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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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.
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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.