The Three Types of Founders: And How Each Should Approach Fundraising

I’ve worked with enough early-stage businesses to see a clear pattern. Founders fall into three broad categories when it comes to fundraising. Each type is valid – but each demands a very different approach. The biggest mistake I see is founders failing to recognise which camp they’re in and then building a strategy based on wishful thinking, not reality.

1. The Skint Founder

This is the founder with little to no money, but plenty of energy and enthusiasm. They dream big, they work hard, but they lack financial resources to bring in experts. Too often, they go hunting for advisors who will work for free in exchange for equity or success fees. The good advisors won’t bite. The bad ones will – and they’ll do more harm than good.

The truth is, if you’re a skint founder, the only resource you can trade is your time. You have to accept that you’ll learn as you go. You’ll make mistakes, it will take ten times as long, and you’ll work ten times as hard. But that’s the reality. Your best option is to hustle, read voraciously, and pick up the skills you need on the job. It’s painful, but it’s honest.

2. The Team-Focused Founder

Some founders are visionaries who excel at bringing people together. They may not have deep pockets, but they have the ability to inspire. These founders build teams not by paying cash, but by sharing equity. They bring in co-founders who buy into the vision and are willing to put their expertise on the line for a long-term share of the upside.

This is a powerful model, but it only works if the equity is shared with long-term partners. Trading equity for short-term project deliverables doesn't work – they create misaligned incentives and spook investors. A team-focused founder who embraces the idea of sharing their vision to increase its likelihood of success can move faster than the skint founder, and with the right group around them, can present a much stronger case to investors.

3. The Funded Founder

Finally, there are founders with some level of financial backing – whether through personal savings, friends and family, or early-stage investors. These founders can afford to buy expertise. They know that by investing in the right advisors and specialists, they can accelerate progress and retain more ownership. In practice, this group often achieves the best balance between speed and control. They don’t dilute themselves unnecessarily, and they avoid the pitfalls of relying on free or misaligned help.

Why It Matters

Each of these paths is valid. There isn’t a single right answer. What matters is that founders are brutally honest about which category they fall into. Investors see straight through a founder who pretends to be funded when they’re really skint. They spot the inconsistencies in strategy, and it damages trust. The founders who succeed are the ones who recognise their reality and act accordingly.

The Obvious Resistance

Of course, no founder wants to admit they’re skint. It feels like a weakness. But it’s far better to own it and plan for it than to chase a fantasy of free expertise. Investors respect honesty and resourcefulness. What they don’t respect is a founder who tries to shift the risk onto others.

Choosing Your Path

So, where do you fit? Are you the skint founder who must accept the grind? The team-focused founder who builds through shared vision and equity? Or the funded founder who leverages capital for speed and expertise? Each has advantages and drawbacks, but clarity is key.

My Message to Founders

Be honest with yourself. Stop searching for shortcuts that don’t exist. Recognise your position, accept the trade-offs, and build a strategy that fits. That honesty – with yourself, your team, and your investors – is what makes you credible.