Fred Wilson wrote a post on Sunday with the following advice for entrepreneurs raising money:
raise 12-18 months of cash each time you raise money. Less than a year is too little. You’ll be raising money again before you know it. Longer than 18 months means you may well be sitting on cash that you raised when your company was worth a lot less.
My advice is usually a little more conservative than that. For me the best way to figure out how much money to raise is to work back from your next funding round, with the objective of making sure there is a decent appreciation in value. The first step in this approach is to estimate the time and money it will take to get to the next value appreciation milestone (and remember startup valuations move in step functions) and then add another 6-9 months burn on top of that. That way you can begin the fundraising process with the good news in the bag and have six to nine months to raise the money.
To read the full, original article click on this link: Raise enough money to get you 6-9 months past the next milestone « « The Equity KickerThe Equity Kicker
Author: Nic Brisbourne
