A core rule of startup fundraising: the CEO has to lead it. From time to time, I encounter teams where the CEO is not doing the fundraising, and this is a mistake. Here’s why:
1. Investors Desire
Investors want to talk to the person leading the company, the person who governs the vision, and the ultimate decision authority. If you send someone else, most investors will ask to meet with the CEO anyway.
2. Co-Founder is OK
At pre-seed and seed, you can get away with a ‘co-founder’ fundraising but only if nobody else currently holds the CEO title. That will not hold into your Series A.
3. You’re Not Giving Up Control
Having the fundraising co-founder as the CEO does not mean you give up control of the company, there’s lots of ways to avoid that like board structure or even simple resolutions.
Best of luck out there
Sterling Road invests in idea stage and pre-seed B2B startups based in the US, Canada and UK.
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