It is well worth reading the article written by Matt Marshall of Venturebeat on the best time to raise Venture Capital (VC) funding. The article uses recent completion of $11m equity funding round by FreeWebs as a case study. The argument is that the ideal time for Series A or first round of VC funding is right before the company’s rising "adoption" curve meets the declining "risk" curve. The second graph makes this point clearer. However in this model, VC funding is used to achieve step changes from "seed" to "expansion". In the case of FreeWebs, they have held off…
The man who built Manchester's Tech Startup Ecosystem