Why It’s Time to Bury the Deck and Build a Better Stage for Fundraising

For nearly forty years, the investor pitch deck has been the standard currency of fundraising — a series of static slides meant to capture the essence of a company, its opportunity, and its team.

It was once a revolutionary idea. In the early days of venture capital, when founders met investors face-to-face in conference rooms, the deck gave structure to what was otherwise a freeform conversation.

But as the world evolved, the format stayed the same.

“If the rate of change on the outside exceeds the rate of change on the inside, the end is near.”
— Jack Welch

The world outside has changed dramatically. Investors are global, communication is digital, and decisions happen faster than ever. Yet founders are still trying to summarize the future in a 10-slide PowerPoint deck — a tool invented in 1987.

The deck isn’t just outdated. It’s out of sync with how people now consume information, make decisions, and connect with stories.

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The Legacy — and Limits — of the Deck

The pitch deck once offered clarity. It was a simple, structured way to communicate value. But it’s a relic of a time when data was scarce and human attention wasn’t fractured across screens.

Today, founders and investors interact through digital platforms, video meetings, and real-time analytics. And yet, the primary vehicle for telling the most important story of a company’s life cycle — the fundraise — remains static.

“The greatest danger in times of turbulence is not the turbulence—it is to act with yesterday’s logic.”
— Peter Drucker

The investor pitch deck represents that “yesterday’s logic.” It assumes attention is captive. It assumes decision-making happens linearly. Neither is true anymore.

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The Attention Reality

Data from TechCrunch and Pitch Deck studies reveal that investors spend just 30 seconds to 2 minutes reviewing a deck. That’s not cynicism — it’s the reality of cognitive load.

We live in an era of information abundance. Investors are reviewing hundreds of opportunities each year. Their brains are filtering at lightning speed for relevance, clarity, and differentiation.

“The average human attention span is now shorter than that of a goldfish.”
— Microsoft Research, 2015

A static deck is simply not built for that environment. It forces investors to work too hard to understand, instead of inviting them to experience.

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The Psychology of How We Engage

Human attention thrives on movement, emotion, and interaction. The brain doesn’t just absorb data — it interprets it through story.

“Stories are how we remember; we tend to forget lists and bullet points.”
— Robert McKee, screenwriting lecturer

Cognitive studies confirm this:

• The brain processes visuals 60,000 times faster than text.
• People retain 95% of a message when delivered via video versus 10% through text.
• Interactive content drives twice the engagement of static content.

The traditional deck flattens information into something lifeless — while our brains are wired for motion and meaning.

“Data can persuade, but it doesn’t inspire. Only narrative has that power.”
— *Annette Simmons, author of Whoever Tells the Best Story Wins

If the goal of fundraising is to inspire belief — in an idea, a team, a vision — then a tool that fails to engage emotionally is fundamentally flawed.

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The Myth of the “Perfect Deck”

On social media, it’s easy to find endless posts about “the pitch deck that got Facebook funded” or “the slides that won Google’s first investors.”

But those decks aren’t blueprints. They’re time capsules. They reflect a moment when the format matched the context.

Today, founders who follow those examples aren’t innovating — they’re imitating.

“Innovation is saying no to a thousand things.”
— Steve Jobs

It’s time to say no to the myth that perfecting a pitch deck is what drives investment. The best fundraises aren’t about polishing slides — they’re about telling a story that moves people to action.

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How We Experience Information Has Changed

Everywhere else in our professional lives, the way we consume information has transformed.

We stream live updates, watch short-form videos, explore data dashboards, and expect interactivity. Our digital habits have shifted from passive viewing to active engagement.

Investors are no exception. They’re used to dashboards that update in real time, analytics that tell stories visually, and platforms that adapt dynamically to their interests.

“The medium is the message.”
— Marshall McLuhan

The medium we use to communicate a company’s story shapes how that story is perceived. A static PowerPoint tells investors: we haven’t evolved.

A dynamic, interactive experience tells them: we understand how the world works now.

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Enter The Main Stage

At TheMainStage.com, we asked a simple but radical question:

What if the way we raise capital matched the sophistication of the companies raising it?

The Main Stage isn’t an incremental improvement on the pitch deck — it’s a total reimagination of how founders and investors connect.

It’s a digital stage that allows companies to communicate their story the way modern audiences expect to experience it: through motion, emotion, and meaning.

On The Main Stage, founders can:

• Tell their story dynamically — combining narrative, video, and visuals into one cohesive experience.
• Show real-time data — so investors see traction and growth as it happens.
• Centralize diligence — no more email attachments or out-of-date decks.
• Evolve their message — keeping investors engaged from introduction to close.

The platform transforms what was once a one-time presentation into a continuous, living dialogue.

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The Power of the “Why”

Simon Sinek wrote, “People don’t buy what you do; they buy why you do it.”

That’s true in sales, leadership, and especially fundraising.

Investors aren’t just buying into your product; they’re buying into your purpose. They’re evaluating not just what you’re building, but why it matters — and whether you and your team are the right people to make it happen.

But in a static deck, the “why” gets reduced to a tagline.

“Marketing is no longer about the stuff you make, but about the stories you tell.”
— Seth Godin

The Main Stage helps founders bring their “why” to life. Through integrated storytelling, video, and interactive data, your narrative becomes something investors can experience, not just read.

It turns fundraising from a transaction into a connection.

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The New Investor Experience

Modern investors expect the same sophistication in their deal flow that they see everywhere else in their digital lives. They want:

• Speed: Access to information without friction.
• Context: Data framed by story, not numbers in isolation.
• Confidence: A sense of the people behind the business.
• Continuity: The ability to stay updated without new attachments or versions.

“Design is not just what it looks like and feels like. Design is how it works.”
— Steve Jobs

The Main Stage is designed to work the way modern fundraising should — as a living ecosystem of narrative, analytics, and relationship-building.

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The End of the Deck — and the Beginning of the Stage

Every revolution in business communication begins the same way: with a format that can no longer hold the message it was designed to carry.

Fax gave way to email.
Static websites gave way to interactive platforms.
Linear presentations are giving way to dynamic storytelling.

Fundraising is next.

The pitch deck had a remarkable run. But its time has passed.

RIP Pitch Deck (1987–2025)
Long live The Main Stage.

“The future belongs to those who can imagine it, design it, and execute it.”
— Mohammed bin Rashid Al Maktoum

Because the future of fundraising isn’t static — it’s dynamic, digital, and alive.

When it comes to building a startup, the story that frequently gets told is one of innovation, hustle, and overcoming obstacles. Founders share stories of their companies’ origins, the problems they aim to solve, and the products they’re building. But as the startup ecosystem continues to evolve, a powerful shift is taking place:

 

More founders are moving beyond just telling the company’s story and are starting to share their personal why.

 

The difference between a “company story” and a “why statement” is subtle yet significant. A company story revolves around the nuts and bolts of your business: the problems you see in the market, how you plan to solve them, and what results your customers can expect when they work with you.

 

The “why” is different. It’s a deeper reflection of your values, your purpose, and what drives you on a personal level. It connects you, not just your business, to the world around you.

The Power of a Why Statement

At first glance, sharing your personal why as a startup founder might feel unnecessary or even risky. After all, the business is what matters, right? But the truth is that in a crowded marketplace, people aren’t putting their money in products—they’re investing in people. More investors are looking for brands that have a sense of purpose beyond profit. The most successful startups today don’t just sell a product or a service; they offer something people can connect with on an emotional level.

 

In short, it’s more why, less what.

“Very few people or companies can clearly articulate WHY they do WHAT they do. By WHY I mean your purpose, cause, or belief. WHY does your company exist? WHY do you get out of bed in the morning? And WHY should anyone care?” – Simon Sinek

Take Apple, for example. Yes, Steve Jobs and his team created cutting-edge technology, but what made Apple stand out was its mission: to empower individuals through innovation, to make technology beautiful and accessible. This “why” transcended the company story and resonated with people. It created a movement, and that movement led to loyal customers, passionate fans, and unprecedented success.

 

Your why can be just as powerful, no matter the size of your startup. When you open up about your personal motivations, your beliefs, and the deeper reasons behind your venture, you make it easier for people to connect with you. Your audience isn’t just hearing about your product—they’re understanding who you are and why you care. And that makes it easier for them to care, too.

Why Now is the Time to Share Your Why

In today’s world, transparency and authenticity are prized commodities. Consumers and investors are growing increasingly skeptical of businesses that focus solely on financial success and growth without addressing the broader impact of their work. People want to know that the company they’re supporting aligns with their own values.

 

For startup founders, this creates both a challenge and an opportunity. The challenge is that your business has to stand out in a saturated market. The opportunity is that by sharing your personal why, you can differentiate yourself in a meaningful way.

 

A well-crafted why statement doesn’t just build credibility. It also builds trust. When you share your motivations, you signal to others that you’re not in it just for the profit, but for something bigger. It communicates a sense of authenticity that resonates with people in a way a pitch deck simply cannot.

 

Take Patagonia founder Yvon Chouinard. He built a billion-dollar company around outdoor gear, but he didn’t just stop at creating high-quality products. His why was rooted in a deep love for the environment, which led the company to take bold stances on sustainability and environmental activism. By sharing his why, Chouinard didn’t just attract customers—he attracted like-minded individuals who shared his passion for protecting the planet. That connection created a loyal base that extended far beyond the point of purchase.

Your Why: Crafting a Statement That Resonates

So how do you go about crafting a compelling why statement that resonates with your audience? Start by thinking about your motivations on a personal level. Why did you start your company? What personal experience or belief led you to this point? What impact do you want to have on the world? How do your values align with the products or services you’re offering?

 

When crafting your why, it’s important to make it authentic and clear. Your why shouldn’t be overly complicated or difficult to understand. It should be something that connects with people on a human level. In other words, it should be about more than just making money or scaling a business—it should reflect the deeper impact you hope to achieve through your work.

 

Once you’ve defined your why, weave it into the fabric of your brand. It should be reflected in your company’s messaging, culture, and even the way you interact with customers. This isn’t a one-off statement. Instead, it’s a core part of your identity as a founder and as a brand.

The Benefits of Sharing Your Why

By embracing the practice of sharing your why, you’re doing more than just telling your company’s story. You’re creating an emotional connection that goes beyond the transaction. You’re building a brand that resonates with people on a deeper level. This can lead to several key benefits:

 

• Stronger customer loyalty: Customers who align with your values are more likely to stick around long-term.
• Attracting like-minded talent: People who share your vision are more likely to want to work with you, making it easier to build a team that’s equally passionate.
• Increased brand visibility: Sharing your why can help you stand out in a crowded market, making your brand memorable and relatable.

Sharing Your Why on The Main Stage

We built The Main Stage to help founders tell their company story in ways that engage investors and compel them to act. Along the way, we realized that founders also needed a place to share their WHY within the platform.

 

Introducing “Our Why,” a new tab within The Main Stage Story Vault that’s purpose-built for founders to share their unique why, while giving investors the chance to learn the stories behind the company story. It’s our biggest software update yet, and we’re so excited for you to use it.

 

Log in today to begin sharing your why with investors. Once you click on Edit Company, select ‘Our Why’ from the menu on the left. From there, you can write your Founder Story, upload an image, add icons to your Highlight Reel, and answer up to five of our engaging questions.

 

For companies with co-founders, the ‘Our Why’ tab is designed for one or more people. Simply click ‘Add Founder,’ and a new page will be populated. Investors will be able to easily select who they want to learn about once you’ve saved your changes.

 

As we move into the final quarter of 2025, your unique why is more important than ever. The Main Stage is here to help you share it.

The following is a guest post from Natalie Thomas of the law firm Allen & Thomas. We hope you’ll appreciate Natalie’s insight and expertise. Enjoy!

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As we enter the latter half of 2025, the corporate and securities landscape continues to evolve under the current administration. For companies raising capital and navigating corporate governance, understanding these changes is more critical than ever. Below, we summarize the key developments and what they mean for your business.

Key Areas of Change

1. Deregulation and Capital Raising

The administration is prioritizing deregulation and capital formation, aiming to make it easier for companies to access funding. Notably, the SEC has rescinded interpretive guidance (such as Staff Accounting Bulletin No. 121) and is considering sweeping reforms, including:

• Redefining “security” for digital assets and clarifying registration and disclosure requirements for cryptocurrency offerings.

• Broadening or eliminating accredited investor restrictions, potentially allowing Rule 506 offerings to self-certify investor status. This could expand the pool of eligible investors for private offerings, making it easier for companies to access private capital.

• Exempting micro-cap offerings from registration requirements and abolishing or revising rules on securities resales. This change could reduce regulatory burdens, making it more cost-effective for smaller companies to raise funds privately without needing to go through the full registration process.

• Simplifying filer status definitions and loosening requirements for emerging growth companies (EGCs), possibly eliminating quarterly reporting for certain issuers.

These changes are expected to streamline capital raising and reduce compliance burdens, but companies must remain vigilant about evolving disclosure and registration obligations.

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2. Consolidation of Regulatory Control

The White House has moved to consolidate regulatory power, directing independent agencies like the SEC to centralize decision-making at the Commission level and embedding White House liaisons within key agencies. This shift modifies the traditional regulatory structure and increases executive oversight, which may affect the timing and nature of regulatory processes.

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3. Impact of Economic Protectionism on Private Capital

Changes in international trade policies affecting various trading partners, has implications for securities law, particularly in the realm of private capital. These protectionist policies can impact private capital markets by affecting the valuation of companies engaged in international trade, as increased costs of imports may lead to reduced profit margins and altered business strategies. Additionally, companies seeking private capital may face heightened scrutiny from investors regarding their exposure to international markets and the potential financial impact of these tariffs. This environment may lead to increased due diligence requirements and a focus on domestic market strategies when raising private capital, as investors seek to mitigate risks associated with international trade uncertainties.

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4. Federal vs. State Contradictions

While the administration aims to assert federal control, state regulators are intensifying their enforcement efforts in areas where federal oversight has decreased, particularly affecting securities laws in the context of private capital. This shift results in a complex patchwork of regulatory requirements and enforcement priorities, posing challenges for companies seeking private capital and operating across multiple jurisdictions. As a result, businesses must navigate varying state regulations and enforcement actions, which can impact their compliance strategies and capital-raising activities.

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5. Effects of Federal Workforce Reduction on Securities Regulation

The new executive order to shrink the federal workforce and streamline government operations could significantly impact the SEC by potentially slowing regulatory responses and reducing the availability of agency guidance. With staff reductions and the closure of regional offices, the SEC may face challenges in maintaining its oversight and enforcement capabilities, which could lead to delays in processing filings, issuing new regulations, and providing timely guidance to companies. This may particularly affect companies navigating securities law and seeking private capital, as they rely on the SEC for clear regulatory frameworks and guidance to ensure compliance.

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6. SEC Enforcement Under New Leadership

With a new chair focused on deregulation and crypto, the SEC is shifting its enforcement priorities:

• Reduced emphasis on novel or aggressive enforcement in areas like digital assets, ESG, and cybersecurity.

• Focus on “bread and butter” securities fraud—insider trading, Ponzi schemes, and accounting fraud—while leaving oversight of smaller firms to state regulators.

• Fewer enforcement actions against the crypto industry, with a preference for rulemaking and public guidance over punitive measures.

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7. Accountability and Risk Remain Paramount

Despite these changes, companies and their executives remain accountable for past and present actions. Regulatory risk and litigation risk persist, even if federal agencies reduce enforcement. Investors, state regulators, and private litigants may still pursue claims, making robust compliance and governance practices essential.

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What this Means for Your Business

• Stay Informed: Regulatory changes are rapid and ongoing. Regularly review new rules and guidance to ensure compliance.

• Assess Impact: Evaluate how deregulation, centralization, and protectionist policies affect your capital raising, governance, and international operations.

• Monitor State Activity: Be prepared for increased state-level enforcement and adapt your compliance strategies accordingly.

• Prepare for Risk: Maintain strong internal controls and governance frameworks to mitigate regulatory and litigation risk, regardless of federal enforcement trends.

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Navigating the Evolving Regulatory Landscape with Allen & Thomas LLP

We are a boutique business law firm with offices in New York City and Los Angeles. Allen & Thomas brings over 30 years of securities experience to the table. In light of the significant changes under the new administration affecting corporate and securities law, Allen & Thomas stands ready to guide your business through this evolving landscape. Reach out for a consultation today to ensure compliance with the ever-evolving regulatory landscape.

Email: contact@allenandthomas.com

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Disclaimer: Informational Content Only

This content is for informational purposes only and does not constitute legal advice. The content is not intended to create, and receipt of it does not constitute, an attorney-client relationship. For guidance to your specific situation, please contact our office.

Too many founders view investors strictly as sources of capital—and while capital is a powerful accelerant, its full value lies in how you activate your investors as champions of your company. The most successful startups don’t just raise money; they raise a network, a narrative, and a movement.

 

At The Main Stage, we’ve seen firsthand how companies that harness their investors as strategic allies outperform their peers. Here’s how to turn your investors into champions—storytellers, connectors, advocates, and allies who can accelerate your momentum far beyond your balance sheet.

Investors Want to Help—But Need Direction

Most investors want to be helpful. But “helpful” is vague. It’s your job to define what that looks like.

 

Start with alignment. During the fundraising process, assess not just who is giving you capital, but who shares your long-term vision. Look for investors with a track record of engagement—people who have actively supported previous portfolio companies beyond writing a check. You’re not looking for quantity of involvement, but quality.

 

Once they’ve invested, treat onboarding seriously. A tailored “Investor Activation Kit” can go a long way: a clear overview of your current goals, strategic challenges, and ideal customer or partner profiles. Make it easy for investors to say yes when you ask for help.

Use Updates to Ask for Help

Founders often default to sending investors quarterly updates that read like internal memos. While metrics matter, your investor updates should also include asks—specific, actionable ways investors can support you.

 

Need warm intros to a target customer? Ask. Launching in a new geography and looking for regulatory guidance? Ask. Struggling with a key hire? Ask.

 

Here’s a simple framework for investor asks:

• What: Be specific. “We’re looking for intro pathways into Series B-focused fintech investors with a European footprint.”

• Why: Context helps. “We’re planning a raise in Q4 and need to build relationships early.”

• How: Tell them what to do. “Forward this deck and blurb to anyone you think is a fit.”

The more granular and tactical your ask, the more likely you’ll get traction.

Turn Passive Backers Into Active Advocates

Not all champions are built equal. Some investors will naturally lean in, while others might take a nudge. Here’s how to activate different levels of engagement:

1. Social Amplifiers

Encourage investors to engage publicly. Provide them with high-impact LinkedIn blurbs or Twitter/X threads they can re-share to boost launches, milestones, or thought leadership. Make sharing simple—visuals, copy, and timing all pre-packaged.

2. Warm Connectors

Segment investors by their networks. If you’re targeting enterprise clients, flag which investors have former operating experience in those sectors. If you’re courting a key hire, see who in your cap table has shared school or company backgrounds. Don’t make investors mine their own Rolodex—give them context.

3. Strategic Advisors

A few investors will be deeply embedded in your strategic conversations. Keep these relationships high-touch—short monthly calls, early previews of product direction, or founder-only Slack groups. These are the investors who will advocate for you in rooms you’re not in—at partner meetings, at conferences, and over dinner with other LPs.

Build a Culture of Advocacy

Company culture starts at the top, and that includes how you engage your investors. Championing your business should feel like a privilege, not a burden. Celebrate investors who show up. Thank them publicly (when appropriate), feature them in blog posts or social content, and show how their involvement made a difference. People love being part of winning stories.

 

And remember: advocacy goes both ways. If your investors are raising new funds, speaking at events, or publishing insights, amplify them too. The best founder-investor relationships are reciprocal.

Your Champions Are a Competitive Advantage

In a world of noisy markets, limited attention span, and fast-moving capital, your ability to activate believers is a moat. Founders who think beyond capital and focus on catalysts build stronger, more-agile companies.

 

So don’t just manage your investor relationships. Cultivate them. Strategically. Thoughtfully. And with a clear eye on the bigger opportunity: turning investors into champions who multiply your impact.

 

Your next funding round isn’t the end of the story—it’s your chance to bring more voices into the chorus.

Ready to Build Your Champion Network?

Join The Main Stage to run smarter fundraising campaigns, activate investor networks, and move from capital to community.

 

Sign up today and start turning investors into your company’s most powerful advocates.

In today’s funding landscape, AI is everywhere. It’s embedded in websites, product roadmaps, and investor conversations. It powers many of the tools you build with, and often, the tools you’re building themselves. 

 

But amidst all the noise, one truth remains critical for every founder raising capital: the most valuable asset in your company isn’t your use of AI—it’s your uniquely human vision.

 

When investors write checks, they aren’t just backing your tech stack or your growth metrics. They’re betting on your ability to imagine a future that doesn’t exist yet—and to build it from nothing. That kind of vision isn’t just rare. It’s something AI, no matter how advanced, still can’t replicate.

AI Builds on Patterns—Founders Break Them

Artificial intelligence is extraordinarily good at identifying patterns and optimizing within known parameters. It can analyze markets, spot trends, and even generate product ideas based on existing data. But AI doesn’t dream. It can’t spot the white space between markets. It doesn’t get a gut feeling. It doesn’t pursue contrarian ideas with irrational conviction.

 

You do.

 

Some of the most successful startups in history were born not from data, but from belief. Think of Airbnb. Or Stripe. Or Figma. These ideas seemed impractical—until they weren’t. There was no roadmap. There was only a founder who saw something others didn’t.

 

AI can refine ideas. It can accelerate iteration. But the leap from nothing to something? That’s still human territory.

Your Vision Is the Real Differentiator

If you’re raising capital, remember this: investors aren’t just investing in your product—they’re investing in your lens on the future. What you see that others don’t. What you believe before it’s obvious. That’s what separates startups from businesses, and founders from operators.

 

You’re not expected to out-compute AI. You’re expected to out-imagine it.

 

So don’t shy away from boldness when you tell your story. Speak with clarity about your insight. Why this? Why now? Why you? Those aren’t just narrative flourishes—they’re the foundation of compelling conviction. And conviction is what turns early-stage capital into long-term partnership.

Data Informs—But Doesn’t Convince

Founders often feel pressure to anchor every pitch in data. And yes, investors want to see numbers—TAM, CAC, LTV. But in the earliest stages, data isn’t what seals the deal. What does is your ability to tell a compelling story about a future that doesn’t exist yet, but could.

 

AI can write business plans. It can generate competitive analyses. But it can’t craft a vision with heart. It can’t speak from personal pain, deep conviction, or relentless obsession.

 

You can.

 

Investors remember the story. They remember the founder who saw what others missed. So lean into the human parts of your pitch—the parts that can’t be downloaded or replicated.

AI Can’t Take the Leap

Raising capital is not just about logic. It’s about making someone else believe in a reality that hasn’t happened yet. It requires courage, risk, and emotional commitment. AI doesn’t risk. It doesn’t care. It doesn’t have skin in the game.

 

But you do.

 

When you pitch, you’re not just showing a product—you’re showing yourself. Your resilience. Your clarity. Your ability to hold a vision steady through ambiguity. Those qualities are what give investors confidence when the product is still early and the metrics aren’t yet perfect.

 

They’re not just betting on your model. They’re betting on your momentum.

Founders Imagine First—Tools Follow

Let’s be clear: AI is an extraordinary tool. Use it. Leverage it to build faster, think broader, and execute smarter. But don’t let it overshadow the thing that really makes your startup investable—your human capacity to imagine, to lead, and to persist.

 

Great companies don’t start with tools. They start with vision. Tools come later, in service of that vision.

 

So as you raise your next round, don’t just talk about how your product works. Talk about why it needs to exist. What problem you feel compelled to solve. What future you see that no one else sees yet.

 

Because in the end, what AI still can’t see is exactly what makes you—and your startup—worth betting on.

 

Raising capital is one of the most critical—and often most confusing—tasks for early-stage startup founders. Among the many tools available, Simple Agreements for Future Equity (SAFEs) have emerged as a popular choice for pre-seed and seed-stage fundraising. Originally introduced by Y Combinator in 2013, SAFEs offer a founder-friendly alternative to convertible notes or priced equity rounds. But while they are “simple” in some ways, they come with nuances worth understanding.

 

In this post, we’ll break down what SAFEs are, how they work, and the pros and cons you should consider before using them to raise money.

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What is a SAFE?

A SAFE (Simple Agreement for Future Equity) is a legal agreement between a startup and an investor that gives the investor the right to receive equity in the company in the future, typically when a subsequent financing round occurs.

In essence, the investor gives you cash today, and in return, they’ll get shares at a future date—usually when you raise a priced round (Series A or similar). SAFEs don’t accrue interest and don’t have a maturity date, unlike convertible notes. This makes them more straightforward for early-stage funding.

There are four standard SAFE variants:

1. Valuation Cap, No Discount

2. Discount, No Valuation Cap

3. Valuation Cap and Discount

4. No Cap, No Discount

Let’s briefly unpack what “valuation cap” and “discount” mean:

• Valuation Cap: Sets the maximum valuation at which the SAFE will convert into equity, giving early investors a better deal if your company takes off.

• Discount: Allows SAFE holders to purchase shares at a reduced price compared to new investors in the future round.

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Why Founders Love SAFEs: The Pros

1. Simple and Fast to Execute

As the name suggests, SAFEs are relatively simple. They usually require just a few pages of documentation and don’t demand expensive legal diligence. You can often close a SAFE round in a matter of days or weeks rather than months.

2. No Immediate Dilution or Valuation Pressure

Because there’s no immediate equity conversion, you don’t have to determine a precise valuation at a time when your company might not yet have traction or financial benchmarks. This helps avoid undervaluing your company too early.

3. Founder-Friendly Terms

SAFEs don’t accrue interest or have a maturity date like convertible notes, which removes the pressure to repay or convert within a set timeframe. This gives founders more runway and flexibility.

4. Widely Accepted in Startup Ecosystem

Thanks to adoption by top accelerators and VCs, SAFEs are well-understood and accepted. Many investors—especially those active in early-stage tech—are familiar and comfortable with them.

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The Drawbacks: What Founders Should Watch Out For

1. Potential for Over-Dilution

Because SAFEs convert in the future—often at a discount or cap—you may end up giving away more equity than expected. If you raise multiple SAFEs before a priced round, you might be surprised at how much of your company you’ve promised once all the SAFEs convert.

2. Cap Table Complexity

If you’re raising multiple SAFE rounds with different terms (caps, discounts, or both), things can get messy. It complicates your cap table and makes it harder to forecast future ownership percentages.

3. Lack of Investor Alignment

Since SAFE holders are not shareholders until conversion, they generally don’t have voting rights or board representation. This can be good or bad. While it limits investor interference, it can also mean less engagement and alignment with your long-term vision.

4. Deferred Legal and Financial Complexity

While SAFEs are simple now, they shift complexity to your next priced round. That’s when you’ll need to clean up the cap table, calculate conversions, and possibly negotiate with early investors if expectations are mismatched.

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When Should You Use a SAFE?

SAFEs are best suited for early-stage startups—think pre-revenue, MVP stage, or during accelerator programs—when:

• You need to raise capital quickly.

• You can’t yet justify a formal valuation.

• You want to avoid the burden of interest and maturity dates.

• You’re working with investors familiar with early-stage dynamics.

They’re especially useful for bridging between rounds or collecting small checks from angels, friends and family, or syndicates.

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Final Thoughts

• SAFEs can offer a clean, quick, and founder-friendly way to raise capital when you’re just getting off the ground, but like any financing tool, they’re not a silver bullet. Understanding the downstream impact on dilution, cap table management, and investor relations is crucial.
• As a founder, your job is to balance speed with foresight. A SAFE might help you get the rocket off the launchpad—but make sure you’re not unknowingly giving away too much control of the mission down the line.
• Before issuing SAFEs, talk to your legal counsel and model different fundraising scenarios. A bit of diligence now can save you from headaches (and surprises) later. If you need a legal team that truly understands the startup landscape and will take the time to get to know your company and its goals, check out Allen & Thomas on our Supporting Acts page.

For so many startup founders, the early stages of building a company are consumed by the same few things:

• product development
• putting together a team
• figuring out your story
• finding product-market fit. 

Amid all the hustle, one important element frequently gets overlooked—or worse, reduced to a transaction: the relationship between you and your investors. 

 

The reality is that strong, authentic relationships with investors can be one of a startup’s greatest assets—not just for securing funding, but for strategic guidance, network access, and long-term success. Read on to discover why and how.

Investors Are More Than Just a Check

At first glance, investors might seem like they serve a single purpose: providing capital. But savvy founders know that money is just one aspect. The best investors bring far more to the table. Those benefits include industry knowledge, mentorship, strategic advice, and introductions to other key players in the ecosystem—from potential customers to future hires or even co-investors.

 

Think of investors not just as funders, but as partners. Many have been through the startup rollercoaster before, either as founders themselves or as long-time backers of other successful companies. Tapping into their experience and wisdom can help you avoid pitfalls, refine your strategy, and accelerate growth.

Trust is the Foundation

Building trust with investors is crucial. Trust doesn’t come from flashy pitch decks or polished projections. Instead, it’s built over time through transparent communication, consistent follow-through, and shared wins (and losses).

 

Founders who openly share both their successes and struggles tend to cultivate deeper investor loyalty. If an investor believes you are honest and capable, they are more likely to stick with you through challenges, provide additional support during tough times, and become advocates for your business within their networks.

Better Relationships = Better Terms

Raising capital can be a high-stakes process, and the terms you get—valuation, ownership dilution, board control—can significantly affect your company’s future. Investors who know and trust you are more likely to offer favorable terms and be flexible when circumstances change.

 

When it comes time to raise your next round, existing investors often play a key role in introducing you to new ones. Strong relationships can make those handoffs smoother and more credible, giving you a powerful edge over less-connected founders.

The Long Game: Investors as Lifelong Allies

The startup world is surprisingly small, and relationships often span multiple ventures and decades. Many successful entrepreneurs raise capital from the same investors across different companies, or even become investors themselves and back their former funders. That’s why treating investor relationships as long-term partnerships—not one-off transactions—is so important.

 

Your reputation as a founder will precede you. Founders who burn bridges or ghost investors after a raise may find it harder to attract support in the future. On the other hand, those who invest in building genuine relationships often find doors opening for them again and again.

 

Brian Smith, co-founder of The Main Stage puts it like this:

 

“I can’t say this with more conviction: investors want to hear from you. They’ve put their trust in you—not just in the good times, but through the challenges too. From my days at Morgan Stanley to building startups fueled by investor capital, one thing has remained true: honest, consistent communication builds trust. If investors only hear from you when things are great—or worse, only when you need more money—that’s not a relationship, that’s a transaction. I’d rather be told I send too many updates than hear, ‘I never hear from you unless you need something.’“

How to Build Strong Investor Relationships

So what does it take to cultivate meaningful, productive relationships with investors? Here are a few strategies:

1. Communicate Regularly: Send thoughtful investor updates monthly or quarterly. Include key metrics, challenges, and asks. Keep it concise but informative. 
2. Be Transparent: Share the highs and the lows. Investors appreciate honesty and want to know how they can help—not just when things are going well. 
3. Ask for Advice, Not Just Money: Engage investors early, even before you’re raising. Seek input, ask questions, and show that you value their expertise. 
4. Respect Their Time: Be prepared, punctual, and concise in your meetings. Busy investors appreciate founders who come to the table with clarity and purpose. 
5. Celebrate the Journey: Involve your investors in your wins. A quick thank-you note after a successful launch or a major hire goes a long way in making them feel part of the mission.

The Main Stage Makes Building Strong Relationships Easier

Whether you’re chatting privately with one investor, sending a message to shareholders only, or providing a company update to everyone in your pipeline, The Main Stage makes tailored communication quick and easy. 

 

Our investor-focused CRM keeps your audience in the loop, but it also helps you stay compliant. When changes are made to your deal terms, presentation, or other documents, you’ll receive a popup message offering to notify your network. One click is all it takes.

Final Thoughts

Investor relationships are like any other human connection—they thrive on mutual respect, clear communication, and shared vision. For startups navigating the uncertain waters of early growth, having a few solid investor allies in your corner can make the difference between sinking and scaling.

 

In a world where capital is increasingly commoditized, the quality of your investor relationships may well be your greatest competitive advantage. So take the time, do the work, and build the trust—it’ll pay dividends long beyond your next funding round.

 

At The Main Stage, our platform gives startup founders the tools they need to launch, scale, and eventually exit—while providing investors with a user-experience that’s designed to build engagement and interest. If you own a company that needs to raise capital, sign up to join The Main Stage today.

Artificial Intelligence (AI) is changing the investment landscape. New capabilities that would have once seemed like science fiction are quickly becoming everyday operations in financial institutions around the world. Whether they’re analyzing enormous amounts of data or making predictions about market movements, AI is revolutionizing how investors approach decision-making, risk management, and portfolio optimization — but they are not the only ones harnessing its power.

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AI: For People with Companies that Need Capital

1. Automating Customer Support

Startups are using AI-powered chatbots and virtual assistants to provide 24/7 customer support. These tools can answer frequently asked questions, resolve common issues, and guide users through complex processes. AI allows for faster response times, reduces the need for human customer service agents, and helps businesses scale their support services efficiently.

2. Enhancing Personalization

AI is helping startups deliver highly-personalized experiences for their customers. For example, e-commerce platforms use AI to recommend products based on user behavior, purchase history, and preferences. Now you know how Amazon keeps coming up with new must-have items to add to your cart. Similarly, media and content platforms apply AI to suggest relevant articles, videos, or music to users, keeping them engaged and increasing retention rates.

3. Optimizing Marketing Efforts

Startups are leveraging AI to automate marketing campaigns and improve targeting. AI tools can analyze consumer behavior, segment audiences, and create tailored advertisements. For instance, AI-driven tools help startups optimize their digital marketing efforts by predicting which ads will perform best and adjusting strategies in real time. This enables businesses to maximize their marketing ROI with minimal manual input. 

4. Streamlining Operations

AI is also being used to automate repetitive tasks within startups, from administrative work to inventory management. For instance, AI can help analyze data for supply chain optimization or predict demand fluctuations. By reducing manual labor, startups can focus on more strategic initiatives, improving overall productivity.

5. Product Development

Some startups are even developing AI-based products or services that would not be possible without advanced AI capabilities. In healthcare, for example, AI-driven diagnostic tools can analyze medical data and images to assist doctors in diagnosing diseases more accurately and quickly. Similarly, in Fintech, AI is being used to create smarter financial tools, such as fraud detection systems or automated investment platforms.

6. Improving Decision-Making

Startups are using AI-powered analytics platforms to make data-driven decisions. AI can process large volumes of data to identify trends, insights, and patterns that may be invisible to humans. Whether it’s market analysis, financial forecasting, or consumer sentiment analysis, AI helps startups make more informed, strategic decisions.

7. Enhancing Security

AI is increasingly being used by startups to enhance cybersecurity. Machine learning algorithms can detect anomalies in network traffic, identify potential security threats, and prevent cyberattacks before they cause costly damage. AI-powered security systems can adapt over time, improving their ability to detect new threats.

AI: For People with Capital to Invest

1. Analyzing Data

One of the most significant advantages AI offers in the investment process is its ability to analyze large datasets quickly and accurately. In traditional investment models, analysts rely on historical data, financial statements, and market trends to make predictions. While this can be effective, AI enhances this process by sifting through massive datasets—far more than a human analyst could manage. AI can analyze news articles, social media feeds, economic reports, and even real-time market data to generate insights that would otherwise be missed.

2. Forecasting Behavior

Machine learning, a subset of AI, is particularly valuable for predicting future market behavior. Machine learning algorithms can identify patterns in past market movements and use that data to forecast future trends. These models constantly learn from new data, improving their predictive accuracy over time. As a result, AI can help investors identify opportunities or risks before they become obvious, offering a significant edge in a fast-moving market.

3. Mitigating Risk

Another critical application of AI in the investment process is in risk management. By analyzing market conditions, portfolio composition, and external factors like geopolitical events, AI can assess risk exposure in real-time and suggest adjustments. For example, if a certain asset class begins to show signs of increased volatility, AI can recommend rebalancing a portfolio to mitigate risk. This dynamic approach to risk management allows investors to respond more quickly to changes in market conditions, minimizing potential losses.

4. Automating Tasks

AI is also helping investors automate routine tasks, such as executing trades or generating reports. This automation not only improves efficiency but also reduces human error, leading to more precise and timely decisions. Furthermore, AI-driven robo-advisors are gaining popularity, offering personalized investment advice at a fraction of the cost of traditional financial advisors. These platforms use AI algorithms to assess an individual’s risk tolerance and financial goals, creating optimized investment portfolios.

Key Takeaways

• For investors, AI is fundamentally reshaping the investment process by enhancing decision-making, improving risk management, and enabling more efficient operations. As the technology continues to evolve, its role in investment strategies will only grow, making it an essential tool for investors in the modern financial landscape.

• Startups are tapping into the power of AI across various domains to innovate and remain competitive. From automating customer interactions to enhancing product development and decision-making, AI is a critical tool that allows startups to operate more efficiently, scale rapidly, and provide unique services to their customers. As AI continues to evolve, its applications in the startup world will only expand, helping businesses stay ahead of the curve.

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At The Main Stage, our platform gives startup founders the tools they need to launch, scale, and eventually exit—while providing investors with a user-experience that’s designed to build engagement and interest. If you own a company that needs to raise capital, sign up today.