The Fundraising Timeline: From Preparation to Close

Fundraising takes longer than most founders expect. What seems like a straightforward process—pitch investors, get money—is actually a complex journey with multiple phases, stakeholders, and potential delays. Understanding the realistic timeline helps you plan ahead and avoid the stress of running low on runway mid-raise.

The Full Timeline

From first preparation to money in the bank, a fundraise typically takes 4-6 months. Some take longer; few are faster. Here is what to expect in each phase.

Phase 1: Preparation (2-4 Weeks)

Before you send a single email, you need to prepare your materials and strategy. Rushing this phase leads to wasted meetings and poor first impressions.

Preparation Tasks

• Finalize your pitch deck and refine your story
• Prepare your financial model and projections
• Gather supporting materials (product demos, customer references)
• Build your target investor list (50-100 names)
• Research individual investors and personalize outreach
• Line up warm introductions where possible
• Practice your pitch with advisors or fellow founders

Phase 2: Active Outreach (2-4 Weeks)

This is when you start reaching out to investors. The goal is to generate enough meetings to create momentum and optionality.

Outreach Strategy

• Start with tier 2 investors to practice and refine your pitch
• Batch your tier 1 outreach to create competitive dynamics
• Follow up systematically (most meetings come from follow-ups)
• Track everything in a CRM or spreadsheet
• Aim for 20-30 meetings scheduled

Phase 3: First Meetings (2-4 Weeks)

First meetings are typically 30-60 minutes with a partner or principal. The goal is to generate enough interest for a second meeting or partner meeting.

What to Expect

• 30-60 minute introductory call or meeting
• High-level pitch and Q&A
• Initial feedback on fit and interest
• Request for additional materials if interested

Typical Conversion Rates

• 50-100 investors contacted → 20-30 first meetings
• 20-30 first meetings → 5-10 deep dive processes
• 5-10 deep dives → 1-3 term sheets

Phase 4: Deep Dives and Diligence (4-8 Weeks)

This is the longest phase. Interested investors will want multiple meetings, customer references, technical diligence, and detailed financials.

Common Diligence Activities

• Partner meetings (presenting to the full partnership)
• Customer reference calls
• Technical or product deep dives
• Financial model review
• Legal document review
• Background checks on founders

Phase 5: Term Sheet Negotiation (1-2 Weeks)

When an investor decides to proceed, they will issue a term sheet. This is the exciting part—but do not rush through negotiation.

The Negotiation Process

• Review term sheet with your lawyer
• Identify terms to negotiate (valuation, board, provisions)
• Use competing interest as leverage if you have it
• Agree on final terms and sign term sheet
• Note: Term sheets are usually non-binding but set expectations

Phase 6: Legal and Closing (2-4 Weeks)

After signing a term sheet, lawyers draft and negotiate definitive documents. This takes longer than expected.

Closing Process

• Legal document drafting and review
• Final diligence items
• Board approvals
• Signature collection
• Wire transfer (finally, money in the bank)

Timing Tips

When to Start

• Begin with 12+ months of runway remaining
• Avoid major holidays (summer, December)
• Consider VC fund cycles (many close new funds in Q1)

Creating Urgency

• Run a parallel process with multiple investors
• Set soft deadlines for decisions
• Communicate competing interest (honestly)
• Have a clear timeline for your decision

Common Delays

• Partner meetings happen monthly—timing can add weeks
• Customer references take time to schedule
• Legal negotiations over minor points
• Investor vacations or fund transitions
• Changes in your metrics during the process

Start Your Fundraise Right

A well-planned fundraise is less stressful and more successful. Start early, prepare thoroughly, and maintain momentum throughout the process.

Your pitch deck is the foundation of every fundraise conversation. Make sure it is investor-ready with AI-powered feedback.