How much money should startups seek to raise in a funding round?
Skillfully and accurately deciding how much money to ask for in a fundraising round continues to be a tricky point for many entrepreneurs and startups. Some have a good idea of what they need, and what is fair. Especially, if they’ve invested in getting some solid outside input in advance. Others are far off base in what will make sense for investors.
As I share in my book, The Art of Startup Fundraising, choosing an ask isn’t just about a fantastic number your think sounds great. To not only get the money, but have it serve you and your investors well, it is vital to understand the key elements that should go into your math, and other basic considerations of how it will affect your potential.
Below are key equations to know, some rough rules of thumb to determine an efficient and profitable capital raise, and additional guidance to understand the capital that you ultimately need to support your execution.
Key Figures To Know
Your Monthly Burn Rate
It costs money just to stay in business. How much is your venture burning in cash every Click here to read entire article