In a year defined by tight capital markets and heightened investor scrutiny, founders who successfully closed rounds in 2025 shared candid lessons on what it really took to raise money.
The discussion, moderated by Mark Norman, Managing Partner of FM Capital, at the YPO Global Business Summit in Los Angeles, brought together operators across automotive tech, semiconductor innovation and autonomous logistics, each offering hard-earned insights on preparation, storytelling, valuation and the human dynamics behind choosing the right partners.
Speaking to the more than 1,000 YPO members from 120 countries gathered at the second annual summit, Norman shares that in his first role as CEO, he learned quickly that hustling was the path to survival and that fundraising is never an item to check off. Now as a venture capitalist (VC), the YPO member is often struck by founders who say, “‘I can’t wait till I’m done fundraising,’ as if it’s a task and something on your checklist for Thursday afternoon,” he says.
In reality, fundraising takes a lot of time, planning, practice and networking.
Activating a strategic network
Bankers play an important role in the process and in attracting the right investors. “Have a great banker that you trust, one who is ethical, moral and a great facilitator,” says YPO member Johnson Berry, Co-Founder and CEO, DLRdmv, which completed its first Series A this year. “You can’t always control market conditions. But, advising on when to do certain things and how to do it, and being prepared made our process a lot easier.”
Kush Gulati, Ph.D., Co-Founder, President and CEO of Omni Design Technologies, Inc., which raised USD37 million in its first Series A, deliberately chose not to use a banker, arguing one is not the right choice in each situation. “We wanted to ensure that we could grow organically and make sure we had customers and solutions that were validated,” he explains. “We were advised not to use a banker. We also didn’t want to lose leverage.”
The stage of financing often determines whether partnering with a banker is a sign of strength. “In the earliest stages, especially if you’re trying to raise money from VCs, it’s not the right signal to engage a banker,” says Gautam Narang, CEO and Co-Founder, Gatik, which finalized its Series D with more than USD200 million. “Ultimately, it’s the CEO and management team’s responsibility to oversee the whole process and ensure that the outcome is a successful one.”
Regardless of stage, founders need a strong support network. “Activate your network, lean on your existing board members, your other investors and your network to make the introductions for you,” Narang emphasizes.
Crafting a funding narrative
The path to funding starts with compelling storytelling. “Show more progress than what’s needed,” Narang advises, underscoring that the team, technical differentiation, KPIs and revenue traction matter significantly. “A big part of storytelling is having clarity and credible proof points to back how you’ll get to the next milestone,” he says.
Repetition enhances the message. Berry explains, “The first meetings, you live and learn, you realize what works and what not to say; you’re getting the reps and sharpening your story.”
In addition, a trusted banker can also strengthen the narrative. “The work they did was to prime the pump and get excitement from those potential private equity firms and sponsors,” Berry says. “They’re worth their weight in gold.”
Quality face time is a key selling point. “When I was doing video calls, it was better not to show any slides, just to tell the story as is, because there’s so little real estate on that monitor,” Gulati says. “The passion, the face, is super important to the story.”
Optimizing for the right partnership
Intentionality helps founders focus their energy. By categorizing investors into tiers: the perfect fit, potential investors and the unlikely, they can concentrate on the ideal lead. “Find the lead, set the terms, price the round, put in meaningful checks,” Narang says. Preparation should be meticulous. “Before the first meeting, it’s important to have every material that you might need.”
Choosing the right partner demands clarity on what the company wants and needs. For Berry, the goal was to “get the right growth equity partner to help institutionalize the business and take the next step,” he says. Gulati emphasized fit above numbers. “We didn’t prioritize the valuation as much as finding the right person,” he notes.
Still, leverage comes down to choice. “If things are not turning out the way you want them to, you can wait and hit the market again,” Narang explains.
Norman puts it simply, “You need two or at least the perception of two serious parties ready to go.”
Valuation is only one part of the deal. “It’s board composition, some of the other rights that you would be giving away as a founder,” Narang says. “It comes down to choosing the right partner. It’s going to be a long journey.”
Ultimately, the decision rests with the founder. “Sometimes it feels like the tail’s wagging the dog, but you are in control,” Berry emphasizes. “If you don’t have the right partners or the valuations, you can step away. And if you don’t like the terms, you’re not going to do it. That’s true leverage.”
