Portfolio
Portfolio
Portfolio
When to Say No to the Next Round
Thursday, May 22, 2025
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Fundraising is often framed as a milestone — a badge of honor. But sometimes, the smartest move a founder can make is walking away from a round that doesn’t align with their goals or timing.
Growth ≠ Fundraise
Raising capital and growing your company are not the same thing. In fact, raising too early or from the wrong partner can create more pressure than progress.
We’ve advised several founders to skip a round — not because they couldn’t raise, but because they didn’t need to yet.
Signs you might want to hold off:
You’re still finding product-market fit
You haven't used your previous round efficiently
You’re not confident in your next 18-month plan
If any of these resonate, it’s worth pausing.
What We Tell Our Founders
We encourage founders to ask:
What will this capital actually do for us right now?
Are we taking on dilution for the right reasons?
Does this investor align with our culture and pace?
Money isn’t free — and the wrong partner can cost more than equity.
Case Study: A Strategic Pause
One of our portfolio companies was getting preemptive Series A offers just six months after seed. The numbers looked good, but the team knew they had more to prove — and more to learn — before scaling.
They passed.
Eighteen months later, they raised at 4x the valuation with better terms, stronger metrics, and full conviction.
Sometimes, discipline is the real growth strategy.
Our Approach
At our fund, we don’t push for headlines — we push for health. That means being honest when the best path forward is patience, not pressure.
Because real momentum isn’t always loud. But it’s always intentional.
Fundraising is often framed as a milestone — a badge of honor. But sometimes, the smartest move a founder can make is walking away from a round that doesn’t align with their goals or timing.
Growth ≠ Fundraise
Raising capital and growing your company are not the same thing. In fact, raising too early or from the wrong partner can create more pressure than progress.
We’ve advised several founders to skip a round — not because they couldn’t raise, but because they didn’t need to yet.
Signs you might want to hold off:
You’re still finding product-market fit
You haven't used your previous round efficiently
You’re not confident in your next 18-month plan
If any of these resonate, it’s worth pausing.
What We Tell Our Founders
We encourage founders to ask:
What will this capital actually do for us right now?
Are we taking on dilution for the right reasons?
Does this investor align with our culture and pace?
Money isn’t free — and the wrong partner can cost more than equity.
Case Study: A Strategic Pause
One of our portfolio companies was getting preemptive Series A offers just six months after seed. The numbers looked good, but the team knew they had more to prove — and more to learn — before scaling.
They passed.
Eighteen months later, they raised at 4x the valuation with better terms, stronger metrics, and full conviction.
Sometimes, discipline is the real growth strategy.
Our Approach
At our fund, we don’t push for headlines — we push for health. That means being honest when the best path forward is patience, not pressure.
Because real momentum isn’t always loud. But it’s always intentional.
Fundraising is often framed as a milestone — a badge of honor. But sometimes, the smartest move a founder can make is walking away from a round that doesn’t align with their goals or timing.
Growth ≠ Fundraise
Raising capital and growing your company are not the same thing. In fact, raising too early or from the wrong partner can create more pressure than progress.
We’ve advised several founders to skip a round — not because they couldn’t raise, but because they didn’t need to yet.
Signs you might want to hold off:
You’re still finding product-market fit
You haven't used your previous round efficiently
You’re not confident in your next 18-month plan
If any of these resonate, it’s worth pausing.
What We Tell Our Founders
We encourage founders to ask:
What will this capital actually do for us right now?
Are we taking on dilution for the right reasons?
Does this investor align with our culture and pace?
Money isn’t free — and the wrong partner can cost more than equity.
Case Study: A Strategic Pause
One of our portfolio companies was getting preemptive Series A offers just six months after seed. The numbers looked good, but the team knew they had more to prove — and more to learn — before scaling.
They passed.
Eighteen months later, they raised at 4x the valuation with better terms, stronger metrics, and full conviction.
Sometimes, discipline is the real growth strategy.
Our Approach
At our fund, we don’t push for headlines — we push for health. That means being honest when the best path forward is patience, not pressure.
Because real momentum isn’t always loud. But it’s always intentional.
