Your start-up doesn't NEED money, but it is definitely helpful. Most of the start-ups that do receive funding of $1million+ aim to go big, so having that latent

Your start-up doesn't NEED money, but it is definitely helpful. Most of the start-ups that do receive funding of $1million+ aim to go big, so having that latent capital is certainly a great security for when the time comes to expand. They can use this money to hire the necessary people, purchase the necessary assets (servers, workstations, etc) or secure annual rent. On the other hand, start-ups that have a more modest outlook or vision don't need as much and actually shouldn't accept that much. Having $1million VC money pumped into a start-up that only expects to make $50,000 a month with steady growth will more than likely buckle. The investors will keep pressuring the founders and terms like ROI will be thrown around meetings like crazy. The best thing to do is determine how much you really need (Or create a range for variables), and work from there. There's a bunch of decent (free) spreadsheets you can get from here: http://www.exinfm.com/free_spreadsheets.html http://www.exinfm.com/free_spreadsheets.html That's my 2c.