Favcy VB: The Brutal Truth About Fundraising Every Founder Needs to Hear

Fundraising often gets painted as a glamorous milestone in a startup’s journey—press releases, celebratory LinkedIn posts, and rising valuations. But beneath the gloss lies a more brutal reality: investors are not buying into your dream, they are buying into returns.

This was the underlying message at the recent Favcy x Tracxn session on fundraising, where three leading voices from the ecosystem cut through the noise to share unfiltered truths with founders. The panel, moderated by Favcy VB, featured:

• Dr. Aneesh Sheth – Former founder, Dr. Sheth’s ~ For Indian Skin (acquired by Nykaa)

• Abhinav Singh Negi – Investments, Rainmatter by Zerodha

• Anshul Saxena – Chief Business Officer, Xscale (Deep Tech Accelerator)

Three Brutal Truths Every Founder Must Internalize

💡 “Every investor is looking for ROI. Make sure your business is investable from their point of view.” – Dr. Aneesh Sheth.

 Founders often approach fundraising as though passion and storytelling are enough. Aneesh reminded the room that investors are not patrons of art—they are allocators of capital. The story must match the spreadsheets. If your business fundamentals don’t translate into future ROI, the pitch is irrelevant.

💡 “GenAI cannot be your tech co-founder… yet.” – Abhinav Singh Negi.

 In a time where AI hype dominates pitch decks, Abhinav was clear: tools are not substitutes for vision or execution. A founder leaning solely on generative AI is leaning on sand. Investors see through shortcuts. Technology can accelerate, but it cannot replace the human ingenuity needed to build real companies.

💡 “Don’t build a solution first and then hunt for a problem. VCs will see through it.” – Anshul Saxena.

 Perhaps the most common trap for early-stage founders is falling in love with their own innovation without validating a real-world pain point. Anshul underlined what every VC knows: “solution-first” ventures are uninvestable. Market pull, not founder push, is what drives scale.

The Connecting Thread

As the conversation unfolded, a common theme began to emerge. Whether it was ROI, AI shortcuts, or problem-first design, the real warning was against self-deception.

• Don’t fool yourself with vanity innovation.

• Don’t fool yourself with shortcuts.

• Don’t fool yourself into thinking your lens = the investor’s lens.

This alignment between founders and investors is not just a strategy—it’s survival.

Why This Matters for Founders Today

The Indian startup ecosystem saw a 37% dip in funding in 2024 (Tracxn data), yet the number of founders chasing capital remains at record highs. In such an environment, clarity and discipline are more valuable than pitch-deck design.

Sessions like these are part of Favcy VB’s mission—to go beyond hype and equip founders with actionable wisdom. For those who want to take the next step, the 1to10 Accelerator by Favcy offers structured mentorship, access to seasoned operators, and a tested venture-building playbook.

As one founder in the room remarked post-session, “This was the first time someone told us what investors actually think, not what they want to hear.”

And that, perhaps, is the most brutal truth of all: fundraising isn’t about your vision alone—it’s about making others believe it can deliver returns.