In an ideal world, you should raise as much capital as is required to become profitable to avoid ever needing to do so. If you are successful, not only will it be simpler for you to raise money in the future, but you will also be able to survive if funding becomes scarce. That being said, some firms, including those that are developing hardware, will require a follow-on round. Their objective should be to raise the amount of money required to reach their next “fundable” milestone, which will typically be reached 12 to 18 months from now.

Fundraising is an essential part of any startup’s journey. This may be very difficult when you are starting and developing your startup before you have any meaningful traction, analytics, or even a released product. Additionally, you lack the resources in the early stages to devote to intricate fundraising negotiations, paperwork, and execution.

With time, the company’s clientele expands, and its operations and goals also grow. The company has quickly risen through the ranks of its rivals to achieve a high valuation, creating opportunities for further growth that could involve adding new facilities and personnel and possibly an IPO.

Reading through our introduction has put you at ease while researching your startup’s potential, right? But things aren’t always as simple as they seem; therefore, grab a pin, and let’s give you a few basics from Kaizen’s encyclopedia.