< div class="contributor-byline __ contributor “readability=”7”> Russ Heddleston Factor
Nobody desires to prepare for their fundraising round to stop working. Lots of founders invest months (and even years) getting their companies to a point where they’re all set to pitch financiers. But there are times when, no matter how difficult you attempt, you’re simply not going to be able to close a deal.
With the present COVID-19 pandemic, the whole VC community remains in a state of uncertainty, and there is no clear answer when it pertains to the question, “can I still raise funds for my business?” However, there’s expect early-stage start-ups. We utilized the 2020 DocSend Start-up Index to track Pitch Deck Interest among financiers and discovered that last week, despite seismic modifications throughout the country, pitch deck interest has just been 11.6% lower than the same week in 2019 up until now.
We will be monitoring the Pitch Deck Interest Metric in the coming weeks, however if you’re an early-stage start-up and you were preparing to raise, there is still opportunity to come away with a term sheet. However if things do not go as prepared, how do you understand if it’s time to give up or if you just need to press through?
According to current DocSend data, you’ll understand quite quickly if it’s time to call it gives up. While the typical founder who achieved success in fundraising contacted 63 financiers throughout their process, start-ups that weren’t able to raise funds stopped at 27. Why stop? Due to the fact that the founder listened to the feedback they were getting. If you hear the same issue or piece of feedback two times you need to take it to heart, however if you hear it 3 times you probably require to stop and reconsider things.
The Pitch Deck Interest Metric decreased 11.6%compared to the very same week in 2019 According to our study on the fundraising procedure of pre-seed startups, creators who were not successful in raising had simply 9 conferences. That should give you enough feedback to know if you have a deal breaker in your deck.
But unfavorable feedback does not indicate all is lost. Of startups studied in the 2020 DocSend Start-up Index, 86% reported that they were going to attempt to fundraise again after dealing with the feedback they ‘d gotten.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.