Common Mistakes In Seeking Funding: Traction vs. Capital w/ Josh Payne

Seed Money

If you ask seasoned investors what the common mistakes in seeking funding are, chances are you're making at least one of them — maybe without even realizing it.

That mistake? Being so focused on raising capital that you forget to keep building traction in your business.

Yes, it's easy to do when you "feel" like you need the funding to get to the next step, but you cannot stop pushing ahead. It could take you 6-12 months to close the funding you need, especially at the pre-seed/seed stage, and it's extra important to get creative and continue showing real traction during this time.

This "raise money now, build later" mindset can be a major red flag for investors.

They want to see driven founders with great ideas, but they don't want to see you more fixated on the check than progress.

So, instead of putting all your energy into capital and fundraising, make sure hitting the next milestone despite capital constraints is a top priority and point of conversation during your pitch.

What are the other common mistakes in seeking funding? What is Seed Strapping, and why is it a better strategy for founders today?

Why do so many founders feel disillusioned after a successful exit?

In this episode, I'm chatting with startup founder, advisor, investor, and creator of the viral Seed Strapping framework, Josh Payne.

He shares common mistakes in seeking funding that keep investors like him from writing that check.

Topics Covered:

• Seed Strapping and why it might be the best option in 2025

• Why investors want a founder with skin in the game

• Why prioritizing fundraising before traction is a red flag

• Why Josh felt disillusioned after his exit (and how he overcame it)

• How to balance family with running a demanding startup

Guest Bio

Josh Payne is a Speaker, Advisor, Author, and General Partner at OpenSky Ventures. He invests in, advises, and builds capital-efficient, high-growth, profitable SaaS and Consumer businesses. OpenSky Ventures has invested in Levanta, Siena, Intro, Reactiv, Magic Mind, Fishwife and more. Josh is also the founder of Onward, a company that helps brands provide a premium customer experience at no cost. Connect with Josh on LinkedIn.

About Your Host

Jayla Siciliano, Shark Tank entrepreneur turned real estate investor, excels in building brands, teams, and products. CEO of a bi-coastal luxury short-term rental company, she also hosts the Seed Money Podcast, where she’s on a mission to help early-stage entrepreneurs turn their ideas into reality!

Connect:

Website: https://seedmoneypodcast.com/

Instagram: https://www.instagram.com/jaylasiciliano/

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The information in this podcast is educational and general in nature and does not take into consideration the listener's personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice.