Raising funds before generating revenue is generally discouraged, but certain circumstances may necessitate it, such as capital-intensive businesses, network effect companies, or those facing regulatory requirements. Founders should focus on building a strong team, acquiring users, creating hype, or joining accelerators to attract investors in pre-revenue scenarios, although having revenue is still the most effective strategy for most.

The article discusses the concept of clawbacks in venture capital, which allow investors to reclaim funds under certain conditions, such as poor performance or misconduct by portfolio companies. It explores the implications of clawbacks for startups and investors, highlighting both their protective benefits and potential drawbacks in fostering innovation. The piece emphasizes the need for clear terms and understanding between investors and entrepreneurs regarding clawback provisions.

The article discusses the most active investors in the U.S. venture capital landscape as of May 2025, highlighting key firms and their investment strategies. It provides insights into the trends shaping the industry and the performance of notable venture capitalists.

The article discusses effective strategies for pitching to venture capitalists and accelerators, emphasizing the importance of clear communication and understanding investor expectations. It highlights key elements such as tailoring pitches to specific audiences and demonstrating a strong value proposition to enhance the chances of securing funding.