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Every Month is a Good Month to Raise: What 42,000+ Funding Rounds Tell Us About Raising Capital in July
- The article challenges the myth that summer months, particularly July, are not ideal for raising capital, backed by data analysis of 42,000+ funding rounds from US startups between 2018-2024.
- Contrary to belief, July averages 8.4% of all deals, above the expected baseline distribution if deals were evenly spread across 12 months.
- December emerges as the month with the highest deal volume, contradicting the idea of a holiday season slowdown.
- The broader summer period from May to August constitutes more than one-third of annual deal volume, indicating active fundraising activity during this time.
- Year-over-year analysis demonstrates that summer months maintained their strength even during periods of overall funding contraction.
- The article debunks the myth of a 'summer dead zone' for fundraising, attributing it to confirmation bias, regional VC differences, and self-fulfilling prophecies.
- Fundraising strategy recommendations include reevaluating timing based on actual data, highlighting the importance of December for deal closure and the relative activity in July and August.
- Key insights reveal that VCs are actively making investment decisions and closing deals throughout the summer months, contrary to the perception of reduced activity.
- Top takeaways include the encouragement to challenge traditional beliefs, leveraging lower competition in 'off-season' months, and emphasizing the impact of market conditions over seasonal trends.
- The article advises founders to rethink their fundraising calendars based on real data, emphasizing that great companies can secure funding regardless of the month, including July.
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