How Much Should You Actually Raise?
The most defensible fundraising target is built from runway needs, operating milestones, and a realistic cushion, not from a vanity number. Frame the raise around the pathway you need and link the forecast to the funding request, so the amount you ask for has a clear reason behind it.
On this page
- A simple raise target is net burn times runway months, plus milestone costs, plus contingency.
- A raise should buy time to hit a meaningful milestone, not just pay bills.
- Build in contingency; plans rarely run exactly as forecast.
- Justify the amount with a clear use-of-funds story.
What this means
Many founders either ask for too little and run out of time, or ask for too much without a credible use-of-funds story. A defensible target starts from a simple structure.
A simple raise target: Monthly net burn times desired runway months, plus one-time milestone costs, plus a contingency cushion.
Why it matters
A raise should buy time to hit a meaningful milestone, not just pay bills. The right number is the one that gets you to a point where the next financing conversation is materially stronger.
Spreadsheet limitations
| Feature | Startup Suitenarrative-linked | A spreadsheetthe manual way |
|---|---|---|
| The amount | Connects ask size to runway and milestones | Can model the amount in isolation |
| The story | Explains why this amount and what it buys | Weak on investor narrative context |
- The amount
- Connects ask size to runway and milestones
- The story
- Explains why this amount and what it buys
- The amount
- Can model the amount in isolation
- The story
- Weak on investor narrative context
Consultant limitations
| Feature | Startup Suitefounder control | A consultantstrategy |
|---|---|---|
| Best for | Founder control over the numbers | Round strategy |
| Timing | Useful early in planning | Often engaged late |
- Best for
- Founder control over the numbers
- Timing
- Useful early in planning
- Best for
- Round strategy
- Timing
- Often engaged late
How Startup Suite helps
Startup Suite's Investor Portal connects use of funds, milestone timing, and runway into one defendable ask, so the number on the slide ties directly to the plan behind it.
Investor Portal: an ask you can defend
- Build the raise from net burn, runway, milestones, and contingency.
- Show exactly what the money buys and by when.
- Keep the ask aligned with the forecast as the plan evolves.
A practical founder example
If net burn is 22,000 dollars per month and the founder wants 18 months of runway, the base is 22,000 times 18, which is 396,000 dollars. Add 54,000 dollars for product buildout and a 10 percent contingency on the base operating runway, which is 396,000 times 10 percent, or 39,600 dollars.
The total ask is 396,000 plus 54,000 plus 39,600, which is 489,600 dollars, rounded to a 490,000 dollar ask.
Every part of that number has a reason. A use-of-funds table built this way is far easier to defend than a round figure picked to look ambitious.
Watch the 60-second summary
How much should you raise?
Frequently asked questions
Should I build in contingency?
Usually yes. Plans rarely run exactly as forecast, and a cushion protects the milestone.
Is 18 months always right?
No. It depends on pace, market, and the capital environment.
Can I justify the raise with a use-of-funds table?
Yes, and you should. It is one of the clearest ways to explain the ask.
Still have questions? Talk to the team.
