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Day 7 of The Startup Mafia Series: The Secret Deals That Happen Before Startups Even Launch Most people think startups raise money after launching. The truth? Many of the biggest startups get funded before they even exist. By the time you hear about them, they already have investors, media attention, and a growth plan in place. How? Because startup success isn’t just built on ideas—it’s built on pre-launch deals. How Secret Deals Shape the Startup World 1. Pre-Seed Rounds Happen in Private You’ll rarely see top founders struggling to raise their first round. That’s because it happens behind closed doors. Investors write early checks based on personal trust, not the business model. Startup mafias (IIT, YC, ex-Flipkart founders) fund their own before the public even hears about them. Some founders raise millions before they even register the company. Example: Kunal Shah (CRED) raised $30M in funding before even launching the product. Why? Because he had already built FreeCharge, had deep investor trust, and was part of India’s startup elite. 2. Media Coverage is Pre-Planned Ever wonder why some startups appear in TechCrunch or Economic Times the day they launch? That’s not luck. PR teams are hired months before launch. Investors use their media connections to get them featured. The goal? Make the startup look big from day one. Example: Ola’s founders were featured in media even before the company became a giant. Their early investors (Tiger Global, SoftBank) helped shape their public image as India’s Uber alternative. 3. Early Customers Are Often ‘Planted’ Many startups claim they have “thousands of users” at launch. In reality, these are friends, alumni groups, and employees of investors. The goal? Fake early traction to attract real users and investors. Example: When Meesho started, it grew through WhatsApp reseller groups. Many early sellers were personally connected to IIT founders and their networks, giving them the initial push before real users joined. Why This Matters By the time you see a startup trending, it’s already been positioned to win. Their funding was pre-arranged. Their media coverage was planned. Their initial traction was engineered. If you’re an outsider trying to compete fairly, you’re already behind. But what if you could learn how these deals work? Tomorrow: How to Build Your Own "Startup Mafia" Even Without a Fancy Degree Follow Vishu Bheda now. The next post will show you how to break into this system.