As VC Tomasz Tunguz point’s out, there is a right and a wrong time to raise capital for your startup. According to him, the common rule of thumb batted around the valley that the worst times to raise capital are in the dog-days of summer and after Thanksgiving is only a half-truth.
- September the slowest month for investments during the year.
- December is the best month for investment, while January is the worst.
- And, the average investment size spikes in August and December
Assuming a three month fundraising process, the best times of year to start a financing process is in September, targeting a December close, when investment sizes are 15% larger than average and investment volumes are 50% larger. Starting a raise in May is the second best choice. While the average investment sizes are identical to December, investment pace is much slower, hence a bit riskier.
Source: Tomasz Tunguz