Fundraising
Have a Plan That Gets You to 18–24 Months of Runway
18–24 months is the sweet spot when deciding how much to raise.
Why not less?
Raising too little forces you back into fundraising mode too quickly. Fundraising is a full-time job — every month you spend chasing capital is a month you're not building product or talking to customers.
Why not more?
Raising too much hurts you too. At an early stage, a larger raise means selling more of your company at a low valuation — and you'll regret that dilution later. More importantly, you're at this stage to find product-market fit, not to build for an IPO. Don't over-capitalise before you know what you're building towards.
How to size your raise
Build a financial model with three scenarios:
| Scenario | Description |
|---|---|
| High growth | Optimistic — things go well |
| Average growth | Base case |
| Low growth | Conservative — things take longer |
High growth at 24 months of runway = the upper limit of your target raise. This gives you a grounded ceiling based on your own projections, not wishful thinking.
Your growth model (see the capital allocation section) is what makes this exercise meaningful — use it here.