By Ishpreet Khanuja
The fundraising world is shaped as much by unspoken expectations as it is by pitch decks and financial projections. Understanding the nuances that govern these spaces often requires access to networks to experience, to mentors who can decode the process. But not every founder starts from the same vantage point. Many are just building their dreams with conviction, clarity, and a product they believe can make a difference.
In the latest Founders and Funders session hosted by Altitude Accelerator and moderated by founder and CEO of Spectrum Medical Diagnostic Inc. Sharmila Sriram, a panel of seasoned investors and Entrepreneurs in Residence at Altitude Accelerator—Giselle Melo, Deep Tech founder and investor, Geoff Simonett, investor and President of Pinelands Capital and Bryan Duarte, Managing Partner and co-founder of BlackTech Capital—came together to level the playing field with knowledge and expertise. Drawing on their deep experience, they laid out what founders really need to know before they raise capital: how to prepare, what to prioritize, and why clarity and curiosity are often more important than polish.
Lay the Groundwork Before You Raise
Getting a meeting with an investor may seem like a make-or-break moment, but positive outcomes are often a result of weeks of preparation, long before the pitch meeting begins. According to Simonett, the best time to raise capital is before a startup requires it.
He believes, “The best chance is to have your financial model, your pitch deck, and your data room ready. Do your research on investors. Minimize the amount of time you are actually pitching, because you’re getting to those pitches knowing who you’re talking to and asking the right questions right away.” Especially in software, he recommends, waiting to raise until you have data to back up traction can significantly strengthen a founder’s leverage when approaching fundraising conversations.
Preparation must go beyond financial modeling. It involves taking the time to understand the investor landscape and asking who funds your sector, at what stage, and why. Melo shares how finding an investor who understands your industry and what you are trying to build can resolve half of your challenges right away.
She compares it to dating, adding, “You have to go in looking for a partner because this person is going to be in your life for a decade if you are raising capital. So it’s not just about what they’re looking for, but also about what it is that you are looking for. There must be a shift in mindset from asking for something to knowing the value you bring to the table.”
Simonett recommends researching an investor’s full portfolio to unlock new angles. Investors think in systems, not just in silos and if the company could support or complement one of their existing investments, helping them connect those dots can generate a lot of interest.
Owning the Narrative
One of the most common misconceptions founders have is that investors are instinctive risk-takers. Duarte put it plainly, “Investors are not philanthropists. They are putting their money into you because they want a return on that investment.”
Founders need to do more than sell their vision. They need to reduce perceived risk by explaining their business in a way that is both accessible and accurate. Duarte notes, “Investors may not know your space as well as a founder does, and they still need to understand the fundamentals. More importantly, they need to believe that you do.”
This is where clarity and storytelling help paint the bigger picture. Simonett put it simply, “Nobody writes a cheque from a first presentation. You’re there to get another meeting.” A great pitch is not about dazzling venture capitalists (VCs) with jargon or prematurely including every detail that may confuse your audience. It’s about showing the investor why a team, at this moment, has the traction and the plan to make something happen.
Melo agreed, stating, “The minute you present your pitch, you have one goal and one goal only: to get in front of the investor and justify your claims. You do that by showing traction—some kind of proof that backs up the success you’re pitching. You need some way to demonstrate that what is in the deck is already happening.”
Duarte emphasizes the need to have clear answers to hard-hitting questions. He says, “You need to be able to explain ‘What is that exit strategy?’ for the investor. It is not something that is usually front and center, not something you necessarily think to put in your pitch deck. But you better have an answer for it, because it is on their minds, and you will be asked.”
Know Your Value Even Before Others Do
In systems that have long benefited from undervaluing certain voices, both Melo and Duarte shared the importance of recognizing and owning what you bring to the table. Duarte shared the story of a founder generating over $100,000 in ARR who still believed she wasn’t ready for investment. She had the product, the vision, the strategy and yet no frame of reference to know how far along she truly was.
This kind of underestimation is common, particularly among women and racialized founders. It is also one of the reasons programs like Altitude Accelerator exist: to offer perspective, context, and a sense of what is possible with the right guidance. For investors like Duarte, this underestimated potential often signals immense opportunity. He says, “They’re usually further along than they think and a better investment overall.”
Simonett echoed the sentiment. Strong founders ask smart questions, treat conversations as mutual evaluations, and show up with confidence in their offering. “You’re not just asking for money,” he says. “You’re giving someone the chance to invest in something great.” This assurance comes from knowing what one brings to the table, and why they have chosen this particular table to bring it to.
Feedback Is Currency
Rejection is inevitable. However, for founders who know how to listen and follow up, it can also be an incredibly useful opportunity.
If an investor chooses not to invest, it’s entirely reasonable to ask what would need to change for them to reconsider. For those investors who are less direct, it’s difficult to know whether the ask to come back is a real maybe or just a soft no.
Responding to a question about being able to tell the difference, Simonett suggested, “Ask for that feedback and closure. If it’s not a fit, that’s fine. But one thing I’d suggest is saying, ‘If this isn’t right for you, are there one or two other funds you know that might be interested?’ Most VCs and angels want to help. They’re not going to invest in everyone, but they’re usually open to making introductions, especially if you ask them directly. They might say, ‘Yeah, I can think of two people. I’ll make the introduction.’”
Think Global, Stay Grounded
The conversation then turned to a recurring concern among Canadian entrepreneurs: is staying local enough? The panelists offered a balanced view. Canada, they agreed, offers world-class talent, research strength, and an increasing number of angels. However, there is a funding gap, particularly between early traction and later-stage institutional rounds.
Simonett notes, “We tend to hear the cherry-picked stories out of the U.S., someone raising $10 million at a $40 million valuation, but those are outliers. It’s not easy, especially if you don’t already have a strong network there.”
He adds, “That said, the U.S. does offer far more options, especially if you’re in a niche industry. For example, we had a space-related client who needed to raise a significant amount, and I told them frankly, you’re not going to find that kind of capital in Canada. They raised successfully in the U.S. So yes, look beyond Canada, and do it strategically.”
In business as in life, there is always a trade-off. Some U.S. funds may require relocation, incorporation changes, or more aggressive growth timelines. The key is to be intentional and realistic enough to know the consequences of the choice.
Melo reflected, “It’s smart to headquarter your company in Canada as we have phenomenal talent and strength in R&D (Research and Development). But if you’re only building for your backyard and ignoring the global landscape, you’re limiting your potential. Canada lacks depth in commercialization and early-stage capital, so you need to be strategic about which stages you stay local for and when to look abroad. Canada doesn’t have all the answers, but it’s still one of the best places in the world to live and build. Just don’t rely on it for everything if you’re aiming to scale.”
All That Matters
As the panel made clear, investors are not gatekeepers; they are potential partners and founders, especially those navigating this system for the first time, have more agency than they often realize.
Access is important. Knowing how to prepare a data room, how to time an ask, and how to tailor a conversation are not always intuitive steps. For founders who have not been part of traditional networks, there is significant value in hearing what is typically left unsaid.
In addition to being a guide to the hidden curriculum, the session served as an important reminder that while insight and preparation can close the distance between great ideas and capital, what really matters is what happens after—the execution, the resilience, and the ability to deliver on the story you told.
If you are preparing to raise capital, don’t go it alone. Altitude Accelerator’s Investor Readiness Program is designed to help founders build the strategy, clarity and confidence they need to succeed. Applications for our Fall cohort are now open. Apply now!
