Node #2 - How much should you actually raise?

_{(FYI, there’s an optional resource for founders at the very end of this email, in case it’s useful for you.)}

Hello friends,

Ramadan Kareem! May this month be full of blessings to you, your family, and your business :)

I hadn’t planned on sending out a second edition so soon.

But a founder replied to the last one with a sharp question which deserved its own answer.

In the first issue, we spoke about timing:
When is it actually the right time to fundraise?

The follow-up question was this:

It sounds like a simple enough question, with a straightforward answer.

It’s also where many founders get this wrong.

So let’s break it down.

A common rule of thumb for pre-seed and seed is to raise enough for 18 - 24 months of runway. That might sound like an arbitrary timeline, but it’s actually strategic.

Why? Because:

Raising for only 6 months is generally seen as too short and risky unless:

Investors don’t ask:
“How many months of runway are you raising for?”

They ask:
“What milestone will this round unlock?”

For example, if you’re raising seed, that usually means you’re targeting:

If you’re at seed, it’s not about building more features, it’s about removing risk.

By the end of seed, your company should feel real, not experimental.

So instead of asking:
“How many months should I raise for?”

Ask:
“What milestones should this round unlock for us?”

If you’re raising seed, ask:

What are the milestones I need to hit by the time we’re raising our Series A for an investor to take us seriously?

That might look like:

Not vanity metrics or pilots that never convert, but real signals.

Work backwards from that milestone.

What will it actually take?

Calculate your monthly burn honestly.

Best practice: Add 20–30% buffer

Because:

This is where founders plan for perfect execution. But when reality inevitably interferes, they’re back in market sooner than they expected often from a weaker position.

A few years ago, founders could raise small rounds frequently and rely on fast valuation mark-ups. That playbook doesn’t work so well anymore.

Investors are now prioritizing:

Fundraising cycles are slower. Diligence is deeper. Capital is more selective.

In this market, under-raising is often riskier than modest dilution.

Don’t ask:
“How little can I raise?”

Ask:
“What does it take to reach my next undeniable milestone?”

Then:

So I hope this helps frame your thinking while you plan your next fundraise.

Until next time!

Walaa

Node — Building Fundable Founders

P.S. If this brought up other questions for you, feel free to reply directly to this email. I read every response, and many of the next Node issues will come from the questions founders are actually asking.

If you’re running a startup and sending emails (to users, investors, or partners), email deliverability matters more than most founders realize — especially early on.

I’ve partnered with PowerDMARC to offer an exclusive offer to Node readers 30% off, in case this is useful for you right now.

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