Start-up struggling to raise capital? Look for a catalyst.
To start-up founders in a recession: find a catalyst before fundraising.
Catalysts build momentum and confidence, like successful product launches, M&A offers, and large commercial deals.
Momentum is on your side following a successful catalyst, and investors’ need a reason to invest _now_ vs. waiting
Successful product launches or the introduction of new technologies can create a paradigm shift for your sector, driving innovation and growth
M&A offers signify there is value to the tech and team you have built, even if you have very little revenue, setting a floor to your startup valuation. Plus, you can always say no :)
For enterprise businesses, commercial deals, M&A, and fundraising can fuel each other.
Examples: Chat GPT 3.5 and Microsoft's investment in OpenAI led to investments in pre-revenue Generative AI startups. Lyft turned acquisition interest into a $600M fundraising round. RideOS closed a 7 digit commercial deal and turned it into an accelerated Series B.
Look for game-changing catalysts before you start your fundraising process!