Why You Shouldn’t Use a Fundraising Advisor in India
When someone meets early-stage founders in India, one pattern keeps repeating itself, many of them are convinced they need a “fundraising advisor” to raise capital. Someone who claims to know the right investors, has magical connections, and promises to make fundraising smooth.
The truth? In 99 out of 100 cases, you don’t need them. In fact, working with such advisors can do more harm than good.
Investors Expect the Founder to Be the Fundraiser
In India, the first filter for any investor – angel, VC, or family office is simple: Does the founder know their own business inside out, and can they sell the vision convincingly?
When an advisor walks in to pitch instead of the founder, investors immediately assume one of two things:
- The founder isn’t confident enough.
- The founder is outsourcing something that should be their #1 job.
Neither is a good look. Fundraising is not just about money it’s about trust, conviction, and the long-term relationship between the founder and the investor. You can’t outsource trust.
The “Connections” Myth
Most fundraising advisors in India will tell you they know top-tier VCs and angels. Reality? If they really had such strong relationships, they would be investors themselves.
What usually happens is a mass email blast, your deck is sent to 100 investors in BCC, without context, without personalization, and without credibility. No real warm introduction. And guess what? That’s the fastest way for your startup to land in spam.
As a founder, you’re far better off writing one thoughtful email yourself to an investor, instead of paying someone to “spray and pray.”
Advisors Are Not Respected in Early-Stage India
In Silicon Valley, at least later-stage bankers and placement agents exist and have some credibility. In India, for early-stage startups, fundraising brokers are often seen as red flags.
Investors here don’t want to talk to middlemen. They want to talk to the person whose skin is in the game, the founder. And when they see an intermediary, it signals desperation.
To put it bluntly: good companies rarely struggle to get meetings. And the ones that rely heavily on advisors often tend to be the ones investors already passed on.
The Cost Isn’t Worth It
These advisors charge retainers (₹2–5 lakhs is common) plus a success fee (4–10% of the round). Imagine paying ₹30–50 lakhs just to raise ₹5 crore. That’s money you could have used to hire talent, build your product, or run experiments.
Worse, in some cases advisors push startups to take money from the wrong investors just so they can collect their commission. Long-term alignment is never their priority.
What You Should Do Instead
Fundraising is tough, no doubt. But there’s a smarter way to approach it:
- Build direct relationships. Don’t wait until you need money. Start engaging with investors early. Share your updates, ask for advice, and build trust over time.
- Be strategic with outreach. Not every investor is the right fit. Find those aligned with your stage, sector, and vision.
- Tell your story well. Your pitch is not just about numbers; it’s about why you exist and why now. Investors buy conviction.
- Leverage technology. Today, you don’t need a middleman. AI-based tools can help you identify the right investors and connect directly without anyone spamming on your behalf.
Conclusion
In India’s startup ecosystem, credibility is currency. And credibility only comes when you, the founder, stand in front of investors and own your story.
Fundraising advisors may sound like a shortcut, but in reality, they’re more like detours costly, slow, and damaging.
If you believe in your idea enough to build a company, believe in yourself enough to raise for it too.