Today, we’re talking about announcing funding to raise more money.
This is one the best tactics for raising funds, because once your round is public you will suddenly get a rush of interest from both new investors and many investors you spoke to in the past.
If you do want to use this momentum to raise more, there’s 3 moments where it can be very helpful:
1. Raising on top of a recently closed round. Here you would entertain inbound interest to raise a little more at a slightly higher valuation.
2. Raising a bridge. The capital from your previous round isn’t enough and you will need more money to reach your goals. In this case using the announcement is a fantastic way to kick start fundraising for what is often a tough round.
3. Raise your next round. If you held off on announcing funding, you can make it public later and use the inbound interest to begin your next full fundraise, with positive press and momentum.