When thinking about how much seed capital to raise, we need a more sophisticated lens than just the old rule of thumb of “18 months of runway.” This is especially crucial given that the 18-month timeframe is a bit circular — a founder can always just take whatever amount she closes and divide by 18 to determine what her monthly burn rate should be. The true question, however, is if that level of spending will result in enough progress to successfully raise that next round of (hopefully) Series A capital.
