The Types of Raises
Standard Raises by Stage and Milestones
When asked how much a startup is raising for investment, they often quote their total raise for the life of the startup. They lean toward the big picture and the total amount they think they will need. However, approaching a raise this way can be overwhelming and oftentimes, may cause the founder to lose focus on the goal.
The ideal way to approach raising for investment is by breaking the raise into smaller rounds. By doing this, the founder no longer has to spend an excessive amount of time on the fundraising process.
There are some things to consider when breaking the raise into smaller rounds. Below offers some guidance on how to break down a startup fundraise into tranches, or what some call, rounds.