Edition 34: What founders should focus on during the summer; We are back in autumn;
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OPINION
What founders should do in the summer
One simply cannot argue that some periods are just better for fundraising than others.
There is a stigma around this, so it's time to spill the tea with a bit of a mockery overview 😉
Best Time of Year to Fundraise: Spring 🌸
Spring is the ideal time to start your fundraising efforts. The season offers fantastic weather and minimal holiday disruptions. While there's usually a spring break, most VCs are still actively working during this period.
In Europe, it's common for VCs to meet you in person at chic spots. Whether it's a meeting outside at a trendy hotel in London or taking you to a members club for a meeting, VCs are available and accessible. Even a coffee catch-up at a local café can be easily arranged.
Decent Time: June - July 🌞
June and July are also relatively good months for fundraising. With schools out for the summer, many VCs are on family vacations, yet there remains substantial activity. Apart from minor holidays, VCs are generally responsive and engaged.
Overall, the first half of the year is a favourable period to initiate fundraising efforts.
Worst Time: August 🌴
August is undoubtedly the worst month for fundraising. VCs typically take the entire month off for their summer vacations, often travelling to destinations like Ibiza, Mykonos, or Croatia to soak up the sun.
Additionally, the end of August sees many VCs attending events like Burning Man, where they disconnect from their usual routines.
Good Time: September - November 🦃
September to November is an excellent window for fundraising, and it is often considered the best period by many experienced fundraisers.
During these months, funds host their annual meetings, gathering limited partners LPs and co-investors. These events often include portfolio founders, creating opportunities to network and establish connections.
Investors are eager to close deals before the year ends, resulting in heightened activity across the board. It's a vibrant time with plenty of opportunities to secure funding.
However, be aware that things tend to slow down significantly once mid-November arrives. The holiday season, starting with Thanksgiving in the US leads to a noticeable decrease in availability and activity.
Prepare, prepare, prepare!
Picture this: "The best time to plant a tree was 20 years ago. The second-best time is today." If you're aiming to close a funding round this year, the clock's ticking and the time to act is now. Start honing your materials, perfecting your pitch, crafting your story, and expanding your network.
Polish every element to a world-class shine, so when everyone's back from their summer breaks, you're ready to strike. There's a golden window from September to mid-November when investors are back and ready to make moves. They're on the hunt for the year's final investments and aiming to avoid working through Thanksgiving and Christmas.
As a founder, seize this window by laying your groundwork now. Sharpen your narrative and test it with seasoned founders until they say “YES, Tier 1 would invest in this”. Turn your story into killer slides that entice without revealing too much. Network relentlessly so that by September, investors have had you on their radar for months. Remember, investors invest in trends and people at the early stage, not one-off encounters and half-hearted cold emails.
Summer might be a tough time to close a round, but it's the perfect season to set the stage for a successful autumn. Get everything lined up now, and you'll be ready to hit the ground running.
Best of luck!
WE ARE BACK IN THE AUTUMN!
We know you'll miss this newsletter... but fear not! We will be back soon to give you time to focus on product/GTM and fundraising.
We swear we're not heading to any VC hotspots (looking at you, Scorpios) because staying contrarian is our jam!
In the meantime, enjoy these summer stats! 🇬🇷
AI investment trends dominate, with venture capital investments up 300% since 2022.
Focus on AI applications, data management, and efficiency.
Most Fortune 100 companies are deploying AI in test environments.
Declining workforce and cost-cutting drive software product adoption.
The AI software market is expected to reach $365 bn by 2030, with VCs holding significant exposure.
The European tech ecosystem, valued at $3.5b, has seen an increase in M&A activity.
European VC deployed $14Bn in Q1 2024, up from $9Bn in 2020.
Early-stage VC in Europe in 2023 continues to generate positive returns, in some vintage years ahead of US returns.
Potential Klarna and Revolut IPOs will positively impact European VC returns (Isomer Capital).
Please note that any charts, data, or projections discussed are subject to change without notice, may differ from opinions expressed by others, and are for informational purposes only. They should not be relied upon when making any investment decision. The content speaks only as of the date indicated; Pretiosum Ventures has not independently verified third-party links or sources, nor makes representations about the enduring accuracy of such information.