Should I raise more funds than needed for my startup?

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JASON LEMKIN

Yes.

Always raise 20–25% more than you need. Or at least — consider it. And the key is — then don’t spend it.

Every start-up I’ve ever worked with that wasn’t a total rocketship needed that extra 20–25%.

I sure did. I went without salary for a year to make up the gap (that got me back some of the 20%-25%), and went without a couple of key hires. If I’d just raised 20–25% more, that would have made the difference. Mistake.

But don’t change your burn. Just extend your ZCD: Knowing — and Sharing — Your Zero Cash Date

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Published on September 21, 2016
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