Either way, someone who really receives fundraising like me can listen to your feedback and tell you what it actually means, so you no longer think benchmark is actually going to follow or lead. Often, the pitch bridges prepared by professional fundraisers are far worse than what these founders did to themselves; They forget important insights into the business and often consultants try to justify their fees by creating unnecessary models that no one needs or wants to see. You`ll also be sure to place your logo (not your own) on each slide and intentionally retain information from potential investors in order to maintain their special relationship. Avoid a four-year plan since most consultants will provide most of their value in advance. You can visit the relationship again and again after a year or two and see if you want to continue. The founders of these startups are convinced that only these fundraising consultants own the keys to the realm of venture capital and are able to do things that the founders can`t do themselves. It`s not true. Fundraising consultants are parasites who try to suck as much money as possible from the startup, and working with them will often make the company much worse than if they could only find funds. But before we think about the number of shares or options to issue a consultant, there are a number of points to solve.
What is the role of the advisor? Will it provide marketing information or instructions at the board level? How long is it expected of her to commit each month and for how long? What do you pay? Defining these points will help determine the right amount of capital and ensure that everyone is on the same side in terms of expectations and responsibilities. Startup sucks, and fundraising sucks. That`s the opening line on my blog, and you may have laughed nervously about it because you know deep down that it`s true. One thing I`d like to repeat and clarify is that important conversations and big throws are about the CEO. The counselor should stay in hell outside. Investors decide whether to bet on the CEO, not the advisor.