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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

Chris Larmore, GBA, CRM, CIC, CISC, PHR answered

Absolutely. I would focus as much as possible at raising the least amount of money possible while still optimizing your businesses ability to execute on its strategy. Money isn't free, the cost is the equity, interest, etc.