Optimize your fundraise

Today’s equity-savvy founders are including customers, partners, prospects, and influencers alongside traditional VCs in their financings. This gives founders a wider network of connections and collective expertise to tap. Making the extra effort to recruit high-value investors gives founders a better shot at a greater outcome.

A “party round” used to be an untenable mess. Now tools like AngelList, Carta, and Cabal make large investor syndicates not just feasible, but a competitive advantage.

Here’s how to nail your party round:

  1. Lock in an anchor investor (usually a VC firm) to set the terms for the round.
  2. Determine the round composition: how much for the lead, existing, and new investors.
  3. Compile a “wish list” of new investors who have high contribution potential. Start with a long list - you’d be surprised how many people would love to be an angel investor if given the opportunity. This Wish List Template can help you stay organized.
  4. Arrange short meetings with your Wish List. For those you are not directly connected with, ask mutual connections to facilitate an intro (draft an intro email for them in Cabal).
  5. Play “Allocation Tetris” to divvy up the new investor allocation across interested Wish List investors. Let investors know their allocation, timing for closing the round, and when they should expect to receive wiring instructions.
  6. Send docs and wiring instructions. Work with your attorney to facilitate this process. Consider using AngelList’s RUV, Carta, or Cabal to streamline the experience for you and your investors.
  7. Keep your investors engaged. Forming the syndicate is not enough. After the excitement of the round fades, the real work begins. Founders must keep investors engaged to realize their contribution potential.

We built Cabal to make investor recruiting and engagement easy for both founders and investors. Maintain a target investor list, send SAFEs, and automatically surface contribution opportunities all within Cabal. For more on optimizing your asks and updates, see How to get more out of your shareholders.