If you are a startup, you are always in fund-raising mode. As more investors come onboard, your "capitalization table" will change. Sophisticated investors don't like this 'cap table' to be messy (i.e., too many people at the party). Also, while raising funds, make sure, very sure you keep your legal and financial documents in order. Even if you have a winning product / value proposition, if these are not properly take care of, it's a big red flag.