Newsflash: fundraising isn't just about flashing a slick pitch deck and watching the money roll in. Nope. It's a 3-stage process that typically takes 3-6 months.

So, what happens over that time? That's what we're gonna dive into here. Fundraising can be broken down into 3 stages:

1. Preparation
2. Pitching + follow-ups
3. Closing

This article focuses on phase 1: preparation.

Next we’ll deep dive into phases 2 (pitching) and 3 (closing).  

Stage 1: Preparation

(1-2 months)

This is the phase most founders skip over. But if you flub phase 1, you could be setting yourself up for a terrible experience.

Flip side? If you nail phase 1, phases 2 (pitching) and 3 (closing) will likely go much more quickly.

Crafting your irresistible story

First things first: You need to get your story right. And this means iterating, practicing, and iterating some more.

You may think your deck is complete. Respectfully, you’re probably wrong. Sure, your deck might be great… in isolation. But investors aren’t looking at your deck in isolation. They’re looking at it in relation to hundreds or even thousands of other decks. And pretty much all investors agree: when looking at a ton of decks all together, most of them seem the same.

So, how do you make sure your story stands out? Iteration. Lots and lots of iteration. For our own deck at Hustle Fund, we did 20 serious iterations for our Fund One fundraising deck.

That's right. Twenty. And we're not talking about changing a few commas here and there. We're talking about major overhauls based on feedback from investors, other founders, and anyone else who could offer valuable insights.

Other assets

Phase 1 is also when you should be preparing other assets, like:

• The forwardable blurb
• The data room
• Your most important metrics
  
  

The investor research rabbit hole

Another key part of phase 1? Creating your investor hit list.

You might be tempted to think, "Oh, we're just going to pitch Andreessen and Sequoia and Benchmark, all the usual suspects." But you know what? Those may not actually be the best fit. It depends on what your company is doing, your industry, and what your stage is. It’s possible that those bigger VC firms will be a fit as you grow. But when you have no revenue, a tiny team, and no real product, the big firms are not going to come into your earliest rounds.

That’s why a major part of phase 1 is finding relevant investors. You want people who:

• Love the problem you're solving
• Are willing to invest at your stage
• Can write the check size you're looking for

Aim for a list of 50 to 100 potential investors. Yes, it's a lot. But remember, quality over quantity. Each name on that list should be there for a reason. And keep in mind: VCs aren’t your only option. At the earliest stages especially, you may find more success with angel investors.

Don’t sleep on Phase 1

If there's one thing I want you to remember from all this, it's this: You may actually spend the most time on preparation if you do it correctly.

Investing time in preparation can dramatically shorten the other stages of your fundraise. It's like studying for an exam – the more you prepare, the easier the test becomes.