Andy Lenz’s Post

From a 70% success rate in 2021 to a 30% success rate in 2023...   This is the volatile landscape seed companies looking to raise an A round need to operate in currently.   I’ve seen some great seed companies push out their fundraising so they can increase their chances to raise a proper round. No doubt, things have been hard.   But... there is a light at the end of the tunnel for seed stage #startups as things are starting to change, and the market is opening up.   Seed funds are reverting to their typical pace of 6-10 investments per year. The real question lies in the A round territory… and how US VCs will approach this in the current year. What’s clear is that seed startups need to show $2M or more in annual recurring revenue (ARR), and real growth when raising a Series A, when in 2021 many have done it with only $600,000 in revenue.   That alignment between funds and founders is now happening across the board.   And, if you have clear validation, you should be in a position to raise a proper A round. The key here is consistent growth, both month over month, and year over year. The venture landscape is always evolving… and it's crucial for startups to adapt and prove their worth.   Agree/Disagree? Let me know in the Comments section below. #fundraising #venturecapital #nyctech

🇬🇧 Understanding the different stages of startup funding is crucial for strategic growth. 🌱 From the pre-seed stage to Series C and beyond, each phase comes with its own challenges and opportunities. Our latest Quick Insight breaks down each stage, helping you map out your fundraising strategy and seek the right type of investment at the right time. Whether you're just starting out or scaling up, knowing where your startup fits in the funding landscape is key to securing the investment you need. Dive into the details and plan your next move. Check it out! https://hubs.li/Q02H-kmD0 #FundingStages #StartupGrowth

Why Startups Struggle to Raise Seed Funding 🚀 Raising a seed round can be tough. Here’s why many startups miss out on that critical first funding: 🔹 Unclear Value Proposition – Investors need a clear problem-solution fit. If they can’t see the impact, they won’t invest. 🔹 Small Market Size – Seed investors look for big markets with growth potential. Niche markets can deter them. 🔹 Weak Team – Investors value strong, well-rounded teams. Gaps in skills or experience create doubt. 🔹 No Traction – Early user growth or pilot results show validation. Without some traction, investors hesitate. 🔹 Unrealistic Financials – Projections that don’t add up reduce confidence. 🔹 Crowded Market – Entering a saturated space without a clear differentiator is risky. 🔹 Poor Pitch – An unpolished pitch can overshadow a good idea. Tackling these head-on can help startups stand out and gain investor confidence. 🌱💰 #seedstartup #fundraising #seriesA #venturecapital

Navigating the wild world of startup fundraising can be really challenging.💰 Blomfield's insights on investor feedback hit home - sometimes it's hard to tell what's genuine and what's just polite rejection. 😕 And the notion that angels invest with their hearts adds depth to the funding landscape.❤️ Leveraging competition among investors to drive up interest? Clever strategy. And the emphasis on thorough due diligence when selecting investors is crucial for long-term success.💡 Valuable insights for anyone navigating the complexities of startup funding.🚀 #StartupLife #VentureCapital #StartupFunding #InvestmentInsights https://lnkd.in/drdyaWT6

Key Strategies for Securing Pre-Seed Funding 1. Understanding Pre-Seed Funding - Pre-seed capital ranges from $50,000 to $500,000 - Crafting a Compelling Pitch - Highlight the problem, unique solution, and strength of the founding team 2. Crafting a Compelling Pitch - Highlight the problem, unique solution, and strength of the founding team Create a well-structured pitch deck including problem statement, solution, market opportunity, business model, competition, financials, and team - Focus on what sets the startup apart, such as novel insights, relevant expertise, or early traction - Demonstrate confidence, clarity, and receptiveness to feedback 3. Engaging with Investors - Network with potential pre-seed investors, including friends and family, angel investors, and early-stage venture capital firms - Leverage online platforms, attend startup events, and tap into entrepreneurial communities to expand network - Maintain transparency and provide regular updates to investors post-funding Leverage investors' expertise to propel the startup forward Want to know more insider secrets to help raise millions for your startup or others? https://lnkd.in/g5eTyRe7 #startup #fundraise #milliondollarpitch

Did you know that seed funding in 2023 hit $0.779 billion, marking a significant surge in early-stage investment opportunities? Here's why this matters: 1️⃣ Increased Funding: More capital available for startups like yours means greater potential to fuel your growth and innovation. 2️⃣ Growing Confidence: Investors are showing a keen interest in backing innovative ideas, signaling a positive sentiment towards early-stage ventures. 3️⃣ Market Validation: During uncertain economic times, early-stage ventures are perceived as more resilient to market fluctuations, making them attractive investment options. 4️⃣ Growth Potential: The average deal size for seed investments is on the rise, indicating growing confidence in the potential of early-stage startups. 5️⃣ Opportunity Knocks: With the seed funding landscape flourishing, now is the perfect time to seize the opportunity and turn your startup dreams into reality. Ready to take advantage of this opportunity? Let's chat and see how we can make your startup dreams come true! #startupsuccess #fundingopportunities #dreambig #startupconsultation #entrepreneurialjourney #seedfunding #fundraising

Venture capital is a dynamic landscape. How do we transition effectively from seed to Series A funding? Crunchbase News offers key insights: Traction: It's the lifeblood of startups. Are we showcasing consistent progress? Solid Team: It's a selling point for investors. Are our teams reflecting our vision and values? Scalable Business Model: It's a roadmap for sustainable growth. Are we anticipating future trends? Strong Network: It's crucial for securing funding. Are we building valuable relationships? Navigating from seed to Series A demands strategy, execution, and resilience. It's about turning ideas into impact and potential into performance. Let's shape the venture capital narrative together in 2024. #VentureCapital #SeedFunding #SeriesA #StartupGrowth #BusinessStrategy What Did It Take To Raise A Series A Round In 2023? http://dlvr.it/T2QwSk

Online event this Thursday (28 Nov)! If you are curious about the what, how and why of investing in startups then join us from 12-1.30pm for an online workshop and to hear personal stories and tips from angel investors. Register now! https://lnkd.in/gZj4hhtk Investing in startups (angel investing) is how you get in on the ground floor of companies that have potential to do BIG things - did you know Google, Canva, and Linktree all started out with angel investment? Find out about: * What angel investing is * How investing in startups works * How you can get involved And no, you don’t need millions to start investing, just an interest in helping innovative and scaleable early-stage businesses (and the ability to meet the sophisticated investor criteria).

Are you interested in #investing 💸 in the next generation of startups and growing the economy? Are you involved with the #startup ecosystem? The Foundations of Successful Angel Investing workshop helps rookie and potential angels master startup 🚀 investing step-by-step. To create this workshop, we've taken insights from 1,800 active hashtag#angel investors. Some of them make a 20% - 26% return on their portfolio. We want to share how they achieved this with you. Review: "I would definitely recommend it to first-time startup investors. Investing in startups is completely different compared to the stock market or real estate." Sign up for the session on October 17th here: https://buff.ly/4dbh8w6

Are you interested in #investing 💸 in the next generation of startups and growing the economy? Are you involved with the #startup ecosystem? You've come to the right place. The Foundations of Successful Angel Investing workshop helps rookie and potential angels master startup 🚀 investing step-by-step. To create this workshop, we've taken insights from 1,800 active #angel investors. Some of them make a 20% - 26% return on their portfolio. We want to share how they achieved this with you. Review: "I would definitely recommend it to first-time startup investors. Investing in startups is completely different compared to the stock market or real estate." Sign up for the session on July 18th here: https://buff.ly/4c9Ba9e