Badges
Tastemaker
Gone streaking
Recently Supported
Forums
Considerations when raising $
Our last company sold for $240m after raising $9m:
Downside: always strapped for cash and moved slower than we could have
Upside: When we sold the distribution was better for our employees (and we survived to tell the tale)
$0 to $70m ARR with only $9m raised - how that affected our founders when we were bought (AMA)
We launched xMatters SaaS in 2013, after raising a total of $9m in capital (Series A & B). We sold in 2021 for $240m. I often see founders celebrating financing rather than celebrating growth or profit. Financing is a milestone but it's not the only strategy to consider vs. boot strapping or running lean.
Scenario: Raise Seed of $5, A of $15, B of $20 and C of $30M million ($70m total) and exit the business at $200m.