The fastest fundraiser in this book never left his desk
Alejandro Cremades once closed a round of financing that, by every normal standard, should have taken the better part of a year. Onevest's most recent round at the time increased the company's total capital raised past five million dollars, and it happened in a matter of weeks, self-crowdfunded on the very platform his company had built. "I literally did not move from my desk," he writes. Compare that to what he says most rounds like it actually require: at least eight months out of the office, chasing conferences and meetings just to gather investor interest.
Why the difference? Cremades traces it back to a basic choice every founder makes early on, often without realizing it's a choice at all. Some entrepreneurs treat fundraising as the thing that builds their dream: they have an idea, and they look for someone else to put up the money to make it real. That approach exists for good reason in a few cases, like space exploration or breakthrough health care, where nothing gets built without major capital up front. But for most startups, Cremades argues, that framing puts an enormous risk on the investor and a weak hand in the founder's.
The alternative is to use funding to speed up a machine that is already running, rather than to build the machine in the first place. If you build your product first, even a rough version, you keep ownership and control, and you get the chance to prove a business model works on its own, before anyone else's money is involved. That proof changes the entire negotiation. Instead of asking someone to bet on a story, you are asking them to help a working thing grow faster.
Cremades is candid that no business plan is bulletproof, and most startups pivot at least once as the market corrects their assumptions. That is exactly why he pushes founders to get some proof of concept and real validation in hand before bringing outsiders into the mix. It protects the founder from raising money to figure things out, which almost always means giving up more equity than necessary. The question worth sitting with before any pitch, he suggests, is simple: what will this money actually accelerate, and what has already proven it's worth accelerating?
Start by building whatever version of your product you can with what you already have, even a rough prototype, before you approach outside capital, because proof changes every negotiation that follows. Once it exists, track real numbers from it, sales, users, retention, anything that shows the model working on its own, so you can negotiate from evidence rather than hope. Before every pitch, get specific about what the money you're asking for would actually speed up, not create from scratch, and say that plainly to investors. And hold the line on raising too early, since every round you take before you've proven your model tends to cost you more equity than the same round would later.
What You'll Achieve
The founder shifts from believing outside money creates the business to believing it accelerates a business that already works. Visibly, they delay fundraising until real proof exists, walk into negotiations from a position of strength, and give up less equity than they otherwise would.
Build proof before you ask for money
*Build the smallest working version first*
Create whatever version of your product you can with what you already have, even a rough prototype, before approaching outside capital. Proof changes every negotiation that follows.
*Track real numbers from it*
Once something exists, collect actual usage, sales, or retention data so you can negotiate from evidence rather than hope.
*Name what the money would accelerate*
Before any pitch, get specific about what outside capital would actually speed up, not create from scratch, and say that plainly to investors.
*Hold the line on timing*
Resist raising too early, since rounds taken before you've proven your model tend to cost more equity than the same round would later.
Reflection Questions
- What would investor money actually accelerate in my business right now?
- Have I proven my model works without outside capital?
- What could I test with my own resources before asking anyone else for theirs?
- Am I raising money to build my dream, or to speed up something already working?
Personalization Tips
- A freelance app developer builds a working prototype with personal savings before approaching angels, rather than pitching a concept alone.
- A bakery owner tests recipes and builds a steady customer base before seeking a loan to expand into a second location.
- A consultant lands a handful of paying clients before pitching investors on a scaled agency version of the same service.
The Art of Startup Fundraising
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