It’s June 7th: you’re not going to raise - yet.
Founders want to raise quickly and easily so we can get back to the business of running our business. However, raising is complicated because it’s both seasonal and relational.
Remember that investors take time away. For angels + VCs, that means July and August, and December to January. If you don’t already have 70%+ of your round committed, you’ll run out of time to raise before the summer. Layer on relationships. Investors are not ATMs. You need time to build relationships, and that will mean months and not weeks as you get to know each other through due diligence. This is why your round won’t close now.
That’s why June is about setting up for a successful fall. June through September is the time to ensure you succeed in the fall, whether you are planning now, or are part way through your round. Follow these 5 steps to succeed:
Build a workbook plan from December 31st back. When do you close by? How much? When do you collect cheques? When does paperwork go out? When do you get to 100%+ in verbal? Laying out this plan helps you to pace your work and avoid frustration. You also map it to your business goals to ensure your update emails are compelling and build trust
Build relationships. This is the time to reach out to investors. By letting them know you are raising in the fall, it backs the pressure off with no need to say Yes or No - yet. It’s a great way to tell them about your venture and seek advice. In doing so, they start to invest their time, their experience, and often their network - all signs that can lead to a fall YES.
Build momentum. Once you are past the vision, market opportunity, and team, nothing helps a round more than progress. Map it to your raise and be relentless to drive progress in the business. Remember it’s not just revenue, but all aspects from users to product, to team, to funnel, to partners. Map it weekly and communicate it with regular update emails. It’s also a great to sort issues and gaps in the business and your story so it is tight and compelling in the fall.
Seek other sources of capital. Revenue is the ideal, but you have choices. Grants, Loans, RBF, Crowdfunding, Equity Crowdfunding, Friends + Family are all options as you bridge your way to a Q3/4 close.
Seek Support. No one does this alone. Seek fellow founders and advisors who can share wisdom, check your assumptions, hold you accountable, and open doors for you. Raising capital is hard. However, you’re not the first and that will allow you to be efficient. It’s why we created Scale Ready at Spring (and have helped founders raise $17million in the last 11 months alone).
Don’t head into the summer frustrated and don’t leave it to chance, Use seasonality + relationships to control your destiny and succeed with a fall raise.
#raisingcapital #fundraising #angelinvesting #venturecapital #preseed #seed #Canada
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