Customers: Your Best Fundraising Tool

Hi, It's customer service week so I wanted to share some thoughts on how your customers could be your best fundraising tool.  Also; 

📸 - Social Snapshot- What type of LinkedIn person are you?

📊 - Startup valuations vs round volume

🎙️ - Episode 57- Nail Your First Investor Call

🆓 - Startup resource- Playbook for Sending Investing Updates

Welcome to issue #93! 

How Much Could You Sell Your Company For?

If a private equity firm or strategic acquirer made an offer to you today, would you take it? Would you know if it's a fair deal? Are you in the position to close a deal?

Getting acquired could transform your life.

Founders don't realize that it usually takes 12-24 months to prepare a company for a successful exit, the sooner you have a plan in place, the greater the potential outcome. 

If you want to get acquired, we can help. Book a free discovery call with our team of experts to explore your options and discuss getting a plan in place that could change your life.

Book a Free Discovery Call

Social Snapshot

What kind of person are you and how much attention are you getting? by Roxana Irimia

Also:

⏩ How to actually make something happen faster. Suggestions by Alex Hormozi on X

Episode 57: Nailing Your First Investor Call

This week, I did a solo, mini episode where I share some insights on how to improve your investor relations and score a second call with a potential investor (which should be the goal of the first call).

Watch Now

Data Corner

Startup valuations vs round volume

The startup scene is pretty weird right now, according to this post by Peter Walker of Carta. For example, seed-stage startup valuations are up 37% from the first half of 2021, but 38% fewer deals are happening. This strange trend continues with Series A and B funding, while later-stage valuations and deal volume have both taken a hit since the boom days ended.

So, what's going on? For one, seed-stage valuations are more about how much investors believe in certain founders than the actual value of the business. Plus, early-stage venture capital is getting super competitive, with investors diving into rounds earlier than ever, even though total rounds have dropped by 50%. The lack of IPOs is also putting a damper on late-stage funding, making things tough even with plenty of cash waiting to be used.

Raising Capital for your startup?

Thunder's mission is to guide founders toward the right path to reach their North Star, be it through securing equity or debt financing or navigating the path to a successful exit. 

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Customers as Your Best Fundraising Tool

You’ve probably heard the classic phrase, “The customer is always right.” But for founders, here’s a more strategic spin: “The customer is always your best fundraising tool.”

Yes, really. While you might spend countless hours fine-tuning your pitch deck and perfecting your financial forecasts, your biggest asset is often sitting right under your nose: your customers. In fact, a strong, engaged customer base can be the difference between a successful fundraising round and an investor passing on your opportunity. Let’s dive into why customers matter so much and how you can leverage them in your next fundraising round.

Your Customers = Social Proof

Investors see hundreds of pitches a year, and while metrics matter, nothing beats real-world traction. Customers are living, breathing proof that your product or service is solving a genuine problem. It’s one thing to tell investors that your product is great; it’s another to show them that people are actually using it—and loving it.

Take Dropbox, for instance. In its early days, Dropbox’s growth didn’t explode because of some massive marketing budget. Instead, it was fueled by word-of-mouth from happy customers who couldn’t stop raving about the product. This viral growth eventually led to the attention of investors like Sequoia Capital, who were impressed by the organic traction.

You don’t need millions of customers to prove your point either. A small but passionate user base can still make a compelling case. Is your churn rate low? Do customers keep coming back for more? Are they singing your praises online? These are all signals that investors care about.

Customers Are Your Best Storytellers

Here’s a fun fact: your customers can often tell your story better than you can. Sure, you know every inch of your product, but a happy customer explaining how your service saved them time, money, or even headaches is a much more powerful narrative.

Imagine walking into a pitch meeting and, instead of rattling off stats, you share a heartfelt testimonial from a customer who says your product changed their business. Suddenly, your pitch has gone from a dry financial conversation to an emotional, relatable story. Investors aren’t just betting on your product—they’re betting on the impact your product has on real people.

Turn Data Into Gold

Let’s not forget the magic of numbers. Customers bring more than just stories—they bring data. And investors love data. Metrics like customer lifetime value (CLTV), churn rate, and Net Promoter Score (NPS) can turn heads in any investor meeting.

 If you’ve got a low churn rate and a high NPS score, don’t be shy—these numbers should be front and center in your pitch. They show that not only do people like your product, but they’re sticking around. A high CLTV tells investors that your customers aren’t just one-time buyers; they’re a long-term source of revenue, which makes your business much more attractive.

Showcase Your Customers in the Right Way

So, how do you actually bring your customers into your pitch? Here are a few practical ways to leverage customer love in your fundraising efforts:

• Customer Testimonials: Reach out to your most satisfied customers and ask if they’d be willing to share a short testimonial. These can be added as quotes in your pitch deck or even played as short video clips during your presentation.
• Case Studies: Create mini case studies that show how your product has positively impacted a specific customer. These don’t need to be long—just a short story highlighting the problem, the solution, and the results.
• Use Customer Logos: If you have permission, include recognizable customer logos in your deck. This acts as instant social proof and credibility.
• Customer Metrics: Investors love hard data, so highlight your customer success metrics—like NPS, churn, and retention rates. Show them that your customers are engaged, satisfied, and profitable.

Don’t Ignore Negative Feedback

Here’s the twist: not all customer feedback is glowing, and that’s okay. In fact, sharing how you’ve responded to negative feedback can show investors that you’re adaptable and resilient. Have you made product changes based on customer suggestions? Have you improved your offering because customers pointed out flaws?

Investors appreciate founders who listen to their users and make meaningful improvements. It shows you’re committed to creating a product that customers actually want—not just what you think they want.

Your Customers Are Your Biggest Advocates

At the end of the day, your customers are your best advocates. They’re the ones using your product, talking about it, and creating the real-world traction that investors crave. So, when you’re preparing for your next fundraising round, don’t just focus on the numbers and projections—focus on the people who make those numbers possible.

Investors want to back companies that are solving real problems, and there’s no better proof of that than a happy, loyal customer base. Use their stories, data, and love for your product to make your pitch stand out. After all, who better to sell your business than the people who believe in it the most?

Remember: your customers aren’t just users—they’re your best fundraising tool.

Free Fundraising Resources

If you're sending out your Q3 updates, this should help:

 ✉️ Playbook for Sending Investing Updates - Download it Here