Should you have a minimum investment amount? | Increasingly, I see founders with a minimum investment amount in their deck. Historically, founders used to try to raise as much capital as possible from as many sources as possible. More recently, however, as more “fundraising advice” is shared on the internet, founders are starting to become “smarter” about how they raise through numerous techniques.
The logic behind minimum investment amounts is: | Needing to raise from fewer investors Cleaner cap table Easier investor relations
| Despite these benefits, I firmly believe that you should NOT have investor minimums in your deck. Here is why… | | Could This Company Do for Housing What Tesla Did for Cars? |
|
| | BOXABL believes they have the potential to disrupt a massive and outdated trillion dollar building construction market by bringing assembly line automation to the home industry. | Since securing their initial prototype order from SpaceX and a subsequent project order of 156 homes from the Department of Defense, BOXABL has made substantial strides in streamlining their manufacturing and order process. BOXABL is now delivering to developers and consumers. And they just reserved the ticker symbol BXBL on Nasdaq*
BOXABL has raised over $170M from over 40,000 investors since 2020. They recently achieved a significant milestone: raising over 50% of their Reg A+ funding limit! BOXABL is now only accepting investment on their website until the Reg A+ is full.
Invest now before it’s too late!
Disclosure: This is a paid advertisement for BOXABL’s Regulation A offering. Please read the offering circular here. This is a message from BOXABL
*Reserving a Nasdaq ticker does not guarantee a future listing on Nasdaq or indicate that BOXABL meets any of Nasdaq's listing criteria to do so. |
|
| | This can only harm you - If you are raising $2M and set a minimum of $100k for an investment. If you pitch someone whose target investment is $500k, then they will always put in around $500k. If you meet someone whose target is $50k they won’t even engage with you after reading the deck. By having no minimum you’ll still raise the same amount from the investor looking to put in $500k but you lose the potential $50k investment. Angel investor value - Some investors who will put in $5-10k at pre-seed or $50-100k at the seed stage might be able to bring unique value to your business. It may be a lawyer who can save you significant legal fees, or an engineer who can help you develop your product. By setting minimums, you are pushing them away. Network effects - Many of the investors putting in small checks have strong networks, as they are likely professionals. This means they might bring other friends who will put in small checks or could be future customers. By pushing them away, you lose those networks.
| | Do you accept small checks? | | | Get Over $6K of Notion Free with Unlimited AI | Running a startup is complex. That's why thousands of startups trust Notion as their connected workspace for managing projects, tracking fundraising, and team collaboration. | Apply now to get up to 6 months of Notion with unlimited AI free ($6,000+ value) to build and scale your company with one tool. | Get Free Notion + AI | | Are you looking to grow your business? Here is how I can help: | |
|
