The YC Fundraising Legend
Josh Reeves raised the largest round coming out of Y Combinator at the time. People called him a fundraising legend. His approach was surprisingly simple.
Stop treating fundraising like begging for money. Start treating it like building a team.
View fundraising like hiring. You're building a team — employees, investors, board members. Three distinct teams.
Three Teams, Not One
Reeves sees three distinct teams at every company. Your employees. Your investors. Your board members. Each team needs recruiting. Each one requires the same care.
Most founders obsess over hiring employees and treat investors like ATMs. Reeves says that's backwards.
Get to know investors when you're not fundraising. Build the relationship first.
Meet Investors When You're NOT Fundraising
One day a month. That's all it takes. Meet an investor. Share your progress. Then say these magic words: I'm not fundraising right now.
That takes the pressure off both sides. The VC doesn't have to decide whether to invest. They can just learn about your business. When you do raise, they already know you.
Say 'I'm not fundraising right now.' It's the most powerful sentence in VC.
The Two-Week Sprint
When Reeves did raise, he compressed it. Two to three weeks. Defined timetable. Specific date for allocation decisions. No dragging on for months.
A defined process creates urgency. Urgency creates competition. Competition creates better terms.
Two weeks. Defined deadline. Let the investors compete for you.
The Chain Reaction Intro
After every yes, Reeves asked the same question. Who are two other founders or operators who would care about this problem? Can you intro me?
An investor saying 'I'm in, and you should talk to my friend' is the most powerful intro in fundraising. Reeves built his entire cap table this way. Twenty to thirty strategic angels, all connected.
Every yes leads to two intros. That's how you fill a cap table.