How to Prioritize Investors for your Fundraise

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Hey Shifters!

One of the biggest lessons I learned during our pre-seed raise was that not all VCs are created equal. Just like you prioritize customers in your sales process based on fit, you must do the same with venture capitalists.

When I first started fundraising for Chezie, I treated every potential investor the same way – crafting personalized pitch decks, spending hours preparing for each meeting, and following up religiously. But after a few months of this, I realized I was burning myself out and, more importantly, potentially wasting my best shots with ideal investors by pitching them before I was ready.

Fundraising is a sales process; like any good sales process, you need a way to prioritize your prospects.

Why Prioritizing Investors Matters

I recently played pickleball with some friends in Atlanta. It did not go well.

Turns out that everyone I played with had either played pickleball competitively or played tennis growing up.

I enjoy pickleball, but I know I need to improve before I play with these guys again.

Consider fundraising like pickleball. You wouldn't pick up a paddle for the first time and immediately enter a tournament with Level 3 players. You'd start with casual games, get your form right, and work your way up.

Fundraising works the same way for a couple of reasons.

Get Your Reps In

Most VCs ask similar questions, but some are more seasoned and dig deeper. Starting with lower-priority investors, you can practice your pitch, refine your answers, and identify gaps in your story. It’s not a big deal if they don't invest because they weren’t your top priority anyway. And, by the time you meet your high-priority targets, you'll have solid answers to every likely question.

Build Momentum

When you prioritize effectively, you can save your best-fit investors for when you're most prepared. Ideally, you'll already have a check committed by then, which makes you more attractive to other investors. Venture capitalists look for signal, which is basically a sign that another fund has validated you before they will invest.

Priority ≠ Status

Everyone wants to say Andreessen Horowitz or Accel backs them. I get it.

However, only a handful of founders will get funding from these firms each year.

The big-name VCs are the sexy logos - Airbnb, Uber, etc. - and everyone is trying to land them. But sometimes, you're better off targeting the lesser-known brands because there's less competition.

Let me give you a real example from our fundraise. On paper, Andreessen Horowitz looked like it should have been a high priority for Chezie:

• They invest in B2B SaaS ✓

• They invest in pre-seed/seed stages ✓

• They've backed HR tech companies like ChartHop ✓

But I categorized them as medium priority. Why? Because I didn't have a direct line to get a warm introduction. Meanwhile, a fund like Future State Ventures was marked as a high priority because I had relationships with both founding partners, and they invested in our sector and stage.

The lesson is not to let a VC's brand name influence their priority level. What matters is the fit AND your ability actually to get a meeting through a strong introduction.

How to Prioritize Investors and Conduct Outreach

Your investor CRM needs a clear prioritization system based on three key criteria:

• Location: Do they invest where you're based?

• Sector: Do they invest in your industry?

• Stage: Do they invest at your current stage?

Low Priority Investors

• Description - These are funds that match your company in just one category. For Chezie, this meant funds that either invested in Atlanta companies OR in B2B SaaS, but not necessarily both.

• Outreach - For low-priority investors, while you should always try for warm intros first, it's acceptable to use cold outreach. These are the meetings where you'll get your initial pitch practice in, so don't be afraid to send cold emails or fill out application forms on their websites.

Medium Priority Investors

• Description - Medium priority goes to funds that match in two categories but where you don't have a clear introduction path. This might be a fund that invests in both your sector and stage, but rarely invests in your location.

• Outreach - With medium-priority investors, it's worth putting in extra effort to secure warm introductions. One effective strategy is reaching out to founders in their portfolio companies. Build relationships with these founders first, then ask for introductions to their investors.

High Priority Investors

• Description - Your high-priority targets should be funds that match all three criteria AND where you have a clear path to a warm introduction. For Chezie, Future State Ventures was high priority because they invested in our sector and stage, and I had relationships with both founding partners.

• Outreach - For high-priority investors, only accept warm introductions, and be strategic about who makes them. An introduction from a successful portfolio company founder carries much more weight than a second-degree LinkedIn connection.

In summary:

The quality of your introduction becomes more important as priority level increases. For high-priority investors, who makes the introduction matters significantly. An intro from a successful portfolio company founder carries more weight than a second-degree LinkedIn connection.

When building your list:

1. Start by evaluating each investor against the three core criteria

2. Consider your connection path to each firm

3. Assign priority levels accordingly

4. Plan your outreach strategy based on priority level

A fund that's perfect on paper but impossible to reach might need to be categorized as medium priority. Be realistic about your ability to get a quality introduction.

The Bottom Line: Green is Green

After spending 6 months fundraising for Chezie, I reached a point where I was ready to take money from whoever believed in us.

And you know what? That's okay.

Not all of us will have the luxury of choosing between multiple term sheets from top-tier VCs. Sometimes, you just need someone to believe in you and your vision enough to write a check. After months of pitching with no interest, seeing that belief – even from a lesser-known fund – can mean everything.

Now, let me add some important caveats:

• Always review your term sheets carefully

• Understand that taking a check from a lesser-known fund might come with less support from the fund

• Do basic due diligence on potential investors

But beyond that? Green is green.

If someone offers you money with fair terms, even if they won't be highly involved or add much value beyond capital, that's still money you can use to transform your business. You built a story about how you'd use that capital to reach your next milestone. Don't let perfect be the enemy of good when it comes to accepting investment.

Prioritizing investors is crucial for running an efficient fundraising process. But at the end of the day, what matters most is securing the capital you need to build your business. Sometimes that money comes from unexpected places, and that's perfectly fine.

Would love to hear from other founders who've raised: how did you prioritize your investor outreach? Reply to this email and let me know!

See you next week,

Toby

P.S. - I’ve replicated the fundraising homebase that I used to close my $790k pre-seed round. If you’re fundraising soon and you want to use it, you can purchase it here: https://stan.store/tegbuna/p/fundraising-hub