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Act Now: The Final Window for 2024 Australian Capital Raises

Writer's picture: Warwick DonaldsonWarwick Donaldson

The window to launch and close a capital raise before mid-December is almost closed. If you don’t secure commitments by then, momentum will be lost as investors break for summer. Re-engaging them in late January 2025 means rebuilding excitement, delaying your raise by weeks or months.


 

TL;DR

  • Launch your cap raise now or you’ll miss the window to close before mid-December.

  • If you miss this, investors go on break, and you’ll need to rebuild momentum in late January 2025.

  • SAFE Notes are quick; priced rounds will take too long.

  • Angels, syndicates, and smaller VCs can close fast; larger VCs and Series A+ rounds will take longer.

  • If you can’t close in 2024, use the holiday break to prepare for a January relaunch.


 

Why Timing is Critical


By mid-November, investor attention shifts to wrapping up existing deals. Miss this, and your raise will almost definitely stretch into 2025. You need to launch now, as most raises take 3-12 months, and closing a round during the holidays is basically impossible. The later you start, the less likely you are to secure funds before the break.



Investor Types & Timelines

  • Angel Investors & Syndicates: Typically have faster decision cycles. If you’ve got a pre-seed or seed round, angels are a good option to target. You may still close before the holiday season.

  • Family Offices: Quicker decision-makers, but they can be under-resourced, so timelines can vary depending on the relationship and their workload.

  • Venture Capital (VCs): Smaller, early-stage VCs may move quickly, especially for pre-seed or seed rounds, but larger, more established VCs tend to have a slower process, particularly for Series A+ rounds.


 

Actionable Steps to Launch Before the Holiday Break

  1. Perfect Your Pitch: Investors are pressed for time; make sure your materials (deck, forecasts, financials) are polished and concise.

  2. Prioritise Warm Leads: Focus on existing relationships and warm introductions to speed up the process.

  3. Target Fewer, Relevant Investors: Narrow down to the most likely investors, especially those specialising in quick, early-stage investments.

  4. Leverage Quick Instruments: Use SAFE Notes or convertible notes, which have fewer legal complexities and can be closed faster. Priced rounds often require months of negotiations and are unlikely to close before mid-December.


 

Want more Aussie founder cap raising content?

Check out some of my other articles on fundraising..



 

Don’t Rush? Maybe Wait for Late January

If you miss the window, it’s often better to wait until late January to launch your capital raise. Investors will return refreshed and open to new deals. In the meantime, you can use the holiday period to refine your strategy and materials.


What Happens If You Miss the Window?

Failing to close your round before mid-December means your investor conversations will likely stall. When investors return after the break, you’ll need to rebuild momentum, which can delay closing by weeks or months. Plus, investors may have new priorities in the new year, requiring you to re-pitch your opportunity.


Key Considerations:

  • SAFE Notes: Quick and ideal for pre-seed or seed rounds.

  • Series A+: Complex and likely to stretch into 2025.

  • Momentum Matters: Conversations left hanging over the holidays will suffer, so securing commitments before the break is crucial.


Key Actions:

  1. Push Now: Capitalise on existing relationships and focus on quick-to-close instruments.

  2. Prepare for 2025: If you can't close by mid-December, use the next few months and the holiday downtime to prepare your capital raise materials and begin building investor relationships in anticipation for a strong start in late January.


Time is running out to close a round in 2024, but with the right approach, you can either capitalise on the remaining weeks or set yourself up for success in 2025.


 

Disclaimer: Excentricity Pty Ltd, trading as CapXcentric (ABN 42 679 978 959, AFS Representative No. 001311296) is a Corporate Authorised Representative of True Oak Investments Pty Ltd (ABN 81 002558 956, AFSL 238184). The information provided in this article is intended for companies and startups and is not directed towards investors. Any statements or representations are general information only and do not take into account your personal objectives, financial situation or needs. Readers are advised to have regard to their own circumstances and consider seeking specific advice from a professional adviser before making any business decisions. No representations are made as to the accuracy, completeness, or reliability of any information provided in this article. Readers use the information provided at their own risk.

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Excentricity Pty Ltd, trading as CapXcentric (ABN 42 679 978 959, AFS Representative No. 001311296) is a Corporate Authorised Representative of True Oak Investments Pty Ltd (ABN 81 002558 956, AFSL 238184). Any information about the financial products and financial services available from or through CapXcentric on this website is general information only and does not take into account your personal objectives, financial situation or needs. Please have regard to your own circumstances and consider seeking specific advice from your professional advisers. 

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