Author Topic: New Ways To Raise Money In 2018  (Read 2256 times)

Afsana Ahmmed

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New Ways To Raise Money In 2018
« on: May 21, 2018, 01:49:50 PM »
                                     New Ways To Raise Money In 2018[/

Planning on raising money in 2018? Good, because there's lots of good news, like:

1. More money than ever, overall. From 2014 to 2017, the average VC fund size doubled.
2. A new sensitivity to racial and gender dynamics that has many VCs on their better behavior. Finally.
3. More micro VCs and micro funds with capital outside of traditional startup hubs, so you can likely find capital closer to you than ever before.
4. There are also more ways to raise money--from crowdfunding, to equity crowdfunding, to convertible notes in all their flavors, and of course, those famous token Sales.
There are also some real challenges facing founders raising money in 2018:

It's nothing you can't overcome, especially if you understand the landscape. You knew it was going to be hard anyway.

So here's the new thing: the venture capital world is barbelling. It used to look like an egg--a tapering start of small funds, a big fat middle with lots of midsize funds, and a nice rounding off of mega-funds. Now, it's a barbell and it all happened in the last 3 years. Today, there are lots of smaller funds like my firm Valor Ventures, lots of bigger funds, and the middle is being whittled away. This has some strong implications for your most efficient path to raising capital. Whatever venture capital case study you're hearing in your accelerator from 3-5 years ago, it's too old--take the directional truth from the founder, but know the tactics likely need an update.