Raising money in a recession
Read this if you want to raise money in 2020. So many people have asked me in the past few days that I want to insert this as a Friday extra in my resiliency series. Raising money is going to be hard. Really hard. Not impossible though, so if you are going to try here's […]

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Hussein Hallak

Raising money in a recession

Read this if you want to raise money in 2020.

So many people have asked me in the past few days that I want to insert this as a Friday extra in my resiliency series. Raising money is going to be hard. Really hard. Not impossible though, so if you are going to try here’s my advice.

While there are always deals being done, funding will be a big challenge for a few reasons:

1. There is uncertainty
2. Investors will wait for valuations to come down
3. They see how you handle adversity
4. Smaller investors will have lost money

While this is true, there are some strategies that you can use to increase your chances:

1. Create momentum
2. Adjust & recession proof customer acquisition efforts
3. Adjust the terms of your deal
4. Consider a split round
5. Show your impact

Many companies (Google, LinkedIn, Hootsuite etc.) raised rounds in a recession. The key is controlling your destiny by focussing on progress. Remember – the best form of funding is always revenue.



The only startup course inspired from the experience of helping more than 3500 entrepreneurs of which 300 have grown their startups to Seed and Series A stage and raised over $300 Million in funding.


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