June 21, 2024

246. Summertime Slowdown

246. Summertime Slowdown
Apple Podcasts podcast player icon Spotify podcast player icon RSS Feed podcast player icon Amazon Music podcast player icon Castbox podcast player icon Castro podcast player icon Deezer podcast player icon Goodpods podcast player icon iHeartRadio podcast player icon Overcast podcast player icon PocketCasts podcast player icon TuneIn podcast player icon
Season 4

Text your thoughts directly to Rich.

In fundraising, the end of June is a lot like the end of November. If you don't have a term sheet on the table, you're not going to get one in the next month.

About AVL Growth Partners
AVL Growth Partners, founded in 2009, is the leading fractional Finance and Accounting firm supporting organizations in pivoting from growth to scale. AVL brings an experienced team of CFOs, Controllers, and Accountants to your organization, delivering transparent, strategic actions for short and long-term success. Transform your financial approach affordably with AVL, supporting companies coast to coast - get to know AVL Growth Partners at avlgrowth.com. (Sponsored)

About SpringTime Ventures
SpringTime Ventures seeds high-growth startups in healthcare, fintech & insurtech, and logistics & supply chain. We look for founders with domain expertise, forging a path with a truly transformative technology. We only invest in software-based businesses in the USA. We bring a people-focused approach, work quickly, and reach conviction independently. Our initial check size is $600k. You can learn more about us and our approach.     

WEBVTT

00:00:01.000 --> 00:00:08.654
This is Rich Maloy with SpringTime Ventures, bringing you the VC Minute, quick advice to help startup founders fundraise better.

00:00:09.708 --> 00:00:14.747
I want to thank everyone for being amazing loyal listeners to the VC Minute.

00:00:15.198 --> 00:00:16.428
It means so much to me.

00:00:16.667 --> 00:00:17.237
Thank you.

00:00:17.678 --> 00:00:21.007
There is more content coming for season four, I promise.

00:00:21.411 --> 00:00:27.952
This podcast is a solo production, and if I'm being honest with myself, it's not core to my role as a VC.

00:00:28.551 --> 00:00:37.671
As much as you may want to make the case that VCs being"thought leaders" and blowing hot air into a microphone does seem to be a full-time job.

00:00:38.182 --> 00:00:41.421
The reality is that it has to take a backseat when I'm slammed.

00:00:41.932 --> 00:00:42.652
And I have been.

00:00:43.652 --> 00:00:46.392
But life is good here at SpringTime Ventures and at Casa Maloy.

00:00:47.012 --> 00:00:54.512
And we'll be back after a few more weeks because, like all good working peoples in the Northern hemisphere, I have a family vacation lined up.

00:00:55.322 --> 00:00:59.642
Which is the theme for today's episode: raising capital over the summer.

00:01:00.642 --> 00:01:03.402
The end of June is a lot like the end of November.

00:01:03.951 --> 00:01:09.621
In November, if you don't have a term sheet signed by Thanksgiving, you're not going to get one before the end of the year.

00:01:10.406 --> 00:01:17.037
Likewise in the summer, if you don't have a term sheet signed before June is out, you're not going to get one between now and August.

00:01:17.697 --> 00:01:18.177
Why?

00:01:18.769 --> 00:01:20.750
Well, vacations, obviously.

00:01:21.500 --> 00:01:26.819
But the real situation is coordinating schedules and all of the work that goes into finalizing a round.

00:01:27.439 --> 00:01:32.209
Getting investment committee lined up can be a nightmare, as everyone takes turns going on vacation.

00:01:32.900 --> 00:01:37.489
And there's still a ton of work to do after term sheets, namely deal docs.

00:01:37.969 --> 00:01:42.469
This takes coordination across multiple orgs: VCs lawyers on both sides.

00:01:42.680 --> 00:01:47.403
And then that pesky fund that wants a side letter and that other one that you have to hunt down to get signatures on.

00:01:48.304 --> 00:01:55.436
All of that human coordination, minutia is made into a tangled mess as everyone is flying to Portugal and points beyond.

00:01:56.436 --> 00:01:56.887
So.

00:01:57.576 --> 00:01:59.106
Today's June 21st.

00:01:59.466 --> 00:02:01.027
Do you have a term sheet?

00:02:01.777 --> 00:02:03.037
Will you get one next week?

00:02:03.637 --> 00:02:04.147
No?

00:02:04.667 --> 00:02:09.016
Shift your focus back to the business, make those metrics shine.

00:02:09.287 --> 00:02:12.836
Keep those investors updated, then come back to market in August.

00:02:13.336 --> 00:02:15.526
And take some time off for yourself while you're at it.

00:02:16.526 --> 00:02:18.956
As for me, you'll hear from me again in July.

00:02:19.706 --> 00:02:22.377
As always time is our most precious asset.

00:02:22.586 --> 00:02:25.276
And I am grateful that you spend some of it with me.

00:02:25.967 --> 00:02:36.796
And especially a big thank you to AVL Growth Partners who is supporting season four of the VC Minute, and I have some special content coming up that is only possible through their support.

00:02:37.296 --> 00:02:38.287
Why go fractional?

00:02:38.606 --> 00:02:49.014
Picture this: a CFO with an average of 19 years of senior finance CFO experience, alongside controllers and accountants with 15 years under their belts.

00:02:49.314 --> 00:02:50.751
This isn't just bookkeeping.

00:02:51.050 --> 00:02:55.670
It's the expertise your company needs to navigate economic challenges.

00:02:56.170 --> 00:03:00.730
If you want to take your company to the next level and need the experience required to make it happen.

00:03:01.230 --> 00:03:04.020
Visit AVL growth.com right now.