The conventional wisdom runs something like this. The process of raising capital is time-consuming and stressful. It diverts the attention of managers from more important matters, such as driving product development or making sales. Ideally, every funding round should provide a financial runway of 15 to 18 months to allow teams to get on with their day jobs rather than spending all their time worrying about what would happens should the money runs out.
Andrew Jenkins doesn’t necessarily agree. A co-founder of venture capital fund, Conviction VC, he is a proponent of an investment strategy based on milestones. Rather than providing early-stage businesses with a large amount