A founder answers

Why does getting your first investor make fundraising harder, not easier?

Nate found that contrary to what people think, getting the first investor doesn't make the rest follow — it almost doubles your pressure. Once you've secured, say, 300 K against a 750 target, you don't want to disappoint the people already in, so you have to go even more aggressive.

The full answer

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Nate Spiteri · Shopfront
EP 3 · Co-founder, Shopfront
Show notes ↗

Nate found that contrary to what people think, getting the first investor doesn't make the rest follow — it almost doubles your pressure. Once you've secured, say, 300 K against a 750 target, you don't want to disappoint the people already in, so you have to go even more aggressive.

More from this episode

Nate pushes back on the common belief that the first investor unlocks the rest: "contrary to what people think, I think people think that you get the first investor and the rest follows. But I think if you get the first investor, you almost double your pressure to get the rest." Even with a VC and an angel secured for 300 K, "it's still not enough" against the 750 target, and "they're also going to be disappointed if I don't hit the 750." It wasn't a contractual contingency — the investors were "very founder friendly" — but psychologically he didn't want to disappoint them, so the first yes meant more pressure to execute, not less.