A chapter from the Types of Financing Article

How much money will you need?

As much as fulfills the business plan for the amount of time you need the money. For example, if you ask for $1 million and there’s a roadmap attached to it, when fulfilled, your company has a higher value and you’re more trustworthy for future investors. Thus you will raise money for a higher valuation. If you ask for too much and you are successful, you gave up too much equity at a lower valuation.