At FIRSTPICK, we review more than 100 fundraising startups every month, from new applicants to ongoing conversations in our pipeline. We also work closely with our 30+ portfolio companies as they progress from pre-seed to seed and beyond.
Through this hands-on exposure, and by digging deep into market signals while preparing the Baltic Startup Funding Report, we get a unique inside view of what works, what doesn’t, and why some rounds close faster than others. Based on that, we’ve compiled these 12 practical tips to help founders navigate the fundraising journey more effectively.
1️⃣ Understand the landscape: numbers first
According to our Baltic Startup Funding Report, the region now sees around 70-90 pre-seed rounds annually, averaging €400K in size, with seed rounds hovering around €2M, slightly down from peak levels. Around 40% of these rounds happen in Lithuania. Importantly, a large chunk of pre-seed rounds are still driven by accelerators and angel syndicates, creating a distorted picture of early-stage funding volume.
Zoom out and the picture becomes clearer: fewer than 5% of all founders trying to raise capital actually secure VC funding. That means preparation is everything. Less than 50% of pre-seed rounds successfully raise seed rounds further. Accepting the reality makes this numbers game more practical.
2️⃣ Fundraising is not a trend, it’s a strategic choice
Not every business needs VC money. Not every business is a startup. If you’re building a services company, a niche product, or a business with slower, organic growth, you might be better off with bootstrapping (funding from your own revenue), grants, or other financial instruments like soft loans or convertible notes from public programmes. These paths offer more control and flexibility, and they don’t put you on the VC treadmill.
Raising venture capital means you’re signing up for a high-growth, high-pressure journey with clear expectations: scale fast, dominate a market, and return at least 10x+ to investors. It’s not for everyone, and that’s fine. But if you’re choosing this path, treat it like a serious, high-stakes campaign. Fundraising will shape everything: your roadmap, your hiring, your speed.
3️⃣ Expect 95% rejection, literally
The average rejection rate at VC funds is around 95%. In some cases, 98%. That means you’ll likely need to speak with 30-40 investors just to find the one that’s interested.
Common friction points we see at FIRSTPICK:
- Founders pitch the product, but not the business
- Lack of ambition: focusing on safe local markets instead of thinking globally
- No clear North Star metric, or no metrics at all
- Founders not fully committed (part-time, unclear roles)
- Cap table issues or early red flags
- No clarity on the fundraising strategy, how much, why now, and what it enables
4️⃣ Learn the maths that drives VC thinking
Most first-time founders are surprised by how VCs think. Start by understanding fund economics, how returns are calculated, portfolio theory, and what outcomes investors are betting on. This will sharpen how you pitch and frame your numbers and vision.
Here’s what I’ve consistently seen as the big miss and the smartest play from founders:
🫣 Most overrated move: quoting a large market size (TAM) without showing a credible plan to address it. A €50B market sounds impressive, but without an actionable plan, it’s meaningless.
🤩 Most underrated move: knowing VC fund’s strategy beforehand. If you say, “I saw your last investments leaned into B2B SaaS with strong expansion metrics, here’s how we align with that,” it shows respect, preparation, and intent. A rare combination.
5️⃣ ICs, analysts, and the politics of a “yes”
Decisions in VC firms are made by investment committees (IC). Even if you’ve convinced one partner, they must still persuade the rest.
I’ve seen deals die at the IC level, even after strong partner interest, because other partners weren’t convinced.
VC analysts are not gatekeepers to ignore. They’re ambassadors who can be your inner eyes and ears. If they believe in you, they’ll advocate strongly internally.
6️⃣ Ask smart questions to measure real interest
After any investor pitch call, ask:
- Does this fit your current investment focus?
- What cheque sizes are you writing now?
- What would be the next step if this moved forward?
💡 For example: if VCs mention “we’ll discuss it at our next IC”, it’s not a yes, but it’s not a no either. Next steps, follow-up questions, or internal alignment signals that you’re on their radar.
7️⃣ Ghosting happens, don’t take it personally
Investors ghost. It happens. Move on and categorise your rejections into:
- Clear no
- No reply
- “Not now” (a possible future revisit)
8️⃣ Use rounds of feedback to build progress
Run your fundraising in waves:
- Wave 1: friendly investors and mentors for feedback
- Wave 2: mid-tier VCs to refine your pitch
- Wave 3: top-choice investors when your pitch is strong
This lets you de-risk early missteps and build confidence. We see the best founders use early feedback rounds almost like free mentoring before going big.
9️⃣ Don’t overprice your first round
Negotiation is a valuable founder skill, and you should use it during fundraising. But pushing for an inflated valuation too early can backfire. It’s not just about getting the best deal now, it’s about thinking two steps ahead.
💡 For example: you raise €400K at a €4M valuation while still being pre-revenue. To justify your next round (Seed) at a healthy markup, you’ll need to raise at least €1M-€2M at an €8-10M+ valuation.
Ask yourself: can you show the traction needed to support that jump?
If you haven’t hit meaningful revenue or growth milestones, the next round will be tough, or might come with painful dilution or down-round dynamics.
Bonus Tip #1: Make your dataroom bulletproof
You’d be surprised how many deals fall apart after initial interest simply because the dataroom is a mess. Be prepared: cap table, key metrics, latest deck versions, ESOP plan, incorporation details.
Bonus Tip #2: Build excitement, but don’t fake it
Being in talks with multiple investors can help close a round, but don’t lie or exaggerate. It backfires fast in small ecosystems. If you have soft commitments, mention them honestly.
Bonus Tip #3: Think two rounds ahead
Fundraising doesn’t stop when the money lands. Every call today should also contribute to your next round’s pipeline.
💡 For example: we always advise founders, treat every current call as the start of your next round funnel.
Final Thoughts
Fundraising is hard. It will test your patience, communication, and resilience. But if you prepare well, stay consistent, and don’t give up, you’ll have a real chance at joining the 2% of startups that succeed.
If you’re preparing to fundraise or already fundraising, we hope this gives you a solid head start.
Want to explore working with us? Apply at FIRSTPICK. Let’s make your 2% shot count.