The fundraise as an end in itself: this is the trap that many are guilty of falling into, even for a brief moment. The point of raising money is to help your company more quickly and thoughtfully build a successful business. But there are far more important metrics that need to be tracked to determine a company’s success including number of customers, customer satisfaction, and revenue – just to name a few. Funding should accelerate your ability to develop and profitably commercialize products, and that is the true goal of any for-profit business.
What’s best for your company’s growth doesn’t always require more money. Instead of mapping out all the ways your company could use the money you’re trying to raise, instead strategize how you could creatively grow without needing to spend money. For instance, partnering with other players in your industry could expand your reach and customer base exponentially.
This isn’t to say that founders shouldn’t celebrate fundraising successes. The road to successfully raising investment can be grueling and long. Brett Jurgens, the CEO of Notion – a wireless home monitoring company, and a GAN alumni from Techstars, just announced a $10m Series A raise. Notion has been hustling hard and the relief and excitement after this latest fundraising announcement was palpable. These milestones of raising capital should absolutely be celebrated. In fact, every milestone should be celebrated, monetary or not. Increasing the number of people in your company is a huge step in growth.
We are continually reminded that the amount of money raised is not what determines a company’s success. Rather, it is what the company does with that funding. It’s hard to see past the short term expenses and keep from throwing money at quick fixes, but try to focus on the long term plan to growth and extend the money raised. Treat this as the only money you’ll receive and make it count.