Ideal time to Raise Capital

The ideal time to raise capital is when you have reached a successful Product-Market fit with paying customers. By reaching this point you have proven you understand, to a degree, what customers want and what they are willing to pay for.

It is important to have experimented and generated a hypothesis to quantify the return on each dollar invested. For example, each $1 invested results in $5 in profit over the next 12 months, with a client expected lifetime duration of 3+ years.

By doing these two things, you have de-risked a capital investment by making the return predictable.