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When and Whether to Raise Capital

We hear so much about entrepreneurs looking to raise funding that raising capital may seem like the unequivocally right thing to do.

But raising outside funding isn’t always the right move for your company. And it definitely pays to do some soul-searching (or perhaps more importantly, analysis of your company and goals) to figure out if it’s right for you.

Here are some reasons why funding is the right move:

🔹 You need money to grow.

🔹 It’ll allow you to grow much more quickly.

🔹 It’ll allow you to take over the market/competition.

🔹 The money’s cheap.

Here are some reasons it may not be:

🔻 You don’t need it.

🔻 It takes too much time and effort that would be better spent on building your product.

🔻 You have valuation concerns.

🔻 You’ve already reached your milestones.

🔻 You have other sources of income.

For a quick take on the reasons to raise or not, take a look at the file below. 👇

What’s your main goal in raising venture capital? Or alternatively, why is it not the right move for your company? Please share in the comments. 🗯️

Sources: Venture Beat, Due, Jason M. Lemkin

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