3 key things to know before seeking funding as a founder

Securing funding is one of the biggest milestones for any startup founder—but it can also be one of the most challenging. Whether you’re looking for your first investor or preparing for your next big funding round, knowing what to expect (and how to prepare) can make all the difference.

Investors don’t just hand out money—they look for founders who understand their business, know what they need, and can demonstrate growth potential. Before you dive into the fundraising process, here are three key things to keep in mind:

1) Know Your Funding Options (And What They Mean)

There’s more to startup funding than just pitching to venture capitalists. The right funding option depends on your startup’s stage, growth potential, and long-term goals. Here’s a quick rundown:

Bootstrapping

Using your own savings or revenue to fund your startup.

• Pros: Complete control, no dilution of equity.
• Cons: Slow growth, limited resou.

Angel Investors

High-net-worth individuals who invest in early-stage companies.

• Pros: Mentorship, valuable connections, faster funding than VCs.
• Cons: Loss of some control, potential for differing opinions.

Venture Capital (VC)

Firms that invest in high-growth startups in exchange for equity.

• Pros: Significant capital, industry expertise, rapid scaling.
• Cons: High pressure, loss of significant control, rigorous due diligence.

Crowdfunding

Raising small amounts of money from a large number of people online.

• Pros: Community building, market validation, early customer engagement.
• Cons: Time-consuming, no guarantee of success, public scrutiny.

Loans and Grants

Debt financing or non-dilutive funding from governments or organizations.

• Pros: Retain equity, potential for low interest rates or free money.
• Cons: Strict eligibility requirements, repayment obligations, lengthy application process.

Understanding your funding options will help you target the right opportunities and avoid wasting time on paths that don’t align with your business needs.

2) Due Diligence is a Two-Way Street

Investors will scrutinize your business plan, financials, and team before they even consider funding you. But fundraising isn’t just about getting any investor—it’s about finding the right investor. Just like they do their due diligence on you, you should research potential investors to make sure they align with your vision.

Ask yourself:

• Do they invest in my industry? Not all investors are a good fit for your sector.
• What’s their track record? Have they successfully funded startups like yours?
• Do their values align with mine? A bad investor-founder relationship can create long-term challenges.

Taking the time to vet your investors ensures you’re bringing on partners who can offer not just funding, but valuable connections and mentorship.

3) Rejection Doesn’t Mean Failure

Not every investor will see your vision, and that’s okay. Fundraising is a numbers game—most founders face multiple rejections before securing funding. Instead of seeing rejection as a failure, use it as a learning opportunity.

• Ask for feedback. Understand why an investor passed on your startup.
• Refine your pitch. Use insights from past pitches to improve your next one.
• Keep moving forward. The right investor is out there—you just need to find them.

That said, what if you could minimize the time wasted on dead-end leads and endless searches?

Find the Right Investors Faster with Blitz

Blitz is a platform built to save founders time, effort, and frustration by bringing relevant funding opportunities—grants, VC funding, accelerators, and more—straight to you. Instead of spending hours searching for investors, Blitz helps you connect with the right ones faster.

Join us in reshaping how African startups get funded.

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