“It’s almost always harder to raise capital than you thought it would be, and it always takes longer. So plan for that.” – Richard Harroch
One of the most important things in managing a startup is to assure that you never run out of money! For founders and CEOs of startups and emerging growth companies, this brings up an important question: When should I be in the process of raising money? My answer: Always! Until you have sustainable cash flow, as the CEO, you need to always be cultivating new potential investors. You need to build your “capital pipeline,” and keep up relationships with key people and customers. As a CEO, you want to always have six month of cash runway in the bank. If you get to that level, you need to be in the closing process of raising money. In this video blog we discuss all these concepts, along with creating a “scarcity model,” and examples of how to cultivate investor interest in your startup. QuestFusion is a resource to help startup companies do this more powerfully.