246. Summertime Slowdown

VC Minute
In fundraising, the end of June is a lot like the end of November. If you don't have a term sheet on the table, you're not going to get one in the next month.

VC Minute – quick advice to help startup founders fundraise better

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This is Rich Maloy with SpringTime Ventures, bringing you the VC Minute, quick advice to help startup founders fundraise better. I want to thank everyone for being amazing, loyal listeners to the VC Minute. It means so much to me. Thank you. There is more content coming for season four, I promise. This podcast is a solo production, and if I’m being honest with myself, it’s not core to my role as a VC. As much as you may want to make the case that VCs being “thought leaders” and blowing hot air into a microphone does seem to be a full-time job. The reality is that it has to take a backseat when I’m slammed. And I have been.

But life is good here at SpringTime Ventures and at Casa Maloy. And we’ll be back after a few more weeks because, like all good working people in the Northern Hemisphere, I have a family vacation lined up. Which is the theme for today’s episode: raising capital over the summer. The end of June is a lot like the end of November. In November, if you don’t have a term sheet signed by Thanksgiving, you’re not going to get one before the end of the year. Likewise in the summer, if you don’t have a term sheet signed before June is out, you’re not going to get one between now and August.

Why? Well, vacations, obviously. But the real situation is coordinating schedules and all of the work that goes into finalizing a round. Getting the investment committee lined up can be a nightmare, as everyone takes turns going on vacation. And there’s still a ton of work to do after term sheets, namely deal docs. This takes coordination across multiple orgs: VCs, lawyers on both sides. And then that pesky fund that wants a side letter and that other one that you have to hunt down to get signatures on. All of that human coordination minutia is made into a tangled mess as everyone is flying to Portugal and points beyond.

So, today is June 21st. Do you have a term sheet? Will you get one next week? No? Shift your focus back to the business, make those metrics shine. Keep those investors updated, then come back to market in August. And take some time off for yourself while you’re at it. As for me, you’ll hear from me again in July. As always, time is our most precious asset. And I am grateful that you spend some of it with me.

And especially a big thank you to AVL Growth Partners who is supporting season four of the VC Minute. I have some special content coming up that is only possible through their support. Why go fractional? Picture this: a CFO with an average of 19 years of senior finance CFO experience, alongside controllers and accountants with 15 years under their belts. This isn’t just bookkeeping. It’s the expertise your company needs to navigate economic challenges. If you want to take your company to the next level and need the experience required to make it happen, visit AVLgrowth.com right now.

About AVL Growth Partners
AVL Growth Partners, founded in 2009, is the leading fractional Finance and Accounting firm supporting organizations in pivoting from growth to scale. AVL brings an experienced team of CFOs, Controllers, and Accountants to your organization, delivering transparent, strategic actions for short and long-term success. Transform your financial approach affordably with AVL, supporting companies coast to coast – get to know AVL Growth Partners at avlgrowth.com. (Sponsored)

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