The Heretic Logo

By PASCAL FINETTE

The Heretic is a free bi-weekly dispatch delivering insights into leadership in exponential times. For entrepreneurs, corporate irritants and change makers. Raw, unfiltered and opinionated.

be radical.
Disrupt Disruption
Build What Matters

Jul 12th, 2016

How Much Money To Raise

After the last post on fundraising (“Links, Not Dots”), I received some emails asking me a simple, yet vexing question:

“What’s the right amount of money to raise?”

It’s actually fairly simple — and when combined with my previous note on valuation (“How Much Is Your Startup Worth (The $1M Question)”), it creates a nice framework to think about fund raising.

When determining how much to raise — you want to figure out how much money you need for the next 18 months (up to 24 months if you are in a less friendly fundraising environment). That’s the amount of money you need to raise.

Say you need a million dollars for the next 18 months and are willing to give up 20% of your company for that capital infusion, you have both the amount you need to raise ($1M) and your valuation ($5M Post-Money).


1,184 Posts and Counting.
Don't miss the next post. Sign up now!