Post by Collektiv Club

🚨 Your existing investors will *not* automatically support your next round. 🚨 We've seen it happen too many times. Founders assume their investors will follow-on, only to be blindsided when they don't. The truth is, follow-on decisions are more complex than initial investments. When we evaluate follow-ons, we're asking: "Given what we now know, would we invest today if we weren't already in?" 🔍 We look at progress vs. plan, market validation, competitive position, capital efficiency, and updated return profiles. If the data doesn't support doubling down, we might pass, even if it feels brutal. 🚫 Missed milestones, valuation running ahead of progress, disproven market theses, and team concerns can all trigger a "no." But there's good news: understanding this process can help you optimize for follow-on support. 1️⃣ Set realistic milestones. 2️⃣ Communicate early and honestly. 3️⃣ Show learning, not just results. 4️⃣ Maintain capital efficiency. 5️⃣ Build relationships beyond the board deck. 6️⃣ Create external validation. The best founders treat follow-on as a new investment decision, earning support with clear evidence and an updated thesis. What do you think—how have you seen follow-on capital decisions play out in the wild? #SaaS #Fundraising #VC