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Debt: the (too) often overlooked lever for CEOs

Last week, an entrepreneur asked me how to maximize their fundraising. I started by reminding them that fundraising isn't just about equity; it’s also about non-dilutive funding.

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How to optimize your fundraising?

Entrepreneurs often overlook non-dilutive options to focus solely on equity. Yet, what really matters is maximizing the total package of both. When it comes to equity rounds, I often feel it’s an ego thing, and entrepreneurs want to optimize everything! Over-optimize, even!

But what actually matters in a fundraising round is getting what you need! It’s not about having the highest valuation or the flashiest round.

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What should a fundraising round be used for?

Fundraising should be used to:

• Reach your goals! And nothing more!
• Keep founders and employees motivated over time with fair dilution
• Choose a high-quality investor you actually want to work with‍

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Classic mistakes entrepreneurs make

Entrepreneurs often waste time and energy by making the following mistakes:

• Trying to raise too much money
• Setting the valuation too high
• Nitpicking over the percentage of dilution
• Pressuring investors to close the round quickly
• Trying to be picky about investors before even having a term sheet

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That was the case with the entrepreneur who asked me the question. They ended up saying, "I think I was a bit greedy with the valuation, and maybe I should just raise less."

Less ego and more perspective = optimized fundraising!

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At Super Capital, we also handle debt! We can support you and help you build your strategy for raising bank debt; it's right here herecontact us. (: