How Long Will It Take to Raise Funding?

How Long Will It Take to Raise Funding?

December 1, 2020 by investor

I’m often asked how long it will take to raise a round of funding. 

It will take you one calendar year for every million dollars you are raising, that’s if you are working on it full-time. If you are part-time, then it will take longer.

You’ll need approximately two months to prepare for the raise. This includes preparing the company, the investor documents, and the initial investor list.

It takes another 2-3 months to engage investors and bring them up to speed on your deal. They’ll want to monitor it for a few months to see the traction in motion.

Then it takes a month to close.

After you close those investors, you’ll need to find another round of investors and repeat the process. 

For a million-dollar raise, you’ll need to do this three times on average.

Some companies don’t need all their funding in one go as most are based on recurring revenue and have the option of growing incrementally so they can raise funding the same way.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.


Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.

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