Scott Kelly: How Do You Actually Raise Startup Capital in 2026?

From Wall Street to the Founder’s Trenches

If you’ve ever wondered why raising capital feels harder than building the product itself, you’re not alone.

Scott Kelly, founder and CEO of Black Dog Venture Partners, has spent 35 years on both sides of that tension. He worked on the New York Stock Exchange, built and exited three companies during the dot-com boom, and since 2006 has helped entrepreneurs raise more than $5 billion, supporting over 30 exits.

In this conversation, Kelly breaks down a truth many founders learn the hard way: raising capital is not about a pitch deck—it’s about preparation, positioning, and persistence.

Whether you’re a first-time founder, a mid-career operator stepping into entrepreneurship, or a global startup navigating unfamiliar investor terrain, the principles are the same. Let’s unpack them.

Why Is Raising Capital So Hard for Founders?

Most entrepreneurs assume the challenge is getting noticed. Kelly argues it’s actually three deeper issues:

1. Talking to the wrong investors

2. Pitching before relationships exist

3. Being underprepared for investor scrutiny

“Building a network of investors isn’t connecting on LinkedIn and dropping your pitch deck in their DMs,” Kelly says. “It’s about long-term relationship building.”

FAQ: How many investors should founders talk to?

Kelly recommends 100–200 qualified investors—not random names, but people who:

• Invest in your industry

• Invest at your stage

• Have a history of actually writing checks

This alone filters out a massive amount of wasted effort.

Relationship Capital Comes Before Financial Capital

For aspiring founders—especially those without generational wealth or insider access—this insight is critical.

Instead of asking for money upfront:

• Ask for advice

• Engage with investors’ content

• Attend their events

• Comment thoughtfully, consistently

This approach levels the playing field. You’re not “pitching.” You’re earning attention.

Reflect for a moment: Which investors are you trying to impress—and which ones are actually aligned with your business?

What Makes a Pitch Deck Investor-Ready?

Most investors expect a 12–15 slide pitch deck, but Kelly emphasizes that slides don’t raise money—clarity does.

Your deck must answer six questions:

1. Is the problem big and scalable?

Investors need to see a pain worth solving for many people, not a niche inconvenience.

2. Is the solution meaningfully better?

Is it faster? Cheaper? Simpler? More defensible?

3. Do you understand your market?

Who is the customer—and how do you actually reach them?

4. Can this team execute?

“You might be great at tech,” Kelly notes, “but investors want to know who handles sales, finance, and operations.”

5. Who is the competition?

Saying “we have no competition” is a red flag.

“The pencil is still competition to the computer,” Kelly says.

6. How does the investor get liquidity?

You must articulate a clear exit path—acquisition targets, market consolidation, or future funding logic.

Traction Isn’t Just Revenue (Yet)

Early-stage founders often panic if they don’t have revenue. Kelly reframes traction more broadly:

• Strategic partnerships

• Distribution agreements

• Pilot customers

• Industry validation

• Growing investor interest

Traction is evidence of movement. Investors fund momentum.

Due Diligence: Where Many Founders Stall

Getting a “yes” on the first meeting only opens the door.

Next comes due diligence:

• Data room

• Cap table

• Financials (current + pro forma)

• Marketing plans

• Team resumes

And then comes rejection.

FAQ: What should founders do after hearing “no”?

Most founders disappear. That’s a mistake.

“Ask if you can keep them updated,” Kelly advises. “Then actually do it.”

Updates turn nos into not yets.

Raising Capital vs. Running the Business

One of Kelly’s most sobering insights is this:

“Running your startup is a full-time job. Raising capital is a full-time job.”

Trying to do both simultaneously often weakens both. This is where advisory partners, structured investor networks, or guided pitch environments can dramatically change outcomes.

A One-Minute Pitch That Led to a Nine-Figure Exit

One of Kelly’s favorite stories involves two founders who pitched for one minute at a VC fast-pitch event.

That minute led to:

• A lunch with a Silicon Valley investor

• A $270K check two weeks later

• A $3M round two years after

• A nine-figure exit

  
  

Today, that same team runs Space Station Investments, now one of the most active venture firms in the U.S.

The takeaway? You don’t need more time—you need the right room.

Who Is Venture Capital Really For?

Kelly is refreshingly honest: venture capital is not for everyone.

• 90% of startups fail

• 75% of VC-backed companies still fail

Before raising money, founders should ask:

• Can I sell first?

• Can I bootstrap?

• Do I want investor opinions along with investor capital?

“Sometimes the best way to raise capital is to go sell something,” Kelly says.

The Entrepreneurial Mindset That Survives

Across decades, Kelly sees the same traits in founders who succeed:

• Confidence with humility

• Relentless work ethic

• Emotional resilience to rejection

• Willingness to pivot

  
  

You will hear hundreds of no’s. The winners treat them as data, not identity.

Key Takeaways: How to Raise Startup Capital the Right Way

• Build relationships before pitches

• Target aligned investors, not famous ones

• Prepare deeply—for pitching and diligence

• Treat follow-up as strategy, not admin

• Decide honestly if VC is right for you

Challenge for readers:

This week, identify 10 investors who truly match your stage and industry—and engage without pitching.

Helpful Resources

• Venture Deals by Brad Feld & Jason Mendelson

• NVCA Startup Resources – nvca.org

• Y Combinator Startup Library – ycombinator.com/library