The full price.
WHAT YOU GIVE UP IMMEDIATELY
A share of the business Some control Freedom to decide alone
WHAT YOU GIVE UP OVER TIME
More ownership, through later rounds Flexibility about the direction The option to stay small and profitable
WHY THAT LAST ONE MATTERS
Investors need growth and an eventual exit; a comfortable profitable business does not serve them.
WHAT THAT COMMITS YOU TO
Pursuing scale, and eventually selling or otherwise realising value.
WHAT TIME IT COSTS
Months raising Ongoing reporting Board meetings and preparation
WHAT PRESSURE IT CREATES
To meet projections To raise again To grow faster than is comfortable
WHAT THAT PRODUCES SOMETIMES
Decisions made for the funding rather than the business.
WHAT TO WEIGH IT AGAINST
What the capital genuinely enables.
WHAT TO CALCULATE
Your likely position after the rounds you would need.
WHAT TO ASK YOURSELF
Whether you would rather own all of a smaller business.
WHY THAT IS A LEGITIMATE ANSWER
Many successful businesses never raise anything.
WHAT TO CONSIDER INSTEAD
Customer funding Debt matched to a specific purpose Slower growth
WHAT TO DO IF YOU DECIDE TO RAISE
Do it deliberately, understanding the commitment.
WHAT TO AVOID
Raising because it is what businesses are expected to do.
