∞Direct answer
Direct answer
Before you raise, make a small reference plan. List each person. Note their link to you. Note what they saw. Say how an investor may contact them. Ask first. Do not write their answers for them. Give each person a short fact sheet with dates and source files. Keep customer praise apart from results. A good reference can add context. It cannot prove fit, win funding, or remove risk.
Make one reference sheet
A reference is a person who can speak from direct work or use. Start with a private sheet. Put one person on each line. Do not make a long public list.
Name the link. The person may be a customer. They may be a former manager, co-founder, or partner. State what that person saw. Add the dates. Add the best contact route. Mark whether they agreed to speak.
Keep the sheet tied to a real question. A customer may speak about use. A former manager may speak about how you worked. Neither person can prove every claim about the company.
- Person and role.
- Direct link and time period.
- Claim they can discuss.
- Contact permission and limits.
- Owner and last check date.
Choose range, not praise
Choose people with first-hand knowledge. Use more than one view when it helps. Do not select only a close friend or one happy customer. A small, clear set is more useful than a long list of names.
Ask each person if they are willing to speak. Tell them who may call and why. Tell them they may be candid. Do not give them a script. Do not ask them to predict sales, valuation, or returns.
If you share a customer quote in a raise, use the person’s own view. State any link readers may not expect. U.S. rules for paid praise set these limits in ads. [5] A private investor call may have other rules. Get advice for your place and use.
- One customer who used the product.
- One former manager or peer who saw your work.
- One partner who can confirm a stated relationship.
- No hidden payment, family link, or conflict.
Give references a fact pack
Send a short fact pack after a person agrees. It helps them avoid old or wrong facts. Name the product. Name their work link. Add dates. State the exact claim they may have seen.
Link each key claim to a dated file. Keep a signed customer deal apart from planned revenue. Keep a pilot apart from a paid rollout. Say what is not known yet.
YC lists firm records, plans, accounts, IP, share records, key deals, and team facts. [1] Your reference pack is not a data room. It should point to proof. Do not send private files to every person.
- Claim and plain meaning.
- Source file and date.
- What the reference saw first-hand.
- Known limit or open point.
- Who can answer a follow-up.
Keep the raise claims true
Match your deck, data room, and reference pack. If a metric changes, update all three. Do not let an old slide make a reference look wrong.
Label a forecast as a forecast. Label a trial as a trial. Do not call interest a contract. Do not ask a reference to make a weak claim sound certain.
In the U.S., anti-fraud rules apply to exempt offers too. The SEC says firms may be liable for false or misleading claims. This includes speech and writing. It also covers claims made for the firm. [2] Rules differ by place and deal. Ask a qualified adviser about your raise.
- One metric meaning and date range.
- One source for each key fact.
- A clear label for plans and forecasts.
- A log of changes and who received them.
Handle personal data with care
A name, phone number, and work view can be personal data. Ask before you share contact details. Explain the purpose. Limit access to people who need it. Keep a review or deletion date.
If UK GDPR rules apply, use a clear purpose. Keep only needed data. Keep it right. Do not keep it too long. [3] This is a practical prompt. It is not legal advice for every case.
A former UK employer does not usually have to give a reference. If it gives one, it must be fair and accurate. [4] Do not assume a person will speak. Have a second proof path for each key claim.
- Ask before sharing a contact.
- State the purpose and likely caller.
- Store only needed notes.
- Correct a known error.
- Review or delete at a set date.
FAQ
Frequently asked questions
How many references should I prepare?
Prepare only enough to answer real questions. Three to five people may be enough. The right number depends on your stage, claims, and consent. Do not share contacts that an investor does not need.
Should I write answers for my references?
No. Give dates, facts, and source links. Let each person use their own words. A scripted answer can hide a limit and harm trust.
Does a customer prove revenue?
No. A customer can describe what they used or bought. Use contracts, invoices, and dated records for revenue facts. Keep a pilot, a signed deal, and cash received apart.
What if a reference says no?
Thank them and do not press. Ask what claim needs another source. Use a file, public record, or another person with direct knowledge. Record the gap.
Can I promise a good reference?
No. You can prepare fair contacts and good records. You cannot control another person’s view. You cannot control an investor’s choice. A reference is not investment advice. It does not promise funds.
REF
Sources
- 1
Y Combinator
Series A diligence checklist ↗ - 2
U.S. Securities and Exchange Commission
Frequently Asked Questions About Exempt Offerings ↗ - 3
Information Commissioner's Office
A guide to the data protection principles ↗ - 4
- 5
Electronic Code of Federal Regulations
Guides Concerning the Use of Endorsements and Testimonials in Advertising ↗