• Jeff "Fuzzy" Wenzel
  • Posts
  • The Hidden Math of Raising Capital: Why Most Founders Burn Budget Before Building a Community

The Hidden Math of Raising Capital: Why Most Founders Burn Budget Before Building a Community

Every founder hits the same fork in the road when they decide to raise capital.

In partnership with

A free newsletter with the marketing ideas you need

The best marketing ideas come from marketers who live it.

That’s what this newsletter delivers.

The Marketing Millennials is a look inside what’s working right now for other marketers. No theory. No fluff. Just real insights and ideas you can actually use—from marketers who’ve been there, done that, and are sharing the playbook.

Every newsletter is written by Daniel Murray, a marketer obsessed with what goes into great marketing. Expect fresh takes, hot topics, and the kind of stuff you’ll want to steal for your next campaign.

Because marketing shouldn’t feel like guesswork. And you shouldn’t have to dig for the good stuff.

The Hidden Math of Raising Capital: Why Most Founders Burn Budget Before Building a Community

Every founder hits the same fork in the road when they decide to raise capital.

Do you spend big on ads?
Do you cold-blast thousands of investors?
Or do you slow down and build something that lasts — a true investor community?

Let’s break down what the numbers say.

1. The Paid Ad Trap

Most founders hear “run Facebook ads” and think it’s the fastest route to capital.
But the math rarely works.

If your goal is to raise $100,000, you’ll spend about $42,000–$43,000 to get there.
That’s roughly $750 a day just to keep the machine running.

And once you start, you can’t stop.

Pausing kills your algorithm. Restarting costs you momentum.
You need consistent ad spend, fresh creative every week, and a relationship with Meta that allows that scale.

That’s not growth. That’s a treadmill.

2. The Cold Outbound Mirage

Some founders skip ads and go all in on outbound.

Mass emailing.
LinkedIn blasting.
Investor scraping.

Let’s be clear — this is a grind.

To even have a chance, you’d need 1,700 warmed mailboxes, 100,000+ investor emails, and around 10 meetings a day.
That’s 340,000 outbound messages per month.

At best, you’re spending $35,000 a month before you see real traction.
And even then, most Reg CF investors aren’t accredited, so cold outreach underperforms.

Outbound might get attention, but it doesn’t build trust.

3. The Community Compounding Strategy

This is why we built Pre-IPO Hype and Invst Guru the way we did.

Instead of chasing cold clicks or short-term conversions, we build CRM-based communities of investors who repeatedly engage with your brand.

Webinars.
Newsletters.
Educational content.

Every touchpoint compounds.

These aren’t random investors. They’re the people most likely to support your current raise, your next one, and even future partnerships.

That’s what sustainable fundraising looks like.

4. Why Founders Need to Think in Systems

Paid ads and outbound are short-term tactics.
Community is a system.

When you build an owned CRM full of verified investors, your cost per dollar raised decreases every time you launch.

The problem?
Most founders don’t think this far ahead. They chase instant results and lose their data, audience, and long-term leverage in the process.

That’s why we’re changing how founders approach investor acquisition.

The Takeaway

If you’re thinking about raising capital, watch the full breakdown before spending a dollar.

You’ll see the real numbers behind ad spend, outbound systems, and CRM-driven community building — and why we’ve built our process the way we have.

👉 Watch the full breakdown video here: START THE VIDEO

Learn how to stop renting investors and start owning your community.

Reply

or to participate.