Early Stage Funding · Fundraising

Is there any seasonality when it comes to fundraising? Which period of time to do fundraising you find most effective?

Edwina Huang Founder & CEO of Vivify Textiles, Biotech innovator, Textile Recycling

October 30th, 2018

For example, I heard someone has strategy to do the closing by the end of year. So because investors all want to go for holiday in Christmas, and they have a pressure strategy to hustle till they got investment. But personally I don't know if this is a good strategy.

Steve Lehman Investor, Entrepreneur

October 30th, 2018

The most difficult time is between Thanksgiving and New Years......Difficult to get anyone to focus.

Dane Madsen Organizational and Operational Strategy Consultant

Last updated on November 1st, 2018

When I was a VC, we joked "one of the most difficult months to get funded was October. The others are November, December, January, February, March, April, May, June, July, August, and September." Do not fear the seasonality, fear the pitch. There is no magic time of year to find a great opportunity nor a time of year when a weak opportunity will be attractive. You may find getting closed seasonal for the reasons stated, but associates and junior partners are always looking for the opportunity that can elevate their profile in a firm. Given that many startups do back off in the holiday and vacation seasons may be your best time to get somebody's attention. Fundraising is a full time, all year role.

Paul Garcia marketing exec & business advisor

November 1st, 2018

It depends on the audience you are approaching. If you're talking to corporations, they set typically their budgets anywhere from October through November for the next year. and are likely not making more investments after Q3 for the current year.

You may find some specific corporate entities who are looking to tie up some money for tax purposes at the end of the year, but they will have lots of options to choose from. The last months of the year are more common for individual investors to spend money, for the same reason, taxes.

The holidays only have to do with ease and pace of communication. It has nothing to do with whether they will pursue a deal that they're interested in. The same thing could be said of summer, where people tend to take more vacations and it can take longer to get messages back and forth as a result. Don't let vacation be the impediment, focus on value. If it's the right match, it doesn't matter whether someone is on vacation, they'll follow through.

If your pace requires investment by a certain date, you're at a disadvantage with any investor.