5 startup fundraising tips from Marc Andreessen of A16Z

Today's 5 startup fundraising tips are from legendary investor Marc Andreessen, the co-founder of venture capital giant ​Andreessen Horowitz​. Before founding A16Z he co-founded and sold two unicorns, Netscape and Opsware.

We gathered five of his tips for founders raising capital. Here goes:

1. Perfect Your Pitch With Junior VCs: Engaging with junior venture capitalists can provide feedback to refine your pitch before presenting it to senior partners. They understand the perspective of senior partners and can give you insights to enhance your presentation.
2. Start raising long before you need the capital: Don't wait until your startup is desperate for cash to begin raising funds. Investors can sense urgency and may interpret it as a sign of instability Instead, plan your fundraising efforts well in advance, when you can present from a position of strength. Raising money proactively allows you to control the narrative and negotiate better terms. Timing can mean the difference between closing a deal and missing out.
3. Be outstanding in your field: In a talk where he echoed Steve Martin’s advice, Andreessen suggests that the key to attracting investment is to “be so good they can’t ignore you.” That means demonstrating mastery over your market, showing traction, and presenting a vision that sparks and holds attention. Delivering exceptional value isn’t just about hype and requires substance, supported by market insights, metrics, and a clear roadmap for success.
4. Mingle with VCs and the venture capital community: Active participation in the venture capital ecosystem can build you up. Engage with both junior and senior members of VC firms to build relationships and gather important information. Networking with the broader ecosystem helps you gain critical insights, build advocates, and increase your visibility. Establishing trust and credibility with the investment community ensures that when the time comes to raise capital, your name is already on their radar.
5. Prepare For Investor Due Diligence: The time to prepare for due diligence isn’t when investors ask-it’s well before you even begin fundraising. Your financials, growth metrics, and key documents should always be in order, making it easy for investors to evaluate your business. Being over-prepared sets you apart and ensures nothing surprises you or shakes your confidence.

* References/recommended deep dives: ​Marc Andreessen at Startup School SV 2016​; ​Andreessen’s Blog Archive​; ​How To Raise Money​ (lecture at Stanford University).