How long does an angel seed round take to close once business plan and pitch are completed?

There are tens of thousands of angel or seed round deals that take place every year, and every deal is different. It depends on a number of factors, some of that depend on the investors and some that depend on the entrepreneur. There are cases of investors handing over a check in the first meeting with the entrepreneur, and there are cases where it takes nine months to work out all the details and due diligence. In our experience, it usually takes around four to six months to work out all the details of an angel or seed round.

One common problem is not being able to raise the entire amount required. If you have told investors that you are looking to raise $500,000, but are only able to collect $200,000 from investors, you cannot assume that you can simply close the angel seed round at $200,000, because the angel investors may question why you now feel that $200,000 was sufficient. If you really need $500,000 to succeed, your angel investors may not want to invest $200,000 in a seed-stage venture that you yourself feel is not sufficiently capitalized. If you end up “in limbo”, it might feel compelled to keep trying to raise the remaining amount, since returning what you’ve managed to collect may be hard to accept.

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