What You Need to Know Before Capital Raising

Capital Raising

Getting money may not be difficult but getting money at the right time and on the right terms is what matters. This is what capital raising is all about. Firstly, you need to determine how much money you need. You should always ask for more than what you actually need. Remember that getting cash is cheap but selling equity is not. It gets really difficult to retain your stake in your company once after you have sold it. Therefore, it will be good if you borrow money in smaller rounds especially in the start up phase when the value of your company is low. Figure out how much money you need to reach your goals. Here you should ensure that you need to raise sufficient capital which helps you to run the company as well as achieve the milestones. This is because you will have to bear the operational costs of a particular project.

Now, the question is that when do you need to go for capital raising. Always start the process of capital raising before the actual need arises. This is because you always need the money sooner than you think you need it. It’s no use trying to … Read the rest