You’ve been raising capital for more than three months – what’s wrong with your deal?

Does this question sound familiar? It’s a common concern for founders and startups, but it’s time to reframe the conversation around capital raising.

As someone who has witnessed the struggles of founders firsthand and navigated the process myself, I’ve discovered that raising capital is simply a marketing and sales exercise. Here’s how to plan for your next capital raise and set yourself up for success:

Embrace the timeline: Capital raising can take anywhere from 6 to 24 months, and that’s perfectly normal. Blackbird Ventures, for example, took 22 months to raise their first fund, meeting with over 500 investors to secure 97 backers and raise $27 million.

Generate interest early: Start building relationships and attracting potential investors well before launching your capital raise. A wise industry panellist once said, “You need to be either raising capital or raising friends.”

Set performance KPIs: Establish clear goals for your capital raising efforts, such as getting 50 investors into your deal room within 2 to 3 months and communicating with them at least four times a year.

Analyse your performance: Continuously assess your capital raising process, documentation, and interactions with investors. Treat this process like you would your business development team, with the understanding that your company is the product.

By following these steps, you’ll be better prepared for the capital raising process and avoid common pitfalls. Remember that raising capital is a long-term endeavour, and a strategic approach is key to securing the investment your startup needs to thrive.