Dear SaaStr: How Long is a Venture Round Supposed to Last?

Dear SaaStr: How Long is a Venture Round Supposed to Last?

I think like many venture axioms, founders get often get bad advice here out of good solid rules.  Until 2002, the rule was “18-24 months”.  Then, during the boom times, most VCs stopped caring how long the round would last.  The next round seemed to come so fast and furious.  And now in tougher times, so many folks have to stretch the round … often indefinitely.

The 18-24 month rule is a good one — until it isn’t.

The real answer is Until The Traction and Metrics Where You Know Someone Will Write You Another, Much Larger Check.

Ask your existing investors. Talk to VCs you know, but that can’t invest now.  Until someone tells that you are fundable, you aren’t.  And the money just has to … last.  Period.

Find out what it will take.

And stretch your cash to get there.  However long it takes.

A related post here:

(note: an updated SaaStr Classic answer)

Published on January 23, 2023

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