There is a vast array of funding options today for entrepreneurs, particularly in the tech world. An injection of funds can be just what a business — either new or established — needs to achieve growth goals. But getting funding requires tradeoffs, so the question becomes, “How do I know when it’s the right time to go to an investor?” The answer to that question is more complex and possibly quite different than you might expect.
That’s because the biggest fallacy in tech entrepreneurship is that you have to raise money. Instead of having the mindset that you must raise a seed round or a Series A round, an entrepreneur should really understand what they want out of that business for their lives. In other words, the answer to the question, “When is the right time to take capital?” might be “Never!”
Maybe this is the time in your life when you want to raise kids or you have many outside interests. You need to intentionally design your life. Determine what you want out of the next five to 10 years of your life, and that will guide your company strategy.