In this three-minute video, I offer some fundraising advice on when, why, who, and how.

First, start earlier than you think you need to.

Many founders make the mistake of talking with potential investors much too late. They start pitching in earnest only when they really need the money. But they should have been building those relationships earlier. Waiting until you are in severe need of funds makes you look desperate or unprepared. And it makes you vulnerable. If investors think your options are limited, they can demand exorbitant terms, or more likely, pass on you altogether.

Second, start only after doing your homework.

Any prospective investor has likely invested in startups before. And that investor did not invest randomly -- they chose ventures with a theme or common thread. They likely focus on select industries, or stage of company, or something similar. So, it’s not a good idea to send a pitch deck for your pre-revenue fintech startup to a venture capital firm focused on growth-stage life science companies. Don’t make that mistake. Do your homework – know your prospect.

Third, start only when you have considered all funding options.

Don’t assume you need to fundraise from professional investors. While angel and venture investors are crucial in the startup ecosystem, they aren’t essential for every venture. If a startup doesn’t need to give up equity, board seats, and control, I have a simple piece of advice: Don’t. Bootstrapping, self-financing, friends and family rounds, and other options may be sufficient to launch and scale a startup. And while these options may not be enough to achieve what you desire, I recommend at least pursuing them first. I’ve met many founders who are surprised by the creative and diverse funding options available, and the savings they make possible. You just need to take more time to look, evaluate, and imagine.

Fourth and final suggestion: when it’s time to raise money, start with your own personal network.

It’s probably your most valuable asset. Warm introductions from your connections will open more doors than any cold email could, yet many of us are reluctant to ask for that help. Don’t hesitate. If you are genuine and kind, your network should be happy to help you -- especially when you make them look smart for doing so. And be sure to pay their kindness forward by helping to create opportunities for others. Good luck!

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