Startup fundraising lessons

Startup fundraising lessons:

1. Common VC wisdom:

– Raise for 18-24 months runway
– Add 6 months for fundraising
– Target 30% buffer for unexpected spend
– But here’s what they don’t emphasize…

2. The “hard truth”:
– You’re not in the “money-saving business”
– VC money = rocket fuel
– Purpose is growth, not survival

3. Signs that can spook investors:
– <4 months runway when starting fundraise
– Raising at same terms as last round
– No clear path to next milestone
– High burn rate pre-product market fit

4. What actually matters:
– Progress toward next round’s metrics
– Clear plan for use of funds
– Ability to extend runway if needed
– Strategic cash deployment vs. hoarding

5. Common advice that’s oversimplified:
– “Raise when you don’t need money”
– Reality: Raise when you have momentum

Remember: Your runway is countdown to either mega success or your next fundraise. Plan accordingly.