Two common fundraising mistakes founders should avoid

Fundraising can be one of the most pivotal (and stressful) moments in a founder's journey. Done right, it opens doors to growth and opportunity. Done wrong, it can signal red flags to investors and close doors before you even get started. Over the years, I’ve noticed two recurring mistakes that early-stage founders make during fundraising. These missteps are entirely avoidable, yet they’re surprisingly common especially for founders new to fundraising (& in CEE).

Let’s break them down.

1. Asking investors how much you should raise

One red flag is founders asking investors, “How much do you think I should raise?” when pitching. This signals two things: a lack of preparation and a lack of confidence

 As the founder, you know your business best. You understand your product roadmap, your hiring needs, and how much capital it will take to hit your next big milestones. If you’re asking investors to make that call for you, it suggests you haven’t done the homework.

 A similar variation of this mistake is when founders say something like, “We’re thinking of raising at least this much, but it depends on how you see things.” While it might sound collaborative, this approach still signals uncertainty. Investors don’t want to feel like they’re guiding the ship - they want to see that you’ve mapped out the course and are confident in your plan.

 So, do your homework first. Work through the numbers, draft a clear plan, and, most importantly, get feedback—whether that’s from mentors, advisors, or even trusted investors before you start pitching. If you’re not prepared or still feel unsure, it’s far better to postpone the meeting. Showing up unprepared can leave a lasting impression of uncertainty, which can be difficult to undo. A delay is temporary, but a weak first impression can be permanent.

 What investors do appreciate is a clear, well-thought-out plan. Show them the logic behind your ask: how much you’re raising, how long that runway will last, and what you’ll accomplish during that period. If they see gaps in your plan or ways to optimize it, they’ll share their feedback. But don’t expect them to create the plan for you—that’s your job as a founder.

2. Name-dropping other investors without substance

In a world where momentum matters, founders often think name-dropping other investors can create FOMO. You might say, “I’m already in talks with X, Y and Z investors” The goal, of course, is to add credibility and make the opportunity seem urgent. But here’s the catch: it’s a very small world.

Investors talk. They know each other. And it’s easier than you think for them to validate whether you’re truly in advanced discussions—or just trying to bluff your way into their checkbooks. Once they find out you just sent a deck to that investor, your credibility takes a nosedive. Trust is fragile in fundraising, and the last thing you want is to start your relationship with an investor on shaky ground.

 Tip: Instead of overhyping non-existent momentum, focus on being transparent about where you are in the process. If you don’t have term sheets yet, emphasize your progress, traction, and vision instead of leaning on the illusion of external validation. Authenticity goes a long way.

Final thoughts: build trust, not tricks

Fundraising isn’t just about the money—it’s about building relationships. Investors want to back founders who are thoughtful, prepared, and trustworthy. Falling into the traps of lack of planning or name-dropping might feel like shortcuts, but they almost always backfire.Fundraising isn’t just about the money—it’s about building relationships. Investors want to back founders who are thoughtful, prepared, and trustworthy. Falling into the traps of lack of planning or name-dropping might feel like shortcuts, but they almost always backfire.

Instead, focus on doing the work. Know your numbers, craft your story, and approach investors with confidence and integrity. Momentum is powerful, but it’s best when built on substance, not smoke and mirrors.

 If you’re a founder gearing up for fundraising, take a step back and ask yourself: Am I ready to inspire trust? Because that’s the foundation of every successful funding round.