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My #1 Greatest Hack for VC Fundraising

So elevating VC capital has gotten lots tougher than it was on the peak of 2021 — when it was nonetheless exhausting for all however the very best and extra privileged.

However boy, it’s tougher in the present day.  All the pieces has slowed down, the bar has gone up, and even VC funds themselves are struggling to do their very own fundraising:

Fundraising By VC Companies Themselves Is At a ten Yr Low. What That Means.

So I wished to jot down a easy submit, one which may be apparent to some, however it’s my #1 hack to extend the percentages a VC invests in you:

The hack: Crush the present / subsequent month, and ship an instantaneous replace on the first of that month.

When VC rounds used to get executed in per week, your efficiency for subsequent month usually wasn’t a part of the VC evaluation.  Everybody thought they needed to resolve … rapidly.

However now, conferences and evaluations and get-to-know-you’s are stretching over a number of calendar months (maybe as they need to).

And you realize what’s nearly one of the simplest ways to get extra excited as a VC?  To be fascinated by a deal, after which the first of the month, get an replace that they’re doing even better than you thought.

And there’s even a little bit of valuation micro-deflation occurring right here.  If a VC was fascinating in investing at say a $15m valuation at $1m ARR, and subsequent month, you develop +10% and the worth continues to be $15m … that VC will get an excellent higher deal.  An additional information level, an additional proof level, and an additional month of progress and income.  And a smidge higher deal from an ARR a number of perspective.  The smidge higher deal does assist, particularly if the VC seems like they’re overpaying or paying the excessive finish of market.

So if the present month seems good, possibly let it do a number of the speaking with the VCs you might be speaking to or plan to speak to.  Get them an excellent replace for the month ASAP.  Possibly even on the thirty first.

It simply actually works to derisk issues, construct confidence, and add one other key proof level.  As a result of as a VC, there’s simply a lot you don’t know.

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