The Startup
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The Startup

Raising a VC Round? Here are 4 Questions You Need to Ask Yourself Before You Do

Raising VC funding takes an enormous amount of time. Before you head down that path, think twice.

1. Do I aim to have a “hockey stick growth curve” that ends in an exit?

2. Do I want to retain as much ownership of my company as possible?

  • Lead VC: 20 to 25 percent.
  • Co-investor: 20 to 25 percent.
  • Option pool: 15 to 20 percent.
  • Owners: 30–45 percent.

3. Do I want to have the autonomy to work as much or as little as I’d like?

4. Do I want full control or am I OK answering to others?

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Debbie Madden

CEO at Stride Agile software development consultancy — developer consultants embed with your tech team. @debbiemadden200