What time of year should you fundraise?
When Eric Bahn was trying to raise money as a founder, he had no idea VCs were on vacation, like, all the time.
VCs would auto-respond with OOO messages saying they’re skiing in Jackson Hole. Or on a beach in Mykonos. Or finding themselves at Burning Man.
This might sound super weird if you’re not from Silicon Valley. Why are VCs always on vacation? 😅
After lots of trial and error, Eric finally figured out what the mysterious calendar of a VC looks like.
In a recent episode of Uncapped Notes, co-hosts Eric and Janel share the best timing for founders to start fundraising.
Decent: January - February
The first part of the year is a decent window of time to start fundraising. However, there are a few important things to note:
- The first week of January is an extension of the end-of-year holidays. So we recommend waiting until the 2nd or 3rd week of January to fundraise.
- Many VCs have kids in school who have mid-winter breaks in the middle of February. This is the perfect opportunity to take the family to Aspen or Jackson Hole for a mini ski vacation.
So while Jan-Feb is a decent time to start the process, we recommend starting in Spring instead.
Best: March - May
Spring is the best time out of the entire year to fundraise.
There aren’t too many major holidays. The weather is amazing. Yeah, there’s usually a spring break but most VCs are working.
It’s normal for VCs to meet you in person outside at the Rosewood Hotel. Or take a walk with you somewhere on Sand Hill Road. Or grab coffee together at Coupa Cafe in Palo Alto.
You know, Silicon Valley things.
Decent: June - July
School is out! VCs usually go in another vacation to spend time with family. But there is still a lot of activity happening in both June and July.
Besides the 4th of July Holiday, VCs are fairly responsive.
All in all, the first half of the calendar year is a pretty good time to start the fundraising process.
Worst: August
August is the absolute worst time to raise money.
VCs basically take the entire month off for summer vacation. They’re somewhere in Ibiza, Mykonos, or Croatia enjoying the sunshine.
There’s also Burning Man at the end of August. This is when VCs go off to the desert wearing ridiculous costumes, and return after a week covered in dust.
Soooo yeah. You’re not going to get in front of any VCs in August.
Good: September - November
This is Eric’s favorite window to fundraise.
VC firms host annual meetings to bring their limited partners (LPs) and co-investors together. They also invite some of their portfolio founders to meet everyone.
Investors rush to do deals before the end of the year. There’s great activity happening everywhere.
Expect everything to die down once Thanksgiving hits.
Bad: After Thanksgiving - December
In the United States, we have this major holiday called Thanksgiving. It happens every year on the 3rd Thursday of November.
It’s a pretty big deal. Schools are closed. No one really wants to work that week.
But it turns out that the feeling of not working basically extends through the end of the year.
Of course, most VCs come back to work after Thanksgiving.
But Eric has been in these VC offices around this time.
There’s eggnog and snacks everywhere. Michael Buble's music is playing in the background. The energy is super lowkey.
VCs may take a few meetings here and there. But they’re not doing that much.
And VCs are off again for Christmas break until early January. Where the cycle starts all over again.
These are not hard and fast rules
We are speaking generally of the VC world. Getting a fast response from VCs depends a lot on the VCs themselves.
The Hustle Fund team works year-round because we’re young and hungry to make big things happen. So we’re a bit different from other funds.
Outside of VCs, angel investors tend to be active year-round, too. Keep this tip in your back pocket if you’re looking to close a round in a month when VCs are out of office.
Start building up your investor list, decide on the timing that's best for you, and make it happen.
