Happy Wednesday. In today's show and essay, I talk about the Labor Day to Christmas sprint that exists in startups and venture capital. For more: How To Raise Millions For Your Startup in 60 Days | Youtube | Instagram
The Flippa Advantage
While you're sprinting towards your fundraising goals, don't forget about alternative paths to success. Flippa, the #1 platform to buy and sell online businesses, offers opportunities for both buyers and sellers in the tech ecosystem. Whether you're looking to acquire a promising startup or considering an exit strategy, Flippa provides a marketplace to explore your options.
While we were enjoying those last summer vibes this weekend, I was thinking about the intense fundraising season that's about to kick off, or well if you are reading this now it already has. As Alexis Ohanian tweeted on Tuesday:
"It's officially the time of year when everyone (else) starts pushing - before the holiday slowdown - so take advantage of it."
This is not just pandering from someone married to Serena Williams and who could presumably live his whole life on vacation. This is a very real thing in startups and venture capital and you can already feel the stress of it.
The Current Fundraising Landscape
The venture capital world has seen some significant shifts since the boom of 2021:
1. Higher standards for raising capital
2. Increased competition with more startups seeking funding
3. Focus on AI-powered startups
4. Challenges for non-AI startups to secure funding
5. Refocus on geography as a key advantage
Why This Sprint Matters
The next few months are critical for founders. Here's why:
Many companies raised on good terms in 2021 and now need follow-on funding: I am a good example of this, my current startup raised on very healthy terms in 2021, and like many founders, we thought those valuations would only go up. Well, we were wrong the market has corrected for everyone not named Sam Altman and many of the companies that raised large rounds in 2021 are coming back to the market this fall.
The holiday season brings a slowdown in VC activity: What people think is a slow time for venture capital is the summer. That is not the case anymore. A lot of the action happens while folks are traveling, the trendy hot spots for top-tier VCs are Europe, Hawaii, The Hamptons, and places like Jackson, Wyoming. The real slow does happen in December and it does not necessarily pick back up until late January.
There's a race to position for a strong finish in Q4: Not only do founders and startup teams feel the fundraising crunch there is also a focus on “closing the year” strong. Getting the big deals passed the finish line only helps your chances of starting 2025 the right way.
Tips for a Successful Fundraising Sprint
Build a Process: Create a systematic approach to your fundraising efforts. It is almost too late to get a round closed by the end of the year so even more you want to fill your October and November schedules with meetings make sure to choose the right events to attend as that season is picking up heavily in October and November.
Expand Your Network: Aim for high-volume interactions and meetings in-person meetings, the days of Zoom meetings that lead to investments are over and as I have learned if you are still living in that world you are likely on the outside looking in.
Stand Out: Find ways to rise above the noise in a crowded market. If you are building a technical product, make it about that, if that is not your strong suit right now it needs to be media-based and you need to build social capital within the places where investors look for it. LinkedIn is all the rage right now, and while I am not a big fan of it it is the place to be making noise.
Thinking of selling your business? There is only one way to sell an online business and that is with our friends at Flippa
Final Thoughts
Remember, this sprint isn't just about securing funding – it's about positioning your startup for long-term success. Stay focused, be persistent, and don't be afraid to pivot if necessary.
Good luck with your fundraising efforts! If you want to dive deeper into fundraising strategies, I do a webinar each Wednesday and Thursday focused on fundraising tactics. Tonight I will be sharing a list of 66 investors actively seeking deals right now.
Join me here on Wednesdays.
Join me here on Thursdays. This one is private so you will need to email me for the code at matt@stretchfour.co.
What are your thoughts on this fundraising sprint? Let me know in the comments!
The Labor Day to Christmas Fundraising Sprint: Raise Millions in 90 Days