The summer months often signal a slowdown in the startup world, with many investors jetting off on vacation. However, this lull presents a unique opportunity for ambitious founders to get investment ready and position their businesses for a successful autumn fundraising campaign.
We spoke to AIN’s expert brokerage team, who have collectively raised more than £120 million for startups, to uncover what founders should be doing while investors soak up the sun.
As the old adage goes, “failing to prepare is preparing to fail.” This couldn’t be truer when it comes to securing investment. While investors may be less accessible during the summer months, it’s crucial to use this time wisely to refine your pitch and strengthen your business proposition. Here is a list of the essential tasks to prioritise in August.
Updating your pitch deck
A stale pitch deck is a major red flag for investors. Ensure your deck reflects your company’s current performance, including the latest financial data and key metrics. Investors want to see a business that is dynamic and evolving, not something that is several months out of date. Ensure it is up to date with all figures for the summer and impress investors come September.
Crafting a strategic outreach plan
The influx of emails post-holiday can be overwhelming. Develop a well-thought-out strategy for reaching out to potential investors, including follow-up plans to maintain momentum. Maintaining open communication is crucial. By providing regular updates, you’ll be well-positioned to capture the attention of busy investors when the autumn fundraising season begins.
Leveraging networking opportunities
While summer events may be fewer, focus on building relationships through word-of-mouth and LinkedIn. These platforms can be highly effective for generating interest and creating buzz around your startup. Indeed a platform like LinkedIn will be far quieter at this time, so you have a better opportunity to gain more engagement while others are off for a break.
Preparing for a September launch
With less email traffic, meetings and day to day distractions this can be a perfect month for planning. Lay the groundwork for your fundraising campaign by collaborating with your advisors and team to ensure everything is in place for a strong September launch.
Maintaining open communication with shareholders
If you already have shareholders, a quarterly shareholder update at this time of year is a good way to keep in touch with the investor base. Regular updates, especially during challenging economic times, can foster trust and loyalty among investors. Transparency about headwinds can actually strengthen your relationship with shareholders and increase their likelihood of participating in future rounds.
Investigating tax relief and grant opportunities
The month of August also presents an excellent opportunity for startups to focus on strategic initiatives that might be neglected during busier times. One such area to explore is tax optimisation. Entrepreneurs should leverage the quieter period to delve into and apply for tax incentives.
In the UK the key ones for startups are the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS). There is also the potential of R&D tax credits and a variety of grants that can be leveraged. By proactively seeking out and securing these incentives while there is a bit more down time, startups can enhance their financial position and create a more sustainable foundation for long-term success
Why August Matters
August might seem like an odd time to intensify your fundraising efforts, but it’s precisely this counterintuitive approach that can set you apart. By the time autumn arrives and investors are back in the office, you’ll be well-prepared and ready to hit the ground running.
Moreover, using this time to refine your pitch and build relationships can give you a significant advantage when competition heats up in the fall. Investors are more likely to remember companies that have been consistent in their outreach and have demonstrated a clear understanding of the market.
The race for funding never stops, and summer is no exception. By diligently addressing the points outlined above, you can significantly enhance your chances of securing the funding your business needs to thrive. You can enjoy some Summer downtime when you have made your exit!
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