The decision of when to raise capital can weigh heavily on the mind of a founder or CEO of a rapidly scaling business. We work with a wide range of software companies, and our experience with them has informed our ideas about the industry.
Knowing when to raise capital can become an obsession. You know that if you wait too long to seek capital, you can end up having trouble getting the money you need to maintain a strong business. But if you get capital too soon, you end up diluting your business. Ryan Hinkle, a Managing Partner at Insight, provides some advice on how to deal with this dichotomy in our video, "When Should I Raise Capital?"
Ryan unpacks the circumstances around the capital decision bluntly, pointing out that while there's a clear best time to raise money - when you don't really need capital - it's almost always difficult to figure out the right time. Entrepreneurs have a ton on their plates and trying to balance priorities behind a capital campaign quickly gets overwhelming. If you want some advice, check out the video. In it, Ryan:
- Tells a personal story with advice from one of his favorite entrepreneurs.
- Discusses the pros and cons of seeking out capital when in different situations, such as when you're in a healthy cash flow situation vs. when you really need an injection of funding.
- Unveils when he thinks the right time to seek capital is.
- Watch the video today for a deep look at when fast-scaling businesses should consider looking for funding.