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• 14 Aug 2025

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Structure the Fundraising Strategically

Raise in tranches – Close part of the round now, with the option to raise more later at a higher valuation once milestones are hit.

Seek convertible instruments – SAFE notes or convertible loan notes with valuation caps can push valuation setting to a later stage when it’s hopefully higher.

Negotiate the valuation hard – Higher pre-money valuation = less dilution for the same investment amount.

Cap the option pool increase – Investors often ask to expand the employee option pool before their investment, which dilutes you; negotiate so any increase happens after their money comes in.

Bring in strategic investors – People who bring more than cash (e.g., market access, credibility) can justify higher valuations, lowering dilution.



Curious Entrepreneur

14 Aug 2025

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