Fundraising can be one of the most challenging hurdles faced by a growing startup. To help founders navigate this critical phase, we’ve put together key takeaways from our recent webinar, “Capital Raising in 2025: Securing the Funds to Fuel Your Growth."
Bringing together industry specialists, the below captures a snapshot of the state of the Australian funding environment, key trends and strategies for successful capital raising. Here are some handy tips to consider when preparing for your next raise.
Thank you to our insightful webinar speakers: Justine Carzino, Investment Director at OneVentures, Chris Davidson, Founder at Map n Scale, Kieran O’Neill, Principal at Tidal Ventures, and Josh Geelan, KPMG Partner. Co-hosted by Amanda Price, KPMG Partner – Head of KPMG High Growth Ventures and Michael Chandler, Portfolio Manager at KPMG High Growth Ventures.
The startup funding landscape has undergone significant change in recent years. According to the panellists, there is still plenty of money available for investment. However, investors are becoming more discriminating, and not every Series A will evolve into a Series B.
One of the main trends observed is the longer investment cycles. Both investors and founders are taking more time to make decisions, with increased due diligence being a common practice. This extended decision-making process is partly due to the need for more detailed financial metrics and predictive analytics to demonstrate the viability of the business.
Whether you’ve never raised before, or you’re a seasoned fundraiser, there are key considerations when preparing for your next raise:
Fostering trust and building relationships with potential investors early on is vital as this process takes time. Start reaching out to investors at least 12 to 18 months before you plan to raise capital. This allows founders to develop meaningful connections which can return long-term benefits.
Consider segmenting potential investors into lead investors and followers, prioritising lead investors in the first instance. This strategic approach helps founders target the right investors who can provide not only capital but also valuable support and guidance.
There are common red flags that can cause investors to walk away during due diligence. For example, dramatic changes in the business trajectory or undisclosed risks can be significant signs of trouble. Transparency and honesty are crucial during this process.
Revenue concentration in only a few customers can also be a turn-off for investors. Diversifying the customer base and demonstrating a robust go-to-market engine are essential to mitigate this risk.
While traditional venture capital remains a primary source of funding, there are numerous alternative and non-traditional fundraising approaches. Exploring different options such as venture debt can at times be beneficial, particularly for later-stage businesses.
Securing capital in today’s funding climate requires going beyond the norm, particularly amidst geopolitical volatility and evolving global markets. Founders who embrace a strategic approach, clear communication, and focus on building strong relationships with investors, win.
Are you gearing up for your next raise? Contact the KPMG High Growth Ventures team today to help ensure your foundations are structured for growth. Or reach out for the webinar recording.