What’s The Best Type of Seed Round? The One That is Easiest

 

Dear SaaStr: For a startup which route is better for raising 3MM to 5MM funding – Crowd funding or VC?

You’ll get a lot of theoretical answers to this question. VC capital has many advantages. Fewer folks on the cap table. Someone that owns enough to be invested. Someone that will help you scale and recruit. Someone that will save some money for the next round.

All true.

And VC capital has disadvantages. You are taking on a boss, at least sort of. You are setting yourself up for lofty expectations. You have more folks to be responsible to.

But the reality is today, if you want to raise $3M-$5M and you can … maybe do whatever is easiest.

  • If you can get the money from a VC in one check … awesome!
  • If you can raise it from 50 angels … great!
  • And if you can do it on a crowdfunding platform … terrific!

All have pros and cons in a perfect world. But it’s time to grow. Get it done. Raise that $3M-$5M the easiest way. Because it’s never easy.

Published on August 12, 2021

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