The decisionA clear decision on whether, when and from whom to raise, based on evidence rather than habit.
Equity finance has its place, but relying on it too much costs tech founders control, time and ownership. Raise when it accelerates something that already works, not to find out whether it works.
Know your options
- Customer revenue. The cheapest money there is. Pre-payments, annual contracts and deposits all count.
- Debt and other non-dilutive finance. Revenue-based finance and loans can suit companies with predictable income.
- Business angels. Individuals investing their own money, often with sector experience.
- Venture capital. Funds that need outsized returns and expect very fast growth. Understand the 10x model before you pitch.
Before you raise
- Know what investors expect at each stage, including MRR expectations.
- Model the dilution of each round on your cap table.
- Prepare a clear pitch deck whose only job is to get the meeting.