How much money should I raise for my business?

0

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.

Was this answer helpful?

0