top of page

How Much Money Should You Raise for Your Startup

So many of you have asked me this question.

Short answer:

> You should raise enough to hit the milestones to raise your next round of funding.

Step-by-step guideline:

  • Identify the specific milestones that you must hit to prove that your company is moving in the right direction

  • Milestones need to be based on facts and in-depth research (especially regarding competitor analysis)

  • Center your pitch around those laser-like focus metrics and zero in on how the funding will help in improving them

  • Make sure your milestones are SMART - specific, measurable, achievable, relevant and time-bound

  • Invite the entire team to discuss and figure out what needs to be done to hit those milestones

  • Remember that people are optimistic, even when they are asked to be realistic, hence it might be worth considering adding 30%-50% to the asking budget

  • Be realistic in your ask because if you need to raise money to make it to your next funding milestones you are left with no power in the negotiations

  • Get that final number in your “ask and use of funds” slide

This method was described in a TechCrunch article.

Interested to see examples of milestones? Then join us inside our Sales & Investor Accelerator Club where I will share these valuable resources. Join us here!

18 views0 comments


bottom of page