How Much Capital Should You Raise? Look at Your Future Milestones
When it comes to raising investment capital at startup and expansion stage businesses, is there such a thing as raising too much money?
According to MIT Technology Licensing Officer Christopher Noble, it depends.
In an article for Mass High Tech, Noble says that while some entrepreneurs argue that bootstrapping is the best way to go, others might tell you to take as much as you can get. There’s no consensus response, in part because the answer largely depends on your company’s goals and aspirations.
In order to accurately address funding-level needs, Noble argues that entrepreneurs must first address their companies’ future milestones (for example, delivering a working prototype to a lead customer, completing a successful trial, or booking your first sale). Only then, Noble says, can they consider raising the amount of money that will help them reach those milestones. In that way, he writes, a business’s milestone plan and its financing plan are very closely dependent on one another.
Of course, there’s much more to landing an investment than that. In his article, Noble explores some common issues and explains how they may ultimately influence your funding strategy.
For more details, check out the full post titled, “How Much Money Should an Entrepreneur Raise?”