Since we’re in the last throes of summer and many investors unplug at this time – not all, mind you, but this is the last hoorah of summer, so not the best time to send out that pitch deck, unless you happen to know the investor or someone in the fund. Then you’re more likely to get a response, which will most likely be, “looks interesting. Let’s revisit this after Labor Day.”
Been there, done that and tis the season.
That other season.
We work with entrepreneurs all the time, and while there may be no lack of interest in the startup, it still may take time to close the round. Why is that?
As Anne Lee Skates @anneleeskates noted: 1/ There are now 1000+ micro VC firms, >4x more than 10 years ago, most of these seed funds. Despite this trend, it can still be hard to raise a seed round. Why? Few firms lead rounds, and many wait for a lead investor to commit before investing.
Said Rob Go from NextView Ventures (The Seed Funding Market Is Less Crowded Than You Think), leading a round involves a lot of heavy lifting: “Part of it is the mechanics of putting together the actual financing. This includes working with founders to determine the right valuation, negotiating the other substantive terms of a round, and typically writing one of the largest checks. But more important than the check or term sheet is the moral authority and responsibility of building independent conviction for catalyzing the rest of the round.