Raising on a Short Runway: The Mistake That Weakens Your Deal
When a raise starts because cash is running out, the company is no longer the one setting the pace of the negotiation. Investors notice, the deadline tightens, and every week of delay turns into a concession on valuation or deal terms.
This is one of the most common mistakes we see: treating fundraising as a response to an emergency rather than a planned process. And the gap between rounds tends to be longer than many founders expect. According to Carta, the median time between seed and Series A in the United States was 1.9 years in Q4 2025. Between Series A and Series B, the median for US software companies reached 2.7 years in 2025.
Why raising at the last minute is expensive
Less leverage: with no alternative, the company tends to accept the first term sheet that shows up.
The process doesn't fit the deadline: preparation, roadshow, due diligence and documents take months, and delays are common.
The business suffers: founders stop running the company to chase money, and metrics weaken right in the middle of the raise.
A bad signal to investors: a short runway becomes an argument for a discount or tougher terms.
How to avoid it
Map your runway month by month and set the date by which the round must be closed, with a buffer.
Start preparing (investment thesis, financial model, pitch deck and data room) before you need the money.
Open conversations with room to spare: we recommend having at least 9 to 12 months of cash when the roadshow begins.
Have a plan B, such as cost cuts, an extension from existing investors or debt, so you never negotiate at the limit.
Size the round to reach the next meaningful milestone with room to spare, assuming the next raise may take longer than planned.
Good fundraising starts before the urgency. If your company is planning its next round, talk to Kurumi at kurumiventures.com/?lang=en or giovanni@kurumiventures.com. We help build the timeline, the preparation and the process so you negotiate from a position of strength.
Source: Carta — Time Between Startup Rounds Is Finally Trending Down — https://carta.com/data/linkedin-time-between-startup-rounds-improving/
Source: Carta — Planning to Raise VC Every 18 Months Is Planning to Fail — https://carta.com/data/linkedin-time-between-rounds-ai-vs-non-ai/
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