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2024 Is The Time To Raise Venture Capital
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One of the key ways that you can increase your chances of raising venture capital (especially at a favourable valuation) is to time your raise correctly.
I spent 17 hours this week going through thousands of pages of VC information and deals as well as general economic data, and now I’m ready to confidently say that you should try to raise in Q3 2024-Q4 2025.
Why is this the ideal time to raise
For the past 12 months, the economy has been full of uncertainty, which has been reflected in the VC market.
20% of all rounds raised this year have been down rounds.
The data is frankly scary. The number of deals, size of deals, valuations, etc., are all suffering because of a lack of money in the VC industry.
Right now is NOT the time to raise, but I see strong indicators that in 9-15 months, we will have hit the ideal time to raise.
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Trends
Two primary trends give me confidence that a significant rebound is coming soon.
IPOs - More startups are planning to launch IPOs in 2024; companies like Notion and Stripe having successful IPOs will remind LPs of the significant upside in startups prompting them to invest more money into VCs.
Acquisitions - The stock market is already recovering, which means that public companies have the green light for growth. With low startup valuations, we already see companies like Apple, Google, Microsoft, and Adobe buying up startups. This will return money to the startup ecosystem, giving it another boost.
Key Takeaways
If you are running a company, you should prepare to raise in 9-15 months. That means you should be starting to get all your documents together right now, knowing the KPIs you need to hit to raise so that you can be the first to benefit when the VC industry gets its influx of cash.
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Onwards and Upwards,
P.S. Are you ready to take the next step in raising venture capital for your company? If so, you can book a 1:1 strategy call with me to help get you going in the right direction!
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