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.
Welcome back everybody and happy August. When I left off in June, I was talking about the summer, slow down. I hope you use that time productively to focus on the business, bump those numbers up, and get ready for your next deadline.
You have three and a half months to get a term sheet. If you don’t have a term sheet or are negotiating one, by Thanksgiving, you’re not going to get one before the end of the year. That gives you 14 weeks to get a funding round done.
Okay, wait a second. Why Thanksgiving? Thanksgiving to the end of the year is a scramble to get deals done. Nearly the whole industry shifts to focus on finishing up the term sheets that they’ve already signed before Thanksgiving. This means investors are neck-deep in emails and phone calls and Zoom calls with the founders and the lawyers and the founders’ lawyers dealing with the negotiations on deal docs and allocations, and last minute changes, and then getting the wires done, all before the end of the year.
There are always exceptions, but don’t ever plan on being the exception.
This week, I’m going to go through some of the logistics on how you can execute your raise over the next three months, cap it off with a term sheet, and celebrate before the end of the year.. Or should you put the focus on the business for the next four months and push a fundraise out to Q1? And we’ll talk about that at the end of the week.
But first, Outsourcing your finance and accounting function is a no-brainer for startups. And you need to work with a firm that specializes in high-growth companies. Founded in 2009. AVL has fueled the success of over 1200 early-stage companies. Specializing in raising capital, M&A, financial modeling, scaling, and bringing financial transparency and a disciplined approach to the companies they work with. AVL works seamlessly as a member of your team and has the experience to support both VC-backed and bootstrapped companies.
Head to AVLgrowth.com and explore how they can be pivotal to your growth. AVL Growth Partners. Your success. Their expertise.
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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