Why Most Founders Pitch VCs Completely Wrong (and how to fix it)

Most teams that successfully raise VC rounds are definitely impressive. But let’s be real: plenty of exceptional founders miss out, not because they lack talent or ambition, but because they make a few missteps during the fundraising process that could have easily been avoided.

From poorly framed narratives to unclear valuations, bad docs, or just not knowing what VCs are really looking for I’ve seen great projects stall at every one of those hurdles at some point throughout this process.

So I took some time to write this series to help the founders in Web3. Not a playbook. Not a pitch template. Just the stuff I wish more early-stage Web3 teams got told before they hit “send” on their deck.

This guide is for the founders who want to raise smart, stay lean, and keep their cap table (and community) clean.

Let’s get into it.

What VCs Are Actually Looking For in a Web3 Pre-Seed Round

(And why most founders pitch completely wrong)

Let’s get one thing straight: Pre-seed VCs in Web3 aren’t betting on your product. They’re betting on your ability to create a movement before the product even exists.

Pre-Seed = People + Narrative (Not Product)

At this stage, most funds are writing $100k–$1M checks into teams with:

• Minimal traction
• An MVP or whitepaper
• No revenue
  

But don’t confuse “early” with “anything goes.”
What matters isn’t metrics, it’s:

• The team’s ability to ship fast and think long-term
• Proof you’ve executed before even if in other domains
• A compelling narrative that frames the project as inevitable
  

Your past doesn’t need to be in crypto. But you do need to show you’ve built, shipped, or created something meaningful.
Pre-seed investors want to know:

“If we back this team, will they still be standing when the market rotates again?”Execution is the through-line between the story you’re telling and your ability to actually pull it off.

Can You Sell?

Here’s what most founders underestimate:
Pre-seed investing is a bet on your ability to sell.

Not just to VCs but to:

• Early users (who’ll try something broken if they believe in the vision)
  
• Token holders (who’ll speculate based on narrative alone)
  
• Contributors (who’ll join you pre-DAO, pre-token, pre-everything)
  
• Future investors (you’ll need follow-on capital)

Even with the best tech in the world, if you can’t make people care about your product, you lose.
Selling is survival in Web3.

Don’t Build the Same Thing Everyone Else Is

Yes, you technically could build another L2, another modular rollup, another staking protocol and 100x.
But from the VC side, here’s what it signals when you’re just replicating what’s hot:

• You’re chasing trends, not seeing around corners
  
• You’re competing with better-funded, earlier projects
  
• You don’t have unique insight; keep in mind that they’ve already seen the same deck 12 times this quarter

VCs are looking for fresh narratives.
If your idea fits too neatly into last cycle’s meta, you’re already behind.

Understand the Fund Before You Pitch

Most founders show up to VC calls hoping to impress. Smart founders show up already aligned.

As a founder, you need to know the:

• Fund size (tells you their check size and ownership targets)
  
• Stage focus (don’t pitch DeFi infra to a consumer-first fund)
  

• LP thesis (some funds need tokens to return; others don’t)

For example let’s say you’re pitching a $30M fund:

• They’re likely writing checks between $100k–$1m
• They’re typically aiming for 2–7% ownership (tokens and or equity)
• They’ll make 30–50 initial investments across the life of the fund

Here’s the kicker: VCs operate on a power law. That means one or two companies in their portfolio need to return the whole fund. Another 2–5 might return 2–5x. The rest? Write-offs.

So they’re not backing “solid” ideas, they’re backing outliers. Something with massive upside, strong founder-market fit, and a point of view that could define a category.

Make Them Feel Early

The best founders don’t just pitch, they teleport investors into the future. They make them feel like insiders on the next big unlock before it hits X. VCs are constantly scanning for:

• Narrative inflection points (What’s the next “restaking,” “modular,” “AI x crypto” moment?)
  
• Undercrowded spaces (Where hasn’t capital rotated yet?)
  
• Unique edge (What do you understand that they almost get but not quite?)
  

Your job is to speak in the future’s native language and give them FOMO they can’t shake.

Before You Even Book the First Call

• Build in public: no Twitter/X presence = no credibility
  
• Study their last 3 investments and reference them fluently
  
• Have a strong POV: take a stance; lukewarm is forgettable
  

Mediocre founders try to sound smart. Great founders make the investor feel smarter just by listening.

TL;DR:

1. You’re selling narrative, not metrics
   
2. But execution still matters, your past is your proof
   
3. VCs are looking for power law bets not safe bets
   
4. If you’re building another “hot” project without edge, you’re invisible
   
5. Tailor your pitch to the fund’s size, stage, and thesis

Need Support?

We’ve helped hundreds of startups get token-ready, from legal structuring to exchange strategy and campaign execution. If you’re looking for funding. Apply to our Post Web Base Camp.