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Ask YC: Who here has done a rolling close on angel/seed round fundraising?
Just wondering your their experience was? Any advice? From everything I've read and common sense, it seems smart to take whatever money you can get and get the cash in the bank asap. That way the stragglers or undecided investors aren't holding up the round.
Are there any pitfalls to this strategy? Do the latecomers get the same valuation as those who are ready to right the check today?
- emmett 18y agoYou fingered the pitfall. Late comers get the same valuation, so you give up the ability to pressure people into investing now for fear that they'll lose the chance. On the other hand, we did a rolling close on a round and it worked fine for us.
- MaysonL 18y agoYou could do something like set a deadline for the initial valuation of the round, and have a couple more months where the round remains open, but the valuation goes up x% per month or per week.
- shafqat 18y agoThat makes a lot of sense.