The truth is, a lot of the startups undertaking a capital raise don’t meet the minimum investor expectations for their chosen funding pathway. Rather than reflecting on their readiness or taking responsibility for this, many founders blame investors instead (I wrote an article on it here). But here’s the reality: raising capital is a process, and skipping steps or rushing it often leads to frustration and failure. You as the founder and only you are responsible for this.
Raising capital for your startup is no small feat (I wrote an article on how long it really takes to raise capital). It’s not just about nailing your pitch or building a sleek deck. It’s a structured, multi-step journey that requires strategy, preparation, and patience. Having been part of 160+ capital raises, I can confidently say that following a methodical approach makes all the difference between a professional, efficient raise and months of wasted time prematurely raising.
Today, I’m sharing my capital raise blueprint that you won’t find anywhere else on the internet as it is a process that is 100% original that I’ve been testing and refining for years.
I break down the capital raise process into four major steps:
Pathway & Qualification
Preparation
Cultivation
Execution
Step 1: Pathway & Qualification
This is the foundation of your capital raise. It’s about asking the hard questions—about yourself, your business, and the kind of investors you need—and being brutally honest about whether you’re ready to raise.
Key Actions:
Reflections: Reflect on your goals, values, vision and challenges which will guide what path and strategy you take.
Funding & Company Strategy: Develop a company and funding strategy that aligns with what your reflections.
Market Sizing: Critically evaluate your potential market size. Like really put some proper thought and logic into it.
Initial Financial Forecast: Work out how much capital you need, why you need it, when you need it and how long it will last.
Ideal Investor Profile (IIP): Determine who your IIP are (I wrote an article on the different types of Aussie startup investors) then understand what criteria makes an irresistible investment in their eyes (traction, opportunity size, team, etc).
Assessing Fit: Now, be truthful and realistic—do you currently meet the expectations of your IIP? If not, you need to rethink whether you raise capital right now and possibly more drastically revise your company's strategy or your company’s existence.
Spotting Red Flags: Address anything that could undermine investor’s confidence (here are a series of article I wrote on red flags - article 1 and article 2).
💡 Pro Tip: By default, most startups are not VC fundable. It is better to know now than to waste many months or years trying to fit something that isn’t suitable. So, if you think you are VC investible, then really interrogate if that is true or not.ney was cheap, investors took bigger risks. Now, investors far more selective..
Step 2: Preparation
Once you’ve determined your pathway and if you should be trying to raise capital, it’s time to lay the groundwork. Preparation is where you build the tools and narrative to engage investors effectively.
Key Actions:
Develop a Compelling Narrative: Investors aren’t investing in where you are today—they’re investing in your potential over their investment horizon (for early-stage startups that is 7 - 10+ years. Craft a high-level succinct story that inspires confidence in your vision, ability to execute and opportunity.
Create Raise Materials:
A teaser pitch deck for warm email intros (to be read by investors in <90 seconds with only one purpose, to book in an initial meeting w you).
A detailed investor presentation for meetings (to be presented by you to investors in the initial meeting).
A pre- and post-termsheet data room with all key documents.
Do some cap table scenario modelling and figure out roughly the terms and structure of your raise.
Warm intro request templates for leveraging your network (one for each a technical and non-technical investor audience if complex tech/biz).
Know Your Numbers: Be ready to discuss your forecasts assumptions, usage data etc in granular detail. Confidence in your numbers = credibility.
💡 Pro Tip: Don’t overcook it. “Close enough is good enough”—you’ll hit diminishing returns if you try to perfect everything upfront.
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Step 3: Cultivation
Here’s the truth: most investors don’t write cheques after a single meeting (especially at the moment given the state of the current market) but some do! Most, need time to build conviction in your business and trust in you as a founder. Cultivation is about nurturing these relationships before you’re actively raising capital.
Key Actions:
Leverage Warm Introductions: Use your network to secure warm intros. If you don’t have a warm intro then get creative.
Don’t Be Transactional: Give investors the time and space to get to know you, follow your journey, run their process, and build trust.
Provide Consistent Updates: Provide monthly or quarterly updates to potential investors. Share wins, lessons, and key milestones.
Be Transparent: Challenges are inevitable—investors value founders who are upfront about how they tackle them.
Qualify Investors Early: Politely but firmly ask questions like:
💡 Pro Tip: Cultivation isn’t just about your business—it’s about you. Be coachable, visionary, honest, and reliable. Relationships are the foundation of fundraising.
Want more Aussie founder cap raising content?
Check out some of my other articles on fundraising.
The Nerd Invites: Harikesh Pushpapathan on Raising Capital in 2025
Pre-Money vs Post-Money SAFE Notes in Australia: What Founders Need to Know
Australian Startup Red Flags That Investors Watch Out For: What You Need to Know
First Investor Meeting? Questions Aussie founders should ask startup investors
How long does it really take to raise startup capital in Australia?
ASIC and Competitors - A Practical Guide for Aussie Founders
Step 4: Execution
This is where all the hard work pays off. Execution is about running a focused, professional process to open and close your round.
Key Actions:
Refresh Materials: If some time has passed since you prepared your investor materials, update them to reflect your progress and learnings.
Book Investor Meetings: Create a concentrated schedule for your investor roadshow. If you’ve done Steps 1–3 well, you’ll have mature relationships and can create competitive tension around your raise.
Run Due Diligence: Be ready to provide whatever investors need during their diligence process. Speed and organisation matter.
Finalise Commitments: Confirm verbal agreements and lock in terms.
Close the Round: Negotiate investment documents, execute them, and get the funds in the bank.
💡 Pro Tip: Only launch your raise when you’re confident there’s enough investor interest. Time kills deals—and founders.
Final Thought
Raising capital is a marathon, not a sprint. Each step—Pathway & Qualification, Preparation, Cultivation, and Execution—builds on the last. Skipping steps might feel like a shortcut, but it’ll cost you in missed opportunities, wasted time, or worse, a failed raise.
Take the time to get it right (but not too much time!). Your future self (and your investors) will thank you.
Would you like me to dive deeper into one of these steps in my next article? Let me know!
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Hi - I’m Warwick Donaldson—capital raising expert, and unapologetic advocate for Australian startups. Across my career, I’ve worked on 160+ equity raises totalling over $400m. I pride myself on helping early-stage founders secure funding, avoid costly mistakes, and build investor confidence.
If you’re a founder looking to raise capital, attract top-tier investors, and build a generational business—then hit me up for a chat.
Disclaimer: Excentricity Pty Ltd, trading as CapXcentric (ABN 42 679 978 959, AFS Representative No. 001311296) is a Corporate Authorised Representative of True Oak Investments Pty Ltd (ABN 81 002558 956, AFSL 238184). The information provided in this article is intended for companies and startups and is not directed towards investors. Any statements or representations are general information only and do not take into account your personal objectives, financial situation or needs. Readers are advised to have regard to their own circumstances and consider seeking specific advice from a professional adviser before making any business decisions. No representations are made as to the accuracy, completeness, or reliability of any information provided in this article. Readers use the information provided at their own risk.