Whether you are a first-time founder or a seasoned serial entrepreneur in healthtech, one ingredient for success in raising a financing round is to ask VCs the right questions to properly strategize your raise, identify the right potential investors, and dynamically adjust your outreach. This doesn’t mean reading a VC 101 book and memorizing what you should say.
Instead, it means understanding the underlying information that will give you actionable insights you can use to improve and efficiently execute a fundraise. Every founder’s journey through this process is unique, and you need to be able to understand your specific situation. This article, by BHH member Nina Capital, serves as a guide based on their experience from being on both sides of the phone as founders and VCs.
Stage 0: Questions to ask yourself to help curate your fundraising outreach
While getting a list of 2000 investors off LinkedIn and mass sending generic emails may be tempting, this is not the best use of your time. Fundraising is a challenge that should be tackled with a calculated and curated strategy to ensure every conversation you have has the potential to obtain a favorable outcome.
To accomplish this goal, the first necessary step of your strategy is to do your homework on the funds you want to reach out to. Put simply; you need to screen and qualify your potential investors to determine which ones you will send a curated and personalized message to. It will take you significantly longer than blasting out a generic email to a long list of unstudied names; consider this your investment that will save you loads of time in the long run.