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- ♞ Should you share the amount you raise?
I recently wrote about whether you should publicly share when you are starting your fundraise. In response, many of you asked if you should share when you conclude your fundraise.
Today, I’m going to dive into some of the pros and cons of sharing your successful fundraiser. I know that this was a major point of contention at my company when we raised so its definitely something that founders aren’t often agreed on.
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Foreword
If you announce that you are fundraising then you NEED to share the results of that fundraise. The worst case scenario is that you share with the world that you are trying to raise money then never tell them that you do. In this circumstance, you risk having people assume you failed or that the company has failed. So always announce the results of your fundraise if you share the fact that you are fundraising!
Pros
Publicity - The biggest benefit is the publicity; you can attract customers, employees, investors, etc., by sharing the fact that you have raised.
Momentum - Publishing your raise helps your stakeholders ee the momentum of your company and helps reinforce their support, confidence and belief in you and your company.
Cons
Competition - By announcing your raise, you draw attention to yourself from others who might want to compete with you. Especially at the Series A stage there is some significant risk of a major player with a bigger wallet outcompeting you.
Brand Image - As soon as you go public you now have a brand image to grow and protect. A major competitive advantage of a startup is that they can pivot, make changes and adapt. Once you start building a brand image it becomes harder to do that. You become know for what you already do and change can alienate your customers.
Overall, it’s a decision that needs to be made on a case-by-case basis, but you should definitely consider this by looking at the pros and cons before taking any action.
Would you annouce if you raised VC money? |
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