Investor Pet Peeves, Pitch Sins, and the Tightrope of Fundraising — (A Conversation with Brooke Borseth)
Startups often walk a tightrope when raising capital — balancing storytelling with substance, confidence with humility, and vision with realism. In this episode of Zero to Traction, hosts Josh David Miller and Cameron Law welcome Brooke Borseth, Associate at Moneta Ventures, to unpack the nuanced world of early-stage fundraising and venture capital evaluation.
And yes — there’s a Rubik’s Cube metaphor involved.
Rubik’s Cubes and Investor Discipline
Before diving into venture insights, we learn that Brooke is a Rubik’s Cube enthusiast — once able to solve one in just over a minute and still keeping a monochrome cube at her desk. Her reason? It helps her stay quiet and listen during meetings — a self-imposed discipline that echoes her thoughtful, measured approach to venture investing.
Navigating the Fundraising Tightrope
Brooke brings clarity to the early founder-investor dynamic, especially in cold outreach or serendipitous meetings at startup events. Here are her key observations:
First Contact Isn't the Pitch
Most first meetings aren’t pitch meetings — they’re relationship starters. Whether it’s a 30-minute Zoom call or a quick hallway chat at an event, founders often overestimate how much they need to impress and underestimate how much they need to connect.
“The pitch is a part of it. But in that slower, getting-to-know-you phase, you get a broader sense of the team — and that’s what investors scrutinize most.”
What Investors Are Really Screening For
In those early conversations, Brooke is often looking for disqualifiers, not qualifiers. A few examples include:
Too early (pre-product or pre-revenue)
Misalignment with venture-scale outcomes
Complex corporate histories or red flags
But even in saying "no," Brooke aims to add value — coaching on how the game is played, making intros, or offering guidance on messaging.
Pitch vs. Presentation — And Why Founders Confuse the Two
A recurring theme in the episode is the misalignment between what pitch training teaches and what investors actually want.
Presentations are performance-driven, stage-centric, rehearsed.
Pitches, especially in real investor settings, are conversational, dynamic, and driven by curiosity and alignment.
“Founders are coached to deliver a five-minute pitch. But real investor meetings aren’t five-minute monologues — they’re 30-minute explorations.”
There’s a place for both, but don’t confuse one for the other. And never, ever turn your laptop around and deliver a slide-by-slide pitch at a coffee shop (yes, it happens).
Pitch Pet Peeves and Founder Missteps
This part of the episode offers valuable insights. The team shares some of their biggest concerns — not out of annoyance, but because these patterns erode trust and signal inexperience.
“These financial projections are very conservative...”
Every founder says this. Almost none deliver.
“I’ve heard this in nearly every pitch — and I’ve seen those projections missed time and time again.”
What investors want instead:
A breakdown of assumptions
Historical metrics like conversion rates
Sales pipeline stages
Realistic growth levers, not vague optimism
Valuation Anchoring Without Context
Early founders often declare they’re raising a priced round at an inflated valuation without offering comps or traction to support it. This signals a lack of understanding about how valuations are actually set — via negotiation and market signals.
Misleading TAM/SAM/SOM Slides
Most TAM/SAM/SOM slides are either:
Too broad (e.g., “All restaurants in the U.S.”)
Mathematically lazy (“If we get just 1%…”)
Disconnected from go-to-market realities
What matters is not the size of the market but your initial wedge into it. Brooke emphasizes that segmenting the market well and tying it back to your ideal customer profile is far more important than top-down math.
Transparency Builds Trust
One of the most powerful takeaways from the episode is:
“Execution is the hard part — not the idea. Investors know that. What we want is a founder who’s self-aware about where they are and where they’re going.”
Instead of defensiveness, Brooke looks for:
Founders who admit what they don’t know
A roadmap for how they’ll test their assumptions
Clarity around what's manual vs. automated today
A clear go-to-market fit for the ideal customer profile
Rapid-Fire Founder Dilemmas
Brooke closed with some practical founder dilemmas and her quick takes:
How much should I share?
Default to sharing more (decks, data rooms), unless there's a real IP risk. Transparency earns points.How hard should I negotiate terms?
Your leverage dictates your stance. Pre-seed founders with one lead shouldn't get hung up on valuation.How much detail vs. how much simplicity?
Pitch like you're explaining to a smart spouse in a different industry. Clarity over jargon.How do I handle manual work vs. scalable tech?
It’s okay to be scrappy — just tell the truth about it and sell the scalable vision.
Frivolity: Tahoe Traffic, Theater Economics, and a Golem T-Shirt
In true Zero to Traction style, the episode ends with a few offbeat reflections:
Cameron drove seven hours to walk his dog in Tahoe snow.
Brooke mused about the economics of a traveling Elf musical.
JDM discussed a T-shirt referencing a 17th-century rabbi, a golem myth, and Jewish esoterica.
Final Thoughts
This episode was a masterclass in early-stage venture relationships. Less about pitch theater and more about founder authenticity. Less about valuation hype and more about building trust.
Whether you’re a founder raising your first round or an ecosystem builder coaching new teams, this episode is worth bookmarking.
Listen to the full episode on your favorite podcast platform and follow Zero to Traction for future episodes.
About Josh David Miller
Over the past decade, Josh David Miller has empowered over 100 startup founders and innovators to launch and scale their ventures. As the driving force behind the Traction Lab Venture Accelerator,
Josh specializes in guiding early-stage startups through the intricate journey from ideation to product-market fit. His expertise lies in transforming innovative concepts into viable, market-ready solutions, ensuring entrepreneurs navigate the challenges of the startup ecosystem with confidence and strategic insight.
About Cameron R. Law
Cameron R. Law is a Sacramento native dedicated to building community, growing ecosystems, and empowering entrepreneurs.
As the Executive Director of the Carlsen Center for Innovation & Entrepreneurship at California State University, Sacramento, he leverages his passion for the region to foster innovation and support emerging ventures. Through his leadership, Cameron plays a pivotal role in shaping Sacramento's entrepreneurial landscape, ensuring that innovators and builders have the resources and support they need to succeed.
