How To effectively Deploy Capital Post-Fundraise #111

Hey,
So, you just closed a round and are tempted to start burning a hole in that check, but should you?
Also; 

📸 - Social Snapshot- ICYMI Goldman Sachs leaked deck

📊 - Founder ownership in VC-backed startups

🎙️ - Doubling your sales with Jeremy Parker

🆓 - Negotiate your term sheets like a pro

Welcome to issue 111.

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Social Snapshot

🙇 A look back at the conditions at GS by Pitch Deck Guy on X.

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Jeremy Parker (swag.com) on The Cash Flow Strategy That Fueled $40M in Sales

In the last episode, I speak to the King of Swag, Jeremy Parker, co-founder of Swag.com, an e-commerce platform specializing in high-quality promotional products for businesses that was acquired by Custom Ink. He talks about how he managed to double his sales YoY, the challenges faced when he had to pivot in 2020, and the best time to sell your business.

Watch Now

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Data Corner

 

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Raising Capital for your startup?

Thunder's mission is to guide founders toward the right path to reach their North Star, be it through securing equity or debt financing or navigating the path to a successful exit. 

Talk to us

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You Raised the Money. Now What?

You hustled, pitched, and negotiated. The money’s in the bank. Kudos. Now what?

Most founders assume that raising capital is the hard part. It isn’t. Deploying it efficiently (not burning through it like a drunken sailor or hoarding it like a doomsday prepper) is where real skill comes in.
A prime example of poor capital deployment was Quibi. They raised $1.75 billion for their short-form mobile streaming platform. The problem? They spent on Hollywood-style productions and an expensive launch without validating whether people wanted the product.

They ignored consumer behavior; people were already getting short-form content for free on TikTok and YouTube. Worse, they burned through capital on unnecessary tech, like their “Turnstyle” feature that let users switch between landscape and portrait mode (who asked for that??).

Despite the massive funding, Quibi shut down in just six months.  Money doesn’t fix a flawed strategy. So how can you not end up as a cautionary tale?

Step one: Breathe. Then prioritize.
I’ve seen founders blow their first check on a flashy office, overhiring, or (worst of all) an expensive rebrand no one asked for. Your first move should be to reassess your operating plan. What’s mission-critical in the next 12–18 months? What KPIs actually drive revenue or traction? If it doesn’t move the needle, it’s a nice-to-have, not a must-have.

A founder I worked with, fresh off a $5M seed round, decided to triple their engineering team overnight. Sounds smart- more hands, more progress? Wrong. The company’s dev process wasn’t scalable yet, which meant new hires sat around waiting for work. Burn rate spiked, runway shrank, and they had to course-correct hard. Lesson: Spend ahead of growth, not ahead of strategy.

Step two: Invest in what moves the business forward.
There are only a few things that justify meaningful spending post-raise:

1. Product development – if your product still isn’t where it needs to be, fix that before scaling.
2. Customer acquisition – spend here only if you have a proven CAC:LTV model. Throwing cash at untested growth channels is just setting it on fire.
3. Hiring selectively – resist the urge to bulk up headcount unless it directly fuels revenue or operational efficiency.

A useful framework? Treat every dollar like it’s your last. Assume you won’t be able to raise again. This forces discipline. The founders who get this right stretch a $2M round to $10M outcomes. The ones who don’t are back fundraising in 6 months with nothing to show.

Step three: Manage investor expectations.
You closed the round. Now those investors expect results. Keep them informed, but don’t drown them in updates. A strong investor update includes:

• Current cash balance & burn rate
• Key wins and misses since the last update
• Biggest challenges & how you’re addressing them
• Any key asks (introductions, hires, advice)

This isn’t just for optics. Smart investors can help if they know what’s happening. Radio silence is the fastest way to lose support when you need it.

Step four: Stay lean, even when you don’t have to.
I once stretched a $500K into 18 months of growth by keeping the team tight, delaying major spend until after we had traction, and negotiating everything. (Heads up: You can negotiate SaaS contracts, office leases, even ad spend. Try it.)

Founders who stay disciplined don’t just survive downturns, they win during them. Capital efficiency isn’t about spending nothing. It’s about spending wisely.

TL;DR: The real work starts now.

• Reassess your plan and prioritize mission-critical spending.
• Invest in things that actually grow the business.
• Keep investors informed, but don’t overshare.
• Stay scrappy, even when your bank account says otherwise.

The best founders aren’t just great at raising capital. They’re great at making it count.

More next week, until then, spend wisely.

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Free Fundraising Resources

Here's my guide to planning out your fundraising over 12 months if you're still trying to access capital: 
🗓️ Your 12-month fundraising plan- Download it here