

Fundraising
Building your cap table with intention.
Purpose
- Fundraising isn’t just about getting money; it’s about getting the right partners. Having aligned investors on your cap table gives you access to expertise you can trust.
- Building an organization committed to responsible innovation can be a competitive advantage by surfacing the investors more likely to champion and amplify your vision.
- Responsible innovation also derisks your company, which increases investability.
Method
- Background
There is no shortage of fundraising templates online. Choose one and tell the story of your company.
Tell a story that highlights how your responsible innovation approach gives your company a competitive advantage.
For example, are you able to reduce regulatory risk, enhance brand reputation, improve talent acquisition, or expand market opportunities because of responsible innovation?
Investors are drawn to founders who can articulate not just what they're building, but why it matters and how they're mitigating potential downsides. - Make a claim
Turn your pitch into an argument. Make a claim: why people will buy your product, why your technology under development will ultimately work, why your vision of industry disruption is inevitable, etc. - Prove it
Back the claim up with evidence. Don’t just assert the statement – prove it.
Finding the right evidence for an argument requires also understanding who you’re trying to persuade. The most effective evidence will align with the investor’s values and worldview. - Do your homework
Know who you’re pitching. Build your list of potential investors. Find funds, angels, and family offices aligned with your vision. Do as much research as you can about them – what they are about, their recent investments, their advisory work, etc. - Go beyond the pitch
Execution is part of fundraising. Build a CRM of investors and track touchpoints and follow-ups. Treat these relationships like you would a potential customer – even if they don’t invest, you can learn from each conversation. - Build your network
Build your network of founders. Share investor leads with other companies in the responsible innovation space. Investors are also trying to build their dealflow with aligned companies, so you can bring value by making introductions.
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Trap Doors
- Inauthenticity
Avoid greenwashing or virtue signaling. Using responsible innovation as a marketing veneer will just make you look inauthentic. - Overly broad
Avoid making broad, unsubstantiated claims about your positive impact. Instead, focus on specific, measurable commitments with clear timelines and accountability mechanisms. - Too far into the weeds
While demonstrating awareness of regulatory landscapes can be important, avoid getting bogged down in compliance details that may not be relevant to your stage of business.
Don’t make things up.
Don't hide the truth—cue: FTX, THeranos, and WeWork.


Cases
While now a large company, Patagonia's foundational commitment to environmental responsibility was evident from its early days and helped attract investors who shared founder Yvon Chouinard's vision. The company's "1% for the Planet" initiative and commitment to sustainable materials weren't just marketing—they were core business strategies that differentiated Patagonia in a crowded market and attracted customers willing to pay premium prices. Read more about Patagonia’s initiatives.
Stripe's approach to platform responsibility was evident in its early fundraising rounds, demonstrating sophisticated thinking about the responsibilities of building financial infrastructure. The company combined technical expertise with business strategy and an understanding of regulatory risk, creating a responsible approach to platform governance that accelerated fundraising.
Read more.
Who to Enlist
Everyone has different feedback, so pitching can get frustrating. If you have a co-founder, work on the story behind your company together.
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Find founders who are slightly farther along than you are and get feedback from them. They will be close enough to your experience to provide meaningful feedback.
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Advisors and mentors can help you refine the story.