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Fundraising mistakes founders make (and how to avoid them)

Based on advice from Sam Altman · Updated 2 October 2026

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Short answer

Sam Altman's list of the most common fundraising mistakes: over-optimizing the process and the terms, not creating competition between investors, coming across as arrogant, not hearing no, raising without a lead, pitching poorly, not checking investors' references, lacking a clear vision and not knowing your numbers. His starting point is that a good company will usually be able to raise.

The mistakes

  • Over-optimizing the process. Spend the energy on building a strong company instead of fundraising tactics.
  • Over-optimizing the terms. Take a reasonable valuation and avoid setting up a down round later.
  • Not creating a competitive environment. Several interested investors give you leverage.
  • Coming across as arrogant, antagonistic or disrespectful. Be respectful and genuinely interested in the investor.
  • Not hearing no. As he puts it, "Anything other than a term sheet is a 'no'."
  • Not having a lead investor. One investor should set the terms and take responsibility for the round.
  • Pitching poorly. Conveying real passion for the business matters almost as much as the business itself.
  • Not reference-checking investors. Talk to founders they've backed before you take their money.
  • Lacking a clear vision. Show conviction about where the company is going.
  • Not knowing your key metrics. Teams that execute well know their numbers cold.

In your deck

Two of these live in your deck: a clear vision and knowing your numbers. If your traction slide can't answer the obvious follow-up questions, fix it before the first meeting.

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Questions founders ask

What are the biggest fundraising mistakes founders make?
Sam Altman's list includes over-optimizing the process and terms, not creating competition between investors, not hearing no, raising without a lead and not knowing your numbers.
How do I know if an investor is interested?
Sam Altman's rule: anything other than a term sheet is a no.
Do I need a lead investor?
Sam Altman lists not having one as a common mistake. A lead sets the terms and takes responsibility for the round.

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