Organizing Network Ties & Establishing Legitimacy

Timothy Hor (), Dimo Dimov (), Georges Romme () and James Skinner ()
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Timothy Hor: RMIT University, School of Management
Dimo Dimov: University of Bath, School of Management
Georges Romme: Eindhoven University of Technology, Industrial Engineering & Innovation Sciences
James Skinner: University of Newcastle Australia, Newcastle Business School

Chapter Chapter 8 in Startup Fundraising Decoded, 2026, pp 205-236 from Springer

Abstract: Abstract This chapter explores how successful fundraising in Stage 2 Enacting begins with two interrelated foundational activities: organizing network ties and establishing legitimacy, which work as a mutually reinforcing virtuous cycle rather than sequential steps. Drawing on the RaiiSE framework’s Process Savviness principle, it demonstrates that “network and relationships are 80–90% of the value in fundraising,” showing through case studies like Q2 (who cultivated relationships for 3.5 years before securing $17.9M), Q1 (whose customer relationship unexpectedly generated a $10M Series A without formal pitching), and S3 (whose methodical approach with 1000 paying customers led to successful funding) how strategic network organization and legitimacy establishment create conditions where investors may proactively express interest. The chapter provides tactical frameworks including mapping first-degree and second-degree connections, value-first engagement strategies, and four practical implementation systems: an Investor Relationship Dashboard for tracking interactions, a Legitimacy Evidence Portfolio documenting proof points, a Strategic Communication System for consistent updates, and a Value-Delivery Engine for providing ongoing value to networks. It concludes with detailed guidance on completing the Network Strength section of the RaiiSE Canvas, demonstrating how to analyze network assets and legitimacy gaps, design relationship-building approaches, and establish management systems that integrate these activities into core business operations rather than treating them as separate fundraising tasks.

Date: 2026
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DOI: 10.1007/978-981-95-5597-0_8

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