How to Raise VC Money Without Losing Control
I sat down with Arman Kassym Chief Analyst at a top venture firm and a founder-turned-investor, to break down the real game of raising VC money:
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This Week's Reality Check ā
The 3 Biggest Myths About Raising VC Money
šØ Founders keep falling for bad advice.
Hereās whatās actually true:
1ļøā£ "VCs only care about revenue."
Nope. They care about risk. If you look risky, theyāll pass or structure a deal that screws you later.
2ļøā£ "The highest valuation is always good."
Wrong. A bloated valuation means youāll struggle to raise your next round. If you donāt 10x your numbers, youāre now a dead startup walking.
3ļøā£ "Warm intros are the only way in."
Cold outreach works if you donāt sound like every other founder begging for money. VCs pay attention to strategic, well-researched cold emails.
The VC Game No One Warns You About š„
Most founders lose control of their company before they even realise it.
They donāt think they are giving up control as they are just raising capital. But every funding round is a negotiation. If you donāt know how to play the game, you are the one getting played.
Raising capital is about choosing the right investors who wonāt derail your vision. Investors, much like enterprise buyers bet on trust. Hereās why trust, not numbers, closes the biggest business deals.
I sat down with Arman Kassym Chief Analyst at a top venture firm and a founder-turned-investor, to break down the real game of raising VC money:
š„ The biggest fundraising mistakes founders make
š„ How to avoid losing control of your startup
š„ The brutal truth about valuations in 2025
Interview With Arman Kassym Chief Analyst
1. What Do Founders Get Wrong About Raising VC Money?
āI often encounter a disconnect among founders when it comes to understanding the relationship between the revenue they present and the risks investors take on. But at its core, itās quite simple: the riskier your startup appears, the more attractive its potential returns need to be.ā
2. Beyond the pitch deck, what actually makes a VC say āyesā?
āMy primary focus is to assess how realistically a founder perceives the market landscape. Equally important is their level of serendipity. A dreamer who ignores market signals and isnāt prepared for the hard work ahead is always a red flag.ā
3. Whatās a dead giveaway that a VC will be a nightmare to work with?
āInvestors who review dozens, if not hundreds, of projects each month can easily fall into the trap of seeing themselves as all-knowing gurus. That invisible crown can grow without them even realizing it. I take pride in our firm's strong sense of business empathy. In my view, if an investor shows indifference to what drives a founder to keep pedaling through all kinds of weather, itās not a great sign for the founder.ā
4. Why do high valuations backfire on so many founders?
āIn 2025, high valuations remain a double-edged sword. In a cautious market, they can impress and attract attention, but they also set high expectations. If a startup falls short, it can erode trust, make future fundraising more challenging, and even lead to a loss of control. This year, itās especially crucial to align ambitions with reality, factor in the economic landscape, and focus on sustainable growth. Play the long game.ā
5. Whatās a pitch that stood out immediately and why?
āThe most impressive pitch Iāve seen came from a 20-year-old Harvard prodigy who proved his credit risk assessment product outperformed competing solutions, including banks' in-house systems. The icing on the cake: letters from bank executives eager to sign contracts with his startup.ā
6. Whatās your advice for managing burn rates in 2025?
āI donāt think my advice here will be particularly unique, and it doesnāt differ much from the recommendations for 2024: live within your means, not your dreams. Spend only on what directly supports growth or key business metrics. Strive for frugality, but donāt cut corners on strategic priorities.ā
7. Whatās one thing a founder can do today to get on a VCās radar?
āAdam Grant, in his book Originals: How Non-Conformists Move the World, famously said: āThe less I know you, the less I like you.ā
I believe this applies to our field as well. Warm introductions certainly provide an advantage, but well-prepared cold outreach can be just as effective. At the end of the day, networking isnāt magicāitās a tool. Social media, for instance, offers incredible opportunities. Trust me, if you consistently like and comment on an investorās content, they will take notice.
Moreover, large investors often receive a high volume of startup pitches, meaning youāll be competing for their attention and time. Thatās why it can sometimes be more strategic to approach smaller venture firms, where you may have a better chance of standing out.ā
8. Whatās the biggest lie founders believe about VCs?
āI hope my colleagues will forgive me for saying this, but hereās the truth: complexity can be intimidating and is often seen as a red flag for a project. Learn to explain your product as simply as possibleādonāt assume that investors are some kind of geniuses who will grasp everything from the first word. Investors meet with countless founders, which sharpens their intuition and allows them to assess a startupās potential quickly.
However, thereās a flipside. This high volume of meetings can also lead to tunnel vision, where investors rely too much on familiar patterns and risk overlooking unconventional solutions. Thatās why your job is not just to present your product clearly, but also to stand out. Show how your approach is different from the typical solutions they see every day.
Find the right balance between clarity and originality. If you can be both easy to understand and refreshingly unique, youāll increase your chances of not only capturing an investorās interest but also standing out among dozens of other startups.ā
9. Whatās a founder trait that VCs say they want but actually donāt?
āUnshakable confidence is often seen as a prerequisite for success, but it can also hinder a founderās ability to take advice and adapt to market realities. Those who are willing to acknowledge their mistakes and learn from them tend to achieve more than those who remain convinced their way is the only way.ā
10. How Can Founders Raise VC Money Without Losing Control?
āControl starts with understanding your own value.
Raise capital from those who align with your mission and respect your culture. Remember, youāre not just looking for funding. Youāre choosing partners for the journey ahead.
Donāt be afraid to say ānoā if an investor isnāt the right fit for your vision. And most importantly, the right money comes from those who invest in people, not just in metrics.ā
Bonus Round With Arman Kassym
š One book every founder should read?
The Lean Startup by Eric Ries is a must, but also check out Build by Tony Fadell, The Four Steps to the Epiphany by Steve Blank, and Fall in Love with the Problem, Not the Solution by Uri Levine. These books cover everything from scaling a startup to knowing when to pivot.
šļø Podcasts or nah?
I don't listen to podcasts mainly because theyāre too time-consuming. In 15 minutes of reading, I can absorb far more than in 45 minutes of listening to a podcast. Instead, I go through around 4,500 to 5,000 headlines each week across my areas of interest, carefully selecting about 50 articles, reports, and reviews for in-depth reading.x
šŗ TV show obsession?
None. I prefer books. Mostly science fiction and economics. Narrative Economics by Robert Shiller was a standout for me in 2024.
How Smart Founders Keep Control
ā
Negotiate from a position of leverage. Raise on momentum, not desperation.
ā
Take just enough capital. The biggest check = the biggest pressure.
ā
Control board seats. More investors = more decision-makers = less control.
ā
Pick the right VCs. Some add value. Some add chaos.
ā
Understand fundraising ā success. VCs reward results, not capital raised.
The best founders play the long game. That means staying in control.
My Final Thoughts
VC money isnāt free.
Every dollar comes with strings attached. Some investors open doors. Others trap you in a game you canāt win. Raising at the highest valuation, taking the biggest check, signing with the biggest name. It all feels like a win. Until it isnāt.
The smartest founders know fundraising isnāt about getting money. Itās about keeping control.
Make every deal on your terms. Or donāt take the deal at all.
Until next weekākeep growing, no fairytales required.
Martin
P.S. This week's track "No Cars Go" by Arcade Fire