With an understanding of the differences between pre-money and post-money valuations, their importance, and how the amount of capital you raise can impact your ownership, you will have a better idea of how much capital you want to raise for your business.
Venture capital (VC) is a form of Private Equity financing that is provided by Venture Capital firms or funds to startup‘s, early-stage, and emerging companies that have been deemed to have high growth potential or which have demonstrated high growth (in terms of a number of employees, annual revenue, or both). Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake, in those companies. Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the firms they support will become successful.
The process of starting a new business can be confusing; startups should be aware of where they can go to get the advice and guidance they need to succeed. Aside from networking events and cold-calling people, other options exist; incubators and accelerators.