How much money should I raise?
Short answer
I believe you should raise an amount that matches your experience, credibility, and ability to execute. Start with a number you can close and build from there. If this is your first capital raise, I generally favor starting smaller, proving your process, and building relationships with investors who can participate in future opportunities. Raising a large amount without an established track record can create unnecessary pressure and make it harder to build momentum. The right amount also depends on the investment opportunity and what you can realistically execute.
Checklist
- Match your fundraising target to your experience.
- Avoid starting with an oversized first-time raise.
- Focus on completing an initial transaction successfully.
- Build credibility through execution and investor relationships.
- Consider minimum investment sizes that allow investors to start smaller.
- Understand that larger investors may want to test a relationship before committing more.
- Maintain a focused investment strategy.
- Build on completed transactions. Ambitious projections carry less weight with investors.
From my talks
"I would aim for $1 million or $4 million or something small for the first raise"
At one of our investor summits, a capital raiser shared how he initially attempted a $30 million deal and failed to raise the capital. He then started with a $110,000 transaction, contributing approximately half himself and syndicating the remainder among six investors. He gradually completed additional transactions, built credibility, and eventually progressed to a $10 million deal. He was subsequently working toward the larger transaction size he had originally pursued.
What to do next
- Determine the capital required for an opportunity you can realistically execute.
- Evaluate whether your track record supports the size of your proposed raise.
- Consider a smaller initial raise that allows you to establish credibility and build toward larger transactions.
Related questions
- How do I raise capital for my business?
- How do I find investors for a startup?
- How do I get in front of family offices?
Work through it with the how much to raise calculator.
