Why Raising from Angels First Works
After raising ~$4.5M in vc funding, I learned that fundraising is a GAME. To win, you need the right players. The best type to recruit early on?
Amazing angels! 😇
Part of my strategy (and what I'd do again if I were to ever raise again) was that I talked to angel investors first and had about 20-30% of the round committed.
Depending on the size of the round, I likely could have just raised fully from angels.
Why angels first?
- You get to practice your pitch in a friendlier environment. Angels are usually more open with feedback.
- Having a round partially filled puts you in a much stronger position (better than empty!)
- Angels (especially superangels) can connect you to firms
- Angels move faster than firms
- VCs trust certain angels (especially those they're friends with or have brand names). Social proof helps move things along
The difference: Telling a VC, "We have 50% of our round filled by great angels, looking to round things out," has a very different energy than, "We have 0% commitments, will you talk to us, dear investor?"
TAKEAWAY If I were to fundraise again, I would fill a round with angels first, then go to VC funds with leverage not desperation.
P.S. Me as an AI-generated angel to experiment on the algorithm 😅