Leon Eisen explains why investors saying "we're very supportive" or "we'll look at our share once there is a lead" aren't actually committing money. They're waiting for someone else to go first. Eisen outlines five rules to help founders read these signals correctly and adjust their strategy.
Ask a current investor about your next round, and you will probably hear again something like this: We are very supportive. We will look at our share once there is a lead investor. Let's see how the round comes together. Founders hear warmth and count it as a commitment. A new investor hears something else. The people who know this company best are waiting for someone else to go first. Interest is not conviction. Supportive is what waiting sounds like. Before we go one by one, here are my 5 fundraising rules for when investors get careful.
From Hope to Promised Money: A Smarter Way to Plan Your Next Fundraising Round
