on fundraising or just want to talk? Grab 20 mins with me hereβ€”happy to help and make intros if it’s the right fit or feature you in future newsletters.

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3 tactics to maximize investor interest

🀝 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 conversationsβ€”mentioning β€œI’m talking to 37 VCs” damages credibility and is worse than saying nothing

πŸ”₯ Convince each investor they’re the favorite

  • Tailor the pitch to highlight why they’re the perfect fitβ€”highlight their strengths, differentiation and past investments

  • Emphasize their specific added value (Eg. β€œWe know you can make a difference in our business given your background in ___ and how you’ve helped ___ startup with ___”)

  • Do references from founders they’ve backed and mention great things heard

  • Downplay money as a decision-making factor

⏰ Run a tight term sheet timeline

  • Ensure next steps are clear after every meeting

  • Set an exact due date for term sheetsβ€”use 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

🚨Staggering 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 simultaneouslyβ€”an early term sheet forces a rushed decision or risks seeming manipulative

  • Line up investor timelines from the start and run a tight process

🚨Reading VC meeting vibes too soon

  • VCs hide their true intentionsβ€”positive or friendly doesn’t mean interest; negative or tough doesn’t mean no

  • Choosing the β€œbest” partner is irrelevant until all term sheets are on the table

1Β tool to leverage

πŸ“– Best practice on choosing investors

  • Don’t rely solely on money or valuationβ€”at 10% difference, choose the right person(not just firm); at 30%, choose the best offer.

  • Local investors = More valueβ€”especially for your first funding round.Β 

  • Leverage tools like Sydecar to compile small investor checks.

Bonus: 1 trend to spark startup ideas

πŸ”¨ AI is transforming work orchestrationβ€”and ticketing systems aren’t 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 agentsΒ 

  • 100% of Coinbase engineers already use Cursor to assist with fraud prevention, customer support, risk scoring, and designβ€”AI-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.

Hint: Read our past newsletter on how to optimize the fundraise process.

Continue learning

Other resources

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