Missing the Startup Capital Window

It takes time to raise startup capital.

In most startups there is a timeframe when raising startup capital makes the most sense. If you miss that window you might be out of luck. Raise startup capital too early and you risk getting a low valuation. Wait too long to raise capital and you risk having lost all of your momentum.

There is even a right and wrong time of the year to raise startup capital.

Just because angel investors and venture capitalists were often entrepreneurs and startup founders themselves doesn’t mean that they don’t follow normal professional schedules when it comes to vacations. Especially if they have children who are of school age. It isn’t uncommon for venture capital firms to slow down the pace of their investing during certain times of the year. Data does show that investments in startups slow ahead of the winter holiday season in the United States and prior to the start of summer vacations.

Then there is the case of bootstrapping too long and missing your startup capital window all together.

Which is exactly what I did with my first startup. Because we were seeing so much traction I elected to hold off on accepting investor money. Following the advice I now give other startup founders, I was actively engaging with investors even though I didn’t have immediate plans to take a round. But by waiting too long I missed our window. Once I wasn’t able to personally fund our growth any longer and we struggled to show revenue growth those interested investors disappeared.



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