Get honest feedback when investors say no. When you are told yes.... Investor says the business is amazing and they think you're great: 10% chance they will invest. Investor says they would like to invest in this round: 50% chance. Investor says they would like to invest, says terms are fair, and says they can wire soon: 80% chance. So...no celebrating until the money hits the bank! . A bad investor will completely ruin your business. Do not let a firm's brand reputation be the only thing you consider when making your decision. Your partnership with them is more powerful and important then their fame. You should also make sure that your investor has decision making authority - or else you run the risk of other people meddling in your business at bad times. I always recommend a board observer seat over a board seat. As an alternative, try to give them a common board seat that you control as compared to a preferred board seat they control. Preferred board seats are a literal marriage you can not get a divorce from until you go public.. “I only gave up one preferred board seat in my series B“. “NEVER give up a board seat in a seed round“ . Common board seats are responsible for the common shares of the company, of which you are the majority shareholder.. Only one co-founder should be leading fundraising . The other co-founder should focus on keeping the business running and leveraged in a supporting role. . And take the blame for being a hard negotiator. Make an excel tracker with the following columns. Firm. Target Investor. Last touchpoint. Next step. Interest level . Notes on prior conversations. Where did they light up, where did they have concerns, etc.. This tool will follow you along for subsequent rounds as well. Do not be afraid to go back to your existing investors for future rounds. Series A/B firms will want to talk to you early to get a look but don't get too excited. As a matter of fact, I would avoid these conversations entirely.. By investing in your seed, they intend to block out others from your next round. It's a win-win for them and if they pass, you're screwed as a founder due to signaling risk. You may have heard success stories, but that's a sampling bias.. There might be relationship benefits to letting your seed investor in on the Series A/B but momentum/traction are the only things that should actually be considered. . Revealing you are fundraising too early is another all-too-common pitfall. . Always defer back to relationship building process. Fundraising should be a full-time job for a founder. Expect it to take 3 months at a minimum. . You NEVER want to share other investors names until they have wired their money. . Answer: I am managing a lot of conversations right now, and as we get deeper, i'm happy to share that with you!“ . Keep you answer on terms short, sweet, and simple. . There are tons of answers to what you are raising capital for. I often like to tie in momentum “This thing happened sooner than we thought and we need to scale faster than we had originally planned“ . If you can tie in numbers here, even better.