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2025 Fundraising Insights from Founders & Investors + Reader Feedback
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I’ve raised about $10M for Time Study, and founders often ask me how to navigate today’s funding landscape. Here’s what I’ve been hearing lately from both founders and investors.
- From founders: pressure to raise more while facing tighter access to capital, less follow-on funding, and intense competition in AI.
- From investors: concerns about volatile valuations, AI regulation, heavier LP reporting demands, and balancing endurance and long-term growth potential.
First, some important context ...
For Time Study, my “friends and family” round was essentially funded by me. When I raised our first round, we already had a product, paying customers, and a small team, and raising capital was still difficult.
At the time, seed rounds typically required some early revenue traction, while Series A usually required $1M+ in ARR. Today, expectations have shifted: investors often want $1M+ ARR at seed and $3M+ at Series A.
tl;dr - Don’t forget other growth strategies
Here’s the bigger point: remember that fundraising is not the goal. It is only one tool. Most companies will never raise venture capital, and many do not need it. Other tools matter just as much: talking to customers, building revenue streams that cover costs, protecting ownership, testing pricing, and focusing on the golden path. That means delivering the simplest version of your product that solves the customer’s primary pain point well and cost efficiently, without unnecessary extras.
Evergreen Advice + More Thoughts
Funding can provide runway, but so can customers. The focus should be on getting your idea into the world, connecting with the people who benefit most from it, and growing it in a way that makes sense for you and your market. However, if raising capital is your preferred strategy, optimize your time for investors suited to your stage and your market, and who bring long-term strategic value. You simply do not have time to prove yourself to the wrong investors. If it's a "maybe", it's probably "no."
I have other thoughts, click below to read the full post.
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Your Feedback
Please keep sending your thoughts and requests by replying to this email. A complete feedback loop is my love language. Below is input from the last newsletter.
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FROM THE INBOX
Reader Feedback: "I was drawn to the quilting story and curious how that plays out in the entrepreneur world."
I have many reflections on the parallels between quilting, as one form of creative exploration, and entrepreneurship, but I will share two insights here and save the rest for later.
- One parallel is creative reuse and sourcing. Artists often work with what is already around them, turning scraps into something new. I purchased new fabric for my quilting class. My sewing machine instructor (my mother-in-law) laughed at me for buying fresh scraps, saying you are supposed to inherit them from mothers and grandmothers. She wasn’t wrong, and I preferred my own selections. I ended up using hers in class, but that’s a story for another time. I’ve digressed. Regarding creative reuse and sourcing, entrepreneurs, especially in tech, take a similar approach by reusing code and modular functions to improve DevOps efficiency and speed, adapting existing frameworks to meet new demands. What looks like waste in one context becomes raw material in another.
- A key contrast is in how creatives approach the outcome. Quilters, crafters, and other artists understand that not every output has to make “market”. Sometimes the value is in practice, joy, or expanding skills and knowledge. That is a lesson entrepreneurs often forget. Your best idea may be hidden in your biggest mistake.
I have other thoughts that I'll share later. Thanks for taking the time to reply! :)
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