Question
With government programs and founders bootstrapping, we are pretty sustainable and only need a short term bridge loan to get us through the year. We are however, looking to raise seed money to help us accelerate growth. A VC that we are in discussions with stated they do a minimum of $400,000 in seed round. Our cashflow projection does not require that amount of money at this point, even in the worst case scenario. Should we do a smaller deal instead of going for that round, which would dilute us significantly at this stage of our startup. Or should we raise enough money for the next 2 years?
Answer
Yes, you can raise too much money. However, if your startup has more than 2 people, $400,000 is definitely not too much.
When you raise funding, you should always look at runway for 18 months, keep that in mind.
