Startup Funding Espresso – Think Minimum Raise, Not Maximum Raise

Think Minimum Raise, Not Maximum Raise

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Most startup founders calculate how much funding they need to accomplish the goal.

This is a good initial step in the fundraising process.

The mistake is then asking for that amount of money in one go.

It's important to break the raise down into steps and stages.

The first round of fundraising should be the minimum needed to reach a milestone.

Not a maximum to reach the end goal.

The startup's valuation is low in the early stages, so the fundraise should be at a minimum, so the founders don't suffer too much dilution.

For a minimum fundraise the founder should consider what is the minimum team focused on a minimum viable product to achieve initial traction.

As the startup generates more products, revenue, and traction, it can raise its valuation and take larger amounts of funding.

This will reduce dilution and make the job of building and selling the product easier.

Consider what your minimum raise should be and what you can do with it.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

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