Why Founders Waste Weeks on Fundraising (And How to Stop)

Jan de Vries · 2026-10-16

Any founder who's raised money knows what investor due diligence feels like from the receiving end. The questions about your model. The customer contracts. The gap in your CV. The calls to people you worked with years ago. Investors do that work because they're making a long-term bet on your abilities. But here's the thing: the same isn't true in reverse. In two decades of supporting founders as they raise, I've found that most can tell me everything about their own metrics, their ambition for the business, or their ideal team hires — yet very little about the people they approached for funding. So why is that? DocSend's research on pre-seed rounds found founders contacted an average of 71 investors to close a round. Our own founder survey revealed that a quarter of founders spend more than half their working week on fundraising. With so much time taken up, only about one in three do any serious research on investors. That can cost founders dearly. Months pitching investors who were never a fit for their stage or sector. Time that should have gone into building. And potentially years unraveling a misaligned relationship. ### The market has made founders less likely to check Today it's an investor's market, and that's where the challenge starts. European startups raised €21.41 billion (about $24 billion) in the second quarter of 2026 — two-thirds more than a year earlier. But 65% of it went to just 42 companies raising €89 million ($100 million) or more, while early-stage deal numbers fell. When capital concentrates in fewer, larger deals, angels hold the leverage. And that's precisely when founders ask the fewest questions and most need the answers. Founders often tell me they can't afford to be picky. They don't have time for due diligence, and asking too many questions might put an investor off. I get the pressure. Fundraising is fiercely competitive, and when capital is hard to secure, it's tempting to chase every opportunity that comes along. But this is exactly why a little research upfront matters. Knowing an investor's criteria and track record tells you whether the approach is worth a week of your time at all. The ones you do pitch arrive at diligence already warm, and the process moves faster because of it. ### What you're actually checking for Start by deciding what you want from each investor. If you're raising from 10 angels, for example, you might want two or three to take an active role, with the rest staying silent backers. Then check the basics: - Is this person who they say they are, and do they invest at the level and stage they claim? - Which companies have they backed, run, or sat on the board of? - Do you actually get on with them? - Do you both want the same thing from this company, on a similar timeframe? That last point matters more than people admit. We talk constantly about product-market fit, but much less about investor-founder fit. Agreeing on alignment at the start is what stops the relationship souring later. ### How to do it without interrogating anyone Most of this work happens quietly, before the first meeting. LinkedIn, company websites, and public registers will tell you a great deal. In the UK, Companies House shows directorships and filings, and the European e-Justice Portal searches company registers across the EU. None of it takes any of the investor's time, and none of it feels intrusive — because they never see it. The most useful step is finding the companies an investor has already backed and speaking to those founders, either through an introduction or by asking the investor for a reference. A founder who has worked with them will tell you more in ten minutes than a dozen pitch meetings ever could. > "Founders spend months pitching the wrong people, then wonder why the round takes forever. Ten minutes of research would have saved them all of it." So before you send that next cold email, take a breath. Spend half an hour learning who you're actually talking to. Your future self — and your cap table — will thank you.