Ask for the Investors You Want
Declare the real strategy so aligned investors self-select into the company
- Difficulty
- Moderate
- Time to result
- ~weeks to results
- Steps
- 6
- Confidence
- 94%
Ask for the Investors You Want treats fundraising as an alignment mechanism rather than a contest to maximize immediate interest. Founders explicitly communicate the company's likely trajectory, market timing, capital needs, operating philosophy, and uncomfortable risks. Prospective investors then self-select according to whether they support that reality. Against Gravity told investors that mainstream VR adoption could take years, prescribed the approximate amount and valuation of its round, and explained that new capital would buy time for the existing iterative formula rather than trigger a sudden growth-at-all-costs shift. The result is a cleaner psychological and governance contract: founders can operate against promises they genuinely believe, while investors know what milestones, delays, and strategic investments they are underwriting.
Origin
Against Gravity used explicit terms, a sober view of VR adoption, and a long-horizon product strategy to attract investors willing to finance the company it actually intended to build.
Core principles
- 01Fundraising promises shape future investor relationships
- 02Honest strategy attracts partners prepared for the real journey
- 03Long-horizon companies need investors with matching time frames
- 04Clear expectations reduce post-financing conflict
- 05Capital should extend a working strategy rather than distort it
How to run it
- 1
Model the Real Journey
Estimate hiring, spending, market timing, and the milestones required before the next inflection point. Include downside scenarios rather than only the preferred outcome.
Pro tip Anchor runway to a strategic milestone, not an arbitrary round size.
Watch out Optimistic forecasts presented as certainty create future conflict.
- 2
Name the Uncomfortable Truths
Tell investors what could take longer than expected and which assumptions remain unproven.
Pro tip Explain the operating plan if the market develops more slowly.
Watch out Do not hide material risks merely to increase demand for the round.
- 3
Specify the Financing
State how much capital the company seeks, the proposed terms, and what that capital enables.
Pro tip Connect every major use of funds to runway or strategic learning.
Watch out Prescriptive terms require credible reasoning and may reduce the number of interested firms.
- 4
Protect the Working Formula
Clarify which operating principles will remain unchanged after the round and which capabilities will expand.
Pro tip Treat capital as time to compound validated learning when the existing formula works.
Watch out More money can introduce harmful complexity if spending becomes the objective.
- 5
Test Investor Alignment
Ask how the investor views the market timeline, milestones, and likely setbacks. Compare their answers with the strategy presented.
Pro tip Use reference calls to verify how the investor behaves when progress takes longer than planned.
Watch out A prestigious name cannot compensate for fundamentally different expectations.
- 6
Formalize Long-Term Accountability
After closing, use board discussions to connect short-term execution with the multi-year vision promised during fundraising.
Pro tip Review neglected long-term investments as well as near-term metrics.
Watch out Do not allow the original strategic agreement to disappear beneath operational minutiae.
In the wild
Against Gravity believed mainstream standalone VR hardware remained years away. It modeled its hiring and spending around surviving until a likely market inflection, requested a roughly $4 million round on specified terms, and told investors that the company would keep iterating rather than suddenly pursue immediate monetization.
→ The company attracted investors prepared to fund long-term product development and preserve its operating formula.
A climate-hardware founder tells investors that certification and deployment will take four years, identifies the exact technical milestones the round funds, and rejects growth expectations based on a typical software timeline. Investors who require rapid revenue self-select out before governance rights are exchanged.
→ The resulting syndicate shares the company's milestone structure and is less likely to force premature commercialization.
Common mistakes
Pitching the Investor's Fantasy
Telling each investor what they want to hear may close a round but produces incompatible promises and later strategic pressure.
Treating More Capital as the Goal
The amount should be derived from runway, milestones, and market timing. Raising beyond the useful plan can weaken discipline and change the company unnecessarily.
Avoiding Downside Scenarios
Long-horizon investors need to understand what happens if adoption is slower than hoped. Silence on the downside is not alignment.
Is it for you?
Best for
It is best for founders raising institutional capital for a long-term, uncertain, or emerging-market opportunity.
Not ideal for
It is not ideal for founders who have not yet formed a credible strategy, runway model, and honest view of market risks.
From the transcript
“I think in a large in a lot of ways you'll get you'll get the investors that you you ask for.”
“And if you're honest about what your what your strategy is when you're fundraising, like you people will self-select.”
“The best thing you can do for you know the long term health of your business and relationship with your partners is say ask for…”
From the episode
Raising a Seed Round with Against Gravity CEO Nick Fajt
Nick Fajt