We can only really talk from the experience of doing it with Qonto. And as Qonto’s experience of fundraising has been a positive one, it’s hard to advise other entrepreneurs to do it any other way.
It’s very useful to have business angels who know your sector on board from Day One. It’s not just about raising money, it’s more about raising what we’d call ‘smart money’. We are blessed to have had professional, institutional investors with us on our journey. Thanks to their know-how and deep understanding of our sector, they were able to advise us on vital strategic matters: how to structure a team, how to grow it, where you need to be looking to expand geographically, how to set out the right fundraising timeline and when to plan each round.
Even once you’ve secured funding, you then have to spend it wisely. You have to grow fast but not too fast. If you burn through too much money too quickly, it might spook your investors. Invest too little or too slowly and your development curve might not be steep enough. The right investors can help you plot your trajectory. They know the terrain better than company founders. They let the founders run the business but their insight can be so precious.
So it’s best to have professional, knowledgable investors on board from the very beginning.