Fundraising and dilution
How much to raise calculator
Raise enough for 18 to 24 months of runway plus a buffer. This turns that rule into a number and shows what it costs in dilution.
Average burn after the raise usually grows as you hire. Use a forecast, not today's burn, if you plan to scale the team.
How it works
Investors expect a round to fund the company to its next milestone with time to raise again. That usually means 18 to 24 months of runway, because a raise itself takes three to six months.
A buffer of 15% to 25% covers slower sales or a slower next raise. Cash already in the bank reduces the amount you need.
The formula
- Cash neededMonthly burn x months of runway x (1 + buffer).
- Amount to raiseCash needed - cash in the bank.
- Stake soldAmount / (pre-money + amount).
Worked example
$150,000 monthly burn, 24 months, a 20% buffer and $300,000 in the bank: raise about $4 million. At a $12 million pre-money that sells 25%.
Put the numbers in your data room
Put the use-of-funds table and the hiring plan behind this number in the data room. Investors compare it with the model and the pool size.
How much to raise calculator FAQ
How many months of runway should a round give?
18 to 24 months is the usual target.
Is raising more always better?
More cash means more dilution and a higher bar for the next round. Raise for a clear milestone.
What if the dilution is too high?
Lower the burn, raise a smaller round to an earlier milestone or consider venture debt alongside equity.