Raising your first startup funding isn’t a straight path. It is a combination of ambition and confusion and being haphazard a lot. I thought having a great idea was enough. Spoiler alert- it was not. The next thing was an uncontrollable ride of funding errors, pitch fails and then, success.
Here’s what worked, what did not and how to raise smarter.
The Vision That Started It All
My B2B SaaS product was created to help small manufacturers optimize their supply chain with the idea of cleaning up the procurement process plaguing so many small and medium-sized enterprises through thousands of stories told to me. It is an exciting thought, and with investment banking being the future of the startup world, it felt like money was within a pitch.
What I had:
- Passion which would stop a room
I trusted the issue that was being resolved and was passionate about creating something that could make a difference. I can say countless words about our vision. However, passion though significant, does not seal deals.
- Minimum Viable Product (MVP)
We had an operational model. It was not exactly beautiful, but it demonstrated that we were able to perform. In fundraising for startups, even a basic MVP can be your biggest asset early on. - One Progressive Customer
One of our SMEs had begun utilising our platform and this gave us a small insight into product-market fit. Just a single customer will tell a lot to some kinds of investors as long as you emphasize it properly.
- A Two Person Founder Team
As a team, we were very lean, committed and wearing many hats, including just me and my co-founder. We were skilled technically and in the domain and we were full time.
However, as it turned out to me later, those elements are not enough to get you funded.
What I lacked:
- A Strategy for Business Valuation
I was at a loss for words when an investor inquired about the value of our business. I hadn’t even researched business valuation software or known what determines a startup’s value, particularly for a non-profit organization. I discovered the hard way that narrative, traction, and benchmarks are just as important to valuation as numbers. I later used the free business valuation tool from FundTQ, which provided me with a range that was reasonable and suitable for investors. - A Pitch Deck That Is Precise and Powerful
Our initial pitch deck was a complete mess, with slides that were overly wordy, lacked a visual narrative, and lacked important components like financial projections, expectations for post-money valuation, and a well-defined go-to-market plan. The errors were typical of a pitch deck. No investor made it through. - Investor Intelligence
I was emailing VCs blindly,without knowing their average ticket size, sector focus, or investment stage. I was unaware that locating investors is a real skill that calls for investigation, customisation, and knowledge of what each investor is actually seeking. - Unaware of Investment Banks
I was not aware of the role of Investment Banking Services into start-up financing. Did they perform the role of Middlemen? Advisors? All I understood was that they were threatening, and I did not know how and when to address them.
What Didn’t Work ?(Mistakes I Made Early On)
- Absence of a clear value proposition
I was unable to sum up our product in a single sentence. That is an issue. Certain investor types seek clarity. Without clarity, there would be no funding. - Weak First Impression = Poor Pitch Deck
We skipped over the basics— I hadn’t read up on pitch deck mistakes, and it showed. I left out essential slides like go-to-market strategy, unit economics and post money valuation expectations. - No prepared business valuation
When an angel investor asked, “What’s your startup worth?”I went into a panic. I had no data. Software for zero business valuation. No responses. - Constructed a poor pitch to investors
I was sending Series B-focused VCs decks. I had no idea how to locate investors who fit into niche markets like medical equipment startups or seed funding.
A big lesson? Investor fit is important.
What Finally Worked?
After a few rejections, I paused. I stopped pitching and started listening. And that made all the difference.
- Refined My Pitch Deck (Thanks to Templates)
I discovered well-structured templates of pitch decks that founders can use and restructure my entire story. Every slide served a definite purpose: there were the problem statements, the financial projections. The narrative was flowing now and investors remained with the deck up to the end. - Understood My Business Valuation
Using FundTQ’s free Business Valuation Tool, I finally got a realistic idea of what my business was worth—even without revenue. The tool provided me with a ballpark, using the market standards, founder risk and average ticket size in our industry. - Built an Advisory Boards
I brought in two experienced mentors as advisors—one from manufacturing, one from investment banking services. Their connections gave me opportunities that I would not have realised. - Proof of Traction
We acquired two retaining customers and enhanced the retention rates. It wasn’t scale yet, but it was validation—something all types of investors look for, especially in fundraising for startups in India. - Investor Fit
I quit looking at VCs and enrolled in a local startup network where I discovered two angel investors. We had a common space as they had invested in medical start-up equipment previously. This orientation altered the whole mood of our discussions.
The “Yes” That Changed Everything!
It took five months of cold emails, personal introductions, investor meetings, and 12 rejections until I got to hear the words every founder was hoping to hear: We are in. Not a mega-round, with 50 lakhs of seed funding in the form of equity. Still, it was sufficient to draw out some runway and recruit a sales team, as well as plan a bigger round. The initial “yes” not only confirmed my business, but all the failures that I had gone through.
The learning? It is not enough to find somebody to give you the check, but to find the alignment with the investors, trust, and non-money value.
Final Takeaways for First-Time Founders:
If you’re preparing to raise your first startup funding, here’s what I wish I knew at the beginning:
- Stop chasing funding—chase clarity. Learn about your customers, your business model and your vision. Confidence is created through clarity.
- Take advantage of the appropriate tools. FundTQ’s business valuation software helped me estimate valuation credibly. Do not wing it but support it with data.
- Get the right people to talk to. Not every money is good money. Seek out investors that match your stage, vision and industry.
- Show traction. A success even in minor victories is important. All those lead to a reduction in perceived risk: early customers, back orders, use cases.
- Don’t get discouraged. All the no takes you to an improved yes. Remain strong, and take lessons about rejection.
The other essential point which should be comprehended is that both fundraising vs bootstrapping are acceptable, depending on the desired rate of growth, on your level of risk aversion and on the market in which you operate.
Ready to Raise Your First Startup Funding?
Here’s how you can begin the right way:
- Determine the value of your company first. Try the free Business Valuation Tool from FundTQ.
- Tell your story correctly. Get FundTQ’s Founders’ Pitch Deck Templates here.
- Recognise the expectations of investors. Discover the differences between Equity vs Debt Financing as well as the seed funding process.
- Make contact with the appropriate individuals. Learn how to locate investors by round size and sector.
- To begin with, if you’re entering deep tech, building a medical device startup, or scaling SME strategies, make the most of your first round of funding with a strong plan.
Conclusion:
In fact, proving that you have created something worthwhile is far more important than merely impressing investors with hype when trying to secure your first startup funding. Rejections are inevitable. Of course, the fundraising process will have mistakes. But money is not the only thing which makes belief to rise higher, but the combination of clarity, traction, and storytelling.
And this is all the difference.
