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.
Many entrepreneurs conflate raising money with building a successful startup. But getting a high valuation or landing a VC firm isn’t a strategy or validation of your business plan. Who you raise from—and when you raise—matters as much as how much you raise. HBS faculty and entrepreneurs share applicable frameworks and tactics to help you approach various aspects of fundraising–from pitching to navigating a term sheet–strategically, with your business model in mind.
It’s easy to find templates, checklists, and techniques that promise to improve your pitch. But even the majority of good pitches fail to raise venture capital. What drives investors’ interest? How do VCs make decisions? How can you turn your pitch into a great one that has investors eager to hear more about your startup?
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.
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.
Many founders conflate raising a significant amount of venture capital or getting a high valuation as validation of their current business model. But as you scale, past behaviors stop working effectively and often processes are strained and break. How do you avoid the most common scaling mistakes?