TLDR:
Key Points:
- Fundraising in 2023 was challenging for startups and VCs due to economic turbulence and tech sector layoffs.
- Founders need to dedicate significant time and energy to conducting a methodical fundraising process.
How to Find Your Goldilocks Period for Fundraising in 2024
It’s no secret that 2023 was a tough year for both startups and VCs, with economic turbulence and layoffs impacting the fundraising landscape. Data from 2023 suggests that founders need to be prepared to dedicate a significant amount of time and energy to conduct a methodical fundraising process for optimal outcomes.
One key finding indicates that the median time between a $1 million-plus seed and a Series A round jumped to 28 months in 2023, emphasizing the importance of timing in fundraising.
Investors prefer startups that offer exclusive investment opportunities, making it essential for founders to plan well in advance to find the optimal time window for fundraising. It is recommended to avoid VC dead zones like holiday periods and election periods, which may hinder the process.
Founders can reverse engineer back from projected funding round dates to determine the best time to open a fundraising window, allowing for ample preparation and research to maximize investor receptivity.
Building relationships with VCs before fundraising rounds and strategically choosing when to open a new round can increase the likelihood of securing funding. While funding decisions are driven by promising business models, being in the right place at the right time can also play a significant role.
