The amount of capital raised should be enough to cover three major costs:
1) Fund the steps you believe are necessary to reach a significant inflection point in the business’s trajectory.
Examples of such steps are: acquiring a critical mass of customers, filling out the core leadership team, or shipping commercial product.
2) Build a “rainy day fund” for the inevitable mistakes in estimation or execution.
3) Bankroll the company during the fundraising process itself, which is generally estimated to be 4-8 weeks.
It is important to have a specific amount of money to request from investors, rather than a range. And, ultimately, this amount should be enough to cover the people, equipment, and services necessary to cover the costs while the company is making the steps necessary to hit its milestones.