Great companies aren’t just built in booms. They survive the busts.
If your organization is raising capital in a tougher economic climate, you can’t rely on the same playbook. Investors are more cautious, metrics matter more, and your story has to show staying power.
Here’s how to build a fundraising strategy that holds up when the market turns:
1. Reset Expectations (and Communicate Them Early)
Downturns compress valuations and increase scrutiny. Align your internal stakeholders on this reality early—including founders, team members, and existing investors.
Tip: Benchmark against current deal trends. Anchor to realistic comps, not pre-downturn dreams.
2. Focus on Fundamentals
When capital is tighter, investors prioritize resilience. That means:
- Clear unit economics
- Measurable traction
- Disciplined burn rate
Tip: Show how you’re managing costs without killing momentum.
3. Diversify Your Capital Stack
Consider mixing equity with non-dilutive sources like grants, revenue-based financing, or strategic partnerships. Optionality is leverage.
Tip: Investors love founders who understand capital efficiency, not just capital raising.
4. Tell a Story of Endurance, Not Hype
Flashy growth won’t cut it in a downturn. Investors want a steady hand, not a rollercoaster.
Tip: Frame your pitch around long-term value creation, not just the next big milestone.
5. Shorten the Ask, Extend the Plan
In uncertain times, many founders raise less than they’d like—but build more with it.
Tip: Break your raise into phases. Prove what you can do with less. De-risk the next round before you ask for it.
Final Thought
The best fundraising strategy in a downturn is one grounded in discipline, clarity, and realism.
At Quarter Century, we help leaders tell the right story, to the right investors, at the right time—even when the markets get rough.
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