Startups should not expect to rake in as much as their original fundraising goals. While this is a given, it is imperative to re-evaluate expectations at different rounds and set new caps based on today’s reality.
Hence, capitals that fall below this new metric is likely a ploy by investors to capitalize on the current economic state. Nonetheless, it is crucial to get multiple offers, which depends on the quality of your fundraising campaign, and then make informed decisions.
At this juncture, Founders ought to differentiate between high-quality money and high price. Investors that agree to your high fees might be the first to jump ship at the first sign of trouble.
In contrast, some investors might offer lower capital relative to what others are offering, but are experienced enough to understand the rudimentary of business cycles.
by Andrey Sergeenkov
March, 01st, 2020
March, 20th, 2020