Founders: When Fundraising, Ask for More Than You Think You'll Need
When founders come to me for advice on fundraising, I always tell them to raise twice what they need and to plan on it taking twice as long as they expect. When I hear comments like "We don't need that much money," or "We're waiting to hit this milestone, and then we'll just raise again," I try not to roll my eyes.
One of the questions my firm always asks prospective companies is the rationale behind the specific amounts they're after, whether it's $1 million or $10 million. In many cases, the answer gives us a quick snapshot into a founder's startup experience. While we all appreciate capital efficiency, thinking small or staging rounds to preserve ownership is a huge mistake, and here's why.
4th of July Subscription Sale - Unlock this subscriber exclusive article and more for 20% off today.
Access all Entrepreneur content with no ads, unlock discounts, and get exclusive advice only available to our subscribers. Plus, our magazine delivered straight to your door.
Get 20% off an annual subscription today. Just use code SAVE20 at checkout.
Entrepreneur Editors' Picks
-
Tory Burch Built a Brand Around Empowering Women. Now Her Foundation Is Furthering Her Mission: 'How Do We as a Company Have a Positive Impact on Humanity?'
-
This Founder Had to Play College Basketball in Men's Shorts and Shoes, So She Launched an Athletic Clothing Company Named After the Now 50-Year-Old Title IX Act
-
Is Beyoncé's 'Break My Soul' the Theme Song of the Great Resignation?
-
You're Probably Falling for All of Amazon Prime Day's Psychological Sales Tactics. A Marketing Professor Reveals Them — and How You Can Actually Get the Best Deal.
-
Comedian Paul Virzi: 'If You're Not Authentic, You Have Nothing'
-
Struggling to Come Up With Creative Ideas? Try Doing This.
-
Picking a Winning Emerging Brand Is How You Get Rich in Franchising. Here's How to Spot One.
