This document outlines 15 common fundraising mistakes that can frighten investors and cause them to avoid investing in a startup. Some key mistakes include targeting the wrong type of investor, building unrealistic financial forecasts, having a team without expertise in the problem area, weak marketing or sales strategies, and lying to investors about company metrics or facts. The author is the managing partner of Imperious Group VC, a seed-stage fund based in Ukraine, and advises entrepreneurs on fundraising and startup consulting.

1. 15FUNDRAISING
MISTAKES
JUNE, 2017
KIRILL MAZUR
Managing partner
Imperious Group VC
WWW.KIRILLMAZUR.COM/VC
WHICH FRIGHTEN INVESTORS AND MAKE
INVESTORS RUN AWAY FROM YOUR STARTUP

2. $25 mln. under management
40 deals for 4 years
Deals in 10 countries
211% last year turnover growth of portfolio companies
We have portfolio company backed by Andreessen&Horowitz
Learn more: www.ig.vc
ONE OF THE MOST ACTIVE
SEED STAGE FUNDS IN UKRAINE
IMPERIOUS GROUP VC

3. Managing partner at Imperious Group VC
IT-entrepreneur. Founder of DubFellows
Startup consulting expert for IT-companies
Learn more: www.kirillmazur.com/vc
KIRILL MAZUR

4. MISTAKES
TOP FUNDRAISING
FROM INVESTOR'S VISION

5. 01
TARGETING
WRONG
INVESTOR
Choose the right stage, the right focus,
determine investor's interests.
Don't spam.

6. 02
BUILDING
UNREALISTIC
FORECASTS
Investors research
markets A LOT.
Show them real numbers
not your dreams.

7. 03
TRYING
TO GUESS
TRENDS
Follow "the hype"
carefully.
Don't overuse words like
AI, ML, AR, VR, bots, blockchain
if your product
does not really need this.

8. 04
TOO PESSIMISTIC
RETURNS
TO INVESTORS
If you raising investments
always try to understand how is
your product looks like from
investors' side.
Remember about their profits.

9. 05
THE TEAM
WITHOUT AN EXPERTISE
IN THE AREA
You should face the problem in
person and fully understand it
before trying to solve it.

10. 06
THERE ARE TOO MANY
UNCOVERED POSITIONS
IN THE TEAM
in 95% of cases you should have
dedicated responsible person for
tech, sales and marketing
"One-person team"
are out of favor.

11. 07
WEAK MARKETING
STRATEGY
Try to understand your CAC, LTV,
marketing channels and volumes,
free customer acquisitions
channels before raising any
investments.
It will increase your company
valuation dramatically.

12. 08
WEEK SALES
STRATEGY
There is no anything sadder
than a great idea with awful sales.
"Only programmers team"
are out of favor too :(

13. 09
TOO HIGH RUNRATE
AT EARLY STAGES
Market salaries are not for startup
founders. Try to use every dollar in
a smart way.

14. 10
THERE IS NO
CLEAR VISION OF
YOUR CLIENT
Make your client your
best friend. Understand
his every desire.

15. 11
THERE ARE NO CLEAR PLANS
FOR WHAT THE INVESTMENTS
WILL BE USED FOR
Build clear roadmap.
Don't "over-feature" your product map.
Remember about revenues.

16. 12
THE ABSENCE OF
COMPETITIVE
ADVANTAGES OVER
YOUR COMPETITORS
We see it awfully often.
The competitor is the company
which solves the same problem as
your product.
It's not always about features.
It's ALWAYS about clients needs.

17. 13
WEAK TRACTION
If your product is not growing for a long
time – try to fix it before raising money.
Otherwise, you just waste your time.

18. 14
THE LIE TO THE
INVESTOR IN FACTS
ABOUT THE COMPANY
Be ready to show any numbers, letters
and confirmations for your words.
Don't try to exaggerate.
First lie will be the last lie :)

19. 15
THE LIE TO YOURSELF
IN FACTS ABOUT THE
COMPANY
Be honest with your self ;)

20. THANKYOU!
ASK YOUR QUESTIONS
WWW.IG.VC
WWW.KIRILLMAZUR.COM/VC
KIRILL.MAZUR@IG.VC