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Do’s and Don’ts When Fundraising by Fred From PurposeTech
22 November 2023 - Nusa Vezonik

In September, we were thrilled to welcome Zdenek Fred Fous, an outstanding entrepreneur and investor from the PurposeTech pre-seed fund. He shared invaluable insights on the do’s and don’ts of fundraising.

Couldn’t make it to the event? Check out his tips!



  1. 1. Don’t Approach Fundraising as a Dog and Pony Show

Fundraising is not just about flashy presentations and superficial charm. Investors are looking for substance over style. They want to see a solid business plan, a viable product, and a capable team. Focus on building a strong foundation for your business rather than just a dazzling pitch.

  1. 2. Don’t Give Away Too Much Equity

Parting with equity is a necessary aspect of fundraising, but it’s important to strike a balance. Giving away too much equity too early can limit your control over your company and reduce your leverage in future funding rounds. Be strategic about how much equity you offer in exchange for capital.

  1. 3. Don’t Ask for Too Much Money

While it might be tempting to ask for as much money as possible, overfunding can be as detrimental as underfunding. Requesting more money than you need can lead to inefficient spending and increased pressure to deliver high returns. It’s essential to ask for an amount that aligns with your business plan and growth projections.

  1. 4. Don’t Start Fundraising Unless You Are Serious About It

Fundraising is a time-consuming and resource-intensive process. It requires a serious commitment and should only be pursued if you are fully prepared to embark on this journey. Ensure that your business is at a stage where it can benefit from external funding before you start reaching out to investors.

  1. 5. Don’t Take Rejections Too Seriously

Rejection is a part of the fundraising process. Not every investor will be interested in or see the potential in your business. It’s important not to take rejections personally and to use them as learning opportunities to refine your pitch and strategy.



  1. 1. Do Start Talking to Investors Early

Building relationships with potential investors should start well before you need the funding. Engaging early helps you understand their interests and investment criteria, and it gives them time to get to know your business. This can make the actual fundraising process smoother and more successful.

  1. 2. Do Start Fundraising with an Outstanding Team

Investors invest in people as much as they invest in ideas. Having a strong, skilled, and experienced team can significantly increase your chances of successful fundraising. Ensure that your team has the right mix of expertise and passion for your project.

  1. 3. Do Think About What Type of Investor You Want/Need

Not all investors are the same. Some might offer more than just capital, such as industry expertise, networking opportunities, or strategic partnerships. Consider what type of investor would be the best fit for your business and target your fundraising efforts accordingly.

  1. 4. Do Seek Funding for 18+ Months

When you raise funds, aim for an amount that will cover your operations for at least 18 months. This timeframe allows you to focus on growing your business without the immediate pressure of raising more funds. It also gives you a cushion for unexpected expenses or delays.

  1. 5. Do Request Investors’ Feedback

Every interaction with an investor is a chance to learn. Whether they decide to invest or not, ask for feedback. Their insights can be invaluable in understanding how to improve your business model, pitch, or approach to fundraising.


Would you like to get funded for your business? Impact Hub Ljubljana joined PurposeTech as a Venture Partner, supporting early-stage purpose-driven tech startups in the Central and Eastern European region! Interested? Reach out to us at [email protected] for more information!