If your startup is profitable and growing well, why do you need to raise another round? What problem do you have that raising more money would solve? If the answer to that isn't obvious, don't.
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Sometimes the banked cash is so much smaller than your payroll expense that you risk going sideways in a cataclysmic event. It might take a raise to bank the right ratio of liquid cash to monthly expense to de-risk death. A resourceful founder could prob figure it out tho.
Yeah, a cushion of money to protect against disaster is the most reasonable justification.
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Money doesn’t buy you determination
Thanks. Twitter will use this to make your timeline better. UndoUndo
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What should one do? raise when doing bad or when doing great?
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How the hell r u gonna raise when doing bad? If you’re raising a down round then I doubt that’s a choice that you “should” do
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RIP travel startups that didn't raise a cheap round when they could have
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It is simply tragic.
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If you’re growing & profitable, maintaining a % of FCF on the balance sheet or leveraging with an RLOC would be much more capital efficient ways to protect against disaster.
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It's FCF until it isn't
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anecdotally you can grow that cushion from net income, especially if your growth is accelerating like ours has been the last four months
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What is the most likely existential crises that your business could face?
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"Yeah, a cushion of money to protect against disaster is the most reasonable justification." Agreed, but its also a very poor pitch to investors, isn't it
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"I want your money so I don't go broke in case of" :gestures at reality: does lack panache.
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