templateFinancial Modeling
Fundraising Ask Calculator
How much should you raise, and how do you justify the number? This interactive framework helps you work backwards from milestones to calculate the right raise amount and construct a credible use-of-funds breakdown.
How Much Should You Raise?
The right raise amount is: enough runway to hit your next fundable milestone, plus a buffer. It's not about what investors will give — it's about what you need to de-risk the business enough to raise the next round at a higher valuation.
The Milestone-First Framework
Start here: What milestone will make your next raise significantly easier?
Common pre-seed milestones: First paying customers, product-market fit signals, $10–50K MRR.
Common seed milestones: $500K–$1M ARR, repeatable sales motion, clear unit economics.
Once you know the milestone, work backwards to build the budget required to hit it.
Building Your Use of Funds
Break down how every dollar will be spent. Investors will ask. Categories:
• Engineering / Product (% of raise)
• Sales & Marketing (% of raise)
• Operations / G&A (% of raise)
• Runway buffer (target: 18–24 months)
Rules of thumb: Avoid vague line items. 'Sales' is too broad. 'Hire 2 SDRs + content marketing to drive 3x pipeline' is specific and credible.
Valuation & Dilution
Your raise amount and valuation determine how much you give up. Target: Give away 15–25% per round.
Pre-seed ($500K–$2M): Often done on SAFEs with a valuation cap.
Seed ($2–5M): Typically priced round at a $10–20M pre-money valuation.
Raising too much can be as costly as raising too little if it forces a high valuation you can't grow into.
Calculating Your Runway
Runway = Cash on Hand ÷ Monthly Net Burn
Target: 18–24 months post-close.
Always build in 3–6 months for the next raise process — fundraising takes longer than you think.
Raise when you don't need to, not when you're running out.