How Top Founders Are Raising Money in a Tough Market
Raising capital is never easy. But in a down market, it becomes even more challenging.
Investors are more cautious. Valuations are lower. Funding cycles take longer.
Yet some founders are still closing rounds. Some are even raising in strong terms.
What are they doing differently?
At Rodller, we’ve identified the specific strategies that top founders are using to raise capital in down market. These aren’t generic tips; they’re focused actions and clear mindsets that distinguish successful fundraising efforts from those that fall short.
1. They Prepare Before They Pitch
Top founders understand that the real work starts before the pitch.
They don’t just build a deck and start sending cold emails. They do the hard thinking first:
- Clear narrative: They know how to explain why now, why this market, why this team – in 30 seconds.
- Real numbers: They bring traction, not just a story. Even pre-revenue startups demonstrate evidence of demand, such as waitlists, pilot customers, and usage.
- Investor fit: They research each investor before reaching out. They know who’s still active and what stage and sectors they invest in.
When you pitch in a down market, you don’t get a second chance. Great founders know this and prepare accordingly.
2. They Raise with a Strategic Plan, Not Desperation
In a tighter funding environment, desperation is easy to spot – and it kills deals.
Top founders raise with a plan. They’re clear about:
- How much they need.
- How long it will last.
- What specific milestones it will unlock.
They don’t ask for “as much as possible.” They ask for just enough to reach the next value inflection point – product launch, first paying customers, break-even, etc.
This gives investors confidence. It shows that the founder is financially disciplined and thinking long-term.
3. They Focus on What Matters to Investors
In a bull market, investors chase FOMO. In a down market, they go back to basics.
Top founders align with what investors actually care about now:
- Real traction over vanity metrics.
- Efficient growth over burn-fueled scale.
- Clear path to profitability, not just “we’ll monetize later”.
They understand that the new risk isn’t missing the next unicorn, but losing capital. They speak to this directly in their fundraising story.
4. They Build Relationships Early – Before They Need the Money
In a good market, a cold pitch might still work. In a down market, relationships matter more.
The best founders don’t wait until they’re raising to speak with investors. They:
- Share monthly or quarterly updates.
- Ask for feedback on key business decisions.
- Stay on investors’ radar by engaging on platforms like LinkedIn and X (Twitter).
This builds familiarity and trust. When it’s time to raise, the investor isn’t meeting a stranger. They’re supporting a founder they already know.
5. They Use Warm Intros and Network Multipliers
Even in 2025, warm introductions still convert better than cold emails.
But top founders don’t rely on luck. They engineer introductions through:
- Angel investors who can connect them to VCs.
- Other founders who have raised recently.
- Accelerators or operators with active networks.
They treat their network as a multiplier. One great intro can unlock dozens of others.
And they give back, too, helping others when they can. In tough markets, reputation and reciprocity matter.
6. They Don’t Overspend on Hype
Down markets kill hype-driven companies.
Top founders know that flash doesn’t equal value. So, they:
- Keep their pitch decks clean and to the point.
- Avoid buzzwords and stick to substance.
- Focus more on unit economics than on market potential.
They also stay lean operationally. Raising $2M with a 10-person team is very different from needing $2M to support a 50-person burn.
In a risk-averse environment, frugality is a signal of competence.
7. They Adjust Expectations, Not Vision
The best founders stay ambitious but realistic.
They don’t chase the same valuations as in 2021. Instead, they:
- Accept smaller rounds.
- Take dilution now to survive and grow
- Use convertible notes or SAFE rounds with caps that leave room for growth.
This gives them time to build value and raise on better terms later.
The vision remains ambitious, but the strategy adapts to the market.
8. They Are Open About Risks and Show How They Manage Them
Investors know every startup has risks. In a downturn, they want to see how founders think about them.
Top founders:
- Call out the biggest risks early (e.g., customer acquisition cost, regulatory hurdles, team gaps).
- Show how they’re actively mitigating those risks.
- Share what they’ve learned from past failures or mistakes.
This builds trust. It positions the founder as a clear thinker, not a dream seller.
9. They Use Traction as a Weapon
In a down market, traction talks.
Top founders double down on execution. They treat each customer, user, or dollar as proof of market demand.
They also frame traction in a way that resonates:
- “10% MoM revenue growth, with 40% margins”.
- “50 enterprise signups in 3 months, with a 20% conversion to paid”.
- “$0 CAC through partnerships and SEO-driven inbound”.
10. They Have a Backup Plan (and a Timeline)
Finally, great founders have a clear Plan B.
They don’t raise forever. They set a deadline and stick to it.
If the round doesn’t come together, they:
- Switch to bootstrapping.
- Extend their runway through revenue.
- Cut costs or pause hiring.
- Break the raise into smaller tranches.
This shows investors they’re not relying solely on external capital. They’re resilient.
And resilience is something investors will always bet on.
What Founders Can Do Right Now
If you’re planning to raise capital in a down market, here’s where to start:
- Tighten Your Story
Make it clear, data-backed, and relevant to today’s investor mindset.
- Map the Right Investors
Focus only on those still writing checks at your stage and sector.
- Get Early Feedback
Before launching your raise, test your pitch with angels, operators, or friendly investors.
- Start Building a Network
Even if you’re not raising now, begin building relationships.
- Focus on Execution
Revenue, retention, or even just active users show forward progress.
Final Thoughts…
Raising capital in a down market is hard, but not impossible.
Top founders aren’t just lucky. They’re strategic, prepared, and relentless. They understand the change in investor psychology and adapt their approach without compromising their long-term vision.
If you take one thing from this article, let it be this:
In uncertain times, clarity wins. Execution wins. Discipline wins.
At Rodller, we work with founders who embody this mindset, helping them navigate tough markets and raise with confidence. Build a great business. Speak to the moment. And the capital will follow, even in a down market.
About Rodller
Rodller (www.rodller.com) provides Digital Marketing, Fundraising and Application Development Services. With offices in Singapore and France we serve both Startups and Fortune 2000 firms. We use a next-generation Portal to combine the use cases of Digital Marketing, Fundraising and Application Development in tangible processes.
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