May 16, 2017

When talking to people in the tech startup scene, there’s one number everyone seems to be obsessed about: the amount of money so and so raised in the recent round. Over the years, we’ve become so accustomed to equate that number to success. This is very dangerous.

The Downside of Fundraising

Why Raise?

Let’s talk about a few acceptable reasons to raise money:

How much? Avoid over-raising

Raising the appropriate amount of capital is an art. One of the more dangerous things a founder can do is raising too much money. It may seem counter intuitive first. Here’s why:

When to raise?

This is arguably a even more important question than what amount to raise:

How to raise?

Just a few friendly tips:


I’m not a lawyer and I do not provide legal, business or tax advice. The accuracy, completeness, adequacy or currency of the content is not warranted or guaranteed. This post is not a substitute for the advices or services of an attorney. I recommend you consult a lawyer or other appropriate professional if you want legal, business or tax advice.