How to Raise Capital in a Tough Venture Market: Panel Advice
Raising Capital in the Toughest VC Market | Family Office & Investor Strategies for 2025
Founders and fund managers raising money in a slow market who want practical ideas on positioning and sizing their ask.
Worth quoting
"The first piece of advice, I would say, is stand out. Make sure it's different, even if it's something that's similar."
"The ask is not an ask for the next two years. The ask is for the next six months."
"There is a line of sight to actually see that capital go to work."
The short version
A panel at a family office event discussed raising capital in a venture market described as being in its third year of very hard fundraising. The first piece of advice was to stand out. Founders should be able to say what is different about their business, keep the story real, and have their answers ready for questions.
Panelists then described what they look for. David focuses on real prospects for returns and income. Joe, whose firm is in fund six, likes small asks tied to a discrete set of goals over about six months. Another panelist pointed to opportunistic, non-correlated strategies and named a few sectors as examples.
Facts and figures
- The panel described the venture capital fundraising market as being in its third year of a very hard stretch.
- Joe said his firm is in fund six and keeps its asks to the next six months instead of two years.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Raising Capital in the Toughest VC Market | Family Office & Investor Strategies for 2025. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around offering documents, investor eligibility rules and fund structuring options. Do not use AI to write your own legal agreements.
Five points worth keeping
- Stand out from similar firms. The first advice given was to make the business different, even when the category is crowded. The example was PR firms, where many roll-ups are happening, so founders need to say what is unique.
- Keep the pitch real. One panelist advised against grasping at straws. Keep the story realistic, have the details in order, and be ready for questions.
- Make the downturn relevant. A panelist whose firm focuses on opportunistic and non-correlated investments said to find the upside of the downturn. Repurposing strategies and opportunistic debt and equity were named as examples.
- Look at real return prospects. David said the key question about a company is its real prospect to produce a return. He also said income is what he likes, and he favors paying investments.
- Make short, small asks. Joe said his firm likes asks that cover the next six months rather than two years. A short ask with a clear set of goals gives a line of sight to the capital going to work.
Related questions
- How do I value an early-stage company with no revenue?You value it on proof instead of earnings.
- How do I negotiate valuation with an early investor?Start with a valuation you can defend with traction and numbers, then expect the investor to push back.
- What is a pre-seed round and who invests in it?A pre-seed round is the earliest outside money a startup raises, often before it has real revenue.
Questions about this video
What was the first piece of advice for raising capital in this market?
The first advice was to stand out and make sure the offer is different, even if it is in a crowded category. The speaker also said to keep it real and be prepared for questions.
What kind of ask does Joe prefer?
Joe prefers short, small asks that cover the next six months rather than two years. He said they should aim at a discrete set of goals the capital will be put to work on.
Which alternatives did panelists mention for a downturn?
One panelist named a few sectors as examples. The idea was to choose assets that may be less tied to macroeconomic conditions.
Put this into practice with the ready to raise checklist. See all capital raising mindset resources.
