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Athlete-Founders, Please Don't Do These 3 Things

Author

Noah Lack
August 23, 2024

Let’s Skip The Small Talk…

Sometimes I forget Silicon Valley is a bubble. I mean this in a good way. I have ample resources and see best practices from the fastest rising entrepreneurs on how to fundraise for their startup.

I keep this in mind because lately I have chatted with a bunch of athlete-entrepreneurs from around the world. Some of their fundraising tactics are head scratching and concerning…

Like how do you come up with this stuff?! The fundraising process is not something you should be innovative with.

Fundraising can be incredibly hard even if you go about it the right way, but I felt it was right to list out three things the athlete entrepreneur should not do when raising money for a startup.

Issuing Equity for Introductions

If someone is asking for equity in exchange for introductions with other investors, run for the hills.

What goes around comes around in the investing world, the universe will reward folks who introduce good people to good people.

Asking for equity because they introduced you to an investor feels exploitative, since you can get to that person another way if you really wanted to.

Hiring A Firm To Fundraise

Ohhhh lord did you read the contract before you hired a third party to do your raise? I doubt it, and it’s going to screw you over.

Another bad move, you should be fundraising for your company, not a stranger.

Taking “Dumb Money” vs. “Smart Money”

Where are your checks coming from?

Who’s money is going to help take the startup to the next level in the long term?

Did you really vet the investors that put money into the company?

These are questions I’d like to hear athlete-entrepreneurs ask themselves more!

Don’t just take quick money from anybody.

There’s a lot more I will share down the line, but I know you. You have a short attention span, like me.

If found this information valuable, plug your email in here and you’ll hear from me every week.

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