5 Fundraising Tips From Stripe's Co-founder Patrick Collison

Patrick Collison is one of the co-founders of Stripe (along with his brother John), one of the biggest fintech startup success stories ever. We went through his interviews and podcast appearances, and here are five of his best tips on startup funding.

1. Product-market fit before raising funds: One of the biggest mistakes you can make is attempting to raise funds before achieving your product-market fit. Investors are more likely to back a concept already proven to resonate with users. It helps to focus on your customer needs and market transformation as core validation points before seeking substantial funding.
2. Pitch investors like they are partners: When presenting to investors, treat them as long-term partners who will grow with your company rather than just financial backers. Take an interest in their insights and perspectives, build trust, and aim for a collaborative relationship. 
3. Be transparent about your risks: Acknowledging potential hurdles shows investors you have a realistic view of your business and are prepared to tackle challenges head-on. This openness builds credibility, encouraging investors to trust your judgment and integrity.
4. Long-term vision over short-term gains: Investors look for startups with lasting potential, and focusing on your long-term vision extending beyond the immediate product or service helps. Align your pitch with your startup’s broader mission, which can be more compelling than just presenting your short-term profitability. Vision-driven pitches appeal to investors who want to be part of something meaningful.
5. Focus on improvement: As a founder, you must focus on improvement and learning from your experience, including fundraising. By showing investors you are committed to evolving and adapting, you demonstrate resilience—qualities attractive to investors looking for long-term returns.

* References/recommended deep-dive: Check out his interviews on the essence of innovation and building a $95 billion startup.