I recently came across a picture of Ciaran Byrne and me taken back in 2007, taken just after our 6th formal pitch to a Dublin-based VC/capital source while trying to raise funding for our venture INSERO. At that point, we’d faced rejection after rejection. But on our 7th attempt—lucky no. 7—we finally secured our lead investor through the DBIC-Dublin Seed Capital Fund. That investment set our valuation and enabled us to bring in Enterprise Ireland and two private angel investors to complete our round. The persistence, the grind, and the lessons learned during that process shaped how I now approach business and fundraising.
If you’re trying to raise funding for your first startup, here are the biggest pitfalls to avoid.
- No Paying Customers
Having a polished pitch deck is nice, but investors want to see real, paying customers. Early-stage funding isn’t just about the idea—it’s about proving that people will pay for it. If I could go back, I’d focus more on getting customers first, not just selling a vision. - No Clear Path to Profitability
Raising money to grow is one thing, but what’s the actual plan for making money? In my early days, I was more focused on how much we could raise than how we’d sustain ourselves long-term. Investors aren’t just looking for growth—they want to see a clear roadmap to profitability. - Weak Differentiation
Saying “we’re like X but cheaper” is not a strategy. Competing on price alone is a losing game. If I could advise my younger self, I’d say: “Figure out what truly makes you unique and lean into that. The market doesn’t reward copycats.” - Lack of Urgency
The best founders operate with urgency and execute fast. If you’re “exploring ideas” or waiting for the perfect moment to raise, you’ve already lost. When I first raised capital, I sometimes hesitated, thinking we had more time than we did. Looking back, I should have pushed forward faster. - Raising Too Early
Too many startups try to fundraise before they’ve proven anything. If you need VC funding just to get off the ground, you may be building the wrong business. I learned this lesson firsthand—traction speaks louder than any pitch. Show momentum before you ask for money. - No Distribution Strategy
A great product isn’t enough—how will you actually acquire customers? First-time founders obsess over features, but experienced founders obsess over distribution. If I could go back, I’d focus more on building a repeatable process to get customers, rather than assuming they’d just show up. - “I Need to Hire Someone for That” Mentality
In a startup, you have to do the hard stuff yourself before delegating. Early on, I sometimes thought we needed a specialist for every function, but that slowed us down. The best founders figure things out, get their hands dirty, and only hire when necessary. - Failure to Attract Great Talent
Your early hires set the foundation for everything. If you can’t convince great people to join, you either have a weak vision—or you’re the weak link. If I could do it again, I’d spend more time bringing in the right people early on. - No Skin in the Game
If you’re not willing to invest your own money or make personal sacrifices, why should anyone else bet on you? Investors want to see that founders are fully committed, not just testing the waters. Looking back, I would have been even more all-in from the start.
These are the things I wish someone had told me when I was first raising capital. If you’re an early-stage founder, learn from those who’ve been there before, avoid these traps, and set yourself up for success. If you are currently looking to raise capital and really believe in your project, why not get in touch to see if we could work together – send me a message here.