"What I have typically seen, it could be right or wrong, is no matter how much money people raise investors expect it to go 18 - 24 months.
I think one of the biggest risks in raising money is raising it and running out in between key milestones.
My bigger point is, at the end of the day, the way I think about raising capital, is that no matter how much money people raise it always seems to last 18 - 24 months.
It's crazy because you could raise a lot of money and think that it's going to last you four years but what happens is that companies rise to the spending level of the money that they have.
If you want to be prudent and raise less, of course, you raise less. The challenge with that model is Let's say you budget for 12 months. The reality is that things always take longer than you think.
The worst position to be in as an entrepreneur is to be raising in between key milestones.
For example, you raise money pre-launch for product and that money takes you to three months post launch. The danger zone is you are three months post launch and you're just starting to get interesting data. Now you're going to be judging the next round on the launch data plus three months which is much worse than the launch data plus 12 months. That's something to think about it.
The way to think about a fundraising strategy is: What do you need to a milestone?
I'm arguing that you think about your milestones pretty deliberately and you make sure that you can ask for enough money to get past your next milestone for your next fundraise. You need to know what that is. If you think it's just launch , I can guarantee you that it's one of the most difficult places to be. Having just launched a product with early metrics but really not doing any marketing. You're getting judged on that for your next round of funding."