Multi-Investor Distribution Network

Justin Kan shares how Atrium leveraged a unique fundraising strategy to build a distribution network through small investments from many VCs rather than large investments from few.

Core Strategy Overview

• Raised from one lead investor (General Catalyst) to set terms
• Pitched ~100 investors for small checks ($100k-500k each)
• Aimed to get participation from most Silicon Valley VCs
• Successfully built network of top-tier investor participants

Key Strategic Reasons

1. Prevent Market Blocking

   • Worried founders would be nervous about using a new firm
   • Wanted investors to feel bought in rather than skeptical
   • Reduced resistance by making investors stakeholders

2. Create Distribution Network

   • Investors could refer their portfolio companies
   • Gave investors direct influence in company's success
   • Built-in channel partners through investor network

Results & Impact

• Built portfolio of 240+ clients
• 25% of clients came directly from investor referrals
• Created effective distribution channel through investor network
• Established credibility in market through investor social proof

Additional Value Creation

• Launched Atrium Scale bootcamp program
  • Free quarterly bootcamp for founders
  • Helps with fundraising strategy
  • Acts as lead generation for legal services
  • 60+ founders participated in 6 months
  • ~25% success rate raising Series A/B

This approach turned traditional fundraising strategy on its head by optimizing for distribution rather than just capital, creating a built-in growth engine through the investor network.