Fundraising in a Down Market: How to Keep Your Startup Alive

Key takeaways for entrepreneurs from Deanna Brown and Ayden Syal’s fireside chat at SXSW 2024

Learn how to navigate the complex landscape of fundraising in a down market and discover strategies to keep your startup thriving. Read on for top tips from Deanna Brown, a seasoned media and entertainment executive, and Ayden Syal, the CEO and co-founder of MOGL.

Preparing for Your Fundraising Journey

• Cultivate relationships with potential investors before officially launching your fundraise
• Develop a clear path to profitability within a 24-month timeframe
• Conduct thorough customer market research and user testing to differentiate your product

Crafting a Winning Fundraising Strategy

• Embrace the numbers game: aim to reach out to 10 times more investors than you initially anticipate
• Explore alternative funding sources, such as friends and family, strategic investors, and bootstrapping
• Prioritize securing a lead investor who can attract other investors and provide credibility

Mastering Your Pitch and Data Room

• Create a concise pitch deck (12–14 slides) that effectively communicates your business, market potential, competitive landscape, and intended use of funds
• Develop a well-organized data room that proactively addresses investor questions and reinforces your pitch

Perseverance and Self-Care: The Keys to Success

• Embrace the lengthy and challenging fundraising process, and remember that a single “yes” can make all the difference
• Prioritize your mental and physical well-being to sustain the passion and focus necessary for successful fundraising

Adapting to the Current Market Conditions

• Minimize burn rate and demonstrate a clear path to profitability to attract investors in the current climate
• Plan to fuel additional growth after securing your Series A round

Fundraising in a down market can be daunting, but with the right approach and mindset, you can successfully secure the funding your startup needs to thrive. By focusing on preparation, strategic outreach, clear communication, and adaptability, you’ll be better positioned to attract investors. By implementing these strategies and maintaining a resilient mindset, you’ll be well-equipped to navigate the fundraising process and keep your startup moving forward.

Learn More

Listen to this session in its entirety. Explore our full list of SXSW sessions covering startups and social impact.

Our StartingUpGood team believes that events and conferences are great places to learn, share ideas, and innovate. We are committed to using our innovative tech tools to share key insights and learnings from top conferences. This article uses Otter.ai to create transcripts and various LLMs to generate content summaries. All work is hand-checked for quality.

StartingUpGood supports fresh entrepreneurial approaches to social impact. FOLLOW US on social media:

• LinkedIn
• Medium
• Twitter / X
• Facebook
• Instagram

Check out SDGCounting for the latest news on tracking the progress of the Sustainable Development Goals. #SDGs #GlobalGoals