5 startup fundraising tips by T.A. McCann, VC at Pioneer Square Labs

Dec 31, 2024

T.A McCann is long-time serial entrepreneur who built and exited several companies, including Gist (acquired by Blackberry) and Senosis (acquired by Google). Today he is the managing partner at Pioneer Square Labs, a venture capital fund and venture studio. He is also a writer and podcaster sharing his insights on entrepreneurship and more.

We gathered some of his top tips on raising startup capital:

Build a list of target investors: Build a list of investors that fit your stage, geography, and domain expertise. Aim for the most active investors (at least 4 investments per year). Consult with other founders about who the best investors are and who would be the best fit for you. Keep in mind their other portfolio companies and possible conflicts. Work the list, and keep track in your own investor CRM.
Be clear on your use of proceeds: Know how you plan to spend the money you raise and be ready to explain your plans to potential investors. Be specific and practical. Take into account time frames and costs, and calculate your projected burn rate. Be clear on who you need to hire and the costs involved. Take into account all other future expenses such as marketing, etc.
Mobilize your supporters: Encourage your supporters, including key influencers, investors, and advisors, to take action in ways that will help you accelerate momentum. Make it easy for them to help by asking them to follow, promote, and share your social pages. Encourage them to contribute data and ideas to your investor list and facilitate direct introductions to potential investors.
Have your FAQs ready: As you keep pitching investors, you will notice the same questions tend to appear again and again. Prepare a list of such questions along with your best answers. Be ready to answer, whenever possible, with specific data points. Have that list of FAQs ready to help you prepare and respond during investor meetings and to investor emails. Use these to your advantage.
Know your marketplace: Research your market and know all the key players and stakeholders. Make sure you know how to explain your unique position in the market and your advantages and disadvantages compared to other players. This includes analyzing who could compete with you in the later stages of your journey. This also includes identifying potential future buyers of your company, and examples of relevant buyouts and M&As in your industry.

* References/recommended deep dive: T.A. McCann has an excellent blog. Also, check out McCann’s interview with Chase Jarvis.