Clarence Bethea’s Post

Co-founder left after only 5 months and asked for $700k to buy him out to close financing round 👇 It’s a famous story of govWorks.com – one of the co-founders left after only 5 months without a vesting schedule, and his co-founders had to pay $700k to buy him out in order to close their first financing round. That’s why any service provider, especially founders, MUST have vesting schedules: 🚀 Investor Expectations: Investors are watching closely. Without a vesting schedule already in place, they'll demand founders add one before closing a priced round financing, like your Series A. VCs need assurance that you and your co-founders are committed for the long haul and won’t walk away with a hefty equity stake after the financing round closes. It’s all about aligning incentives for the company’s growth for the long-term. 💥 Protect Against Founder Breakups and Disputes: Imagine pouring your heart into a startup, only to find your co-founder taking a significant chunk of equity while contributing little. 🔑 The Takeaway: A vesting schedule isn’t just a formality—it’s essential for aligning the interests of your founding team and the company’s success, can protect against potential founder disputes and will show investors you are serious about building your startup into a success story in the next several years. Don’t let a simple oversight jeopardize your startup’s future. Have questions about founder equity? Let’s connect to keep your equity grants and cap table on track! #startupfounder #startuplawyer

As startup founders, we can pretty quickly become obsessed with raising capital. But capital isn't just money. It's also relationships. I'd argue that the relationships part comes first, because who's going to give a check to someone they don't know and trust? I see a lot of founders complaining that investors don't give checks to outsiders. And yeah, it's important that the pool widens to reach a more diverse group. But here's the thing, you can't complain your way into the rooms you want to be in. You need to start finding keys and doors: AKA, relationships. If you're struggling to raise financial capital right now, or feel left out of the rooms you want to be in, go focus on building your relationship capital. It only takes one call, event or meetup to start.

Founders - what’s the secret sauce in fundraising? Spoiler alert: It’s not just the numbers. Sure, metrics matter, but what really sticks with investors is a great story. Why? Because stories go beyond the numbers. They add heart, context, and a reason to care. Investors hear countless figures daily, but the founders who leave a lasting impression are the ones who paint a picture they can see themselves in. Here’s the thing: investors face challenges too—many of them might even be like the ones your startup solves. By telling a story that highlights the real-world impact of your solution, you’re inviting them into a shared vision—one where they can be part of the win. So, next time, don’t just present data. Make your pitch relatable, speak to the heart of the problem, and show how your solution flips the script. When your story resonates, you’re not just informing them—you’re inspiring confidence and action. Because at the end of the day, it’s not just about numbers—it's about investing in founders who bring their vision to life.

Fundraising breaks your brain (temporarily) Here’s something no one tells you: fundraising rewires your brain in ways you don’t expect. You start seeing the world in term sheets and valuation caps. Every conversation feels like it could (or should) lead to an investor intro. You get obsessed with how you're perceived by VCs, by your network, even by yourself. And then, once the round closes, you’re left with this strange, hollow feeling. Like… now what? For months, your brain has been operating on one equation: “More investor interest = validation” But that’s a dangerous mindset because fundraising is not a reflection of your worth, or even the true potential of your startup. I’ve seen founders who raised millions but later crashed because their business fundamentals were weak. And I’ve seen scrappy teams that didn't raise but built companies that thrived. So if you’re in the middle of fundraising madness, here’s a reminder: 💡 You are NOT your last investor meeting. 💡 You are NOT your valuation. 💡 And closing a round is just the beginning, not the end goal. Because once the money hits the bank, all you’ve done is buy yourself time. What you do with that time (how you spend, execute, and grow) is what truly counts. Stay sharp. Build something real. And don’t let the process break you. _______________________________________________________________________ At Stratelion, we help founders streamline fundraising and finance operations so they can spend more time focused on their business. 🏆Helping startups get one step closer to their vision. 👉Want to chat? https://lnkd.in/ed-SWfqe

I had to unlearn this belief to help raise $125M+: "You need to be confident to raise capital." You need confidence, but 𝒚𝒐𝒖 don't need to be confident... Seems confusing? Bear with me. Many founders hold a false belief about fundraising: They think you need to be charismatic. They think you must act confident. But I can tell you with absolute certainty... It just isn't true. How do I know? I've seen a lot of successful fundraising up close. Many of those founders were NOT confident... And they didn't do a good job of pretending. But guess who was confident? 𝐓𝐡𝐞 𝐢𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐰𝐡𝐨 𝐛𝐚𝐜𝐤𝐞𝐝 𝐭𝐡𝐞𝐦. They were confident that the: ↳ Founder would hire the right people ↳ Approach to the market was spot on ↳ Product would deliver customer value ↳ Team would hit their strategic milestones ↳ Startup could dominate their target market So, how do I help founders make investors confident? How do we make them believe? We provide proof. When it comes to fundraising, proof > opinion. What proof do you need? How do you present it? I recommend building a Proof Map... 👇 _____ Was this helpful? 👍 like and ♻️ repost it to help other founders.

To create an effective Proof Map, focus on gathering and presenting concrete evidence that demonstrates your startup's potential and strategic milestones. This includes data on market research, customer feedback, prototype success, and team expertise. For example, by leveraging one's skills in Growth Hacking and Product Demonstration, I could showcase how my strategies have led to measurable growth in user engagement or revenue, providing a compelling case to investors.

Introduction: Unfiltered Fundraising Tips It’s time to share my unfiltered thoughts on fundraising. After more 5 years in VC I’ve seen A LOT, the good, the bad, and the completely avoidable mistakes. By request, I’m sharing my honest opinions, personal pet peeves, and what VCs really think when talking to startups. No sugarcoating, just real, practical advice to help you navigate the fundraising process. Let’s start with this: 1. Don’t Take Investor Calls on the Go I get it, fundraising is tough, and you’re having the same conversations with multiple VCs. But taking investor calls on the go? Big mistake, and one of my personal pet peeves. I’ve seen your deck, done my prep, and I’m ready to dig deep into your business. I’m not here just to hear a pitch. I’m here to ask the hard questions and dive into what really matters. Sure, not all VCs take this approach. Some might just listen to your pitch, but for me, these conversations are like a second date. You’ve already sparked my interest, and now I’m here to get to know you better. If we end up deciding to move forward, we’re entering a long-term relationship. So while I understand the hustle of fundraising, being fully present on these calls is essential. Treat it with the same focus and respect you’d give to a date you want to impress. #VCUnfiltered #FundraisLikeAPro #InvestorRelations

Successful founders don’t just raise capital—they run a *process*. Before you dive into fundraising, there’s prep work to do. Think of it as your MVF (Minimum Viable Fundraise): 1. Pitch deck: The obvious starting point—but it’s just the beginning. 2. Financial model: Show them the numbers behind the vision. 3. Data room: Organized, accessible, and ready for due diligence. 4. Product documentation: Clarity about what you’ve built and where it’s going. 5. Market analysis: Including detailed competitive insights. 6. Traction metrics: Proof that your startup is gaining momentum. 7. Investor target list: Fundraising isn’t about spraying and praying—it’s about strategy. 8. The story + BIG vision: Why you and why now. 9. Legal and compliance: Be buttoned up to avoid last-minute delays. 10. Customer validation: Evidence that your solution works and customers care. Skip any of these, and your fundraising could stall—or crumble during due diligence. Preparation isn’t optional; it’s the difference between a quick close and months of frustration. Be prepared = Get funded faster. 💸 What’s one part of this list you feel most confident about? What’s the first thing you’d prioritize if you started fundraising today? Which topic should I elaborate on?

🔥 Hitting a funding wall? Think of it this way: Your startup equity is a home-made financial product, sold from raw materials to the final consumer! 🏠💼 Ever seen fundraising as a sales process? 🚀 #CapitalConnector #StartupFunding #SalesJourney #EntrepreneurialInsights What analogy would you use to describe your fundraising journey? 💡