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Ask them about the last raise round, and then ask why they raised. The correct reason for companies to raise money is if they tell themselves, “if only we had $
by ydnaclementine 8y ago
Ask them about the last raise round, and then ask why they raised. The correct reason for companies to raise money is if they tell themselves, “if only we had $Xmillion, we would be able to do Y”. They shouldn’t be raising money just to raise. This will give you some insight into the near term company goals.
- wheelerwj 8y agoThis isn't necessarily true. Raising capital because the market is good and their are favorable valuations and terms is a perfectly legit reason to raise. The most successful raises usually occur when you don't need the money.