WEBVTT
00:00:00.160 --> 00:00:02.479
What stops us from feeling free is fear.
00:00:02.640 --> 00:00:17.199
It's that sense of dread or constriction and projecting into the future and imagining that you don't fundraise, and then what happens and who do you have to let go of and how embarrassed you'll feel and what that will mean for your future.
00:00:17.280 --> 00:00:18.879
And can you ever be an entrepreneur again?
00:00:18.960 --> 00:00:21.760
And like all of these questions and concerns that come up.
00:00:21.920 --> 00:00:27.039
And so often founders are so worried about not being able to fundraise that that's the reality they start to live in.
00:00:27.120 --> 00:00:35.840
And so then they start to almost shrink or play slightly smaller in their fundraise, and they don't show up with like the energy and like just feel like themselves.
00:00:35.920 --> 00:00:43.119
Like they're just themselves connecting with another human being and telling their story and painting a vision and actually like the excitement of it.
00:00:44.000 --> 00:00:53.119
It sounds like if you your mental state going to it's really important because you go into it with fun and creativity and what's the upside and focus.
00:00:53.520 --> 00:00:58.000
Actually, and with a plan, you're probably going to show up in a different way.
00:00:58.159 --> 00:01:05.359
And when you hit these roadblocks, which you will, I mean, no one fundraises and gets straight yeses, even like businesses are going to be super successful.
00:01:05.439 --> 00:01:05.760
Yeah.
00:01:06.000 --> 00:01:08.879
I imagine you do that, it's like, okay, this is just one tick on the road.
00:01:08.959 --> 00:01:14.640
Like, I I know I need to get 30 no's to get five yeses, or maybe even more.
00:01:15.120 --> 00:01:17.439
Welcome to the Peer Effect post bag.
00:01:17.519 --> 00:01:20.400
I'm James Johnson, joined by Freddie Burley.
00:01:20.560 --> 00:01:24.560
We asked for your questions, and Freddie and I are going to tackle them together.
00:01:24.799 --> 00:01:29.120
These aren't theoretical case studies, it's the stuff keeping you up at 2 a.m.
00:01:29.519 --> 00:01:30.959
Let's get answering.
00:01:32.000 --> 00:01:34.000
Welcome to the Peer Effect post bag.
00:01:34.079 --> 00:01:36.000
This is where we'll answer your questions.
00:01:36.159 --> 00:01:37.120
I'm James Johnson.
00:01:37.439 --> 00:01:38.480
I'm Freddie Burley.
00:01:38.799 --> 00:01:41.200
So, question Freddie from Ian this week.
00:01:42.000 --> 00:01:44.319
How to feel free in fundraising?
00:01:44.719 --> 00:01:57.599
This is a really cool question because I think so often people are focused on the outcome that they forget like the energy that they bring to the fundraise into each of those conversations is really important.
00:01:58.319 --> 00:02:15.360
And I mean, especially for first-time founders or founders that are fundraising for a round that feels a bit existential, there can feel like there's a huge amount of pressure and there's a lot riding on it, and it feels so different to your day-to-day, typically.
00:02:15.520 --> 00:02:18.960
And ultimately, like what stops us from feeling free is fear.
00:02:19.120 --> 00:02:33.599
It's that sense of dread or constriction and projecting into the future and imagining that you don't fundraise, and then what happens, and who do you have to let go of, and how embarrassed you'll feel, and what that will mean for your future.
00:02:33.759 --> 00:02:35.360
And can you ever be an entrepreneur again?
00:02:35.439 --> 00:02:38.240
And like all of these questions and concerns that come up.
00:02:38.400 --> 00:02:43.439
And so often founders are so worried about not being able to fundraise that that's the reality they start to live in.
00:02:43.520 --> 00:02:52.319
And so then they start to almost shrink or play slightly smaller in their fundraise, and they don't show up with like the energy and like just feel like themselves.
00:02:52.400 --> 00:03:00.159
Like they're just themselves connecting with another human being and telling their story and painting a vision and actually like the excitement of it.
00:03:00.319 --> 00:03:03.919
So, anyway, how to feel free in fundraising.
00:03:04.080 --> 00:03:07.199
Um, a lot of it is basically how do you bust the fears.
00:03:07.360 --> 00:03:15.199
And so, what I typically do with founders before any fundraise is what's the best case scenario and what's the worst case scenario?
00:03:15.360 --> 00:03:17.840
So, really framing where their mind is at.
00:03:18.000 --> 00:03:28.479
And often some people have spent so long worrying about what if I can't, that they haven't even framed like what would be the best case scenario, like who would be your ideal investor?
00:03:28.639 --> 00:03:30.400
Um, what would be the value exchange?
00:03:30.479 --> 00:03:32.159
Like, what do you want to gain from them?
00:03:32.319 --> 00:03:33.520
What value do they want to bring?
00:03:33.599 --> 00:03:37.360
Because often I think you can get into that energy of like pick me, choose me, please.
00:03:37.439 --> 00:03:38.560
Can I have some money?
00:03:38.719 --> 00:03:47.039
As opposed to like they have a unique and extraordinary value proposition, and someone would be really lucky to partner with them or to be on this journey with them.
00:03:47.120 --> 00:03:49.439
And you kind of forget that like it's a marriage.
00:03:49.599 --> 00:03:59.680
And if if all goes well, you're likely gonna be in this relationship, intense relationship for five to 10 years, plus you're gonna have to go through really hard times together.
00:03:59.919 --> 00:04:02.319
You're gonna have to rely and trust their opinions.
00:04:02.400 --> 00:04:04.319
Like, there's so much that rides on it.
00:04:04.479 --> 00:04:10.080
So, anyway, framing your best and worst case scenario really, really explicitly and specifically.
00:04:10.159 --> 00:04:12.800
And especially with the worst case scenario, like, don't be embarrassed.
00:04:12.960 --> 00:04:17.120
Like, if whatever, whatever's in your mind, just like tell the truth and write it down.
00:04:17.360 --> 00:04:24.720
And then write every single thing that is in your control, like stretch your imagination and be like, what are all my controllables?
00:04:24.959 --> 00:04:28.480
What are all the levers I can pull to create the best case scenario?
00:04:28.639 --> 00:04:30.480
And often I say like play.
00:04:30.639 --> 00:04:37.439
There are so many like networks, resources, people that you can draw on that you often, they're one step removed from you.
00:04:37.519 --> 00:04:40.319
So you don't think of those possibilities and options.
00:04:40.560 --> 00:04:45.600
And then frame like, what is everything in my control to prevent the worst case scenario as well.
00:04:45.759 --> 00:04:50.879
So you're doing both like creation and also protection in that framing.
00:04:51.040 --> 00:04:52.639
And then what's out of my control?
00:04:52.800 --> 00:04:56.240
And like generally, what's out of our control is people's perceptions.
00:04:56.399 --> 00:04:58.480
Like whether they invest is out of your control.
00:04:58.639 --> 00:05:02.639
There are lots of things that are in your control, but whether they actually choose you is out of your control.
00:05:02.720 --> 00:05:17.680
But in your control is taking feedback from all those conversations, using every single one as an opportunity to get like sharper at storytelling, get feedback, find your rhythm between not just like how you tell a story, but how you tell a story between you and the rhythm, especially as co-founders.
00:05:17.839 --> 00:05:26.560
And then the final piece is like once you're really clear on everything in your control, everything out of your control, like the game is obviously double down and go big on the controllables.
00:05:26.959 --> 00:05:32.000
But often what stops us from playing big is the fear of like, but what if worst case scenario happens?
00:05:32.240 --> 00:05:39.279
And so we want to play the game of like, if worst case scenario happened, how could we trust that it was happening for you, not to you?
00:05:39.360 --> 00:05:42.319
How would it be the best thing that ever happened to you as a founder?
00:05:42.480 --> 00:05:45.120
And really looking at like what support would be available to you?
00:05:45.279 --> 00:05:46.000
What would you learn?
00:05:46.160 --> 00:05:48.000
How would it be part of your like initiation?
00:05:48.079 --> 00:05:49.120
How would it be training you?
00:05:49.199 --> 00:05:50.240
How would it be molding you?
00:05:50.319 --> 00:05:52.240
And that how would you grow as a human being?
00:05:52.399 --> 00:06:01.519
And so that you can see, like, even in what you perceive to be the worst case scenario, there obviously are negatives, what are the positives so that we can orientate towards the positives?
00:06:01.680 --> 00:06:03.600
And I find that makes you feel free.
00:06:03.839 --> 00:06:10.319
It's like how you see, like, often in fundraising, if there's just like one door, it's like, how do we create infinite doors?
00:06:10.399 --> 00:06:12.800
Or how do you become like a room of infinite doors?
00:06:12.959 --> 00:06:15.120
How do you tell the story in a really compelling way?
00:06:15.279 --> 00:06:20.319
How do you live in the best case scenario of the future so that it's not just certain, but it feels inevitable to you?
00:06:20.480 --> 00:06:25.040
It's like inevitable in your bones that you're like channeling all of your energy towards that outcome.
00:06:25.199 --> 00:06:29.439
And then it becomes, it's it can be brutal, sure, but it's also a game.
00:06:29.600 --> 00:06:37.519
And it's like every single level you get to learn and upgrade and get new mentors and tools and resources, and like it can also be really fun.
00:06:37.680 --> 00:06:42.160
And I see that transformation or that like energy shift in a lot of my clients.
00:06:42.240 --> 00:06:50.079
And a lot of people will come in with like almost like beliefs they put on themselves of like English isn't my first language, so it's harder for me to connect with people.
00:06:50.240 --> 00:06:53.920
Um, the funds never invested in a woman before.
00:06:54.160 --> 00:06:59.839
I like that there are these things that can inhibit us and make us feel like, and therefore I'm not going to be as successful.
00:06:59.920 --> 00:07:07.120
And often I think about like, how do we use what you see as a limitation actually as something that makes you unique or something that makes you different?
00:07:07.199 --> 00:07:11.439
And how do we like lean into the benefits of the difference as well?
00:07:11.920 --> 00:07:20.959
It sounds like if you your mental state going to it's really important because you go into it with lots of fun and creativity and what's the upside and focus.
00:07:21.439 --> 00:07:25.920
Actually, and with a plan, you're probably going to show up in a different way.
00:07:26.079 --> 00:07:33.199
And when you hit these roadblocks, which you will, I mean, no one fundraises and gets straight yeses, even like businesses are going to be super successful.
00:07:33.360 --> 00:07:33.600
Yeah.
00:07:33.920 --> 00:07:36.800
I imagine you do that, it's like, okay, this is just one tick on the road.
00:07:36.879 --> 00:07:42.240
Like, I I know I need to get 30 no's to get five yeses or maybe even more.
00:07:42.399 --> 00:07:42.560
Yeah.
00:07:42.720 --> 00:07:50.720
But if you if you go in with a negative mindset, it's like it's each time it's valid, each no is a validation that you don't know what you're doing, it is all going to fall apart.
00:07:50.959 --> 00:07:51.839
You should stop now.
00:07:51.920 --> 00:07:58.399
And you're probably not going to get to 40, 50 conversations because you're going to hit five or ten and go, ugh.
00:07:58.560 --> 00:07:58.720
Yeah.
00:07:58.959 --> 00:07:59.680
It's hopeless.
00:07:59.920 --> 00:08:00.879
Yeah, totally.
00:08:01.040 --> 00:08:07.519
And and every time, if like exactly as you just said, it's not like evidence for it's not possible, it's like evidence that something bad is coming.
00:08:07.680 --> 00:08:14.959
And it's like evidence that you're being trained, you're being initiated, you're being prepared, and how you like you you also need to excavate the lessons.
00:08:15.040 --> 00:08:18.800
You need to be like, what worked after each conversation, what worked, what didn't, what would I do differently?
00:08:18.959 --> 00:08:20.000
How can we tweak our story?
00:08:20.079 --> 00:08:21.519
How is our dynamic between us?
00:08:21.680 --> 00:08:22.800
Like, what landed?
00:08:22.959 --> 00:08:24.399
Are you present with the people in the room?
00:08:24.560 --> 00:08:28.560
Can you see when their eyes light up, when they lean in, when they seem bored and they lean out?
00:08:28.720 --> 00:08:32.159
Are you also like in tune with yourself to be like, do I want to partner with these people?
00:08:32.320 --> 00:08:33.840
Like, are you asking them questions?
00:08:34.000 --> 00:08:37.759
Are you, it's it's a two-way kind of assessment process.
00:08:37.919 --> 00:08:49.360
And like, in some ways, they're a vehicle, obviously, financially, but they're also a vehicle for like network or customer introductions or like fit and chemistry and feeling like this is someone I'd want to partner with.
00:08:49.440 --> 00:08:55.840
Like, there's lots of different pieces that that are important for the founders also to be assessing.
00:08:56.080 --> 00:08:59.039
It also sounds like it's kind of not a side-of-death task.
00:08:59.120 --> 00:09:06.960
It feels like just properly, like there is a very clear plan, there's a lot of activity, there's reflection, there's kind of enjoyment and creativity.
00:09:07.440 --> 00:09:12.159
But creating the space to do this properly is sounds quite important as well.
00:09:12.559 --> 00:09:22.480
So the best version of you can show up, and you're not like, oh, I'm rushing to get this done, or like I'm just trying to squeeze in this meeting here, or like it it just feels like very much more intentional.
00:09:22.960 --> 00:09:23.519
Yeah, totally.
00:09:23.600 --> 00:09:41.279
And I think that's also something that can be really tough when you're trying to I I often see this cycle of um kind of seeing fundraising as like a side thing of like I need to be building my business, it's so annoying, I have to fundraise, is often the story, which is fair enough.
00:09:41.440 --> 00:09:44.960
And at the same time, it's like, what's the extent to which that serves you?
00:09:45.200 --> 00:09:51.360
If that story serves you and it's helping you like perform and create the impact that you want to and feel the way you want to, great.
00:09:51.519 --> 00:10:00.320
If that story is inhibiting you from being two feet in on your fundraising and therefore like creating the outcome you want to create in a shorter timeline, then you want a new story.
00:10:00.399 --> 00:10:01.919
You want to like author something different.
00:10:02.080 --> 00:10:04.240
But I think it like it really depends on the founders.
00:10:04.320 --> 00:10:12.080
Some like the romanticism of like, oh, fundraising, or like some like they feel like it serves them to feel that way.
00:10:12.320 --> 00:10:33.360
Um, in my experience, I find that it's just down to like what serves me more and and like realizing that you are the author, like you can choose whether you see fundraising as like a negative burden, or you see it as like a lever, an enabler, or something that's going to take you to the next level, help you become a better communicator, a better leader, a better, like more connected.
00:10:33.440 --> 00:10:38.879
Like there's so much growth that comes through the fundraising process on like a human level as much as at a business level.
00:10:39.120 --> 00:10:45.440
That's we can you're getting access to 40 smart people to challenge you on your ideas and like communicate them better.
00:10:45.679 --> 00:10:45.840
Yeah.
00:10:45.919 --> 00:10:50.080
Like it's kind of in some ways, it's always like 40 hours of free consultancy.
00:10:50.559 --> 00:11:03.919
You could see it like that, and like an excuse to meet really like interesting people, um, like a vehicle for more connection, a vehicle for better storytelling, a vehicle for you refining your vision, for you being really clear about like where you're going.
00:11:04.000 --> 00:11:05.919
Like there's a lot that comes, comes from it.
00:11:06.320 --> 00:11:10.399
What have you seen's helped founders feel more free in their fundraising processes?
00:11:10.720 --> 00:11:13.759
Probably that that except the acceptance that it's their choice.
00:11:14.320 --> 00:11:18.559
So it's as you say, like you can go into sort of I I I have to do this.
00:11:19.120 --> 00:11:28.159
But I think knowing that you've taken the choice to go down the funded founder journey, like you haven't, you've made it, there is a reason for you not going the bootstrap route.
00:11:28.320 --> 00:11:28.960
Yeah, true.
00:11:29.360 --> 00:11:33.759
Therefore, it's someone hasn't done it to you, you're you've done it to yourself for four reasons.
00:11:33.840 --> 00:11:34.000
Yeah.
00:11:34.159 --> 00:11:38.480
And once you're on that path, you're probably going to be on it for a few rounds.
00:11:38.559 --> 00:11:40.240
So actually, this is not wasted skills.
00:11:40.320 --> 00:11:46.799
Like, well, someone said to me about buying a business, like, if you're going to buy one business, don't buy one business unless you're going to intend to buy at least three or four.
00:11:47.120 --> 00:11:49.840
Because the first one you buy, you'll get it, you'll get it completely wrong.
00:11:49.919 --> 00:11:54.480
But the learnings that you go through make like your second and third and fourth that much better.
00:11:54.559 --> 00:11:54.799
Yeah.
00:11:55.039 --> 00:11:57.200
And I feel like the same thing applies to fundraising.
00:11:57.279 --> 00:12:01.840
It's kind of like that is a skill set that you will need if you're going down this path.
00:12:02.080 --> 00:12:05.519
Your learnings on this round will help you on the next round, hit on the next round.
00:12:05.600 --> 00:12:09.840
And maybe you can step off it at some stage, but it's unlikely.
00:12:10.000 --> 00:12:10.240
Yeah.
00:12:10.720 --> 00:12:11.919
So I kind of own it.
00:12:12.000 --> 00:12:12.159
Yeah.
00:12:12.480 --> 00:12:14.399
Just go, this is something I chose.
00:12:14.720 --> 00:12:16.000
This is something I can get better at.
00:12:16.080 --> 00:12:16.240
Yeah.
00:12:16.480 --> 00:12:18.080
This is not wasted time or energy.
00:12:18.159 --> 00:12:19.759
It's something that I can use next time.
00:12:19.919 --> 00:12:20.080
Yeah.
00:12:20.240 --> 00:12:23.519
And as you say, like there are all these sort of peripheral benefits.
00:12:24.080 --> 00:12:31.840
But I do also think having like a very clear chat with your business and going, This is going to be my focus for X.
00:12:32.559 --> 00:12:35.120
This probably's going to happen every few years.
00:12:35.600 --> 00:12:35.840
Yeah.
00:12:36.240 --> 00:12:38.159
This is I will be out of the business.
00:12:38.320 --> 00:12:42.080
Like, either we need to slow down our execution pace or other people need to step up.
00:12:42.159 --> 00:12:42.320
Yeah.
00:12:42.480 --> 00:12:43.360
Who's going to like?
00:12:43.519 --> 00:12:53.279
Because I think if you're trying to do fundraising and do what you're already doing, I think that just creates almost an unwinnable challenge.
00:12:53.440 --> 00:12:58.879
I mean, yeah, and the team can feel frustrated and the team can be like, you were so absent for the last few months, and it's like, yeah, no shit.
00:12:59.679 --> 00:12:59.919
Yeah.
00:13:00.159 --> 00:13:02.559
But it often is like a lack of expectation management.
00:13:02.639 --> 00:13:06.639
But it equally sometimes the founders, they don't know, like, especially when you're doing it the first time.
00:13:06.799 --> 00:13:09.360
It's like you don't know that you're how much of you it's going to take.
00:13:09.440 --> 00:13:10.559
You haven't yet figured that out.
00:13:10.639 --> 00:13:15.679
And so I think also just the grace of like, yeah, I didn't sometimes like I didn't realize how much energy it was going to take.
00:13:15.759 --> 00:13:17.840
I didn't realize it was going to take me out for this long.
00:13:18.000 --> 00:13:19.840
And next time we're going to have to be better prepared.
00:13:19.919 --> 00:13:28.320
And in the meantime, like, as you said, it's an opportunity for team members to step up and grow in their leadership and um for the founder to feel more supported.
00:13:28.399 --> 00:13:36.159
So they go back into a business where people have really accelerated their growth in the same way that the founder's accelerating their growth by how they're playing the fundraising game.
00:13:36.320 --> 00:13:40.320
Yeah, I think there's there is an opportunity for growth, but often it's it's messy.
00:13:40.399 --> 00:13:47.840
And especially again, like the net if it's your second, third business and you've done, you've been around before, you you preempt these things, you know these things, you get things in place.
00:13:47.919 --> 00:13:49.039
It's it's a different feeling.
00:13:49.120 --> 00:13:50.960
You've like been round the merry-go-round before.
00:13:51.039 --> 00:13:52.559
So you know, you like know what the rides are.
00:13:52.720 --> 00:13:55.919
Yeah, you're not, you're not, and also you're not starting that journey three months before.
00:13:56.000 --> 00:13:58.000
You've been sort of working towards it since the last race.
00:13:58.399 --> 00:13:59.919
Like you're keeping relationships warm.
00:14:00.080 --> 00:14:00.320
Yes.
00:14:00.480 --> 00:14:02.480
You're asking for introductions, you're building a network.
00:14:02.559 --> 00:14:05.279
So you are, you're you're going into the warm thing.
00:14:05.440 --> 00:14:05.519
Yeah.
00:14:05.679 --> 00:14:13.200
I actually think the hardest one, it's acknowledging that sort of the probably the first time you do it is probably the hardest, just because you're in your business anyway.
00:14:13.360 --> 00:14:16.399
So your role doesn't, you don't really have a team to delegate to.
00:14:17.120 --> 00:14:19.919
So your co-founder's got to, if you've got one, it's got to really step up.
00:14:20.240 --> 00:14:22.240
The first time you've done it, you don't know what's good it looks like.
00:14:22.399 --> 00:14:26.639
Although sometimes that's sometimes not knowing the pain you're about to put yourself through can be a be a positive.
00:14:27.360 --> 00:14:33.919
But I think by the time you get to series A, series B and beyond, your team, your role is more on the business anyway.
00:14:34.480 --> 00:14:38.080
So it shouldn't be as disruptive and you should be better at it.
00:14:38.159 --> 00:14:39.600
So yeah, yeah, totally.
00:14:40.000 --> 00:14:50.000
I think I've really taken from what you said is just the mindset going into it and how much define like what is how much is controllable and really lean to those.
00:14:51.120 --> 00:14:55.279
Like they're probably way more controllables than you think.
00:14:55.840 --> 00:14:56.639
Yeah, totally.
00:14:56.799 --> 00:15:07.120
And I often and often the other final piece is like it kind of requires you to be in like peak performance killer mode, like really to be at your best and to be operating your best.
00:15:07.200 --> 00:15:09.519
And when you go into those conversations, you're at your best.
00:15:09.840 --> 00:15:18.480
And not forgetting like almost like what other things around you, like if working out makes you perform at your best, like prioritize working out.
00:15:18.639 --> 00:15:24.480
Like, what are the things around you that like make your eyes alive, make you like really focused, make your brain sharp?
00:15:24.639 --> 00:15:31.840
Like all of those other pieces, I think, become even more important when you're in like pinnacle moments.
00:15:32.240 --> 00:15:35.200
And sometimes for people, they can be the first thing they drop because they're like, I don't have time.
00:15:35.279 --> 00:15:40.960
I'm trying to split myself between fundraising and the businesses, and so then they and my family, and so then there's this feeling of I don't have time.
00:15:41.039 --> 00:15:43.600
But actually, often in those moments is like taking a step back.
00:15:43.679 --> 00:15:44.799
What are the key priorities?
00:15:44.960 --> 00:15:51.679
How do I perform best in those priorities, knowing yourself, knowing what you need, knowing what you need to eat, how much you need to sleep, what where you need to exercise.
00:15:51.919 --> 00:15:55.200
Or you just like, like all humans, you muddle your way through the first time.
00:15:55.360 --> 00:15:57.360
And then the next time you're like, now I get it.
00:15:57.519 --> 00:15:59.679
Now I know what works, now I know what doesn't.
00:15:59.840 --> 00:16:02.000
And then and then you play differently next time.
00:16:02.240 --> 00:16:03.200
Amazing.
00:16:03.679 --> 00:16:05.600
Well, that's it for us this week.
00:16:05.759 --> 00:16:09.519
We will see you next week for another postback episode.
00:00:00.160 --> 00:00:02.479
What stops us from feeling free is fear.
00:00:02.640 --> 00:00:17.199
It's that sense of dread or constriction and projecting into the future and imagining that you don't fundraise, and then what happens and who do you have to let go of and how embarrassed you'll feel and what that will mean for your future.
00:00:17.280 --> 00:00:18.879
And can you ever be an entrepreneur again?
00:00:18.960 --> 00:00:21.760
And like all of these questions and concerns that come up.
00:00:21.920 --> 00:00:27.039
And so often founders are so worried about not being able to fundraise that that's the reality they start to live in.
00:00:27.120 --> 00:00:35.840
And so then they start to almost shrink or play slightly smaller in their fundraise, and they don't show up with like the energy and like just feel like themselves.
00:00:35.920 --> 00:00:43.119
Like they're just themselves connecting with another human being and telling their story and painting a vision and actually like the excitement of it.
00:00:44.000 --> 00:00:53.119
It sounds like if you your mental state going to it's really important because you go into it with fun and creativity and what's the upside and focus.
00:00:53.520 --> 00:00:58.000
Actually, and with a plan, you're probably going to show up in a different way.
00:00:58.159 --> 00:01:05.359
And when you hit these roadblocks, which you will, I mean, no one fundraises and gets straight yeses, even like businesses are going to be super successful.
00:01:05.439 --> 00:01:05.760
Yeah.
00:01:06.000 --> 00:01:08.879
I imagine you do that, it's like, okay, this is just one tick on the road.
00:01:08.959 --> 00:01:14.640
Like, I I know I need to get 30 no's to get five yeses, or maybe even more.
00:01:15.120 --> 00:01:17.439
Welcome to the Peer Effect post bag.
00:01:17.519 --> 00:01:20.400
I'm James Johnson, joined by Freddie Burley.
00:01:20.560 --> 00:01:24.560
We asked for your questions, and Freddie and I are going to tackle them together.
00:01:24.799 --> 00:01:29.120
These aren't theoretical case studies, it's the stuff keeping you up at 2 a.m.
00:01:29.519 --> 00:01:30.959
Let's get answering.
00:01:32.000 --> 00:01:34.000
Welcome to the Peer Effect post bag.
00:01:34.079 --> 00:01:36.000
This is where we'll answer your questions.
00:01:36.159 --> 00:01:37.120
I'm James Johnson.
00:01:37.439 --> 00:01:38.480
I'm Freddie Burley.
00:01:38.799 --> 00:01:41.200
So, question Freddie from Ian this week.
00:01:42.000 --> 00:01:44.319
How to feel free in fundraising?
00:01:44.719 --> 00:01:57.599
This is a really cool question because I think so often people are focused on the outcome that they forget like the energy that they bring to the fundraise into each of those conversations is really important.
00:01:58.319 --> 00:02:15.360
And I mean, especially for first-time founders or founders that are fundraising for a round that feels a bit existential, there can feel like there's a huge amount of pressure and there's a lot riding on it, and it feels so different to your day-to-day, typically.
00:02:15.520 --> 00:02:18.960
And ultimately, like what stops us from feeling free is fear.
00:02:19.120 --> 00:02:33.599
It's that sense of dread or constriction and projecting into the future and imagining that you don't fundraise, and then what happens, and who do you have to let go of, and how embarrassed you'll feel, and what that will mean for your future.
00:02:33.759 --> 00:02:35.360
And can you ever be an entrepreneur again?
00:02:35.439 --> 00:02:38.240
And like all of these questions and concerns that come up.
00:02:38.400 --> 00:02:43.439
And so often founders are so worried about not being able to fundraise that that's the reality they start to live in.
00:02:43.520 --> 00:02:52.319
And so then they start to almost shrink or play slightly smaller in their fundraise, and they don't show up with like the energy and like just feel like themselves.
00:02:52.400 --> 00:03:00.159
Like they're just themselves connecting with another human being and telling their story and painting a vision and actually like the excitement of it.
00:03:00.319 --> 00:03:03.919
So, anyway, how to feel free in fundraising.
00:03:04.080 --> 00:03:07.199
Um, a lot of it is basically how do you bust the fears.
00:03:07.360 --> 00:03:15.199
And so, what I typically do with founders before any fundraise is what's the best case scenario and what's the worst case scenario?
00:03:15.360 --> 00:03:17.840
So, really framing where their mind is at.
00:03:18.000 --> 00:03:28.479
And often some people have spent so long worrying about what if I can't, that they haven't even framed like what would be the best case scenario, like who would be your ideal investor?
00:03:28.639 --> 00:03:30.400
Um, what would be the value exchange?
00:03:30.479 --> 00:03:32.159
Like, what do you want to gain from them?
00:03:32.319 --> 00:03:33.520
What value do they want to bring?
00:03:33.599 --> 00:03:37.360
Because often I think you can get into that energy of like pick me, choose me, please.
00:03:37.439 --> 00:03:38.560
Can I have some money?
00:03:38.719 --> 00:03:47.039
As opposed to like they have a unique and extraordinary value proposition, and someone would be really lucky to partner with them or to be on this journey with them.
00:03:47.120 --> 00:03:49.439
And you kind of forget that like it's a marriage.
00:03:49.599 --> 00:03:59.680
And if if all goes well, you're likely gonna be in this relationship, intense relationship for five to 10 years, plus you're gonna have to go through really hard times together.
00:03:59.919 --> 00:04:02.319
You're gonna have to rely and trust their opinions.
00:04:02.400 --> 00:04:04.319
Like, there's so much that rides on it.
00:04:04.479 --> 00:04:10.080
So, anyway, framing your best and worst case scenario really, really explicitly and specifically.
00:04:10.159 --> 00:04:12.800
And especially with the worst case scenario, like, don't be embarrassed.
00:04:12.960 --> 00:04:17.120
Like, if whatever, whatever's in your mind, just like tell the truth and write it down.
00:04:17.360 --> 00:04:24.720
And then write every single thing that is in your control, like stretch your imagination and be like, what are all my controllables?
00:04:24.959 --> 00:04:28.480
What are all the levers I can pull to create the best case scenario?
00:04:28.639 --> 00:04:30.480
And often I say like play.
00:04:30.639 --> 00:04:37.439
There are so many like networks, resources, people that you can draw on that you often, they're one step removed from you.
00:04:37.519 --> 00:04:40.319
So you don't think of those possibilities and options.
00:04:40.560 --> 00:04:45.600
And then frame like, what is everything in my control to prevent the worst case scenario as well.
00:04:45.759 --> 00:04:50.879
So you're doing both like creation and also protection in that framing.
00:04:51.040 --> 00:04:52.639
And then what's out of my control?
00:04:52.800 --> 00:04:56.240
And like generally, what's out of our control is people's perceptions.
00:04:56.399 --> 00:04:58.480
Like whether they invest is out of your control.
00:04:58.639 --> 00:05:02.639
There are lots of things that are in your control, but whether they actually choose you is out of your control.
00:05:02.720 --> 00:05:17.680
But in your control is taking feedback from all those conversations, using every single one as an opportunity to get like sharper at storytelling, get feedback, find your rhythm between not just like how you tell a story, but how you tell a story between you and the rhythm, especially as co-founders.
00:05:17.839 --> 00:05:26.560
And then the final piece is like once you're really clear on everything in your control, everything out of your control, like the game is obviously double down and go big on the controllables.
00:05:26.959 --> 00:05:32.000
But often what stops us from playing big is the fear of like, but what if worst case scenario happens?
00:05:32.240 --> 00:05:39.279
And so we want to play the game of like, if worst case scenario happened, how could we trust that it was happening for you, not to you?
00:05:39.360 --> 00:05:42.319
How would it be the best thing that ever happened to you as a founder?
00:05:42.480 --> 00:05:45.120
And really looking at like what support would be available to you?
00:05:45.279 --> 00:05:46.000
What would you learn?
00:05:46.160 --> 00:05:48.000
How would it be part of your like initiation?
00:05:48.079 --> 00:05:49.120
How would it be training you?
00:05:49.199 --> 00:05:50.240
How would it be molding you?
00:05:50.319 --> 00:05:52.240
And that how would you grow as a human being?
00:05:52.399 --> 00:06:01.519
And so that you can see, like, even in what you perceive to be the worst case scenario, there obviously are negatives, what are the positives so that we can orientate towards the positives?
00:06:01.680 --> 00:06:03.600
And I find that makes you feel free.
00:06:03.839 --> 00:06:10.319
It's like how you see, like, often in fundraising, if there's just like one door, it's like, how do we create infinite doors?
00:06:10.399 --> 00:06:12.800
Or how do you become like a room of infinite doors?
00:06:12.959 --> 00:06:15.120
How do you tell the story in a really compelling way?
00:06:15.279 --> 00:06:20.319
How do you live in the best case scenario of the future so that it's not just certain, but it feels inevitable to you?
00:06:20.480 --> 00:06:25.040
It's like inevitable in your bones that you're like channeling all of your energy towards that outcome.
00:06:25.199 --> 00:06:29.439
And then it becomes, it's it can be brutal, sure, but it's also a game.
00:06:29.600 --> 00:06:37.519
And it's like every single level you get to learn and upgrade and get new mentors and tools and resources, and like it can also be really fun.
00:06:37.680 --> 00:06:42.160
And I see that transformation or that like energy shift in a lot of my clients.
00:06:42.240 --> 00:06:50.079
And a lot of people will come in with like almost like beliefs they put on themselves of like English isn't my first language, so it's harder for me to connect with people.
00:06:50.240 --> 00:06:53.920
Um, the funds never invested in a woman before.
00:06:54.160 --> 00:06:59.839
I like that there are these things that can inhibit us and make us feel like, and therefore I'm not going to be as successful.
00:06:59.920 --> 00:07:07.120
And often I think about like, how do we use what you see as a limitation actually as something that makes you unique or something that makes you different?
00:07:07.199 --> 00:07:11.439
And how do we like lean into the benefits of the difference as well?
00:07:11.920 --> 00:07:20.959
It sounds like if you your mental state going to it's really important because you go into it with lots of fun and creativity and what's the upside and focus.
00:07:21.439 --> 00:07:25.920
Actually, and with a plan, you're probably going to show up in a different way.
00:07:26.079 --> 00:07:33.199
And when you hit these roadblocks, which you will, I mean, no one fundraises and gets straight yeses, even like businesses are going to be super successful.
00:07:33.360 --> 00:07:33.600
Yeah.
00:07:33.920 --> 00:07:36.800
I imagine you do that, it's like, okay, this is just one tick on the road.
00:07:36.879 --> 00:07:42.240
Like, I I know I need to get 30 no's to get five yeses or maybe even more.
00:07:42.399 --> 00:07:42.560
Yeah.
00:07:42.720 --> 00:07:50.720
But if you if you go in with a negative mindset, it's like it's each time it's valid, each no is a validation that you don't know what you're doing, it is all going to fall apart.
00:07:50.959 --> 00:07:51.839
You should stop now.
00:07:51.920 --> 00:07:58.399
And you're probably not going to get to 40, 50 conversations because you're going to hit five or ten and go, ugh.
00:07:58.560 --> 00:07:58.720
Yeah.
00:07:58.959 --> 00:07:59.680
It's hopeless.
00:07:59.920 --> 00:08:00.879
Yeah, totally.
00:08:01.040 --> 00:08:07.519
And and every time, if like exactly as you just said, it's not like evidence for it's not possible, it's like evidence that something bad is coming.
00:08:07.680 --> 00:08:14.959
And it's like evidence that you're being trained, you're being initiated, you're being prepared, and how you like you you also need to excavate the lessons.
00:08:15.040 --> 00:08:18.800
You need to be like, what worked after each conversation, what worked, what didn't, what would I do differently?
00:08:18.959 --> 00:08:20.000
How can we tweak our story?
00:08:20.079 --> 00:08:21.519
How is our dynamic between us?
00:08:21.680 --> 00:08:22.800
Like, what landed?
00:08:22.959 --> 00:08:24.399
Are you present with the people in the room?
00:08:24.560 --> 00:08:28.560
Can you see when their eyes light up, when they lean in, when they seem bored and they lean out?
00:08:28.720 --> 00:08:32.159
Are you also like in tune with yourself to be like, do I want to partner with these people?
00:08:32.320 --> 00:08:33.840
Like, are you asking them questions?
00:08:34.000 --> 00:08:37.759
Are you, it's it's a two-way kind of assessment process.
00:08:37.919 --> 00:08:49.360
And like, in some ways, they're a vehicle, obviously, financially, but they're also a vehicle for like network or customer introductions or like fit and chemistry and feeling like this is someone I'd want to partner with.
00:08:49.440 --> 00:08:55.840
Like, there's lots of different pieces that that are important for the founders also to be assessing.
00:08:56.080 --> 00:08:59.039
It also sounds like it's kind of not a side-of-death task.
00:08:59.120 --> 00:09:06.960
It feels like just properly, like there is a very clear plan, there's a lot of activity, there's reflection, there's kind of enjoyment and creativity.
00:09:07.440 --> 00:09:12.159
But creating the space to do this properly is sounds quite important as well.
00:09:12.559 --> 00:09:22.480
So the best version of you can show up, and you're not like, oh, I'm rushing to get this done, or like I'm just trying to squeeze in this meeting here, or like it it just feels like very much more intentional.
00:09:22.960 --> 00:09:23.519
Yeah, totally.
00:09:23.600 --> 00:09:41.279
And I think that's also something that can be really tough when you're trying to I I often see this cycle of um kind of seeing fundraising as like a side thing of like I need to be building my business, it's so annoying, I have to fundraise, is often the story, which is fair enough.
00:09:41.440 --> 00:09:44.960
And at the same time, it's like, what's the extent to which that serves you?
00:09:45.200 --> 00:09:51.360
If that story serves you and it's helping you like perform and create the impact that you want to and feel the way you want to, great.
00:09:51.519 --> 00:10:00.320
If that story is inhibiting you from being two feet in on your fundraising and therefore like creating the outcome you want to create in a shorter timeline, then you want a new story.
00:10:00.399 --> 00:10:01.919
You want to like author something different.
00:10:02.080 --> 00:10:04.240
But I think it like it really depends on the founders.
00:10:04.320 --> 00:10:12.080
Some like the romanticism of like, oh, fundraising, or like some like they feel like it serves them to feel that way.
00:10:12.320 --> 00:10:33.360
Um, in my experience, I find that it's just down to like what serves me more and and like realizing that you are the author, like you can choose whether you see fundraising as like a negative burden, or you see it as like a lever, an enabler, or something that's going to take you to the next level, help you become a better communicator, a better leader, a better, like more connected.
00:10:33.440 --> 00:10:38.879
Like there's so much growth that comes through the fundraising process on like a human level as much as at a business level.
00:10:39.120 --> 00:10:45.440
That's we can you're getting access to 40 smart people to challenge you on your ideas and like communicate them better.
00:10:45.679 --> 00:10:45.840
Yeah.
00:10:45.919 --> 00:10:50.080
Like it's kind of in some ways, it's always like 40 hours of free consultancy.
00:10:50.559 --> 00:11:03.919
You could see it like that, and like an excuse to meet really like interesting people, um, like a vehicle for more connection, a vehicle for better storytelling, a vehicle for you refining your vision, for you being really clear about like where you're going.
00:11:04.000 --> 00:11:05.919
Like there's a lot that comes, comes from it.
00:11:06.320 --> 00:11:10.399
What have you seen's helped founders feel more free in their fundraising processes?
00:11:10.720 --> 00:11:13.759
Probably that that except the acceptance that it's their choice.
00:11:14.320 --> 00:11:18.559
So it's as you say, like you can go into sort of I I I have to do this.
00:11:19.120 --> 00:11:28.159
But I think knowing that you've taken the choice to go down the funded founder journey, like you haven't, you've made it, there is a reason for you not going the bootstrap route.
00:11:28.320 --> 00:11:28.960
Yeah, true.
00:11:29.360 --> 00:11:33.759
Therefore, it's someone hasn't done it to you, you're you've done it to yourself for four reasons.
00:11:33.840 --> 00:11:34.000
Yeah.
00:11:34.159 --> 00:11:38.480
And once you're on that path, you're probably going to be on it for a few rounds.
00:11:38.559 --> 00:11:40.240
So actually, this is not wasted skills.
00:11:40.320 --> 00:11:46.799
Like, well, someone said to me about buying a business, like, if you're going to buy one business, don't buy one business unless you're going to intend to buy at least three or four.
00:11:47.120 --> 00:11:49.840
Because the first one you buy, you'll get it, you'll get it completely wrong.
00:11:49.919 --> 00:11:54.480
But the learnings that you go through make like your second and third and fourth that much better.
00:11:54.559 --> 00:11:54.799
Yeah.
00:11:55.039 --> 00:11:57.200
And I feel like the same thing applies to fundraising.
00:11:57.279 --> 00:12:01.840
It's kind of like that is a skill set that you will need if you're going down this path.
00:12:02.080 --> 00:12:05.519
Your learnings on this round will help you on the next round, hit on the next round.
00:12:05.600 --> 00:12:09.840
And maybe you can step off it at some stage, but it's unlikely.
00:12:10.000 --> 00:12:10.240
Yeah.
00:12:10.720 --> 00:12:11.919
So I kind of own it.
00:12:12.000 --> 00:12:12.159
Yeah.
00:12:12.480 --> 00:12:14.399
Just go, this is something I chose.
00:12:14.720 --> 00:12:16.000
This is something I can get better at.
00:12:16.080 --> 00:12:16.240
Yeah.
00:12:16.480 --> 00:12:18.080
This is not wasted time or energy.
00:12:18.159 --> 00:12:19.759
It's something that I can use next time.
00:12:19.919 --> 00:12:20.080
Yeah.
00:12:20.240 --> 00:12:23.519
And as you say, like there are all these sort of peripheral benefits.
00:12:24.080 --> 00:12:31.840
But I do also think having like a very clear chat with your business and going, This is going to be my focus for X.
00:12:32.559 --> 00:12:35.120
This probably's going to happen every few years.
00:12:35.600 --> 00:12:35.840
Yeah.
00:12:36.240 --> 00:12:38.159
This is I will be out of the business.
00:12:38.320 --> 00:12:42.080
Like, either we need to slow down our execution pace or other people need to step up.
00:12:42.159 --> 00:12:42.320
Yeah.
00:12:42.480 --> 00:12:43.360
Who's going to like?
00:12:43.519 --> 00:12:53.279
Because I think if you're trying to do fundraising and do what you're already doing, I think that just creates almost an unwinnable challenge.
00:12:53.440 --> 00:12:58.879
I mean, yeah, and the team can feel frustrated and the team can be like, you were so absent for the last few months, and it's like, yeah, no shit.
00:12:59.679 --> 00:12:59.919
Yeah.
00:13:00.159 --> 00:13:02.559
But it often is like a lack of expectation management.
00:13:02.639 --> 00:13:06.639
But it equally sometimes the founders, they don't know, like, especially when you're doing it the first time.
00:13:06.799 --> 00:13:09.360
It's like you don't know that you're how much of you it's going to take.
00:13:09.440 --> 00:13:10.559
You haven't yet figured that out.
00:13:10.639 --> 00:13:15.679
And so I think also just the grace of like, yeah, I didn't sometimes like I didn't realize how much energy it was going to take.
00:13:15.759 --> 00:13:17.840
I didn't realize it was going to take me out for this long.
00:13:18.000 --> 00:13:19.840
And next time we're going to have to be better prepared.
00:13:19.919 --> 00:13:28.320
And in the meantime, like, as you said, it's an opportunity for team members to step up and grow in their leadership and um for the founder to feel more supported.
00:13:28.399 --> 00:13:36.159
So they go back into a business where people have really accelerated their growth in the same way that the founder's accelerating their growth by how they're playing the fundraising game.
00:13:36.320 --> 00:13:40.320
Yeah, I think there's there is an opportunity for growth, but often it's it's messy.
00:13:40.399 --> 00:13:47.840
And especially again, like the net if it's your second, third business and you've done, you've been around before, you you preempt these things, you know these things, you get things in place.
00:13:47.919 --> 00:13:49.039
It's it's a different feeling.
00:13:49.120 --> 00:13:50.960
You've like been round the merry-go-round before.
00:13:51.039 --> 00:13:52.559
So you know, you like know what the rides are.
00:13:52.720 --> 00:13:55.919
Yeah, you're not, you're not, and also you're not starting that journey three months before.
00:13:56.000 --> 00:13:58.000
You've been sort of working towards it since the last race.
00:13:58.399 --> 00:13:59.919
Like you're keeping relationships warm.
00:14:00.080 --> 00:14:00.320
Yes.
00:14:00.480 --> 00:14:02.480
You're asking for introductions, you're building a network.
00:14:02.559 --> 00:14:05.279
So you are, you're you're going into the warm thing.
00:14:05.440 --> 00:14:05.519
Yeah.
00:14:05.679 --> 00:14:13.200
I actually think the hardest one, it's acknowledging that sort of the probably the first time you do it is probably the hardest, just because you're in your business anyway.
00:14:13.360 --> 00:14:16.399
So your role doesn't, you don't really have a team to delegate to.
00:14:17.120 --> 00:14:19.919
So your co-founder's got to, if you've got one, it's got to really step up.
00:14:20.240 --> 00:14:22.240
The first time you've done it, you don't know what's good it looks like.
00:14:22.399 --> 00:14:26.639
Although sometimes that's sometimes not knowing the pain you're about to put yourself through can be a be a positive.
00:14:27.360 --> 00:14:33.919
But I think by the time you get to series A, series B and beyond, your team, your role is more on the business anyway.
00:14:34.480 --> 00:14:38.080
So it shouldn't be as disruptive and you should be better at it.
00:14:38.159 --> 00:14:39.600
So yeah, yeah, totally.
00:14:40.000 --> 00:14:50.000
I think I've really taken from what you said is just the mindset going into it and how much define like what is how much is controllable and really lean to those.
00:14:51.120 --> 00:14:55.279
Like they're probably way more controllables than you think.
00:14:55.840 --> 00:14:56.639
Yeah, totally.
00:14:56.799 --> 00:15:07.120
And I often and often the other final piece is like it kind of requires you to be in like peak performance killer mode, like really to be at your best and to be operating your best.
00:15:07.200 --> 00:15:09.519
And when you go into those conversations, you're at your best.
00:15:09.840 --> 00:15:18.480
And not forgetting like almost like what other things around you, like if working out makes you perform at your best, like prioritize working out.
00:15:18.639 --> 00:15:24.480
Like, what are the things around you that like make your eyes alive, make you like really focused, make your brain sharp?
00:15:24.639 --> 00:15:31.840
Like all of those other pieces, I think, become even more important when you're in like pinnacle moments.
00:15:32.240 --> 00:15:35.200
And sometimes for people, they can be the first thing they drop because they're like, I don't have time.
00:15:35.279 --> 00:15:40.960
I'm trying to split myself between fundraising and the businesses, and so then they and my family, and so then there's this feeling of I don't have time.
00:15:41.039 --> 00:15:43.600
But actually, often in those moments is like taking a step back.
00:15:43.679 --> 00:15:44.799
What are the key priorities?
00:15:44.960 --> 00:15:51.679
How do I perform best in those priorities, knowing yourself, knowing what you need, knowing what you need to eat, how much you need to sleep, what where you need to exercise.
00:15:51.919 --> 00:15:55.200
Or you just like, like all humans, you muddle your way through the first time.
00:15:55.360 --> 00:15:57.360
And then the next time you're like, now I get it.
00:15:57.519 --> 00:15:59.679
Now I know what works, now I know what doesn't.
00:15:59.840 --> 00:16:02.000
And then and then you play differently next time.
00:16:02.240 --> 00:16:03.200
Amazing.
00:16:03.679 --> 00:16:05.600
Well, that's it for us this week.
00:16:05.759 --> 00:16:09.519
We will see you next week for another postback episode.
