top of page

20 Fundraising Mistakes to Avoid

Updated: Jun 14, 2022

Experienced entrepreneurs know how time-consuming fundraising can be. The ultimate goal is to secure investment efficiently to minimise the time spent on non-core activities and, instead, focus on growing business.

We have shared a list of common mistakes in the effort to improve industry wide start-up fundraising standards. Listed errors have been exceedingly frequent in Nord Sloane's practice over several years.

20 fundraising mistakes to avoid (in alphabetical order):

  1. Continuously changing fundraising strategy

  2. Discontinuing fundraising efforts prior term sheet signature

  3. Disorganised or non-existent data room

  4. Endless amending of the pitch deck to attain perfection

  5. False sense of extreme urgency to pressure investors

  6. Founders giving away majority of ownership

  7. Inability to communicate the opportunity concisely

  8. Inability to define actionable go-to-market

  9. Inadequately planning fundraising timeline and runway

  10. Limited knowledge about competitive landscape

  11. Not carrying out due diligence on investors

  12. Not raising potential red flags in a timely manner

  13. Not taking onboard constructive criticism

  14. Not thinking through possible exit strategies

  15. Overestimating company's growth projections

  16. Poorly researched company valuation methodology

  17. Raising equity investment to pay off outstanding debt (limiting factor)

  18. Slow response time and documents turnaround

  19. Solo founder operation with no support team (limiting factor)

  20. Taking personal offence from investor feedback about opportunity

The list is significantly longer. Consequently, fundraising strategy research and preparation are imperative for a successful raise. Our recommendation is to use your time wisely to prepare to execute a well-coordinated fundraising strategy. Good luck with securing investment!

Reach out to Nord Sloane team if you have any questions or sign up with our events and publications. Website:

31 views0 comments
bottom of page