In partnership with
`
Investors Are Not Your Friends
If there’s one brutal truth every founder needs to hear early on, it’s this: investors are not your friends.
They may smile. They may say all the right things. They may even claim to support your mission and “back founders.” But behind that polished pitch is a simple truth: they are here to make money—not to protect your vision. And when your vision becomes a roadblock to their return? They’ll remove the obstacle. That obstacle is you.
This might sound harsh, but it’s reality. And ignoring it is how you get screwed.
You’re Being Evaluated from the First Email
From the moment you reach out (or they do), a power game begins. Founders who walk into fundraising thinking it’s a friendly chat are already behind.
The best investors play long games. They’re not just listening to your pitch — they’re watching how you respond under pressure, how desperate you seem, and whether they can steer you. If they sense they can? You’ve already lost leverage.
Most VCs won’t say no upfront. Instead, they’ll keep you dangling — until your options dry up and their offer becomes your only lifeline. That’s not a partnership. That’s positioning.
The back office, built for founders
We’ve worked with over 800 startups—from first-time founders at pre-seed to fast-moving teams raising Series A and beyond—and we’d love to help you navigate whatever’s next.
Here’s how we’re willing to help you:
Incorporating a new startup? We’ll take care of it—no legal fees, no delays.
Spending at scale? You’ll earn 3% cash back on every dollar spent with our cards.
Transferring $250K+? We’ll add $2,000 directly to your account.
Series A Is Where You Lose Control (If You’re Not Ready)
Many founders assume that raising a Series A means they’ve “made it.” It’s often when inbound interest spikes — but it’s also the point when most founders start losing control. According to Carta’s 2025 Founder Ownership Report, by the time of Series A, the median equity held by founding teams drops to just 36.1%, and by Series B it falls further to 23%.
Why? Because now you’re negotiating with professionals who’ve done this a hundred times. You’re still learning. They’re not.
If you don’t understand how term sheets work — how one word can alter your company’s future — you’re not building a partnership, you’re walking into a trap.
And the worst part? It won’t feel like a trap. It’ll feel like you’re doing the “right” thing. Like you’re being a “good founder” by being agreeable. That’s how you get played.
Founders Who Win Know How to Negotiate
Founders love to build. That’s our strength. But building alone won’t save you in a negotiation room.
You need to know how to hold your ground.
You need to know when to stay silent.
You need to know when to walk away.
Negotiation isn’t about being aggressive — it’s about being prepared. Knowing your leverage. Knowing how to reframe pressure. Knowing how to push back with confidence.
And if you don’t learn that fast, your cap table will reflect the consequences.
Investors Are Playing a Game. Are You?
If you don’t know the rules, you’re not even in the game — you’re the pawn.
The smartest founders know that fundraising is a performance. Your energy, your tone, your framing — all of it shapes how investors perceive your value and power.
These aren’t “soft skills.” These are survival skills.
VCs will test your numbers, your team, your confidence, your patience. If you flinch, they’ll know. If you bluff, they’ll call it. If you hesitate, they’ll press harder.
This isn’t personal. It’s just how the system works.
So, What Can You Do?
That’s exactly what Soma Pirityi, former VC turned founder, tackled in his “Fundraising Without Losing Control” masterclass just a few days ago.
Soma spent five years on the investor side, working on 50+ deals across the US and UK. Now he’s a founder himself — and he’s exposing everything investors don’t want you to know.
Here are the key takeaways he shared with our community:
Prepare like a pro. You don’t need to be a lawyer, but you do need to understand term sheets at a deep level. One line can cost you millions.
Practice negotiation scenarios. Have counter-scripts ready. Know what to say when someone pushes a clause that doesn’t serve you. Confidence comes from reps.
Know your red lines. Not everything is negotiable — but some things should be non-negotiable. Especially when it comes to control and dilution.
Don’t rush. Time is a weapon. Investors use urgency to pressure founders into bad decisions. Don’t fall for it.
Build relationships early. The best deals come from trust and leverage—not desperation. Engage with VCs before you need them.
Soma’s masterclass was full of brutally honest, real-world examples of how founders get manipulated — and how to push back.
Watch the Masterclass (and More)
📹 We recorded the full masterclass, and it’s now available for Rare Founders paid members. If you upgrade your subscription, you’ll get instant access to this session plus all the other founder-focused masterclasses we hosted this summer.
✅ This isn’t startup paranoia — it’s how power shifts when the money hits. Share it with the founder who’s about to sign without reading the fine print.
POLL TIME
(👉 Vote now — we’ll share the results in next week’s issue. All votes are anonymous. Make sure to click SUBMIT)😀
Which actually screws founders more?
INDUSTRY PULSE 🩺
(Last week’s poll results)
👉 Series A is “supposed” to take ~2 years to reach. Where does YOUR startup stand right now?
RAFE FOUNDERS EVENTS ❤️
Rare Founders
Open Mic Pitching & Networking (Manchester)
A high-energy pitch night bringing together founders, investors, and the startup community for rapid-fire pitches, spontaneous networking, and game-changing connections. Expect unfiltered conversations, buzzing vibes, and opportunities sparking at every corner.
In-person event
Lower Campfield Market, Lower Byrom St, Manchester M3 4FP, UK
Wed 24 Sep, 18:00 - 22:00 BST
Rare Founders
🇧🇪🇬🇧 Apply to Pitch at the Belgian Embassy Demo Day
On 7 October, we’re teaming up with the Embassy of Belgium in London for a cross-border demo day. We’re selecting 20–30 tech startups from the UK and Belgium at pre-seed or seed stage to pitch in front of investors.
👉 Applications are open now and close on 5 September.
Submit a 1–2 min video and your pitch deck to apply.
OTHER LONDON EVENTS🌟
`
Pitch and Run
Run London
Join for a friendly 5km run that invites participants to connect with others in the startup space while enjoying a scenic route along London’s bridges. It’s a casual chance to meet new people and build community through movement.
In-person event
St. Paul's Churchyard, London, EC4M 8AD, UK
Thu 21 Aug, 08:00 - 09:15 BST
Tiny Ventures
Launch And Competition Final
The event showcases the final stage of a VC competition where aspiring venture analysts present startup investment cases, simulating a real investment committee process. It aims to provide hands-on experience and highlight talented individuals eager to break into the industry, with plans to expand the competition in the future.
In-person event
99 Bishopsgate, London, EC2M 3XD, UK
Thu 21 Aug, 18:00 - 21:00 BST
FOUNDRY Five
Walthamstow - August
Join a 5K social run with a curated playlist, followed by drinks and networking with like-minded professionals. It’s a chance to connect, get fit, and meet new people in a relaxed, energetic setting.
In-person event
5 Forest Rd, London, E17 6ZJ, UK
Fri 22 Aug, 18:00 - 20:00 BST
Demo Inn London
Demo London - August Edition
A collaborative space where creators showcase projects of any kind, exchange supportive feedback, and connect as equals without labels or hierarchy. It’s a community-driven gathering designed to nurture ideas, foster creativity, and help each other’s work grow.
In-person event
Western Gateway Area, London, UK
Sat 23 Aug, 14:00 - 17:00 BST
`
Encode Club
Investor Panel
Join an interactive session where VCs share candid insights on what truly makes a pitch stand out, cutting through the usual fluff. Expect honest feedback, practical advice, and lively conversations over drinks afterward.
In-person event
41 Pitfield St, London, N1 6DA, UK
Tue 26 Aug, 18:00 - 20:00 BST
The AI Collective
Reinforcement Learning And Universal Rewards
A new framework called RULER introduces a general-purpose reward function that removes the need for labeled data, hand-crafted rewards, or human feedback in reinforcement learning. Early benchmarks show it enables broader adoption of RL and often outperforms task-specific approaches across real-world applications.
Online event
Wed 27 Aug, 11:00 - 12:00 BST
SeedLegals
Using Options To Attract Top Talent
Join this session to discover how startups can use employee share options to attract top talent, retain their best people, and scale effectively without overspending. Participants will gain practical strategies to design incentive schemes, protect founder ownership, and optimise tax benefits.
Online event
Wed 27 Aug, 13:00 - 14:00 BST
FiveTwoNine Events
Building Confidence Through Creative Expression
Join a workshop designed to help creators build confidence in public speaking through improv-based exercises that encourage authentic self-expression. Participants will gain practical tools to communicate with impact, navigate panels and appearances with ease, and leave with a renewed sense of confidence.
In-person event
N Mews Area, London, UK
Wed 27 Aug, 15:45 - 17:15 BST
Tech Ladies
London Tech Meetup
This event offers a casual, low-pressure space for women in tech to connect, share ideas, and build meaningful relationships. Attendees can expect inspiring programming, networking opportunities, and an inclusive community atmosphere.
In-person event
Mansion House Area, London, UK
Wed 27 Aug, 17:00 - 20:00 BST
Granola
Firesides with Mati Staniszewski (ElevenLabs)
Join this event to hear insights on building a leading AI audio platform and how voice technology is making digital interactions more human and globally accessible. Attendees can also enjoy networking, food and drinks, and a Q&A session.
In-person event
Hoxton Street Area, London, UK
Wed 27 Aug, 18:00 - 20:30 BST
freeCodeCampLondon
AI Edition - Creating your First Local AI Agent
This workshop offers a practical introduction to building local AI agents, encouraging participants to experiment, learn, and create together. It’s designed for those interested in open-source AI who want to connect, collaborate, and share ideas.
In-person event
Brunswick Pl Area, London, UK
Wed 27 Aug, 18:00 - 21:00 BST
PLUGGED
Open House // Golden Hour: Coworking + Sunset Rooftop Party
Join a full day of co-working, practical workshops, and expert office hours designed to sharpen investment readiness and strengthen business storytelling. Attendees will also receive live feedback on their content, from pitch decks to landing pages, to refine and elevate their materials.
In-person event
Hoxton Area, London, UK
Fri 29 Aug, 10:00 - 20:30 BST
Still reading? You’re my kind of person. If you’ve been finding this newsletter useful, join our paid premium members and help me keep it goin while enjoying extra benefits.
Vasily Alekseenko
Founder
@ Rare Founders
Rare Founders - building the bridge between founders and investors via regular in-person and online events, meetups, conferences.
