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What founders can learn from a £15m Series A Collapse
- Dec 3, 2025
- 3 min read
From investor psychology to leaning on narrative, here is the game-changing advice from a second-time founder.
When Whirli founder Nigel Phan saw his £15m Series A evaporate at the final hurdle, it forced a brutally honest reflection on what he’d do differently — and what every founder should know before heading into their next fundraising arena.
Speaking to The Founding Network, Nigel opened up about what the experience taught him about experimentation, positioning, hiring, timing, and investor psychology. Here are his biggest lessons.
Experiment Boldly, Not Cautiously
One of Nigel’s clearest reflections was that he often iterated too cautiously — making small product tweaks when the company needed bigger, bolder tests. As he described, the cost of experimentation is often far lower than founders imagine, and the upside of speed far higher.
This echoes his note that Whirli struggled with slow iteration cycles, long release timelines, and resource-heavy engineering processes, where “experimentation… gets more expensive so you can’t do as many”
Stop making micro-iterations. Move fast. Test big swings.
Depth Beats Breadth
Rather than trying to be everything to everyone, Nigel emphasised the value of going deep into one segment. Whirli’s proposition resonated strongly with a very specific type of demographic: Parents. The rest didn't get the problem they were addressing (investors included).
He noted that even substantial waitlists weren’t always predictive, because awareness and actual conversion required sharper targeting: “we could get a waiting list… but [it] didn't convert”
Budgets also always stretch further when targeted precisely. Spend wisely.
Focus your limited resources on the niche that loves you most. Dominating one segment creates the momentum needed to earn the right to expand.
The Macro Environment Matters More Than You Think
Nigel was candid: founders often overlook how dramatically macro conditions dictate VC appetite.
He described how Whirli’s raise aligned with the period in which “VCs were doing three-year paybacks or discounted paybacks… that’s how they talked about us”
And just a few months later, the investment climate had completely flipped.
You can have the right metrics, growth, and story — but if the market turns, investors get cautious. Monitor sentiment, public markets, and sector cycles when planning your raise or launch.
Find and Own Your Fundraising Narrative
Nigel stressed that founders must craft a simple, compelling, unambiguous story. Investors need clarity, not complexity.
He recalled that investors consistently tried to label Whirli in unfamiliar categories (“circle models” vs “linear models”) and that his job should have been to own the narrative early so that the story didn’t get diluted or misunderstood. “If you don’t own it… investors create their own narrative”
Strip out vanity metrics. Zoom out. Use strong comparables investors already understand. Make the story easy to repeat inside partner meetings.
Be Intentional With Hiring
Hiring too early - or hiring the wrong roles for your stage - drains capital and slows the business. Nigel reflected that Whirli’s org chart evolved reactively instead of being mapped to specific fundraising milestones or experiments.
He noted the friction of scaling teams too fast and building processes that later became “slow and bureaucratic,” which affected experimentation and speed
Define what skills the business needs next based on the actual milestones ahead. Hire only for those. Every hire should unlock a clear, immediate outcome.
Master Your Signalling & Announce Only When Ready
Nigel discussed how signalling plays a larger role than founders realise. Once you communicate that you’re raising, people watch for how long it takes - and long fundraising cycles send the wrong signal.
“People do track the distance between announcement and close”
Only announce when you're confident. Aim to close within 12 months, ideally far sooner.
Build Quietly — Then Amplify
Nigel encouraged founders to operate more like Lovable: staying lean, staying focused, and projecting the maturity of a multi-year company long before scaling loudly.
He reinforced the need for operational excellence before marketing noise, ensuring the back-end, economics, and product are watertight before accelerating visibility or external narrative creation.
Whirli’s experience showed that external hype didn’t always match internal readiness, leading to mismatched expectations and pressure points
Do the quiet work first. Build strong foundations. Then amplify when truly ready to scale.
Nigel’s reflections aren’t just about a deal that fell through — they’re a blueprint for founders navigating uncertain markets, stretched budgets, and ever-changing investor expectations.
Our takeaways for first-time founders?
Move decisively. Focus tightly. Read the room. Shape the story. Hire intentionally. Signal strategically. Build quietly - then go big!
If executed consistently, these are principles that may help prevent a fundraising collapse and even set the stage for long-term, resilient growth.
Watch the full event here.
