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As entrepreneurs, we often find ourselves caught in the “feast or famine” cycle of raising capital.
We either put in no effort to raise money or it consumes all our time and energy.
This is a flawed approach, and it’s why the most successful CEOs understand that the right time to raise capital is always.
Too many entrepreneurs miss out on opportunities to secure funding from small balance check writers, typically in the range of $25K to $100K, because they don’t have a scalable system for capital raising.
Without a system in place, you’re left scrambling during desperate times instead of building a steady flow of investments that can fuel your company’s growth.
Based on what I’ve observed in our community, many founders are trapped in this cycle, putting in no effort to raise capital until they’re in dire need, at which point it becomes their full-time job.
This approach not only leads to unnecessary stress but also risks the long-term health and growth of your company.
The most crucial piece of advice I give to every CEO in growth mode is simple: do something every single day to build your capital base.
This doesn’t mean casually networking at the country club and hoping you stumble into an investment.
Instead, it means actively warming up the market, creating buzz, and developing relationships that keep fresh sources of capital flowing consistently.
Here are some actionable steps you can take to keep the momentum going:
These may seem like small tasks, but they’re far from insignificant.
By consistently engaging in these activities, you can ensure that when the time comes, you’ll have access to the capital you need to fuel your company’s growth.
Over 20 years of experience has taught me that while everyone wants the big multi-million-dollar checks, smaller sources of capital play a crucial role in building your track record.
These smaller checks demonstrate to larger investors that you can manage your cap table effectively.
You don’t need a black-magic-level pitch to secure these smaller investments, but if you haven’t pitched well, these investors won’t be able to effectively advocate for you to bigger players.
Without their support, you’ll be stuck in the small check realm indefinitely.
One of the most important concepts I teach is “Narrative Transport,” which I discussed in Pitch Anything.
It’s not enough to simply excite investors; they need to be able to explain your value proposition to others in a clear and compelling way. If they can’t, you’ll struggle to scale your capital-raising efforts.
When your pitch materials are organized in a way that others can easily share and explain, you unlock access to higher tiers of capital.
This is how you level up from small balance check writers to securing the big checks that can transform your business.
The takeaway is clear: consistently raising capital should be a daily priority for any CEO in growth mode.
By implementing a scalable system and engaging in daily activities that warm up the market, you can avoid the feast or famine cycle and ensure your company has the fuel it needs to grow and thrive.
Remember, the most successful CEOs don’t wait for the perfect time to raise capital—they’re always raising it.
-Oren