Welcome to the second installment of The NYU Founder's Guide to Venture Capital series. In our first post, we introduced to help NYU entrepreneurs navigate the world of venture fundraising. Today, we're diving into the journey from initial pitch to securing your first investment check, a critical path every founder must walk. This post explores how to approach investors effectively, build meaningful relationships before you need capital, and present your venture as an attractive investment opportunity. Whether you're still developing your idea or preparing to raise your first round, this will help you understand the process and set realistic expectations for the road ahead.
As an NYU founder, you have significant advantages: access to the Entrepreneurial Institute, the NYU Innovation Venture Fund, a powerful alumni network, and more. You're based in New York City, home to one of the world's most robust venture capital ecosystems, with billions in capital deployed annually. But even with these advantages, fundraising takes time; the average startup takes 2.4 years from founding to raise its first institutional round. For first-time founders, the process is almost always different than expected, with more twists, turns, and learning moments than you can anticipate.
You're selling stock, not buying money!
Shift your mindset from "money-taking" to "company-selling." This is true whether you intend to use a SAFE, KISS, convertible note or a priced round with preferred stock. Investors don't care that you need money. They care about making money. You need to show you're building a venture-scale business with the potential to generate significant returns. Show them a path to becoming a large, valuable company in a big market. Be prepared to discuss potential outcomes if asked, even if you don’t need to discuss exit scenarios upfront.
Remember: you're raising money to scale what you've already built and proven, not to figure out if your idea works. As Jason Lemkin, founder of SaaStr, said: "We don't raise money to build our product. We raise to finish our product. We don't raise to find our market. We raise to own our market. We don't raise to develop our sales process. We raise to repeat our sales process over and over again…"
You won't raise money in one meeting
The fundraising process is highly selective. Set realistic expectations: you will not raise money in one meeting. Don't act like you will. Your first meeting has one goal: getting a second meeting. That's it.
Think of your pitch deck as a teaser, not a comprehensive business plan. Its purpose is to get investors excited and start a conversation. Don't cram every detail about your business into your deck. Less is often more. Save the details (financial models, technical architecture, competitive analysis) for later meetings when investors request them.
Most investments come after several meetings and extensive due diligence. The timeline varies by investor type. An angel investor might commit after 2–3 conversations over a few weeks. Institutional VC funds typically require 4–6+ meetings across multiple partners, spanning several months. They'll want to meet your team, review your data room, talk to your customers, and discuss your business with their portfolio companies.
In follow-up meetings, you'll share more details such as updated decks, financial models, product demos, customer references, etc. But in that first meeting? Focus on telling a compelling story that makes them want to learn more. Get them excited about the opportunity, show you understand your market, have traction/validation, and prove you're a founder worth backing. Then secure that second meeting.
Build a network before fundraising
Build relationships with investors early. Ideally 6–12 months before you plan to raise. Connect with alumni investors, attend pitch events, and leverage introductions from coaches and mentors. These don't have to be formal pitches. Ask for advice and show your ability to execute.
Investors prefer to observe founders over time, tracking your progress, decision-making, and execution. This gives them confidence that you're the kind of founder they want to back. By engaging early and sharing periodic updates on milestones, customer traction, or product progress, you let them watch you execute consistently.
Pitch your business, not just your product
A classic mistake first-time founders make is pitching their product or technology in isolation. Investors don't invest in products, they invest in businesses. They need to see how you will create and capture value in the market. We recommend using the "5 P's" framework:
- Problem: Validated customer pains (what you learned from customer discovery)
- Product: Your differentiated solution addressing pain (focus on how it solves customer problems, not just technology or UI)
- Potential: A scalable business model (recurring revenue and improving unit economics at scale)
- Progress: Demonstrated execution (team assembled, product shipped, pilots/revenue, etc.)
- People: Your committed team (emphasize relevant skills, domain expertise, and track record)
The metrics that matter
One of the most common mistakes founders make is underselling or completely omitting traction metrics. Without them, your business seems like just an idea. The best way to make it real is to show you have customers, ideally paying ones.
When presenting metrics, tell a compelling story. Don't just show a slide labeled "Traction" with random data points. Show growth, engagement and retention trends that tell a story and illustrate your command of the business. Use charts and diagrams, they're easier to digest than dense tables or lists of numbers.
Choose your investors strategically
As an NYU founder, you might be tempted to approach any investor who'll meet with you. Instead, be strategic. Target professional investors who are actively investing in your sector and stage, and who don't already have competitive investments. Check their websites, review their portfolios, and use resources like PitchBook, which you can access free through the NYU library.
Equally important: avoid first-time investors. You don't want to be someone's learning experience. Inexperienced investors can have unrealistic expectations, poor governance, and complicate future fundraising rounds.
Leverage NYU's Innovation Venture Fund for your early rounds. We understand the startup journey, have experience with student and faculty founders, and provide valuable guidance beyond capital. We can help you assess when you're ready to raise, refine your pitch deck, and make introductions to investors.
Final thoughts about the pitch
At the earliest stages, there's often limited data to evaluate your venture. Without significant traction, revenue history, let alone profitability, investors have little quantitative evidence to assess. That's why your pitch is ultimately a proxy for your ability to recruit talent, lead a team, and sell to customers. At the early stage, investors are betting on you and your ability to execute on your vision.
