Aug. 19, 2024

247. You Need a Term Sheet Before Thanksgiving

247. You Need a Term Sheet Before Thanksgiving
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Season 4

Text your thoughts directly to Rich.

There are 14 weeks between now and Thanksgiving. If you don't have a term sheet by then, you're not going to get one until Q1 next year.

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.     

Transcript
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This is Rich Maloy with SpringTime Ventures, bringing you the VC Minute, quick advice to help startup founders fundraise better.

00:00:09.657 --> 00:00:12.087
Welcome back everybody and happy August.

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When I left off in June, I was talking about the summer, slow down.

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I hope you use that time productively to focus on the business, bump those numbers up and to get ready for your next deadline.

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You have three and a half months to get a term sheet.

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If you don't have a term sheet, or are negotiating one, by Thanksgiving, you're not going to get one before the end of the year.

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That gives you 14 weeks to get a funding round done.

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Okay, wait a sec.

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Why Thanksgiving?

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Thanksgiving to end of year is a scramble to get deals done.

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Nearly the whole industry shifts to focus on finishing up the term sheets that they've already signed before Thanksgiving.

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This means investors are neck-deep in emails and phone calls and zoom calls with the founders and the lawyers and the founders' lawyers dealing with the negotiations on deal docs and allocations, and last minute changes, and then getting the wires done, all before the end of the year.

00:01:13.456 --> 00:01:17.415
There are always exceptions, but don't ever plan on being the exception.

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This week, I'm going to go through some of the logistics on how you can execute your raise over the next three months, cap it off with a term sheet and celebrate before the end of the year..

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Or should you put the focus on the business for the next four months and push a fundraise out to Q1?

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And we'll talk about that at the end of the week.

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But first, Outsourcing your finance and accounting function is a no brainer for startups.

00:01:44.203 --> 00:01:48.253
And you need to work with a firm that specializes in high growth companies.

00:01:48.753 --> 00:01:50.043
Founded in 2009.

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AVL has fueled the success of over 1200 early stage companies.

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Specializing in raising capital, M&A, financial modeling, scaling, and bringing financial transparency and a disciplined approach to the companies they work with.

00:02:04.969 --> 00:02:12.557
AVL works seamlessly as a member of your team and has the experience to support both VC-backed and bootstrapped companies.

00:02:13.057 --> 00:02:18.427
Head to AVLgrowth.com and explore how they can be pivotal to your growth.

00:02:19.187 --> 00:02:20.538
AVL Growth Partners.

00:02:20.937 --> 00:02:21.957
Your success.

00:02:22.258 --> 00:02:23.457
Their expertise.