Why I cringe when you say you’re raising a $1.5m seed round…

@seyitaylor wrote:

This is really great advice from Doug Scott on being strategic about fundraising

Most entrepreneurs understand on some level that fundraising is all about messaging. But, most people only think about this in the context of storytelling. But, messaging how much you are raising and for what specific milestones are equally important.

Let me give you a concrete example. Here’s a tale of two companies. Same business but different raise-amounts.

Company A:
-Raised a seed round of $500k
-Now raising another seed round of $2.5m to expand the business

Company B:
-Raised a seed round of $2m
-Now raising another seed round of $1m to expand the business

Should both companies successfully raise, they would’ve raised the same total amount of seed money – $3m.

BUT, Company B’s situation yells RED FLAGS all over the place...

Read the rest on his blog here: http://www.droug.co.uk/why-i-cringe-when-you-say-youre-raising-a-1-5m-seed-round/

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