5 tips for SaaS businesses fundraising during COVID
As part of SaaStock Remote 2020, I spoke on a panel yesterday about something that’s top of mind for many early-stage SaaS entrepreneurs right now: is it possible to raise money from investors in the current environment?
At Accel, we love SaaS and have invested globally close to $4B in more than 230 companies over the last 35 years. Many great SaaS companies have emerged from the past two economic downturns. Some iconic businesses in our own portfolio like Atlassian or DocuSign, emerged off the back of the dot-com bubble, and Slack, Dropbox, Cloudera and CrowdStrike were founded after the 2008 financial crisis.
Now is actually a good time to raise money and, from what I’m seeing, the financing environment in Europe is quite active despite the lockdown. We’ve closed three deals in the past couple of months, one of which was done from start to finish remotely. We also have several portfolio companies which have raised rounds recently or are in the process of doing so.
My response to the question “Can I raise money now?”
is without hesitation "Yes, you can”.
Here are five tips to make the process faster and shift the odds in your favor.
Before starting the fundraising process
1. Do the hard things first
If you need to readjust your plan or restructure, do it first and talk to investors after.
The current crisis is different from previous ones, because its impact has varied greatly across different sectors and businesses. On the software (Read more...)