• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Element 34. Low Cash Required Before Launch > Relevance—Why Add This Element?

Relevance—Why Add This Element?

Low Cash Required Before Launch measures whether you are likely to win an opportunity to approach a launch. Few new ventures can launch with just one round of fundraising. The first key stage will be the positioning for actual launch with a modest amount of cash (often called the seed round); the next round, often called the first round, can be arranged only after a significant reduction of risk. With this first round of capital you should have enough customer demand to pull the enterprise through the difficult launch phase. Note however that while important, raising the next round during the launch can be so distracting to management that a successful launch is threatened. The compromise is to stage the capital so that if certain milestones are achieved, the next round is automatic.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint