Fundraising for startups is a very lengthy process. Founders have to be leading from the front in discussions with prospective investors for business. More importantly, founders also have the onerous responsibility of ensuring that business does not take a back seat while the fund raising is on. Therefore, the period of fund raising can become very strenuous for the founders. The sooner the process is completed, the quicker one can get back into focusing on the business full time.

Much of the time consumed while fundraising from angels is in identifying the right investor type. Pitching to an angel and then realizing that the investment interests of the investor does not match with that of the startup can be very frustrating for the founder, who is already severely constrained by bandwidth. Investors do not play dice, and carefully targeting the investor to pursue is the smart approach to fund raising, rather than the “spray and pray” approach. Success rate in getting funding for startups is extremely low and randomly targeting investors as well as meeting them without being fully aware of their investment preferences is unlikely to be effective.