Raise Millions by Hustle Fund VC Page 39 time raising, they might not see any increase in valuation from one round to the next. Or their valuation will actually go down. When a company’s valuation fails to increase, the VCs who invested at the earlier stages are left with a portfolio that’s worth less than what they expected or planned for. A rough rule of thumb is that founders should aim to double their valuation every round. But there is cash – this is not 2008 This section isn’t intended to be all doom and gloom. The good news: ● Seed stage investors are less affected ● Deals are happening but all stages are just moving slower The benefit of a less frothy market is that it forces you to think about how much cash you actually need. Elizabeth suggests thinking about your cash needs in two ways: 1. Stop the bleeding Founders often say, “I need to raise $2M.” Do you really? Probably not. Instead, ask yourself: What is the minimum requirement to keep the company running? How can you reduce your burn rate? How can you cut expenses? Are there creative ways to generate revenue in the interim? hustlefund.vc / @hustlefundvc