Fundraising Intermediaries? Why Entrepreneurs Don’t Do It, And Where It Still Makes Sense

2 min read

When it comes to startup fundraising, using intermediaries is looked disfavorably in many if not most ecosystems. Three key reasons for this trend — more investors around, technology has made coordination and communication increasingly easier, entrepreneurs have become savvier about fundraising. In fact, in Silicon Valley at least it is expected CEOs lead fundraising and typically a strong negative signal if they don’t. The further expectation is that you will work with existing investors to get intros to future investors. Indeed a banker-led process invariably leads to the question of why the entrepreneur wasn’t able to raise directly. All that…...

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Amit Garg I have been in Silicon Valley for 20 years -- at Samsung NEXT Ventures, running my own startup (as of May 2019 a series D that has raised $120M and valued at $450M), at Norwest Ventures, and doing product and analytics at Google. My academic training is BS in computer science and MS in biomedical informatics, both from Stanford, and MBA from Harvard. I speak natively 3 languages, live carbon-neutral, am a 70.3 Ironman finisher, and have built a hospital in rural India serving 100,000 people.