Should I raise money?

Gregg Fairbrothers: It depends.There are a number of things to consider.

  1. Do you need outside money to start your business and you don’t have it? If so, “Should I?” is a pointless question. Yes, you should. (If you doubt you can, it’s time for another plan or another business.)
  2. If you don’t need outside money to start your business, “Should I?” is a temptation. There may be good reasons to raise money anyway, but remember, early stage investment is really expensive. If it doesn’t seem painfully expensive, it probably means you raised it from friends and family at too generous terms, and that usually ends up being painful later.
  3. The question is not only should you, but from what sources should you seek it? How much? When? What other factors might be important for you to consider? And probably the one least often asked, what will it take, and what are the odds you can get the investment you think you need?


Jason Gracilieri (Founder, TurningArt): You don’t always have to raise VC. Raising outside money changes the rules of the game and the options for your business. A “lifestyle business” is not a derogatory term. If you’re going to go big, go big and fast. You will have competitors, and you will need to out-execute them to win. Your idea has likely been thought of before – so why is now the right time to pursue it and why are you the right person/team to execute on it?


Jason Hsiao (President and Co-Founder, Animoto):   If you need money then you have no other choice but to raise it or reduce your burn rate.  The irony is the best time to raise money is when you don’t need it because you can get far better terms.

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