Startup Funding Rounds: Smaller is Often Better

IconCryptoNewsTerminal Staff22 Aug, 2024

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Startup Funding Rounds: Smaller is Often Better

1confirmation founder Nick Tomaino recently shared his observations on the relationship between the size of a startup's early funding rounds and their long-term success. Tomaino believes there is a "negative correlation" between the two, stating that "3 of the 49 projects we've invested in that ended up failing all raised $10m+ pre-product." Conversely, some of 1confirmation's best-performing investments raised significantly less. Tomaino's insights suggest that founders should prioritize building a solid product and business model before seeking large funding rounds. Raising excessive funds early on can lead to a focus on headlines and short-term goals rather than long-term growth.

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