When To Close the Round Early

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In raising funding, the founder sets a target.

Oftentimes, the target is a rather large number.

It's best to break the larger raise into smaller rounds.

This lets you run a series of smaller campaigns inside the larger fundraise.

One of the benefits of breaking the raise into smaller rounds is that it gives the founder more control over the campaign.

If one of the rounds is not going well, then the founder can choose to close it early.

Instead of raising $1M, the founder could decide to close at $750K and move the remaining $250K to the next round.

The funds will ultimately be raised, but the founder does have a choice of raising them now or raising them later.

If one of the rounds is going very well, then the founder can choose to oversubscribe and extend it.

This means taking some of the raise in the following round and drawing it into an earlier one.

Consider how your fundraise is going and if you should close early or oversubscribe.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

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