I’ve seen it all. After 9 years in the trenches of Silicon Valley, two successful exits, and over 200 angel investments in companies like Anthropic, OpenAI, and Scale AI, I’ve reviewed more than 500 pitches. And I’ve noticed a glaring pattern. A pattern that separates the 10% of founders who get funded from the 90% who don’t.
It’s not about having a revolutionary idea. It’s not about having a perfect pitch deck. It’s not even about having a world-class team. Those things are important, but they’re not the most important thing.
So what is it? What’s the secret to raising a successful seed round?
It’s about understanding the game you’re playing. It’s about knowing the rules, and then breaking them. It’s about having an unfair advantage that nobody else has.
The One Thing That 90% of Founders Get Wrong
The biggest mistake I see founders make is that they treat fundraising like a transaction. They think that if they just have a good enough idea and a good enough pitch, investors will throw money at them. But that’s not how it works.
Fundraising is a relationship business. It’s about building trust and rapport with investors. It’s about convincing them that you’re the right person to bet on, and that your company is the right horse to back.
And the only way to do that is to have a story. A story that’s so compelling, so convincing, that investors can’t help but get excited about it. A story that makes them feel like they’re a part of something bigger than themselves.
The 10% Playbook: How to Craft a Story That Sells
So how do you craft a story that sells? Here are three strategies that I’ve seen the top 1% of founders use to raise millions of dollars in seed funding.
1. Find Your Unfair Advantage
Every successful company has an unfair advantage. It’s something that they have that nobody else does. It could be a proprietary technology, a unique insight into the market, or a world-class team. Whatever it is, it’s what makes your company special. And it’s what will make investors want to bet on you.
One of the best examples of this is a company I invested in called RemoteTeam. They had a simple idea: to build a platform that would make it easy for companies to hire and manage remote employees. But what made them special was their unfair advantage. The founder, Sahin, had been working remotely for over 10 years. He knew the ins and outs of remote work better than anyone else. And he had a unique insight into the challenges and opportunities of building a remote team.
That’s what got me excited about the company. And that’s what ultimately led to their acquisition by Gusto.
2. Tell a Story, Not a Pitch
Investors are not just investing in your company. They’re investing in you. They want to know who you are, what you’re passionate about, and why you’re the right person to build this company. And the only way to do that is to tell a story.
Your story should be personal, authentic, and compelling. It should be about more than just the facts and figures of your business. It should be about your vision for the future, and how you’re going to change the world.
When I was raising money for my first company, MovieLaLa, I didn’t have a lot of traction. I didn’t have a lot of users. But what I did have was a story. A story about how I was going to change the way people discover and watch movies. And that’s what got investors excited. That’s what got them to bet on me.
3. Build Relationships, Not a Rolodex
Fundraising is not a numbers game. It’s not about how many investors you can meet with. It’s about how many meaningful relationships you can build. Because at the end of the day, investors are people. And people invest in people they know, like, and trust.
So instead of trying to meet with every investor in Silicon Valley, focus on building genuine relationships with a handful of investors who are a good fit for your company. Get to know them on a personal level. Understand what they’re looking for in an investment. And show them that you’re the kind of person they want to be in business with.
I can’t tell you how many times I’ve seen founders get funded, not because they had the best idea or the best pitch, but because they had the best relationships. They were the ones who took the time to build trust and rapport with investors. And that’s what made all the difference.
The Bottom Line
Raising a seed round is not easy. But it’s not impossible. If you can craft a compelling story, find your unfair advantage, and build meaningful relationships with investors, you’ll be well on your way to success.
So what are you waiting for? Go out there and tell your story. The world is waiting to hear it.
Frequently Asked Questions
How has this view evolved over time?
My thinking on most topics has changed significantly over the years. Early in my career, I held many conventional views that experience proved wrong. I try to update my beliefs when the evidence changes.
What experience informs this perspective?
This perspective comes from over a decade of building companies in Silicon Valley, two successful exits (RemoteTeam to Gusto, MovieLaLa to Gfycat), and investing in 200+ startups including Anthropic, OpenAI, and Scale AI. I write about what I've lived.
How can I apply this thinking to my own situation?
Start by identifying the core principle behind the opinion, not the specific example. Then ask yourself: does this principle apply to my context? If yes, test it in a small, low-risk way before going all in.
What's the most common pushback you get on this?
People often push back by citing exceptions or edge cases. And they're usually right that exceptions exist. But building a strategy around exceptions rather than patterns is a losing game for most founders.