When to Pivot Your Startup with Michael True
Michael True, co-founder of Prescient AI, joined The Fundraising Debrief following their $4.5 million seed fundraise.
Why the "DIY approach" to Series A fundraising is actually the riskiest strategy.
Ariana Amirkhanian
Here's a question most technical founders don't ask until it's too late: What's the real cost of managing your Series A fundraising manually?
Most founders think about the obvious costs β time spent researching investors, crafting emails, managing follow-ups. But they miss the bigger picture: opportunity cost, market timing, and the compounding effect of inefficient processes in an increasingly competitive landscape.
Let's be honest about what manual Series A fundraising actually looks like:
π Research Phase: Weeks spent building investor lists from scattered sources, trying to figure out which partners are actually active, what their thesis is, and whether they're even taking meetings.
βπ» Outreach Phase: Cold emails with 2-3% response rates, if you're lucky. Most founders send hundreds of emails and struggle to get a handful of meetings.
π©βπΌ Management Phase: Tracking conversations across email threads, trying to remember what you discussed with which investor, missing follow-ups, and losing momentum.
πΈ The Hidden Costs: While you're playing email tag, your competitors are building product, acquiring customers, and hitting metrics that make fundraising easier.
Series A isn't just a bigger Seed round. The bar is higher, the competition is fiercer, and the margin for error is smaller. In today's market, you can't afford to waste time on the wrong investors or miss the right ones.
Philip Odelfelt, founder of Datavations, learned this firsthand. As a technical founder still serving as PM and heavily involved in sales, he was heading into peak season while needing to raise a Series A in challenging market conditions.
The math was simple: manual fundraising would consume hundreds of hours during the most critical period for his business.
Here's what most founders don't realize: the best investors aren't found through Google searches or Crunchbase filters.
When Datavations used Flowlie's network analysis, they discovered over 3,200 warm introduction paths to target investors. These weren't connections Philip could have found manually β they were second and third-degree relationships that only became visible through systematic network mapping.
π The result? 70+ initial meetings with highly targeted investors and an 80% conversion rate to follow-up meetings. Compare that to the typical cold outreach success rate, and the value becomes clear.
The biggest hidden cost of manual fundraising isn't the hours spent β it's the attention divided.
Series A fundraising requires you to be sharp in investor meetings, articulate about your vision, and responsive to feedback. When you're drowning in logistics, you can't show up as the focused, strategic leader investors want to back.
Philip's experience illustrates this perfectly. By using systematic fundraising, his team saved over 200 hours that would have been spent on investor research, outreach, and follow-up management.
In a market where Seed-to-Series A graduation rates have down 50% since 2018, every advantage matters. Manual fundraising isn't just inefficient β it's risky.
Timing Risk: Taking 6+ months to close a round increases market risk and dilution.
Targeting Risk: Approaching the wrong investors can damage your reputation and waste precious time.
Opportunity Risk: While you're managing logistics, you're not building the business that makes fundraising successful.
The question isn't whether you can afford to invest in systematic fundraising. The question is whether you can afford not to.
π Consider this framework:
Time Investment: How many hours will you spend on fundraising logistics vs. building your business?
Network Access: Do you have warm paths to hundreds of Series A investors, or are you relying on cold outreach?
Market Positioning: Can you afford to waste time on poorly targeted investors in a competitive market?
Risk Tolerance: Are you comfortable with the increasing risks of manual fundraising in today's environment?
Smart founders are recognizing that systematic fundraising isn't a luxury, but a competitive necessity. The founders who succeed in Series A fundraising are those who leverage every available advantage to maximize their chances of success.
The cost of systematic fundraising is measurable. The cost of a failed or delayed Series A round is devastating.
The choice is yours, but the math is clear.
π Want to see the full breakdown? Read the full case study.
π Ready to experience the difference? Book a call and see how we can help you.
Join thousands of founders using our technology to find the right investors and close rounds faster than ever before.
Michael True, co-founder of Prescient AI, joined The Fundraising Debrief following their $4.5 million seed fundraise.
Getting told "no" when selling something you believe in that your livelihood depends on is very difficult. Learn how to transform investor rejections into valuable opportunities by collecting feedback, and strategically planning your path to eventual funding success.
Phil Odelfelt, Founder & CEO of Datavations, recently joined our podcast The Fundraising Debrief following his successful $4.2 million seed raise.