If you’re unsure about how much money you should raise, you’re not alone. Most CEOs don’t realize the connection between the amount they want to raise and their chances of actually securing funding.
Here’s the thing: raising the right amount of funding isn’t just guesswork — it’s a strategy. I’m going to walk you through the mistakes you don’t want to make, and I’ll share my five-step plan to determine how much VC funding you should raise.
Let’s start with mistake number one of the three most likely mistakes you don’t want to make raising funding:
1. You’re raising too little money
“I want to raise less money because it will be easier.” I hear that every week from CEOs that I talk to.
It may seem like it’s a good thing to raise less money. However, the reality is that raising less money means that you’re likely to accomplish less, and maybe you’ve cut the time between funding rounds down.
And, making matters worse, your potential investors know this too. That’s why raising less money can make it impossible for you to raise your funding. Next, let’s move to second mistake on our list…
