As an investor you want to monitor the progress of the business to see how fast they are iterating on the business and how well they do with customers.
After you are convinced this is a business you want to join as an investor, you look for an opportune time to invest.
Some companies are moving from one-time raises to ongoing raises in which the company takes the funding at any time. Some still run discrete fundraise campaigns and when the goal is met, the fundraise is closed. For recurring revenue businesses, you have the choice of raising a little at a time ongoing and you don’t necessarily need a large cash infusion to keep the lights on in the office.
As an investor, you can approach the company and make your interest clear. It’s often the case, the company can accept you at the last round of terms because the note is still open.
The message here is “just ask.”
Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies