Short answer: in an early-stage fund, the investment committee does not decide on you: it decides on what the person on the team who carries your startup tells it. You are not in the room. That is why the round is won beforehand, by giving that person clear arguments to defend you: a story that can be repeated in two sentences, numbers that survive the second question and answers to the obvious objections.
We write this from Senda Partners, which prepares rounds with founders and sits on investment committees. What follows is what can be seen from inside that room.
Who is in the room
- Whoever carries your deal. An analyst or partner who has met you, looked at your numbers and written the memo. They are your advocate, and they arrive at the committee with whatever you gave them.
- The rest of the committee. Partners who do not know you and have little time. Their job is to look for the reason to say no: if something is hard to understand, the usual outcome is that the investment does not happen.
- The decision. It is discussed and voted on without the founder present. What is said once you leave depends on how well armed your advocate is.
What goes in the investment memo
| Part of the memo | What the committee looks for | What you can give it |
|---|---|---|
| Team | Why you are the right people for this problem | A concrete, relevant track record, not a generic CV |
| Problem and market | That the problem is real, big and urgent | Evidence from customers and a defensible market estimate |
| Product and edge | What is hard to copy, including for a large company or for AI | What you have that others cannot replicate in months |
| Traction | Signs that it works | Clean metrics, with definitions and monthly evolution |
| The round | Amount, valuation, use of funds and who else is in | A clear round, with milestones and a lead |
| Risks and why now | What can go wrong and why this is the moment | The risks named by you before they find them |
| Return | What it could be worth if it works | A credible path to an exit or a much larger round |
The objections heard most often
- "I don't quite understand what they do." It is the one that kills the most rounds. If your advocate cannot explain it in two sentences, the rest of the committee will not buy it.
- "Why this team?" If there is no visible advantage of the team for this specific problem, everything else weighs less.
- "A big company, or AI, could do this in six months." Today it is almost a mandatory question. Have the answer ready.
- "There are few metrics, or they are hard to read." Better a few well defined ones than many confusing ones.
- "The valuation does not fit the stage." An off-market valuation stops the committee from even engaging with the substance.
- "Who else is in?" A round with no lead and no company raises doubts, even if people like the project.
How to prepare your round for that room
- Write the sentence your advocate will say. Two sentences on why your startup is an investment. If you hand it over ready, they will repeat it word for word.
- Make everything readable without you. Deck, model and data room must stand on their own when forwarded to someone who has never met you.
- Answer the objections before they come up. The three most obvious ones for your case, answered in the deck or an appendix.
- Explicit assumptions in the numbers. It should be clear where every figure in the model comes from.
- A clear round. Amount, use of funds, milestones you will reach and who leads.
- Follow up without chasing. Answer quickly whatever they ask for and make your timeline clear, without pressure.
After the committee
- If it is a yes: the term sheet and due diligence arrive. Whatever you did not put in order before shows up here.
- If it is a no: ask for the specific reason. It is the most valuable information a fund will give you.
- If it is "not yet": ask which milestones would make them look again, and come back when you have them.
Frequently asked questions
Can the founder present to the committee? Some funds invite the founder to a session, but the discussion and the vote happen without them. What is said once you leave is told by whoever carries your deal.
How long does a committee take to decide? Several weeks usually pass between the first meeting and the committee. The committee's decision usually comes the same day or a few days later.
What should I do if the committee says no? Ask for the specific reason, fix it if you can and move on to the next funds on your list. A quick no also saves time.
To prepare the round step by step, see how to prepare a seed round in Spain.
Nacho Sánchez is an early-stage investor at Archipélago Next and Suda. At Senda, he helps founders raise their round from the investor's side. Before that he was at Antler, Adara Ventures and Demium.