Should I Raise More? 5 Principles For Entrepreneurs

Many things about startups are about power laws — fundraising included. The best companies do attract disproportionate attention and the entrepreneurs are faced with the choice, if not pressure, of raising more. Below are five key principles on how to make the best decision. 1) Dilution Vs Runway — This is the heart of the dilemma since entrepreneurs naturally don’t want more dilution but also seek enough of a runway. One standard solution is to change the deal terms, typically by having a higher cap / valuation, to keep an acceptable dilution. The principal tension here is many investors have…...