Other contributions from this contributor
- Non-obvious fundraising tips from a Silicon Valley outsider
- 2017 is the year your startup is funded
As North America The reopening slowly begins after almost two months of protection and business interruptions. Startups that have interrupted fundraising will return to the game. But these are shaky economic times, and most founders will return to a completely different world.
George Arison, founder and co-CEO of Shift, has some ideas on how entrepreneurs should approach fundraising in the “new normal”, whatever that means.
Shift is a technology platform that buys used cars from individuals and sells them to new buyers. Shift raised over $ 225 million in five rounds. But Arison has experience of fundraising in difficult circumstances: In 2017, the company's $ 38 million Series C was a downward turn in which Shift had to raise money with a lower valuation than Series B.
In a fundraising world where many companies were "massively" overvalued, Arison expects these conditions to shape the new normal.
"I think Flat will be the new round, to be honest," he says. “Some companies will go round like Stripe. But most companies will find it much harder with capital. “In an episode of How I Raised It, Arison shared his key fundraising tips for tough times – from strategic selection of VC partners to successful navigation in a downward turn.
Lean on "No" and look for investors who reject you
When Arison tried to increase Shift A, he threw a wide network of venture capitalists with whom he spoke and which he specifically linked to VCs that may not invest in the company.
"I firmly believe that I speak to a wider range of people than founders would normally do," says Arison. "There are many advantages to meeting really great investors, even if they don't invest in you because you will learn a lot from them. They will tell you things that you might not otherwise be paying attention to – and this information will become real over time critical. "