Is This a Good Time to Raise Funds for My Company?

The answer is “Yes” if the firm and its team are ready to earn the commitment of investors. In my experience of watching market cycles of more than 20-years, general market conditions, no matter whether good or bad, do not correlate with effective fundraising.

Regardless of the times, there always appears to be more money than good deals. As a result, good companies with good stories and good teams seem to be able to get funded. In fact, some of the most successful companies have emerged from relatively tough times.

However, the process of raising funds remains very challenging due to the large number of firms seeking investment, and many investors are expecting the global economy is facing significant cyclical pressures in the coming year. A track record is much more important than it used to be.

Also, investors are usually more interested to fund deals referred by their own network, and they favor those referral sources who have a history of bringing high-quality deals with a lot of due diligence already done.

Therefore, entrepreneurs are advised to focus more on locating and cultivating relationships with potential investors or referral sources close to their target investors instead of mass mailing pitch decks.