Fundraising Honeymoon

In the past years I have been exposed to a variety of early-stage funding processes. Some were successful, some closed quickly, some took longer than expected, and some where unsuccessful. When I look back at those successful rounds I realize that there is a certain period within a business' life, in which it somehow becomes easier for young companies to raise funds. In some cases the results may even surprise the most experienced entrepreneurs. I call those moments: the 'honeymoon period'.

What is a Honeymoon period? Well its that period where your company is at one of its promising moments, where the future looks bright - you may even encounter moments where your predictions seem to evade contradiction. Now, I'm not saying that brilliant or even good companies can't successfully raise funds at any given moment of their business life. Nevertheless, most companies will struggle through any fundraising process. The following are some great periods which I have identified as winning honeymoon moments:

1. The idea stage: at this stage anything is possible! Its all about how bright you're idea is, how bright you are, and how much your vision suits investors' criteria.

2. Just prior to launching your first product: That's when everything is almost ready to go! Everyone can now visualize the launch, the steep user take-up, the remarkable market acceptance and the anticipated glory. Investors love when its all happening.

3. Signing your first deal with that blue-chip customer: Your'e the winner! you have just reassured your shareholders that the business future is, seemingly - secured. The big market player has committed to you. Of course, you'll also believe that successive deals will continue to exceed this precedent.

4. Initial revenues stage: You are generating revenues! Your business model is now proven and your first customer/s are paying. You predict that this is just the beginning of a steep revenue chart.

5. Just after one of your competitors have been purchased for 'Zillions': You and potential investors may believe that your business can be sold for the same or more of course...

6. Hyped market segment: Sorry for being blunt, but this point speaks for itself....

All in all, anything which makes the fundraising process simpler, shorter and less painful is always welcome, so fundraising during those honeymoon periods may better your odds that extra bit.