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Startup founders should plan for future fundraising rounds from the beginning to ensure long-term growth. Experts like Aven’s CEO Sadi Khan emphasize the importance of mapping out capital needs early, especially for capital-intensive ventures. Building relationships with later-stage investors during early stages can create strategic advantages. Lila Preston advises starting these connections at least two years before needing funds to allow investors to assess the business. Early engagement with potential investors helps align expectations and accelerates deal closures in later rounds.
Key facts
- Founders should plan for late-stage fundraising strategies from the startup’s inception.
- Capital requirements for scaling can be accurately estimated through early-stage planning.
- Investors often begin evaluating startups two years before potential funding needs.
- Early engagement allows investors to understand market dynamics and company growth trajectories.
- Existing investors can introduce founders to compatible later-stage venture capital firms.
