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You are at:Home»Venture»The market has “changed” and founders now have the power, VCs say
Venture

The market has “changed” and founders now have the power, VCs say

techtost.comBy techtost.com11 December 202503 Mins Read
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The Market Has "changed" And Founders Now Have The Power,
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The way venture capitalists think about fundraising can be a black box. However, investors need to think about their strategy for raising equity capital just as they think about how their portfolio companies find the right market.

All season long on Build Mode, we’ve explored how founders should approach marketing, but this week we’re exploring how VCs are sold to founders as trusted partners and LPs as worthy investments.

Isabelle Johannessen spoke with Leslie Feinzaig of Graham & Walker and Ross Fubini of XYZ Venture about raising their first funds and how that experience gave them empathy for the founder’s fundraising experience.

Feinzaig went into venture capital with very few industry connections. “It was hundreds of pitches. It was almost entirely generated by individuals. We ended up with 105 LPs,” he said. “If you don’t have a track record, then what they’re investing in is you. Like basically, like you’re raising a huge angel round with no lead.”

With this outsider’s perspective he was able to position himself as the call founders make before they meet with their board to practice and discuss strategy.

Likewise, Fubini encourages the leadership teams he works with to carefully consider who they partner with. His rubric follows three basic principles: person, company, terms.

“You’ve been working with this person forever. So it’s all like, are they fun? Do you trust them? Do they have the juice to close the deal? It’s all about that person,” he said.

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Both VCs noted the shift from the most recent bear market of 2022-23 – where VCs held all the cards – to the current impatient trading atmosphere where founders have a bit more power. That makes choosing the right VCs that much more important, they say.

Fubini called this shift “exciting” because, while both sides still have to do their due diligence and make sure they’re a good fit, “you can move so fast” compared to cautious bear markets. “I think it’s fun and happy,” he said.

Both Feinzaig and Fubini are full of tactical advice for both VCs looking for creative ways to get founders’ attention and founders looking for the smartest options for their tables.

The pitch deck and cold emails may not have the power they once did, but building authentic relationships and proof-of-performance remain the best strategies for attracting the kind of people you want to work with — on both sides.

New episodes of Build Mode drop every Thursday subscribe to the podcast or watch YouTube. Isabelle Johannessen is our host. Build Mode is produced and edited by Maggie Nye. Head of Audience Development is Morgan Little. And a special thanks to the Foundry and Cheddar video teams.

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