Fundraising for early-stage companies has never been more challenging, particularly as traditional venture capital becomes increasingly scarce. While many funds struggle with depleted resources, high-net-worth individuals and family offices remain flush with capital, creating new opportunities for resourceful founders. Vlad Cazacu, co-founder and CEO of Flowlie Technologies, has developed an AI-powered fundraising assistant to help busy founders navigate this complex landscape, drawing from his own experience raising capital from seed to series B.
Understanding Today’s Capital Landscape
The private markets have entered uncharted territory, creating both challenges and opportunities for founders seeking early-stage funding. “With the private markets being the most turbulent times ever, many funds struggled to raise capital, resulting in zombie funds with no dry powder,” Vlad says. But here’s the thing—regular businesses with actual revenue are doing fine, and that’s created a pocket of opportunity.
“Regular businesses continue to thrive with cash flowing assets, providing high net worth individuals and family offices with a lot of dry powder to invest,” he explains. These people have money and they’re looking for places to put it. They might be your ticket to funding when the traditional VC door is shut.
Angels vs. Syndicates: Know the Difference
If you’re chasing this money, you need to know who you’re talking to. Vlad breaks it down simply: “Angels are high-net-worth individuals who routinely invest in startups, mostly while running other businesses or working at other businesses,” he says. These people write personal checks. Some come from family money and act more formally, but they’re still individual decision-makers. Then there’s the group approach: “Syndicates operate as angel groups. They invest as one entity. They’re managed by a lead.” This structure changes everything about how you pitch and close. With angels, you might get a yes after a coffee meeting. Syndicates? “Syndicates require a whole process closer to institutional VCs with stricter due diligence, but not as strict as traditional venture capital.” You’ll need patience for that route.
Don’t waste time scrambling for materials when an investor shows interest. “Make sure you have the materials in advance,” Vlad advises. Get your deck, one-pager, and appropriate data room ready before you start reaching out. The good news is these investors aren’t as rigid as VCs. “Both angels and syndicates often accept more flexible investment theses, including vertical software and non-tech-first companies with clear scaling potential.” If you’ve got real growth potential but don’t fit the traditional VC mold, these people might still be interested.
Finding the Hidden Investors
Here’s the tricky part—how do you find these angels? They don’t wear name tags. “The real challenge lies in finding these angels, since many of them don’t advertise their investor status,” Vlad says. Look closer to home than you might think. “Don’t overlook angels hiding in plain sight. Your ex-boss or industry veteran might be writing checks on weekends,” Vlad suggests. That person you worked with three years ago? They might have money to invest. His advice gets practical: “Consider any industry professionals earning over $200,000 annually who could write 10 to 20K checks. There are many more of those than you would believe.” Your network is probably full of potential angels who’ve never mentioned their investing hobby.
Engaging the Right Syndicate Leads
If you’re going after syndicate money, focus your energy where it counts. “With syndicates, focus on the lead first. If they’re in, they’ll rally their group for bigger checks, up to half a million,” Vlad explains. These groups can surprise you with their check size, but everything hinges on that lead investor. “Success heavily depends on the lead’s ability to rally their angels,” he notes. Without a strong lead who believes in you, the rest of the syndicate won’t even see your deal. Don’t waste time on the bigger platforms if you’re truly early stage. “Larger syndicates, run on AngelList, function more as marketing machines, often requiring strong lead investors to proceed,” Vlad warns. They talk a big game but rarely take real risks on new companies.
Even when the conversation’s going well, don’t forget to push for commitment. “Always push for a close, especially with angels,” Vlad emphasizes. And watch your timing: “Don’t let conversation drag too far.” Angels can decide quickly, but they can also forget about you just as fast. Strike while they’re interested and get that check before they find something shinier to look at. At the end of the day, this isn’t just about tactics—it’s about connecting with people who believe in what you’re building. “Fundraising is relationship building,” Vlad reminds us. The money follows those connections.
Connect with Vlad Cazacu on LinkedIn to follow his work on AI-powered fundraising and investor insights.
