We've Raised $37B for Startups and Learned This

THE HARD-WON LESSONS FROM HELPING THOUSANDS OF FOUNDERS

We've helped raise over $37 billion in institutional capital.

That's not a humble brag. That's context for what I'm about to tell you.

‍

‍‍‍

We've worked with first-time founders and serial entrepreneurs. Pre-seed companies and $100M+ growth rounds. Tech startups and traditional businesses. Winners and losers.

We've seen what works. We've seen what fails. We've seen patterns repeat over and over.

After raising $37 billion across thousands of deals, here are the hard-won lessons that actually matter.

LESSON #1: FOUNDER CREDIBILITY BEATS EVERYTHING

The single best predictor of fundraising success is founder credibility.

Not the idea. Not the market size. Not the product.

The founder.

What we've learned:

A first-time founder with a mediocre idea but proven execution track record will raise faster than a brilliant founder with no track record.

A founder who previously built a $10M+ company will get meetings that a first-time founder won't.

A founder with relevant domain expertise will close deals that a founder without it won't.

Why this matters:

Investors are betting on people, not ideas. Ideas change. Markets shift. Products pivot.

But founder credibility is permanent. If you've built something before, you've proven you can execute. That's worth billions.

The hard truth:

If you're a first-time founder with no track record, you need to build early traction first. Get revenue. Get customers. Get proof. Then raise.

Don't expect to raise on idea alone.

‍

Watch this breakdown on what investors actually want:

LESSON #2: UNIT ECONOMICS MATTER MORE THAN GROWTH RATE

For years, growth at all costs was the mantra.

Not anymore.

What we've learned:

A company growing 20% monthly with positive unit economics will raise faster than a company growing 100% monthly with negative unit economics.

Investors now care about sustainability. They want to see clear paths to profitability.

What this means:

• CAC payback <12 months (ideally <9 months)
• LTV:CAC ratio >3:1
• Gross margins >70%
• Net retention >100% (for SaaS)

These metrics prove your business model works at scale.

The hard truth:

If your unit economics are broken, fix them before you raise. Investors will dig into these numbers. If they don't work, you won't get funded.

LESSON #3: COMPETITIVE TENSION DRIVES EVERYTHING

The best fundraising outcomes happen when multiple investors want in.

What we've learned:

Founders who create competitive tension close deals 3x faster and at higher valuations.

Founders who pitch one investor at a time take 2-3x longer and accept lower valuations.

How to create it:

• Batch your meetings (5-10 investors in the same week)
• Share progress ("We have strong interest from 3 top-tier funds")
• Set deadlines ("We're making a decision by [date]")
• Close small checks first (early commitments make larger investors move faster)
• Move fast (the fastest fundraisers win)

The hard truth:

If you're in exclusive conversations with one investor, you have no leverage. Always have multiple conversations happening simultaneously.

LESSON #4: THE DATA ROOM IS YOUR COMPETITIVE ADVANTAGE

I've seen deals die because of sloppy data rooms.

I've seen deals close faster because of immaculate data rooms.

What we've learned:

Investors spend weeks digging through your data room. If it's organized and complete, diligence moves fast. If it's sloppy, diligence stalls.

What needs to be in it:

• 3-year financial model with detailed assumptions
• Monthly P&L for last 24 months
• Cap table (current and fully diluted)
• Customer list with contract values and ARR
• Top 20 customer references with contact info
• Board minutes (last 24 months)
• Material contracts
• Technical architecture documentation
• Security and compliance certifications

Everything organized, labeled, and accessible within 24 hours of request.

The hard truth:

A sloppy data room signals sloppiness in your business. Investors will assume if your data room is messy, your operations are messy.

Spend time building a perfect data room before you start pitching.

LESSON #5: WARM INTROS ARE NON-NEGOTIABLE

Cold outreach has a <1% response rate.

Warm intros have a 30%+ response rate.

What we've learned:

Founders who get warm intros from trusted sources close deals 10x faster than founders who cold email investors.

Why this matters:

Investors get hundreds of cold emails per week. They ignore most of them.

But if a trusted advisor, previous investor, or successful founder introduces you, they pay attention.

The hard truth:

If you don't have a network, build one before you fundraise. Get advisors. Get mentors. Get introductions lined up.

Don't start fundraising with cold emails.

‍

Watch the strategy for building momentum:

LESSON #6: SPEED IS A COMPETITIVE ADVANTAGE

The fastest fundraisers win.

What we've learned:

Founders who close in 6 months win. Founders who take 12+ months lose.

Why? Because slow processes signal weakness. They give investors time to doubt you. They give competitors time to catch up.

How to move fast:

• Prepare everything before you start pitching (deck, data room, materials)
• Get warm intros lined up before your first meeting
• Batch your meetings (5-10 investors in the same week)
• Respond to investor questions within 24 hours
• Make decisions quickly (don't drag out negotiations)
• Close when you have a good term sheet (don't hold out for perfect)

The hard truth:

If your fundraising process drags on, investors will assume something is wrong. Move fast or move on.

LESSON #7: THE BEST FOUNDERS KNOW WHEN NOT TO RAISE

Not every founder should raise capital.

What we've learned:

Some of the most successful founders we've worked with chose not to raise, or raised much less than they could have.

Why? Because they understood their business model better than investors did.

When not to raise:

• Your unit economics are broken (fix them first)
• Your growth is slowing (accelerate it first)
• Your team is fractured (align it first)
• You have 18+ months of runway (bootstrap longer)
• You can reach profitability without capital (do it)

The hard truth:

Raising capital is not always the right move. Sometimes bootstrapping, debt, or strategic partnerships are smarter.

The best founders raise capital strategically, not desperately.

‍

Watch the truth about fundraising:

‍

‍

FREQUENTLY ASKED QUESTIONS

‍

What's the biggest predictor of fundraising success?

Founder credibility. Not the idea, not the market size, not the product. The founder. If you've built something before, you have a massive advantage.

‍

How important are unit economics?

Critical. Investors now care about sustainability. CAC payback <12 months, LTV:CAC >3:1, gross margins >70%, net retention >100%. If these don't work, you won't get funded.

‍

How do I create competitive tension?

Batch your meetings, share progress, set deadlines, close small checks first, highlight alternatives, and move fast. Multiple investors bidding against each other drives valuation up and timeline down.

‍

What should be in my data room?

Financial models, P&L statements, cap table, customer list, customer references, board minutes, contracts, technical documentation, security certifications. Everything organized and accessible within 24 hours.

‍

Are warm intros really necessary?

Yes. Cold outreach has <1% response rate. Warm intros have 30%+ response rate. Build your network before you fundraise.

‍

How long should fundraising take?

6 months maximum. Anything longer signals weakness. The fastest fundraisers win. Move fast or move on.

‍

When should I not raise capital?

When your unit economics are broken, your growth is slowing, your team is fractured, you have 18+ months of runway, or you can reach profitability without capital. Not every founder should raise.

‍

What's the biggest mistake founders make?

Raising when they're desperate. Never negotiate from weakness. Raise when you have 12+ months of runway and strong traction. Raise from a position of strength.

‍

How do I know if my founder credibility is strong enough?

You've previously built a $10M+ company, worked at a leading company in your space, or have deep domain expertise. If you don't have these, build early traction first.

‍

What's the one thing that matters most in fundraising?

Founder credibility. Everything else is secondary. If you're credible, investors will listen. If you're not, build proof first.

‍

‍

Subscribe to Our Channels:

Check out and subscribe to our shorts channel here: https://www.youtube.com/@officialsamuellevitzclips

Our Educational YT Channel: https://www.youtube.com/@InvestorReadyCapital

Looking to Raise $20M to $2B? Apply to work with me: https://go.investorreadycapital.com/yt

The ONLY Capital Raising Guide You'll Ever Need...(ever): https://www.youtube.com/watch?v=5HDsWA6gqf4

‍

Connect With Me

Leave a comment on this video and it'll get a response. Or you can connect with me on different social platforms too:

Instagram: https://www.instagram.com/officialsamuellevitz

TikTok: https://www.tiktok.com/@officialsamuellevitz

LinkedIn: https://www.linkedin.com/in/samuel-levitz/

Facebook: https://www.facebook.com/InvestorReadyCapital

Website: https://www.investorreadycapital.com

‍