Raising multiple rounds of venture capital might be wrong for your startup
There’s a generally accepted script in Silicon Valley: Identify a startup idea. Sell a chunk of your company to raise venture capital. Make sales. Raise more venture capital, and make more sales. Repeat until the company goes public, or gets acquired, hopefully for billions either way. But what if you didn’t get on a fundraising treadmill after taking a first round? What if you structured your company to sprint to profitability through slower, sustainable growth, rather than the reverse — unprofitable growth — as so many VC-backed companies do? That’s the question that Pukar Hamal, founder and CEO of SecurityPal AI, asked himself after raising a $21 million series A round in 2021 and, a year later, almost running out of money. The round was led by David…
