The economic landscape of 2025 is a far cry from the days of abundant capital. Startups raising millions in just a few weeks no longer dominate headlines. Venture capital firms are more cautious, and entrepreneurs are expected to do more with less. Innovation hasn’t slowed — but the way we finance it has changed. In How to Succeed in Fundraising?, part of the Business Essentials collection by Five Minutes, author Léwis Verdun presents a concise, actionable guide to navigating this new environment.

Taking inspiration from this compact and pragmatic book, this article explores a broader but deeply connected topic: how should entrepreneurs adapt their startup vision to an evolving investment culture? Today, fundraising is no longer just about storytelling — it's a strategic exercise grounded in financial discipline, transparency, and execution.

Below, we’ll examine key market trends for 2024–2025, the most common mistakes startups make, and the best practices you need to implement to build a solid, responsible and scalable fundraising strategy.

The Post-Hype Era: Investment Becomes Rational

In 2024, startup fundraising in France dropped by 35% compared to 2022. This isn’t just a temporary dip — it’s a structural correction. The post-COVID euphoria has passed, and investors now seek real traction, measurable profitability, and resilient business models.

Capital is flowing toward sectors deemed critical: artificial intelligence, fintech, and green technologies. But even in these areas, money is no longer easy. VCs demand more proof of market fit, experienced founding teams, and solid governance.

In this context, Léwis Verdun’s book warns against the “announcement effect” — raising money just to make headlines, signing deals without clarity, pitching ideas that lack substance. Those tactics no longer work. What matters today is clarity of purpose, accurate data, and executive integrity.

Building a Strong Investment Case: Strategy Meets Discipline

Fundraising doesn’t start with a pitch deck — it starts with one key question: how much capital do you really need? Defining this early is essential to avoid unnecessary dilution or misjudging your financial runway.

Here’s a quick breakdown of the essential steps detailed in the book, summarized here:

  • Assess your true funding needs line by line, with 18–24 month visibility.

  • Build a persuasive business plan, including not just numbers but the strategic assumptions behind them.

  • Target the right investors: those whose investment thesis aligns with your stage, industry, and values.

  • Get due diligence-ready from the start: data room, cap table, legal docs, IP, key contracts — everything must be clean and available.

This isn’t theory. The book draws on real-world examples like Knave and Mistral AI, which raised funds thanks to sharp vision, fast execution, and structured communication.

Avoiding Common Pitfalls: Hype, Confusion, and Legal Blind Spots

Too many startups fall into the same traps. Here are the main mistakes identified in the book — and how to avoid them:

1. Overstating your traction
A beta launch is not proof of product-market fit. A few paying customers with high retention are worth more than thousands of passive users.

2. Unrealistic financial projections
10x growth in two years? Maybe — but it better be backed by a clear plan. Investors now want conservative, moderate, and aggressive scenarios — all well-documented.

3. Ignoring regulatory shifts
In 2025, the JEI tax status is more restrictive, R&D tax credits have been scaled back, and other fiscal reforms are underway. Failing to include this in your financial model is a strategic misstep.

4. Mistaking visibility for credibility
Getting media attention or being featured in top startup hubs won’t replace a strong product vision or sustainable business model.

One of the book’s key messages: investors don’t fund stories — they fund evidence. A good narrative won’t work unless it’s grounded in facts and execution.

Practical Roadmap: How to Fundraise Successfully in 2025

To help entrepreneurs build a structured approach, here’s a checklist inspired by the book:

Strategic Preparation

  • Have I defined my funding needs clearly and realistically?

  • Is my business plan well-structured and investor-friendly?

  • Have I identified the right VCs or angel networks (by sector, stage, geography)?

Financial & Legal Structure

  • Is my cap table clean (founders, employee options, legal agreements)?

  • Is my data room complete and up-to-date?

  • Have I anticipated dilution clauses (liquidation preferences, anti-dilution rights)?

Investor Communication

  • Am I ready to defend every figure and KPI in detail?

  • Is my pitch deck clear, visual, and jargon-free?

  • Have I thought about the post-deal phase (governance, reporting, 24-month roadmap)?

Follow this roadmap, and you’ll not only improve your chances of raising capital — you’ll also build long-term alignment with your investors, one of the keys to sustainable growth.

In a tighter capital market, discipline, clarity, and alignment are your most valuable assets.

How to Succeed in Fundraising? is more than a guide — it’s a strategic survival manual for ambitious founders. It gives you the tools, insights, and frameworks to avoid rookie mistakes and build meaningful partnerships that drive your business forward.

Discover How to Succeed in Fundraising? now on Five Minutes!