So you want to raise funding for you business, but how much ? In this episode of eLagaan Whiteboard Friday, the eLagaan team discusses what is the right amount of money (venture capital) to raise in a startup. How to raise enough money so that you don’t raise too much or too less, so that you don’t give up too much of your company or run out of money and close shop. Do you need clarity in advance for future rounds of venture funds.
What are financial models & why it is important to have a financial model for a company before raising funding. A quick way to build these models. How do entrepreneurs find out early on other expenses like marketing, sales etc (look for a rule of thumb for this).
How to de-risk three major risks technology risk, market risk, execution risk & how these can play a role in getting the right venture fund. Examples of de-risk would be prototype, acquiring customer etc.
Hopefully these tips from a serial entrepreneur (Naeem Zafar) will help you make better business decision early on.