Today, we’re talking about fundraising momentum. Generating momentum matters in fundraising, no matter what stage you’re at.
The easiest path is to first ask your existing investors (or supporters) to commit to the next round. You can incentivize this with the guarantee of a place in a potentially competitive round or a small discount on the investment. Getting your insiders to commit helps you generate momentum immediately and that will pressurize the new investors you pitch; as they know you need their money a lot less, given all of your insider support.
This tactic also helps prevent false starts in your fundraising. If you can’t get commitments from your existing investors, it may be too early to approach new investors.
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