Another way of putting this is that investors value optionality and will maintain it if you give them the option to. If you tell someone you're raising $1,000,

Another way of putting this is that investors value optionality and will maintain it if you give them the option to. If you tell someone you're raising $1,000,000, and they'd be the first $25K in, many will tell you to come back when you have more committed. Exceptions exist, but these will require strong opinions and commitment, something not every angel has (especially in the context here of intro'd people, ie people you don't already have relationships with). It's also demand-generating if you have the forcing function of closing. If you target $300K and you've got $250 closed and are actively fundraising, it sends a signal of urgency and also creates a sense of momentum that even investors conscious of this effect can't help being influenced by. You shouldn't randomly take an investment amount that is less than meaningful though; I would re-state this axiom as figure out the minimum amount of funding you'd be prepared to close on, and start out seeking that rather than more; adjust as necessary and as opportunity presents itself.