VC Minute: Never Set a Range as Your Target

By October 12, 2020October 29th, 2020Everything

The VC Minute is my segment on the Startup of the Year podcast where I share a quick snippet of advice related to startup fundraising.

Let’s talk about the amount you’re setting out to raise. 

This is top of mind because I saw it multiple times in the last two weeks. When you set out to start a round, you need to set the amount that you’re trying to raise. What you never, ever want to do is make that amount a range. 

If you say, “we’re raising between 1 and 1.5 million,” my next question will be, “well, which is it? Is it 1 million or 1.5 million? That’s a 50% variance!” Making the target a range creates more questions than it answers. And what I’m thinking but not saying is, “this person doesn’t know the amount of money they need, so they don’t even know what they’re going to do with it.” 

Could you spend another half a million dollars? Sure. But that’s not the point. The point is that you have a plan and that plan requires a set amount of money. Show that you have a plan by knowing the right amount of capital you need to to achieve the plan. 

And next time on the VC Minute I’ll share, in that example, whether the right amount is 1 million or 1.5 million. 

Listen to the whole episode here:
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