5 tips for fundraising startups, from LinkedIn’s Reid Hoffman

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As the co-founder of LinkedIn and partner at ​Greylock​, Reid Hoffman has helped build and fund some of the most successful startups. Here are five of his top tips for startups raising capital:

1. Condense Your Pitch Into A Convincing One-Liner: Distill your startup’s mission into a concise, compelling sentence that investors can easily remember and repeat. A great investment pitch frames the opportunity and makes investors think, “Of course, this should exist.”
2. Use Smart Comparisons To Prove Your Potential: Anchor your story to a successful company that investors already understand. But, the comparisons should highlight a key business strength, not a weakness. As such, you should go with analogies that reinforce your startup’s market opportunity and potential for success.
3. Anticipate Investor Concerns Before They Ask: Investors assess risks first. Show them you’ve thoroughly considered potential obstacles and have plans to overcome them. They want to see backup strategies, adaptability, and a clear path forward if Plan A does not work.
4. Prepare For Your Next Fundraiser Now: Capital is not just fuel, it is leverage, control, and survival. Every funding round shapes your company’s trajectory and requires forward thinking to inspire investor confidence in your ability to stay operational. The process takes at least a year, so if you’re not planning your next move now, you’re already behind. Think of fundraising as a continuous strategy instead of a one-time event.
5. Pick VCs Like Co-Founders: The right VC is more than a check. Look for investors with industry expertise, strong networks, and whose values align with your company’s vision and mission. The best partners challenge you in the right ways and seek to add real value while the wrong ones can slow you down or interfere.

* References/recommended deep dives: ​Reid Hoffman on Fundraising​, ​Masters of Scale​, and ​LinkedIn’s Pitch to Greylock​.