Raising capital for technology ventures

Helge Seetzen, a venture capital expert, shares his views on different types of investors, along with their advantages and disadvantages. He informs about different sources of investment, their requirements, and valuations and terms. The first step is to identify the capital needs of a venture, as few technology businesses achieve profitability after a single round of financing, making it essential for planning multiple investment rounds. Each round will ideally be raised at a higher valuation than the last one and failure to do so will make the earlier investors unhappy with painful consequences for the ownership of a certain business. The goal is to raise enough money to achieve a material increase in valuation and then have sufficient time left to raise the new round. Helge Seetzen states that it is also necessary to consider how much money the business needs to go from one stage to the next when determining capital requirements.