Fundraising SWOT Analysis

New VC fund managers do not know that these things they are doing are completely ILLEGAL… ❌ There are very strict rules around fundraising. Yet many new GPs copy what they see others doing — even when it’s illegal. The risk? Trouble today, or 5–10 years down the line when regulators or LPs look closer. Sophisticated LPs know the legal lines — and crossing them exposes both liability and inexperience. Here are the 3 most common fundraising violations (and how to avoid them): 1️⃣ PERFORMANCE-BASED FUNDRAISING COMPENSATION 👩🏾⚖️ Many “Vendors” often say: - “I’ll be a venture partner — give me carry for LPs I bring.” - “We’ll raise for you — just pay a % of capital committed.” 🚫 Illegal without a broker-dealer license ($50K–$150K+ + ongoing compliance). Even employee bonuses tied to fundraising can trigger violations. ✅ Legal way: Pay fixed fees or salaries unrelated to fundraising. Compensate with cash, equity or carry — but not tied to capital raised. 👉 Reality check: As a new manager, it’s extremely unlikely that anyone else can fundraise for you without a track record. You’ll almost always need to do the hard work yourself. 2️⃣ GENERAL SOLICITATION 👨🏻⚖️ New managers assume LPs will roll in if they “go public.” Tactics include: • LinkedIn posts about fundraising • Cold DMs to people • Podcasts/webinars about your fund • “Contact us to invest” buttons on websites 🚫 All illegal — unless you’ve structured under narrow exemptions. Even cold outreach counts as solicitation. ✅ Legal way: You can only pitch people you have pre-existing relationships with who are accredited investors. Network authentically, vuild relationships, then pitch one-on-one. 👉 Reality check: Public fundraising isn’t just illegal — it looks cheap. LPs won’t trust someone blasting cold posts with no track record. VC is trust-based. Public asks scream inexperience. 3️⃣ RAISING FROM EU LPS WITHOUT COMPLIANCE 🧑🏿⚖️ Many assume: • “If a European LP wants in, I can accept the money.” • “Everyone else does it — must be fine.” 🚫 Wrong. The EU regulates under AIFMD (Alternative Investment Fund Managers Directive) and MiFID II (Markets in Financial Instruments Directive). Even one EU LP can trigger filings. Regulators act quickly. ✅ Legal way: Work with EU securities counsel. File required notifications in each jurisdiction before accepting European LPs. 👉 Reality check: European LPs expect compliance. Skip it, and you lose credibility. Worse — a violation can come back years later and jeopardize your fund. Breaking the rules — even by accident — is the fastest way to undermine your credibility. And “everyone else does it” is not a defense. The managers who win are the ones who know the rules, build real relationships, and raise the right way. ⚖️ Know the rules. Follow them. Your fund' future depends on it.

Fundraising in India is a beautiful, brutal dance. After 15 years of knocking on doors, writing proposals, and building relationships in the charity space, I've learned that money follows trust, not just need. And trust is earned in whispers, not shouts. Most fundraisers think it's about the pitch. The perfect slide deck. The heart-wrenching story. The immaculate impact metrics. But that's just the costume you wear to the real party. The truth is messier. More human. More honest. First, nobody cares about your organization. They care about the problem you're solving. Stop talking about your NGO's journey and start talking about the journey of the people you serve. Your founder's story matters less than the story of the girl who can now read because of your work. Second, relationships outlast transactions. I've watched fundraisers chase cheques like they're chasing buses – desperate to catch the next one, forgetting that the real journey happens when you're walking together. The donor who gives you ₹10,000 today could give you ₹10 crores in a decade if you treat them like a partner, not an ATM. Third, most Indian donors don't want innovation. They want reliability. They've seen too many NGOs come and go, too many promises evaporate. They're tired of funding pilots that never take flight. Show them consistency before you show them creativity. Fourth, your finance team is your secret weapon. In a country where trust in institutions is fragile, your ability to account for every rupee isn't just good practice – it's your survival strategy. I've seen brilliant programs collapse because someone couldn't explain where the money went. Not because of corruption, but because of chaos. And finally, the hardest truth: fundraising isn't about money. It's about meaning. People don't give to causes; they give to become the person they want to be. The businessman who funds your education program isn't just building schools – he's rewriting his own story, becoming the hero his childhood self needed. I've sat across from millionaires and watched them cry when they talk about their mothers. I've seen corporate leaders who manage thousands of crores struggle to write a personal cheque for ₹5,000. I've witnessed wealthy donors argue over a ₹500 expense while approving ₹50 lakhs in the same meeting. Because money isn't rational. It's emotional. It's cultural. It's complicated. The fundraisers who thrive in India aren't the ones with the fanciest degrees or the most polished English. They're the ones who understand that in this country, giving is deeply personal, profoundly spiritual, and incredibly relational. So stop treating fundraising like a Western import that needs to be implemented. Start treating it like what it is – a conversation about values that's been happening on this soil for thousands of years. Because when you get it right, you're not just raising funds. You're raising hope.

🚨 𝗖𝗿𝘆𝗽𝘁𝗼 𝗙𝗿𝗮𝘂𝗱 𝗔𝗹𝗲𝗿𝘁 𝗳𝗼𝗿 𝗙𝗼𝘂𝗻𝗱𝗲𝗿𝘀 𝗙𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗶𝗻𝗴 🚨 Recently, Sifted shared a story about VCs being catfished by a supposed Family Office - Gloucester Circus. Time, effort, and expense wasted and lost. For founders, particularly 𝘶𝘯𝘥𝘦𝘳𝘦𝘴𝘵𝘪𝘮𝘢𝘵𝘦𝘥 𝘧𝘰𝘶𝘯𝘥𝘦𝘳𝘴®, raising funds is challenging enough without falling victim to scams. Unfortunately, one of my clients recently experienced a quite frankly, horrible incident during their fundraising journey. 𝗧𝗵𝗲 𝗿𝗶𝘀𝗸𝘀 𝗲𝗻𝘁𝗿𝗲𝗽𝗿𝗲𝗻𝗲𝘂𝗿𝘀 𝗳𝗮𝗰𝗲 𝗶𝗻 𝗮𝗻 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗶𝗻𝗴𝗹𝘆 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝘄𝗼𝗿𝗹𝗱 𝗶𝘀 𝗺𝗶𝗻𝗱 𝗯𝗼𝗴𝗴𝗹𝗶𝗻𝗴, 𝗮𝗻𝗱 𝘀𝗰𝗮𝗿𝘆. Here’s what happened: My client was introduced to a family office via a placing agent promising funding. My client did due diligence on the family office and it appeared to check out. The agent requested proof of a specific account balance in cryptocurrency, which seemed legitimate during their due diligence. She converted cash to crypto, attended a Zoom call, and showed the balance in her wallet via screen share during a call with the agent and family office. What happened next is shocking. Before her eyes, the wallet was emptied. The agent, and supposed family office wallet were all part of an elaborate scam. 💡 Here’s what founders can do to protect themselves: 1️⃣ 𝘚𝘵𝘢𝘺 𝘞𝘢𝘳𝘺 𝘰𝘧 𝘙𝘦𝘥 𝘍𝘭𝘢𝘨𝘴🚩: Be cautious of high-pressure tactics or requests to convert cash into crypto for “proof of funds.” 2️⃣ 𝘗𝘳𝘰𝘵𝘦𝘤𝘵 𝘠𝘰𝘶𝘳 𝘊𝘳𝘺𝘱𝘵𝘰 𝘈𝘤𝘤𝘰𝘶𝘯𝘵𝘴: Never share your screen or login credentials with third parties. Use multi-factor authentication and secure wallets. Cold wallets (offline storage) are safer than hot wallets. 3️⃣ 𝘝𝘦𝘳𝘪𝘧𝘺 𝘌𝘷𝘦𝘳𝘺𝘰𝘯𝘦 𝘐𝘯𝘷𝘰𝘭𝘷𝘦𝘥: Independently validate the credentials of agents and investors through regulatory bodies like the FCA or other trusted sources. 4️⃣ 𝘚𝘢𝘧𝘦𝘨𝘶𝘢𝘳𝘥 𝘛𝘳𝘢𝘯𝘴𝘢𝘤𝘵𝘪𝘰𝘯𝘴: Consider escrow services for proof of funds or secure wallet features like whitelisting. 5️⃣ 𝘙𝘢𝘪𝘴𝘦 𝘈𝘸𝘢𝘳𝘦𝘯𝘦𝘴𝘴: Scammers often target founders who are fundraising. Let’s share stories, knowledge, and best practices to protect each other. 💬 I'd love to work we some investors and cyber experts to deliver a session on this topic. 💡 Share your fundraising scam stories below 👇🏾. ------------ I provide legal advice and support to startups, SMEs and VC - helping them from idea, through growth, to exit. 🔔 Want to see more? Follow Kevin Withane ♼Will this help someone in your network? Hit the repost button. #CryptoFraud #FundraisingTips #Entrepreneurship #Startups #DueDiligence #Founders #Investors

I've seen brilliant founders fail and mediocre ones get funded. The difference wasn't talent. It was psychology. Research suggests several psychological patterns can influence investor decisions - often operating below the conscious level. Understanding these cognitive biases might play a bigger role in fundraising success than we often realize. Here are 5 cognitive biases that could affect your funding chances: 1. Similarity Bias Studies indicate that investors may gravitate toward founders with similar backgrounds, education, or thinking styles. This explains why some VCs appear to fund certain "types" of founders more frequently than others. → Sharing authentic common ground with investors could create meaningful connection points. 2. Loss Aversion Research in behavioral economics suggests people often feel losses more strongly than equivalent gains. This explains why some investors seem more concerned about missing the next big thing than finding it. → Framing opportunities in terms of potential missed opportunities might resonate differently than only highlighting potential gains. 3. Anchoring Effect First impressions may create reference points against which everything else gets measured. → The order in which information is presented matters more than we think. 4. Digital Presence Recent data suggests that some investors now spend an average of 37 minutes researching founders online before their first meetings. → Your digital footprint might be creating impressions before you even enter the room. 5. Optimism Gap There is a natural difference between how founders and investors view projections. → Backing ambitious forecasts with solid evidence can bridge this perception gap. Understanding these patterns has helped many of the founders I've worked with navigate the fundraising process more effectively. What's interesting is how rarely these psychological factors get discussed in standard fundraising advice. Has anyone noticed these patterns in their own fundraising experiences?

🚨 Stay Alert: Protect Yourself from Fundraising Scams! 🚨 As someone who has worked on over 150+ fundraising rounds, I've witnessed the real, scary, and dangerous nature of fundraising scams. It's crucial to be aware and vigilant. Here's what you should watch out for: 1️⃣ Fake Funds: Beware of scammers who establish FAKE investment companies to extract personal information and potential fees. They may ask you to pay transaction fees in advance to complete a funding process. Even the most diligent founders can be fooled by this elaborate deception. Look closely at their website – they often create fake leadership profiles, mirroring successful Middle Eastern business leaders. They may even present counterfeit accounts and licenses from prestigious institutions in the Kingdom of Saudi Arabia. 2️⃣ Fake Representatives of HNW: A common scam involves representatives from high-net-worth families or family offices contacting you, claiming to have the authority to issue investments on behalf of XYZ. They'll press on the importance of maintaining good faith with their investors, urging you to manage commission transactions privately. Be cautious! This setup enables them to manipulate you into paying commissions based on fake proof of transfers, only to disappear into the shadows. They may even insist on face-to-face meetings, leading some entrepreneurs to fly overseas, unaware of the scam. Don't take unnecessary risks if you ever feel unsure or uneasy about an investment opportunity. Based on my experience, I can assure you it's never worth it. Your safety and financial well-being are paramount. I'm here to help entrepreneurs. If you need me to look over anything related to investments, please don't think twice about reaching out. Your peace of mind matters. Share your stories and experiences in the comments below to safeguard others from falling victim to these scams. Stay informed, stay cautious, and let's build a community where we protect one another. Together, we can expose and defeat fundraising scams! The only way to do that is to speak up and remove the stigma for those who have been scammed. #funding #business #leadership

One of the hardest lessons I’ve learned in fundraising: most funders are not a fit. In the beginning, I spent a lot of time chasing people who seemed “kind of aligned.” They supported global development or migrants' issues in a broad sense, but in practice… those conversations never really went anywhere. Everything shifted when I decided: I will only talk to people who are 1,000% aligned with our mission. You can usually feel it right away. The conversation flows, they ask the right questions, and there’s genuine excitement. 🌱 That was lesson #1 for me. 🌱 Lesson #2: fundraising takes discipline. I set aside one morning a week just for pipeline work: following up, checking new opportunities, staying consistent. It’s not the most exciting part of the job, but it’s what keeps momentum going. 🌱Lesson #3: silence doesn’t always mean “no.” Funders are often slow to respond or get caught up in other priorities. Following up (sometimes more than feels comfortable) has opened doors for us that I thought were closed. For me, fundraising has been less about luck and more about focus, persistence, and steady routines. This is my piece of the Collective Knowledge Playbook on Fundraising with Miller Center for Global Impact, a community that has introduced me to some of the best impact entrepreneurs I know. Check out these amazing entrepreneurs' lessons, too - I've learned a lot myself from each of them: ✅ Mina Shahid on why it’s a numbers game ✅ Emiliano Iturriaga on finding the right investors (and letting go of the wrong ones) ✅ Diana Sierra on why honesty beats smoke and mirrors ✅ Abid Rashid (عابد رشيد) on building a strong narrative ✅ Sara Leedom on power, privilege, and the donor pyramid ✅ Eng. Madrin Maina… coming soon 👉 For those who’ve fundraised: how do you keep yourself consistent without burning out? 👉 If you liked this guide, subscribe to the newsletter to get future playbooks (link in comments). #Fundraising #SocialImpact #Entrepreneurship #MillerCenterPlaybook

I had fundraising "wrong" for 2 different companies. 2 failed fundraises: → Chasing investors → Linkedin spamming → No idea what to say in meetings → Spending all my time on my pitch deck Until...nothing. Not a single $$$ raised. And I had to shut down those businesses. Here's the thing about fundraising successfully. 1/ It's not transactional. ↳ Fundraising is about people, always. ↳ Long-term > Short-term ↳ Warm > Cold  2/ It's not logical ↳ Logic is fleeting, emotions make them invest. ↳ Connection > ideas ↳ Practice > Hope 3/ It’s not a task you can handle unprepared. ↳ The more time you spend on prep, the more success. ↳ Prep timelines > 'Winging it" ↳ Process > Day-by-day Founders: Your fundraising is failing. Because you're chasing the wrong things. The formula is simple: → Create a network that feels → Start measuring it by how you emotionally connect. → With a process that gets you there as fast as possible. Because fundriasing success is not hoping for the best. It's the preparation, systems and process you complete. Do you agree?

If you're fundraising to solve your startup's problems, you've already lost. I learned this after 80+ rejections 👇🏾 I spent months pitching VCs, convinced that funding would solve everything. 86 rejections later (yes, I counted), I finally understood: I was trying to raise money to close the gap, when I needed to close the gap to raise money. Let me explain. Last week, a founder building a monetization platform for niche creators (think Patreon for X) asked for my advice. She’d built a solid product and was obsessed with features. But when I asked how she'd get both creators AND users on the platform, he went quiet. "That's what the funding is for," he said. Wrong answer. She’ll struggle to raise until she can walk into a room and say: "We've cracked distribution. Here are our first 10 users, and here's our path to 1,000." That gap between where you are and where investors need you to be? That's your fundraising gap. And if you're a first-time founder without Stanford or YC on your resume, you can't raise with gaps. Here are the 5 fundraising gaps that kill pre-seed rounds: 1. Founder perception gap The stuff you can't change overnight - Stanford pedigree, ex-Google, second-time founder status. If you don't have it, the other gaps become dealbreakers. 2. Team gap Can you actually build this? Do you have the expertise? One technical co-founder isn't enough if you're building deep tech. 3. Traction gap Not just users - PAYING customers or serious daily/monthly active users. "We'll monetize later" doesn't work in 2025. 4. Distribution gap A repeatable way to get customers that isn't paid ads. VCs need to see that you can grow without burning their cash on Meta ads. 5. Market gap Proving the market is both big AND growing. A big stagnant market is just as bad as a small one. The truth is, if you have founder perception working for you, VCs will ignore the other gaps. If you don't (like 99% of us), you need to close these gaps BEFORE you fundraise. The marketplace founder? She needs to spend the next 3 months figuring out distribution, getting her first users, and showing momentum. Then she can raise. Stop fundraising, hoping someone will eventually say yes. Figure out your gaps. Close them. Then raise money to pour fuel on what's already working. What's the biggest gap between where you are today and where you need to be to fundraise? Drop it below - I read every comment and will share specific strategies 🤝🏾

I completely misread a major donor's signals and lost a six-figure gift. It was humbling. And it transformed my approach to donor relationships. Here's what happened: After multiple positive meetings, I was confident our capital campaign proposal aligned perfectly with this donor's interests. The signals seemed clear—enthusiastic questions, facility tour requests, introduction to family members. I prepared an impressive proposal with all the recognition bells and whistles. I was already mentally spending the gift. When I made the ask, his response was immediate: "This isn't what I care about at all." He wasn't interested in naming opportunities or recognition. He wanted to fund scholarships for students like himself—first-generation college students from rural communities. The proposal I'd spent weeks crafting completely missed his core motivation. What I learned: - Enthusiasm doesn't always signal alignment - Assumptions are fundraising poison - Direct questions about motivations beat clever interpretation - Donors give from personal values, not organizational priorities I now ask every donor: "What aspect of our work matters most to you personally, and why?" The answer has never led me astray since. Share a valuable lesson from a fundraising misstep!

Every #nonprofit strategic plan I've seen has some version of 'Increase Funding.' Often without any recognition of current capacity. I think an important question to ask at the same time is, "How do we make it happen within currently available resources?" 𝗔𝗻𝘀𝘄𝗲𝗿: Double down on what’s already working. That's the same advice I gave a client about her revenue strategy. ✨ Look at what’s already producing results ✨ Find the opportunities to go deeper ✨ Resist the urge to start something new This approach not only strengthens your current efforts but also reduces the risk of spreading your team too thin by chasing new opportunities. For example: "New Fundraising Event" sounds stressful and will mean tons of new work. "Deeper Donor Engagement" within our monthly giving program is much stronger. The biggest opportunities are hiding in plain sight. Double down on your strengths, align with your capacity, and watch your results pop. No burnout necessary. What already works for you?