Demystifying the Fundraising Process—From First Meeting to Closing the Deal

For founders, the fundraising process can feel like a black box that is more art than science and full of jargon, shifting timelines, and high stakes. Yet, understanding the typical steps and expectations can make the difference between a smooth capital raise and a frustrating, drawn-out ordeal that risks your company's ability to grow. We’ve guided hundreds of startups through their first (and subsequent) rounds of financing. Here’s our take on what the fundraising journey really looks like, what founders should expect at each stage, and how to set yourself up for success.

Preparing Before the First Meeting

Company readiness: Ensure formation and structuring is complete, team is on board, founders’ stock is issued and cap table is set up and clean and IP is assigned to the company, and agreements with third parties are within market terms and are signed up. Investors want to see a buttoned-up structure.

Storytelling: Refine your pitch deck to clearly explain the problem, solution, market size, traction, business model, and why your team is uniquely suited.

Financial model & data room: Have financial projections, key metrics, customer pipeline, and a preliminary data room ready. You don’t need everything, but being organized builds credibility.

Target list: Research the right investors for your stage/sector. Warm introductions increase your odds of a first meeting.

Understanding the Fundraising Timeline

The path from initial investor contact to a closed deal is rarely linear. While some rounds come together in a matter of days, most take weeks or even months, and personal relationships are long-term. The process is iterative, with each step building on the last. Here’s a breakdown of the typical stages:

1. Initial Meeting
   1. Goal: Secure interest, not investment. You’re aiming for a “next step,” often a partner meeting or deeper diligence.
   2. The journey begins with an introduction—often through a warm referral, a pitch event, or a direct outreach. This first meeting is a pitch but about more than just your pitch deck; it’s a chance for both sides to assess fit. Investors want to see a compelling team, a real problem, a differentiated solution, early signs of traction and vision. Founders should be prepared to answer high-level questions about the business model, market size, team background, competition, and go-to-market strategy. Remember you also want to find a fit with investors who add value beyond money (introductions, strategic expertise, credibility). Think long term relationships.
   3. Tip: Do your homework on the investor. Tailor your pitch to their interests and portfolio. Be concise, honest, and open to feedback.
   4. Initial Due Diligence: If there’s mutual interest, investors will dig a little deeper. Early due diligence is typically oriented around the business—think follow-up questions, requests for a more detailed deck, a look at your tech/product, business model, metrics, financials/forecasts and key relationships. The goal is to confirm that there is an opportunity for investment.
   5. Tip: Have your basic data ready. A clean a summary of these responses to business due diligence questions can help you stand out.
2. Follow-Up Meetings
   1. Serious investors will want to involve more of their team. Expect additional meetings with partners or subject matter experts. These sessions may focus on technical due diligence, customer references, or a deeper dive into your financials, go-to-market strategy and growth metrics.
   2. Tip: Be transparent about challenges and gaps. Investors appreciate founders who know what they don’t know and are actively working to address it.
3. Term Sheet Negotiation
   1. Once interest is strong, investors issue a non-binding term sheet outlining valuation, investment amount, governance rights, liquidation preferences, board rights, consent rights and other key terms. If you’ve made it this far, congratulations—an investor is interested in leading your round. The term sheet outlines the key economic and control terms of the investment: valuation, amount raised, board composition, liquidation preferences, and more. While it’s usually non-binding, the term sheet sets the tone for the rest of the process.
   2. Tip: Don’t rush to sign. Consult with experienced counsel to understand the implications of each term. Remember, the “headline” valuation is just one piece of the puzzle. Consult with your advisors to understand trade-offs (e.g., control vs. valuation, board composition, protective provisions). The goal is to optimize for both economics and long-term company growth. Stay founder-friendly: Remember, you will likely raise multiple rounds. Look to create balance over the long term and avoid over-conceding on governance or preferences early.
4. Execution of Term Sheet
   1. Once both sides negotiate terms they can agree upon, the term sheet is signed. Congratulations! You made it to the beginning. Now the real work begins. This signals to other investors that the round is coming together and often triggers more detailed due diligence. Business and technical due diligence continues in more detail. Legal due diligence will commence and include formation and governance documents, IP ownership - assignments and licenses, employment agreements, third party agreements and outstanding liabilities and ongoing obligations. Some rounds move quickly from here; others may stall if new issues arise.
   2. Tip: Keep momentum high. Communicate regularly with all lead and co-investor parties and be responsive to requests.
5. Extensive Due Diligence
   1. Investors will review your legal, financial, and operational documents in greater detail. This may include deeper dives into customer contracts, partner relationships, employment agreements, IP ownership and licensed rights, IP filings, financial statements, regulatory compliance more. The goal is to confirm that everything is as represented and to identify any risks that would keep the investor from investing or investing on these terms.
   2. Tip: Organize your data room early. The more prepared you are, the faster this stage will go—and the more confidence you’ll inspire. Disclose potential issues (IP, employment, prior investors) upfront; investors dislike surprises.
6. Preparation and Negotiation of Financing Documents
   1. With due diligence underway, lawyers on both sides will draft and negotiate the definitive agreements: in priced equity rounds, these can include stock purchase agreement (details purchase price, reps and warranties, closing conditions), amended charter (contains the rights of the equity including liquidation preferences, anti-dilution protection, protective provisions, redemption rights), investor rights agreements (information rights, registration rights, pre-emptive rights), right of first refusal and co-sale agreement (restricts transfer of founder shares and gives investors co-sale rights), voting agreements (board composition and voting arrangements) and any side letters with special rights of investors. These documents translate the term sheet into binding commitments.
   2. Tip: Lean on your legal team, but continue to be engaged. Make sure you understand the key provisions, what needs to be negotiated and how they affect your company’s future.
   3. Clean-up: Counsel helps the company ensure all prior SAFEs/convertible notes convert, stock options are documented, the cap table reconciles and the data room contains documents relevant to the investor's due diligence request.
7. Signing and Closing
   1. Closing checklist: Company counsel prepares a checklist of deliverables (board consents, stock certificates, legal opinions in some priced rounds, updated charter).
   2. Once all documents are finalized and signed, the restated charter is filed and received back, deliverables are exchanged, funds are wired and the deal is closed. Sometimes, closings happen in stages (“rolling closes”) as investors come on board. Other times, all parties sign and fund simultaneously.
   3. Tip: Celebrate—but also prepare for the next phase. Investor relations and reporting, board meetings, post-closing obligations and executing on the business plan you sold to investors are now part of your company’s DNA.

How Long Does It Take?

While some seed rounds close in days or a week, most take 4-12 weeks from first meeting to close. Series A and later rounds can get done in 30 days but most take even longer, sometimes several months, especially if there are multiple investors or complex diligence issues. The best way to keep things moving? Run a structured process with multiple investors engaged: Preparation, transparency, clear communication - and natural FOMO.

Our Take

Fundraising is as much about process as it is about persuasion. Fundraising is not a single meeting—it’s a process of building trust, aligning on terms, and proving readiness. Founders who understand the typical steps, anticipate investor needs, and stay organized dramatically increase their odds of a successful raise.