Evaluating Capital
First, define the milestones you want the next round to fund. Then list your funding options and evaluate them rigorously so you can make a well‑informed decision. Defaulting to the VC path without understanding the trade‑offs or alternatives is a common source of value and company destruction.
Cost (dilution or interest) – What ownership or cash outlay does this money cost now and later?
Control impact – Board seats, vetoes, covenants, exclusivity, or IP/data‑rights constraints?
Speed & certainty – How fast can you close, and how reliable is it?
Mission alignment – Will this partner support your purpose, timeline, and go‑to‑market?
Strategic value – Does it unlock customers, distribution, credibility, or talent beyond dollars?
If customer cash is viable, see Capital from Customers.
Pick the option that gets you to the next milestone with the least irreversible cost, then stack others as needed.
Related resources:
Capital Menu - Overview of all funding types
Capital Menu Deep Dives - Detailed information on each funding type
Case Studies - Real-world examples of capital stacking
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