It’s the holidays, so I’m sure founders are feeling the lull in investor communications. No fret!
Let’s talk strategy for folks gearing up to raise in the new year.
New founders will often set out with ambitious fundraising goals.
Setting a large $ target (at least initially) is often not the best plan.
With early-stage companies, there is usually not much business traction to command a large round.
It is best to set out with a minimum, even less than what you want, and build up investor interest from there.
It is also much easier to engage a small subset of investors to find interested and highly engaged folks (without being shopped around). Investors talk, and want access to exclusivity. 😉
From there, convincing already interested parties to commit to a larger round is within reach! The investors may even push you to increase your round preemptively.
This a far better position to be in vs. fall short of fundraising goals and losing the momentum and interest.