SignalFire’s $1 billion raise focuses on data-driven bets in AI and health tech. For founders starting out, how do you research a VC’s playbook—say, their sector focus or stage preference—before pitching? Discuss digging into websites, X posts, or news to avoid barking up the wrong fund.
Many first-time founders make a common mistake when approaching VC funds.
Every VC fund operates under a fund mandate—essentially, a contract between the fund and its investors outlining what kinds of investments it can make. Before reaching out to any VC, founders should carefully review the fund’s mandate to determine whether their startup fits within those parameters.
Don’t waste time pitching to a fund that legally can’t invest in you.
If you don’t meet the mandate’s criteria exactly, the fund likely won’t be able to invest without risking compliance issues. Also, reaching out too early can hurt your chances later. You might qualify for their mandate a year from now, but if you’ve already pitched and been rejected, you’re “old news” by the time you’re a good fit.
Secondly, look for synergies with their existing portfolio.
Check if there are complementary companies they’ve already invested in. This can help you craft a stronger, more targeted pitch—and shows that you’ve done your homework.