I looked at 21 deals this week. Just one got a check. Here’s a look inside my dealflow…
Competition for Funding Is Fierce
In the last week, I’ve looked at 21 companies. I made one new investment, a follow-on into one of my most successful startups.
Normally, it takes me a lot more than 21 deals to find a good investment. Sometimes it takes hundreds.
Either way, your odds of getting a check from an investor are very small. It’s a fierce competition, and most companies don’t get funded.
Pitch Investors that Write Checks at Your Stage
Here’s why I passed on those 20 deals…
Too late stage: 7
Too early: 7
Wrong geography: 2
Vice: 1 (alcohol-related)
No lead investor: 1
Not a DE C Corp: 1
Other: 1
Most of the time, it was because the company isn’t at the stage I focus on: pre-seed and seed. If you want to drastically increase your hit rate, pitch people who invest at your stage.
Money Is Concentrating Into a Handful of Companies
I said no to a bunch of early-stage startups this week. The folks who got the check: a company that’s already very successful.
This mirrors what’s happening in the market as a whole. Money is concentrating into a handful of extremely high-growth companies.
That’s why it’s so important to hit break-even. You no longer have to rely on venture capital.
Wrap-Up
It’s very hard to get a check, even from a small investor like me.
This is why you need to pitch a ton of investors. I recommend contacting 200 in order to raise a round.
Be sure they invest in your stage, country and market. OpenVC is a great way to build this list and contact investors.
Raising money isn’t easy. Nothing about running a startup is.
But if you really believe in your mission, it’s worth it.
More from the blog:
38 Words Got This Founder on My Calendar — Here’s the Cold Email Formula That Wins
My Three Early Favorites in YC F26
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