Is Your Startup Fundable? Ask Your Investors
The venture capital landscape is constantly shifting. While funding may seem readily available, it's not equally accessible to all. A significant portion of VC dollars is concentrated in growth-stage companies, particularly those in AI.
Many traditional B2B VCs now seek even faster growth. This makes it crucial for founders to understand their current fundability.
Founders often lack a complete picture of the changing investment climate. They may not know if they're fundable, especially if their last round closed before market shifts.
Here's a simple recommendation: At least quarterly, especially during board meetings, ask your top 4-5 investors the following:
Are we fundable today? What are the odds we can close a round? And at what terms?
You might be surprised by their answers. VCs often have a better understanding of the funding landscape than founders. It's their daily focus.
Founders performing well, but not exceptionally, are often surprised by the feedback. Those who easily raised their last round may also be in for a surprise.
Regularly checking your fundability with your investors provides valuable insights and helps you adapt your strategy accordingly.
