Whether you're a newly launched AI startup like Scarlet AI securing pre-seed funding or an established company like Skyscanner raising $192 million after 15 years, fundraising is a complex journey filled with excitement, uncertainty, and determination. It’s about selling a vision—a future—that’s crystal clear, compelling, and financially sound at every stage of the process.

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In this post, we’ll walk through the crucial steps, from crafting the perfect pitch deck to finally seeing money hit your bank account.

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Steps in Fundraising:

• The Foundation
• Step 1: Research and Identify Investors
• Step 2: Connect and Pitch
• Step 3: The Fundraising Ecosystem
• Step 4: Closing the Deal
• Step 5: Funds Transfer

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The Foundation: Your Pitch Deck

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Before you even think about approaching investors, you need to lay the groundwork, and that starts with your pitch deck. Your pitch deck is the foundation of your fundraising efforts—it’s where you tell your story and communicate your startup’s vision.

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1. Ideation: Refine your business concept, understanding the problem you're solving.
2. Storytelling: Create a compelling narrative that resonates with investors.

Pitch Deck Design: Your pitch deck design should be professional, clear, and visually appealing. It should effectively communicate your business strategy, market potential, and team strengths.

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Step 1: Research and Identify Investors

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With a polished pitch deck in hand, the next step is finding the right investors. Not every investor will be a fit for your startup, so focus on those who align with your vision, industry, and goals. Platforms like AngelList, Crunchbase, and LinkedIn can help you identify investors who have backed startups similar to yours.

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• Angel Investors: Ideal for early-stage startups. Angels typically provide smaller amounts of capital in exchange for equity.
• Venture Capitalists: Focus on startups with growth potential, often participating in seed rounds and beyond.
• Crowdfunding Platforms: These platforms allow you to raise funds from a large number of smaller investors.

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Finding the right investors is critical to your fundraising journey, so invest time in researching those who understand your space.

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Step 2: Connect and Pitch

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This is arguably the most challenging step. You’ve got your pitch deck ready, and now it’s time to reach out and pitch your vision. On average, founders need to approach 100+ investors to raise their first $500,000.

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Sound daunting? It is—but persistence is key.

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Here’s how you can make it manageable:

• Attend startup events, pitch competitions, and networking meetups.
• Leverage your network for introductions to investors.
• Reach out directly via email, LinkedIn, or other platforms.

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Investors want more than just numbers—they want conviction. Show them your passion, and demonstrate that your pitch deck design and financial strategy are rock solid. Expect rejections, but use them as opportunities to refine your approach. 

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Remember, “Every "no" brings you closer to a "yes."

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Step 3: Understanding the Fundraising Ecosystem

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Different stages of your startup’s growth require different types of funding. Knowing where you stand helps you approach the right investors with the right pitch.

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• Pre-seed: Early-stage funding from founders, family, and angel investors.
• Seed Funding: The first official round, used to develop your product and gain initial traction.
• Series A & B: For scaling your business, expanding your team, and gaining market share.
• Series C and Beyond: For rapid growth, acquisitions, or preparing for an IPO.

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Each stage demands a distinct pitch deck, with tailored content highlighting relevant metrics, milestones, and growth plans.

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Step 4: Closing the Deal

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Once you've sparked an investor's interest, it’s time to seal the deal:

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1. Negotiations: Discuss key terms like equity, valuation, and investor rights.
2. Due Diligence: Investors will thoroughly review your business, so ensure your documents—financials, cap table, intellectual property, etc.—are organized and transparent.
3. Investment Agreement: Once negotiations and due diligence are complete, you’ll sign the investment agreement, formalizing the deal.

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Transparency and preparation are crucial during this phase. Any gaps or inconsistencies can derail the process, so have everything in order before entering negotiations.

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Step 5: The Final Step – Funds Transfer

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With everything finalized, the last step is transferring the funds to your account. Once the funds hit your bank, you’ve successfully secured the capital needed to grow your startup.

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Key Takeaways for a Successful Fundraising Journey

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1. Fundraising is a marathon, not a sprint.
2. Stay resilient and learn from rejections.
3. A well-designed pitch deck is essential but remember that your narrative is what captures investor attention.
4. Be transparent, organized, and ready for a time-consuming process.
5. Use every setback as a stepping stone to improve your pitch and strategy.

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Fundraising can be a challenging process, but with a compelling pitch deck, persistence, and a clear vision, you’ll be well on your way to securing the capital you need.

Good luck!