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Vivek Joshi
Director & CEO @ Exc... • 22d
💡 How to Calculate Your Funding Requirements Do not Raise too little or too much! Ways to strike the right balance: 1️⃣ Identify Key Milestones Example: Launching a new product, acquiring 1,000 paying customers, or expanding into a new market. 2️⃣ Map Out Cash Flow Needs Consider operating expenses, hiring plans, marketing budgets, and unforeseen costs. Example: A SaaS startup projecting $50K monthly expenses for 18 months should raise at least $1M. 3️⃣ Add a Buffer Always include a 10-20% buffer to account for unexpected challenges. Example: Airbnb raised more than initially needed to handle market uncertainties. 4️⃣ Link Fundraising to Milestones Break your funding requirements into milestone-based tranches. Raise enough to reach product-market fit, then plan for scaling. 5️⃣ Validate with Comparable Startups Research others in your space to benchmark your funding requirements. Example: If a competitor raised $2M to reach 10,000 users, it provides a useful reference point.
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