Some legendary entrepreneurs advise startups to raise a minimal amount to retain more equity. Is bootstrapping the best bet for your business? Before you raise, be aware of the risks that come with raising too little money.
Contributor
Ramana Nanda
Professor of Business Administration, HBS
An expert in innovation and entrepreneurship, Ramana Nanda is a professor of business administration at HBS. His research examines financing frictions facing new ventures, with an aim to help entrepreneurs with fundraising and to shed light on how financial intermediaries, corporate R&D and policy makers can improve the odds of selecting and commercializing the most promising ideas and technologies.
Nanda is also a Research Associate in the Productivity, Innovation and Entrepreneurship Program at the NBER. He received his Ph.D. from MIT’s Sloan School of Management and has a BA and MA in Economics from Trinity College, Cambridge, U.K. He is a recipient of the 2015 Kauffman Prize Medal, that is awarded annually to one scholar under age 40 whose research has made a significant contribution to the literature in entrepreneurship.
Prior to starting his Ph.D., Ramana was based in the London and New York offices of Oliver, Wyman & Company, where he worked primarily with clients in global capital markets as well as in small-business banking. He continues to advise startup ventures on their financing strategies and also works with philanthropic investors who use market-based solutions to address poverty and promote entrepreneurship in developing countries
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Navigating a Deal Before You Sign a Term Sheet
How do you assess the offer and navigate a term sheet, ensure you’re getting the best terms, prevent critical misunderstandings, and optimize your level of control and cash upon exit? HBS faculty, serial entrepreneurs and investors identified 3 different angles from which you need to examine terms.
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3 Hacks for Calculating How Much Your Startup Needs to Raise
Many startups make fatal mistakes when calculating how much they need to scale. These 3 essential things can help you figure out how much capital you need to raise to scale effectively, without getting overwhelmed by options and opinions, or swayed by offers.
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