Many founders walk into investor meetings blind. They know the address and the name of the investor. That’s all.

But they bring a pitch deck and have rehearsed numbers. They pitch, high five and wait for the call back. The phone is silent. Instead they get an email. It’s polite. It says something along the lines of: we think you are really interesting but the timing is not right. Let us talk in another six months.

I have received these emails myself and I have sent them. Lately, I have decided to do it differently. To tell the truth. The truth is that getting funding is not just about delivering an energetic pitch. Unfortunately, many founders don’t know any better. After 3 years of startup investing and raising funding for about 14 startups, this is what I know:

Getting funding has an equation. And few people know it. The equation has clear elements and weights. Those who know the equation can harness it’s power. But before exposing it. Let me put funding into the right perspective.

Resources are the blood of a startup. Founders use resources to create something from nothing. The resources founders need are people and money. Collaborating people are one of the strongest forces of the universe. Humans became the dominate species because of our superior ability to collaborate. No other species has ever organized thousands of individuals to do anything. Humans do. And in the process we built the Great Wall, traveled to the moon and created Wikipedia.

Likewise, collaborating startup teams can do a lot. I’ve seen it. Teams of men and women who focus solely on the common purpose of building their startup. The founders of an on-demand laundry and dry cleaning startup called Washa sacrificed the activities young people normally do. Instead they moved in together and started washing clothes. All day, all night, every day of the week. Just washing, folding and delivering. They were like a machine.

The team is the machine. Money is fuel. Without fuel, companies grow slowly. Most big companies have taken generations to built. Fuel applied to a well functioning machine make it run faster. Fast is what we want. Humans are impatient.

Money for startups is called funding. Most startups I meet chase funding. Not everyone should. Fuel only makes the machine run faster. Fuel to a broken or incomplete machine is a waste. Even dangerous. But if the machine works, funding will have positive effects. Conclusion: only raise funding if you got a machine that works.

Most funding comes from institutional investors. Getting funding from institutional investors depends on more than just the pitch. If founders understand what those things are, they can increase their odds. If founders know which things matters the most, they can (almost) control the outcome.

What matters and how much below: