Introduction
In this module, we focus on why and how you raise money from investors to fund the growth of your startup.
The first decision you need to make is whether to use founders' savings or existing revenue streams to continue growing, or whether it makes sense to seek external funding. This module can help you make that decision.
There are different types of investors that might be interested in your startup with different investment goals. By working through a hypothetical example, we unpack the perspective of an early-stage investor and look at how they might approach investment decision-making.
Finally, we discuss how to raise a funding round and how to avoid some of the pitfalls of doing that.
One aspect of fundraising is the ability to pitch your company to investors, but that subject is outside the scope of this module.
Note
This module provides an overview of high-level concepts only. There are significant variations in the investor landscape, funding availability, and deal structures. We encourage you to familiarize yourself with your local funding environment before seeking external funding.
Learning objectives
By the end of this module, you have a better understanding of:
- Why you might need to raise money for your startup.
- How to evaluate the pros and cons of raising money from investors versus organic growth.
- What investors are looking for when they consider investing in startups.
- How and when to raise money.
- Tips for getting a funding round closed in a reasonable time frame and on fair terms.