5 startup fundraising tips by Y-Combinator's Geoff Ralston

Geoff Ralston was the president of ​Y Combinator​ between 2012-2022 and is a long-time entrepreneur and innovator. We gathered five of his top fundraising tips for startups.

Here goes:

1. Craft your story: Figure out the story of your startup. This means figuring out why you're going to matter in the future. What is it about your product, your opportunity, that tells a story about the future that a venture capitalist will care about?

2. Network with other founders to find the right investor: The best source of information on potential investors is founders who raised from them. Talking to founders should be a major part of your research when you’re building your list of investors you want to talk to and reach out to. Founders can also introduce you to the best investors.

3. Don’t wait until you’re desperate: Ideally, raise money when you’re not desperate for it. This makes it easier for investors to see your vision and keeps you in a position of strength. But if you need to raise quickly, remember that staying organized and persistent will keep you moving forward.

4. Capture their attention fast: Make sure you are not boring. Even though you might find your work fascinating, how you present it matters more. Avoid telling the story in a confusing or backward way. Instead, aim for simplicity and clarity from the start. Bring a demo or a prototype, even if it is just a quick version. Demonstrating your product, whether software or hardware, is an effective way to showcase your idea.

5. Practice and keep practicing: When pitching to investors, expect to struggle at first. A key trait of successful fundraisers is improving with each meeting. Early meetings are not necessarily with your top target investors, so use them as practice. Pay attention to how engaged the investors are, how the meeting went, and what feedback is provided, and then improve each time.

* References/recommended deep dive: Ralston on ​Y-Combinator’s Startup School​ and ​Startup Grind​.