Why Founders Should Use the Summer to Prep for Fundraising
It takes at least 8 weeks for startups to prepare for fundraising—and summer is when you're in the best position to invest that time.
2 Min Read
Things naturally slow down when summer comes around, which is a positive and necessary thing for venture-backed startups who are accustomed to sacrificing personal time, family time, and a bit of their sanity to keep things growing.
But there is one thing that shouldn't fall off your todo list this summer: preparing to fundraise.
Why? Because preparing to fundraise takes at least 8 weeks and those that rush it often end up in a disaster, and one that we've all seen far too many times:
Constant, last-minute frenzies and changes to the deck
Led by a founder whose confidence has been leveled by having to deliver a half-baked story with a mediocre pitch deck
That leads to delays, down rounds, or not closing at all
All of that can be avoided, though, with adequate preparation, and this article explains why summer is the perfect time to do it.
Why summer is the perfect time to prepare for fundraising
Fundraising can and does happen all year, but fundraising typically happens in two waves:
Wave 1: Late January to early June
Wave 2: Mid-September to early-December
That means that startups don't raise as much funding during the summer or holidays - and it makes sense because that's when most investors are taking a vacation and spending time with family. But knowing how to ride those waves often differentiates the founders that succeed (and the founders that don't).
So with proper planning, your journey might look like this:
Spend a full 8 weeks in the summer preparing to fundraise in the fall
Set up calls in August & budget the time to invest entire days talking to investors in September
Do the circuit and build momentum and relationships as your name rapidly pops up in the right circles
Close your round as soon as possible and on the best possible terms before the holidays
But with poor planning, it more likely looks like this:
Return from your summertime slumber and suddenly realize you need to fundraise in August
Announce an ambitious goal of talking to your first investors in September, giving you four weeks to prepare
Realize that your pitch deck isn't where you want it to be and delay your September calls to October as you race to throw together everything you need
Make your calls in late October and get feedback that your deck and research aren't where it needs to be
Sprint to try and get everything ready to go out again in November with slightly better assets
Realize that most of the deals from this season are done, rush to try and be the last check signed, and inevitably delay until the following spring
This is why it is paramount to prepare, maybe even slowly and leisurely, during the summer months (June, July, and August). This way, you can be a part of the first round of startups that investors with fresh capital speak with, to have enough time to get through due diligence without having the holidays interrupt his delicate process, and close your round before the new year.
This article is the first part of a series by Pitch Genius that unveils some of the secret sauce for how founders & startups can best prepare for fundraising. The next article focuses on timelines and why startups should budget at least 8 weeks for preparation.Sign up for our weekly mailer to stay in the loop.
