Raising money for a start–up can be a tricky process. With so many investment options out there, it can be difficult to decide how much money a start–up should raise during its seed round. After all, the amount of money raised can make or break a company’s success.
When it comes to raising money during the seed round, it’s important to keep in mind that the amount of money needed will depend on the type of business and the ambitions of the founders. For example, a tech start–up that requires a lot of research and development may need to raise more money than a service–based start–up. Additionally, founders who have ambitious plans for the company may need to raise more money to make those plans a reality.
As a general rule, start–ups should aim to raise enough money to get them through the next 12 to 18 months. This will give them enough time to develop their product, acquire customers, and prove that the business is viable. If a start–up can’t survive this period, then the amount of money should be increased to give the company more breathing room. When it comes to the actual amount, a good benchmark is to raise between $500,000 and $2,000,000. This amount should be enough to cover the costs of developing the product or service, marketing, and hiring a team.
However, it’s important to keep in mind that costs can vary depending on the type of business and the ambitions of the founders. Ultimately, it’s important to understand that raising money is an important part of running a successful start–up. The amount of money raised during the seed round will have a significant impact on the company’s future.
Therefore, it’s important to carefully consider the amount of money needed to ensure that the business can reach its goals.