There are generally two schools of thought when it comes to raising external capital: “Always be raising” or “heads down” focus on growth and execution. I lean towards the latter.
It is interesting to observe what is happening in the financial markets these days, in light of the social and political instability across the world. In particular, public investors continue to share a love for B2B Software (see BVP Emerging Cloud Index below). This behaviour is no different from venture capitalists who invest in private B2B Software startups.
While venture investors and lenders continue to prioritize support for portfolio companies, many are still open for business to invest in new startups. Those with fresh capital and a new fund raised in the past year or two are more likely to closely evaluate new investment opportunities, taking advantage of a more ‘normalized’ venture market.
In recent months, I’ve published a few articles which include insights on how to think about financing a fast-growing B2B software startup:
As businesses shift from surviving to adapting and thriving, the key tips I’d like to share for a successful fundraise in 2020 and beyond are:
- Know Your Customer
- Demonstrate Value
- Create Urgency
- Listen to the Market