Fundraising tips for early and midstage startups in 2022

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By Walter Thompson

Friday, July 22, 2022

Welcome to TechCrunch+ Friday

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I won't use this space to dissuade anyone from launching a startup, but founders should embrace the fact that investors are looking for reasons not to give you money these days.

Perhaps you don't have much revenue. Or maybe, too much of your cash flow depends on a single customer. Oh, and when are you on track to join the $100M ARR club?

Given current conditions, best practices for fundraising and finding investor alignment are less relevant than they were a year ago. Back then, the promise of early growth was enough to help many teams close seed and Series A rounds.

Today, startups with long sales cycles that aren't cash-flow positive may not even be considered for follow-on investments.

If you're curious about which kinds of startups investors are (and aren't) willing to look at, Kami Vision CEO Yamin Durrani has written a comprehensive post about the changes he's observed between fundraising in Q4 2021 and Q3 2022.

“Don't panic, VCs are interested in investing right now — just in a few areas,” he writes. In his article, he shares the seven tactics he used to fundraise successfully, such as planning to pitch 30-60 investors.

Right now, it will take longer to raise less money that will value your company lower than you hoped. But if you're launching a startup with the intention of getting rich, you're already on the wrong track.

Thanks for reading,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

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Dear Sophie,

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