How to Qualify and Prioritize Investors for a Fundraise — A Tactical Playbook for Founders
When founders talk about fundraising, the focus is often on how to pitch. But the truth is, the more strategic part comes before a single outreach email is sent: qualifying and prioritizing your investor list.
At REACH Canada, we recently hosted a session where we helped one of our portfolio founders, Steve, systematize his approach to venture outreach. Here’s the playbook we built together—distilled from an hour of strategy, feedback, and real-time investor mapping.
Step 1: Think Like a Sales Team
Fundraising isn’t magic—it’s a B2B sales process. You're selling equity in your company to a very specific buyer (VCs), who all have different needs, objectives, and filters.
So, before you do anything else, treat this like sales:
Build a pipeline.
Create a structure.
Know your customer.
Step 2: Set Up Your CRM Like a Deal Board
Use a proper CRM like HubSpot or Pipedrive. Don’t just manage a spreadsheet.
Create a custom pipeline for your fundraiser. We suggest a stage-based board (think Kanban-style) with lanes like:
Prospect – Not Contacted
Contacted – No Reply
Warm Conversation
Call Scheduled
Deck Shared
Diligence
Term Sheet
Then layer qualification tiers across those stages:
Tier A – High conviction: strong relationship, active in your space, writing checks now.
Tier B – Lukewarm: some alignment, open to new deals, less urgent.
Tier C – Cold or unknown.
Tier D – Cold but useful: analysts, ecosystem players—not check writers, but valuable intel.
Step 3: Define Your Rubric
Use a rubric to assign tiers based on real data. For example:
Tier A if they check 3+ of these:
You’ve met them or been introduced.
They invest in your vertical.
They're actively deploying capital.
They follow your updates.
They’ve funded similar companies.
This gets you out of the “spray and pray” zone and into strategic territory.
Step 4: Use Sequences to Your Advantage
For each tier, define your outreach cadence. For cold (C/D) leads, start light:
LinkedIn connect with a 240-character note.
Follow-up email if no reply.
Light-touch third message.
For warm leads, aim for:
20-minute discovery call.
Share your deck after the introduction.
Build momentum toward a second meeting.
Start with your cold leads—get reps, refine messaging, and build an FAQ from real objections. By the time you talk to Tier A, you’ll be polished and prepared.
Step 5: Ask the Right Questions
Great fundraising isn’t about pitching—it’s about qualifying them. Ask VCs:
What’s your average check size?
What ownership target do you need?
How do you think about follow-on capital?
What portfolio support do you provide?
What recent deals have you done that are similar?
Their answers will help you decide if they’re a fit—now or later.
Step 6: Align Your Narrative with the Market
Objection handling starts before the objections.
Build a one-pager or appendix slide that says:
“Here’s the current state of the market, how we benchmark, and why our valuation is where it is.”
Use public comps (PropTech reports, SaaS multiples, AI market averages—whatever fits) to anchor your ask.
Show that you know your numbers inside and out: CAC, margins, churn, LTV. Investors aren’t impressed by charisma alone—they want precision.
Step 7: Layer Outreach With Travel
If you’re heading to Austin, Toronto, or Montreal, line up investor meetings while you’re there. Even if it’s just to say:
“Hey, I’m in town speaking at [X]. Thought I’d reach out—would love your take on what we’re building.”
Even if you don’t meet in person, the relevance gives your outreach a lift.
Step 8: You’re Not Chasing Capital—You’re Offering an Opportunity
The best founders flip the script.
You’re not begging for money—you’re offering the right investor a rare chance to buy into what you’re building.
The goal is to find a fit, not win approval.
If a VC’s first comment is about valuation, not vision—that’s a signal. Maybe not a fit. And that’s okay.
This isn’t theory—it’s a tested system built during a real fundraiser. Follow it, and you’ll not only raise smarter, but you’ll build a cap table you’re proud of.
