You’re Budgeting Your Startup Wrong

Key Takeaways

Take a look at this chart. This is how long it takes the average SAS startup to hit $5 million in subscriptions. Now, there's a big danger with this chart cuz most founders will raise money for about 18 months. But that's not how investors think. Investors will fund seed companies when they have around $100,000 or so in annual run rate and then series A companies when they reach about $2 million in annual run rate. But if you raise 18 months of runway and you grow at the speed of the average startup or the median startup, that journey is going to take you about 24 months. You do not want to run out of money halfway between these two rounds cuz it happened to me and it almost killed our company. So hoping that you don't make the same mistakes I did. I'm doing this free live webinar next week on how to make sure that you budget a round of funding and that you don't run out of money halfway. I'm gonna lick it.