Does your startup need a seed round or is it ready for IPO? Those are either the A or the E rounds. Like two balls on the end of a rod, they are large and the rod is skinny. Seed rounds are in, mezzanine rounds are doable, the rest in between are hard. Valuations are very low. Investors are reluctant to reach for their checkbooks.

This has occured often in startup history. I've seen it in wave after wave over thirty years. But there are things you can do to get through the storm.

Here are some tips for the A or E times:

• Assume VCs are all scared. Do not count on your lead VC to come through with the new, golden VC powerhouse to price your B or C or D round. You will have to do that alone. It is up to you.
• Plan for the worst. While you have time, adjust your burn rate. Your current cash must get you well past that next giant milestone: star customers signed up, one million concurrent users, whatever it is. Then your startup has a much better chance of getting the money you need to continue growing successfully at a valuation that is not a fire sale.
• Raise more money than you plan on using. This is especially important for the seed round. The CEO must assume the B round is going to be at least six months late in coming. The mezzinine round CEO must be prepared for a longer IPO drought than he plans, a year or more later.
• Cultivate long lists of VCs well before you need them. Introduce your company casually in advance of the next round. Get higher on the list of the top tier VCs.
• Beware of large corporations investing in mid-term rounds. They take forever to decide. They have slow moving machinery at corporate. They are public companies with a ton of paperwork needed for every decision. That takes a very long time. Your cash may not hold out long enough while you wait for the big bucks from giantco.
• Tell stories about the accomplishments of your company. As you describe month to month successes, small and larger, investors will become more and more confident of your accomplishments. Send a short newsletter monthly to interested VCs and venture startup bankers. Everyone likes to read of progress and success during these times. That is part of the process of building your unfair competitive advantage.
• Be ready for doing more than one bridge loan from your current investors. I've been writing about that in recent weeks. Understand the terms, cost, discount and conditions. This has become a way of life during the A or E phase of startup money raising.
• Be honest with your employees. Make it clear when you are going to run out of cash. As I have written before, you may have to miss a payroll (make it up after the next round is closed). That is not the end of the world. It is how startups work. But you must not surprise employees. Helping them prepare for a short drought increases their trust in you. That is priceless. It is also your job.

How long will this A or E phase linger? The answer is simple: longer than you want. So get started working on reducing the pain. I expect the current troubles to go away within a year, but not before we get through the coming winter.

BOTTOM LINE: The VCs are currently especially cautious. They see the startup investing as a glass half empty. It is a great time to begin a startup with a seed round. Or to get pre-IPO money. All else in between is very difficult. There is a lot you can do to thrive during this phase of your startup's life. It is a primary job for the CEO. When the startup can continue to grow during such difficult times, investors will broadcast its unfair competitive advantage and eagerly reach for their wallets to invest.