Fundraise? Why?

If you’re on a mad quest to build a blazing-fast rocket of a company, otherwise known as a startup, the short answer is probably yes. Yes, you might find a scrappy unicorn grazing in the wild with zero outside funding, but that’s more of a mythological sighting than a standard practice. History suggests that most big companies, from your favorite social media behemoths to the much-discussed AI, took the outside cash route.

And it’s not just because they couldn’t cover the bill themselves. Even founders with healthy bank accounts still go investor-hunting to spread the risk and generate buzz for their ideas. VCs often can bring more than money to the table: brand boosts, expertise, and access to networks, all of which can be priceless. Think of them as that flashy plus-one who gets you into the cool VIP room you wouldn’t even know existed otherwise.

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Why

The obvious rationale: inflows of capital help you grab top talents, release unstoppable marketing campaigns, and buy the superpowers that move you from “great idea” to “we’re unstoppable.” You’re essentially purchasing the jump to the next peak of your company’s grand climb.

The less obvious but still crucial reason is that being “funded” is itself a competitive edge. If two nearly identical startups are elbowing each other in the same space, the one that’s shouting, “We just raised millions!” usually has more luck luring talent and snagging press coverage.

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When

Raise capital when you have enough sparkle to dazzle investors. In standard startup-speak, that’s when you can show (in no particular order):  
- The problem you’re solving  
- A compelling idea or a working product
- A hearty market big enough to justify your future “to the moon!” claims
- A team, even if it’s just you and a friend hacking in a tiny apartment
- Actual proof of traction or, at the very least, evidence that paying customers can't sit still and wait for your launch

If you’ve got a product that actually fits its market (Product-Market Fit) and founders who fit what they’re building (Founder-Product Fit), you’re on track. Add a killer story that ties it all together, and you’re basically checking off every investor’s wish list. Bonus points if you manage to create chemistry with the guy sitting on the other side of the table.

The founders can sometimes make the mistake of calling something PMF that is not really PMF. Or with a big stretch, you know... So that the window for fundraising has quite flexible boundaries. However, it's safe to say that you shouldn't fundraise when you can't not fundraise. In other words, a startup with a couple of months of runway usually has little chance. Realizing this fact starts to put pressure on the founder, scares the investor, and everything goes wrong.
In short, fundraise when you feel you are strong, but never when you are weak.

How Much

In an ideal dreamscape, you’d raise enough to reach profitability once and for all. Then you’d flip a switch and never have to chase for money again. But back here on planet reality, it usually happens in stages, neatly labeled as “Pre-Seed,” “Seed,” “Series A,” “Series B,” and so forth. Each round is designed to get you from one milestone, like building a working prototype, to the next, such as wooing your first batch of adoring customers.

Figure out your costs: team salaries, marketing, infrastructure, rubber ducks for stress relief—everything. Plan for about 12–18 months of runway. Raise enough so you don’t have to come back with a sad face in six months, but not so much that you’re drowning in unnecessary capital and diluting yourself right out of your own company. It’s a fine line between feeling set up for success and handing over the key to your castle. Find your sweet spot.

However, although this is not practical at all, and everything happens in life, not like in the book, nevertheless, you can get a rough idea of the size of the rounds here or in good old Google if Perplexity does not suit you for some reason.

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