Building strategic partnerships: A new approach to fundraising

Building strategic partnerships: A new approach to fundraising

Josh emphasizes a fresh perspective on fundraising by likening it to team-building, rather than just a financial transaction. He suggests viewing the process as an opportunity to assemble distinct teams: employees, investors, and board members. This approach shifts the focus from simply raising capital to building a cohesive group of stakeholders who are aligned with your vision.

For Josh, the key tactic in fundraising is developing relationships with potential investors before you actually need their money. He advises reaching out to investors to share updates about your business when you’re not actively fundraising. This approach alleviates the pressure on both sides, allowing investors to learn about your business without the immediate expectation of making an investment decision.

When it comes to raising a seed round, Josh advocates for involving ‘strategic angels’—operators and executives who understand the challenges your business faces. These individuals not only offer valuable advice but also have a personal stake in your success, which strengthens the alignment of interests. Josh reflects on his own experience, sharing how he raised his seed round primarily from such strategic angels. These were people whose insights were so valuable that he would have paid for their advice; instead, they invested in his business, deepening their commitment to its success.

Another valuable strategy Josh recommends is leveraging the network of investors who have already committed. When an investor shows interest in your pitch, ask them if they know others who might also be interested in investing. Personal recommendations from existing investors can be one of the most powerful introductions during the fundraising process.