Tips for Raising Funds and Attracting Investors
In this episode of The Bottom Line, we’re joined by Frederic Joye, Managing Partner at Arcanys Ventures. Rather than offering traditional capital injections, Arcanys Ventures supports late-seed and pre-Series A startups by embedding highly skilled development teams in exchange for equity. With a portfolio of 25 companies and a successful exit, Arcanys Ventures offers more than just development support—it provides long-term execution power that helps founders build, iterate, and scale faster.
Frederic shares how this unique talent-for-equity model enables startups to extend runway, strengthen engineering capabilities, and position themselves for real growth milestones.
Throughout the conversation, Frederic dives deep into the challenges of raising capital in today’s economic climate, the common pitfalls of inflated valuations, and why strong founders—more than strong products—are often the key to successful investments. If you’re preparing for your next raise, this one’s not to be missed.
1. A Great Product Isn’t Enough
Having cutting-edge technology is important—but it won’t guarantee you a cheque. Too many start-ups burn through capital building impressive tech without proving there’s actual demand.
Investors want to see a clear go-to-market strategy, customer acquisition plans, and commercial validation. Before raising funds, focus on demonstrating traction. Modest, early revenue goes a long way in showing that investor confidence isn’t misplaced.
2. It’s the Team That Seals the Deal
Ideas are great—but people build businesses. The most successful funding stories have a common thread: strong leadership. Investors look for founding teams with strategic vision, technical expertise, and the ability to execute. Vision needs execution to become reality.
“If you’re a visionary but lack technical skills, it’s essential to bring in a technical co-founder or early hire. This isn’t a nice-to-have—it’s non-negotiable.” - Fred Joye, Arcanys Venture
3. Don’t Overinflate Your Valuation — Get Expert Input Early
A common mistake? Getting caught up in ‘unicorn’ thinking too early. Chasing lofty valuations without revenue or defensible intellectual property doesn’t attract investors—it scares them off.
It’s essential to be realistic and strategic with your valuation. This is where your accountant becomes a critical part of the process. A good accountant will help you assess your financials, forecast sensibly, and justify your valuation based on evidence—not guesswork. They’ll also help ensure you’re not overlooking key tax, compliance, or structural issues that could impact your capital raise down the track.
Raising too much too soon from inexperienced backers can quickly backfire. You risk burning through capital without clear outcomes, which can make future fundraising almost impossible. Instead, raise what you need, protect your equity, and let your progress—not your pitch—determine your valuation.
4. Strategic Funding Beats Fast Funding
Not all money is equal. The best investors bring more than just capital—they bring experience, connections, and strategic value.
Before accepting funding, ask yourself: Will this investor accelerate my growth? The right partner won’t just join your journey—they’ll help drive it forward.
“For instance, one Arcanys-Ventures backed startup developed wearable tech for Olympic swimmers—some of whom went on to win medals. Another, a race registration SaaS, was acquired by ASICS, the global sportswear brand, after Arcanys Ventures helped turn it around post-COVID.”
5. Founders Must Get Their Hands Dirty
There’s no way around it—the early stages are a grind. As a founder, you’ll need to wear every hat: pitching, building, selling, hiring, testing, and repeating.
Don’t rush into high-level strategy too soon. The best founders lead from the front. They’re hands-on and unafraid to roll up their sleeves. It’s not just about talking the talk—it’s about showing what real leadership looks like.
6. Happy Teams Build Better Products
In tech-driven ventures, your competitive edge isn’t just your software—it’s your people. Top employees stay for purpose, progress, and impact—not for perks or salaries.
Culture is more than table tennis tables or Friday beers. It’s about creating a place where people want to grow. Engaged, mission-driven teams build better products and stick around longer. That’s not HR fluff—that’s how you scale sustainably.
7. Think Global—But Start Local
Australia might seem small, but it’s a world-class test market. It’s English-speaking, well-regulated, and fiercely competitive—a perfect proving ground for HealthTech, FinTech, and SaaS ventures. Start local, validate your model, refine your offer—then scale globally. The ventures that dominate their backyard often go on to win big overseas.
8. Build to Scale, Not Just to Sell
Many founders make the mistake of designing their business around the exit. But focusing too much on getting acquired can derail the real work of building something worthwhile.
The best exits? They happen organically—when your business is so strong it doesn’t need to be sold. Build for scale, not just for sale.
9. What Investors Really Want
Every investor has their own lens—but across the board, there are six essentials they expect to see before backing a business:
Commitment – Founders with skin in the game. If this is just a side hustle, don’t expect serious capital.
Balance – A founding team that blends big-picture vision with on-the-ground execution.
Reality – Valuations grounded in data, not hype.
Traction – Early wins, customer growth, and product validation that show your business has legs.
Discipline – Smart use of capital and a clear handle on burn rate.
Narrative – A compelling story that ties everything together and makes investors want to be part of the journey.
As Fred puts it, “Founders have to be just better at managing their finances—and maybe talk to their accountants a bit more often.”
Financial literacy and clarity aren’t optional. Investors want to see that you know your numbers, understand where your money is going, and can confidently project where it needs to go next. Get this right, and you’ll stand out for the right reasons.
The difference between a good start-up and a great one often isn’t the product or even the pitch. It’s the founder’s ability to adapt quickly, learn constantly, and surround themselves with the right support. Momentum attracts money. So focus on building something that works. The capital will come.
Want to hear it straight from the source?
Tune in to the full conversation with Frederic Joye on The Bottom Line podcast—available on Spotify, Apple, and wherever you get your podcasts.