Startup Funding Espresso – Valid Reasons for Raising Funding

Valid Reasons for Raising Funding

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

There are many valid reasons for raising funding.

Here's a list of reasons to consider for your fundraiser:

The business is growing and is now ready to scale.

It can be hard to bootstrap a scaling effort.

There's a clear need for a minimum viable product to establish the product and market validation.

It takes some funding to build an MVP.

The startup is seeking to prepare for a Series A raise, and the metrics are not yet aligned with the target investor's fund requirements.

It can take additional funding to prepare to raise a Series A with an institutional investor.

Here are some reasons that are not valid:

The founder needs a salary to pay rent.

The founder wants to hire a number of people, but doesn't know exactly what they will do.

The founder wants to quit their day job to work full-time on the startup.

The founder doesn't want to spend time on sales and wants to hire someone else to do it for them.

A valid reason to raise funding comes down to building a key deliverable for the startup.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

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