Fundable Milestones
- Offload profitability to fuel growth through capitalization and hit key milestones
- Funding works in milestones not in runway
Are we a standard tech company or an R&D company? (80% standard)
- Plan Funding Around Milestones: Understand why startup fundraising is based on traction checkpoints, not just the number of months of runway.
- Budget for the Next Round: Calculate how much to raise so you can comfortably reach the next big milestone (and add a 6-month buffer for fundraising).
- Distinguish Startup Types: Recognize the difference between “standard” tech companies and R&D-heavy startups, and how that affects funding timelines.
- Avoid the Dead Zone: Spot dangerous in-between stages, such as having launched but with no revenue, where investors hesitate and negotiations become painful.
- Analyze Real Deals: Research comparable startups to see what traction and timing investors rewarded at each stage of development.