Upcoming Tech News Hubb
Advertisement Banner
  • Home
  • News
  • Business Tech
  • Health Tech
  • Digital Tech
  • Contact
No Result
View All Result
  • Home
  • News
  • Business Tech
  • Health Tech
  • Digital Tech
  • Contact
No Result
View All Result
Wellnessnewshubb
No Result
View All Result
Home Business Tech

How much money should you raise for your startup? • TechCrunch

admin by admin
December 12, 2022
in Business Tech


TL;DR: Enough to hit the milestones to raise your next round of funding

The correct amount of money to raise for your startup is “as much as you need to hit the milestones to raise your next round of funding.” It isn’t rocket science, and yet, the vast majority of founders I talk to are very fuzzy about exactly how much money that is, and there are a lot of misconceptions about how you figure out how much you need to raise.

To be a startup on the VC treadmill is a staged de-risking of a business proposition. In other words: Right now, your company is very risky indeed because certain parts of your business are unknown. This is why you need to put together a minimum viable product (which is neither minimum, nor viable, or a product) to test out part of your business model. Once those things are tested and proven, the risk of the business goes down, and you can raise your next round of funding to take on the next part of the journey.

The first mistake a lot of founders make is to try to raise enough money for a certain amount of runway, measured in months or years. That makes some sense, but investors are not interested in keeping your startup afloat for the next 18 or 24 months. They’re interested in keeping you alive for long enough to deliver certain milestones, which in turn are a proxy of risk reduction.

Let’s take a deep dive into how you can best design your startup’s journey through the various stages of funding — and detail just how much you need to raise at each stage.

Milestone-driven fundraising

The best way to think about how much you need to raise for this round is to consider what you need to accomplish to raise your next round. That means considering the specific milestones that you must hit to prove that your company is moving in the right direction. These milestones might include:



Source link

Previous Post

NASA’s Artemis 1 Moon mission has returned to Earth

Next Post

NASA official “very confident” Artemis spacesuits will be ready on time

Next Post

NASA official “very confident” Artemis spacesuits will be ready on time

Recommended

RocketLab’s first North American launch set for Sunday

2 months ago

NASA’s Orion photographed the Earth and Moon from a quarter-million miles away

2 months ago

Ford Follows Tesla in Cutting Electric Vehicle Prices

5 days ago

FTX investigates ‘unauthorized transactions’ after millions go missing from crypto wallets

3 months ago

© 2022 Upcoming Tech News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • News
  • Business Tech
  • Health Tech
  • Digital Tech
  • Contact

Newsletter Sign Up.

No Result
View All Result
  • Home
  • News
  • Business Tech
  • Health Tech
  • Digital Tech
  • Contact

© 2022 Upcoming Tech News Hubb All rights reserved.