Raising funds is the dream of many entrepreneurs. In the collective imagination, it is proof that a startup is taking off and attracting the confidence of investors. But in practice, fundraising is not a necessary step: it has its advantages... and its constraints. So why raise funds, and in which cases should one remain cautious?
With a significant financial contribution, a company can deploy its projects more quickly: recruit, invest in R&D, launch internationally or intensify its marketing campaigns.
Being supported by investors brings a Sign of trust with customers, partners and prospects. It is also a lever for media visibility.
Investment funds aren't just about money: they open doors. An investor can facilitate key introductions, provide expertise and support in structuring the business.
Instead of relying solely on self-financing or bank debt, fundraising makes it possible to share risks with third parties.
Raising funds means selling part of your business. The sooner you get up, the greater the dilution.
Investors expect a return on investment. This often involves ambitious goals, regular reporting requirements, and tighter governance.
Fundraising is also agree to share decision-making. As a result, the independence of the entrepreneur may be reduced.
Raising millions is no guarantee of success : without a clear strategy or solid execution, the business can quickly run out of steam.
Fundraising is relevant when:
On the other hand, if the model is still fragile, if the product has not validated its market or if the entrepreneur wishes to maintain total independence, it may be wiser to Delaying or avoiding lifting.
Raising funds is a powerful tool, but it is not a goal. It is a strategic option which must be part of a clear growth project. For some, it's the path to hypergrowth. For others, bootstrapping or financing alternatives will be more appropriate.
The real question is not just “why lift?” ”, but above all “for what? ”
