What’s the best way to raise the right amount of money?

Mark Suster (Managing Partner at Upfront Ventures)
What I’ve Learned About Venture Funding | Bothsides of the Table

I’ve seen companies who raise the mega round after they’ve truly started to scale and put scale on steroids. I’ve seen the companies that had they not raised the big round would have evaporated. How can it be that over-funding is bad, bad, bad and then the best possible outcome? And what is the inflection point? It’s subjective. I’ve seen directly just how much capital can separate the winners from the losers when raised at the right time.

What’s the best way to raise the right amount of money?

Bruce Gibney (Former Partner @ Founders Fund)
Peter Thiel’s CS183: Startup – Class 8 Notes Essay

First, you need to raise the right amount of capital. A small company shouldn’t raise 100 million dollars, even if Great Late Stage Fund is very eager to cut you a check. Raising too much can haunt you. Map out your operating expenses for one year, multiply that figure by 1.5, and ask for that, as a first approximation.

What’s the best way to raise the right amount of money?

Ryan Howard (Founder @ Practice Fusion)
Transcript: Protecting yourself as the founder; Ryan Howard | VatorNews

Don’t get so excited about the valuation that you’re throwing the baby at the bath water. I did this multiple times at Practice Fusion. I had advisors that wanted a huge valuation because as investors, it might make them look really good. Again, my ego got the best of me, but be willing, if you get a $20 million valuation, be willing to go back to that investor or someone else and go, “What if we do 10% off this and I can maintain a little more c… (read more)

What’s the best way to raise the right amount of money?

Jason Calacanis (Founder & CEO @ Inside.com)
How to select your angel round valuation (aka “the $4m rule”) — Medium

Have coffee with the angel you want most in your startup and ask the following question: “Cyan, can I ask you for a favor?” [they will say yes] “Would you candidly tell me at what valuation you would want to invest in my startup? I really want to hear what you think the number is. Even a range is helpful.” Do this five times and you’ll know what the right number is.

What’s the best way to raise the right amount of money?

Mike Maples Jr (Managing Partner @ FLOODGATE)
Ron Conway, Mike Maples Jr. – Angel Investing Revealed by Stanford eCorner | Free Listening on SoundCloud

I believe that too much money in a startup is not only unnecessary– it’s actually toxic. It causes you to pursue losing strategies for too long to the detriment of winning strategies.