Suggested topics & further reading:
Of course you cannot predict the future; but you should have a clear idea, based on your business plan, how much money you will need to finance your growth. Investors will want to know about your burn-rate and your breakeven point, so be prepared. Be realistic but ambitious: if you ask too little now, you might slack behind the competition. But then again, there is no such thing as free money.
How much money do you need and for what exactly?
For instance: We need €50,000 for building a prototype, we need €200,000 for starting mass production of our product, or we need €1.000.000 to strengthen our sales team and scale internationally.
Choose the funding need in such a way that it will allow you to achieve a new value creation milestone. You should consider the balance between not raising too much, as the capital is probably more expensive when you’re still is a risky phase, and not raising too little, as you’ll be spending more time fundraising than running the company. In general, we advise startups to raise enough to cover 18 months of runway. Use sales projections to determine your exact funding need.