Don’t raise a round. Fund a plan.
This write-up was originally sent to subscribers as a part of our Mission Control weekly insights, a series where we share wisdom and quick breakdowns on topics from our entrepreneur support network.
Founders often tell us what they’re raising as if it’s set in stone, a nice round stone at that: $1M, $2.5M, $500k. But when we ask where that number came from, it’s usually… vague. A number pulled from what they’ve seen others do, or what “feels about right” for their stage.
That approach is common—but it doesn’t hold up under investor scrutiny. Without a clear story behind it, even a solid pitch can fall apart when the raise amount comes up.
The number isn’t the starting point—it’s the output.
What investors want to see is a capital plan with purpose. That doesn’t mean everything is locked down or guaranteed—but it means you’ve thought it through. You’ve built a picture of what progress looks like, what it will cost, and where the uncertainty lies. You’ve made space for experimentation—but you aren’t just raising “to figure it out” or, worse, just for “working capital.”
A clear raise story builds confidence. A fuzzy one does the opposite.
Your financial model is a great place to start. We’ve talked about how your projections should feel like compelling hard science fiction—grounded in reality, but bold in vision. That same model can help you land on a solid raise figure or range. It shows you the minimum you need to move forward, and gives you the confidence to say how far you’d go if fundraising momentum picks up. It also helps define when to stop raising—so you can shift your focus back to building and growing.
Gust's New Corporate Diligence Review Tool can identify preventable corporate structure issues that come up in diligence, and help guide founders towards fixing them.
We see this all the time in our Mission Control accelerator: a founder gives a strong, well-structured pitch—right up until they hit the raise slide. Instead of a plan, it’s a shrug: “We’re raising $2M to hire everyone full time and keep going” or “Join us on this journey”… journey? To where? By what path?
Qualify The Amount You Want To Raise To Investors
Feedback through our pitch practice and financial model reviews can turn a hand-wavy couple million to a focused raise with clear objectives and a lean, capital-efficient strategy. Investor reactions shift—from “Come back when you have more traction” to “Okay, tell me more about these growth channels.” That kind of clarity doesn’t just improve the odds of closing the round—it gives founders more leverage and more confidence.
The raise doesn’t necessarily have to be bigger or smaller. It has to be believable. And it has to be tied to what you’re actually going to do with it.
How Gust Helps Founders Develop A Purposeful Fundraise
Need a gut check on whether your raise story holds up? That’s exactly what our expert sessions are for. Inside Mission Control, you’ll get sharp feedback from people who know how this conversation sounds on the other side of the table.
We also have a free tool that ballparks your likely funding amount, the kinds of investors to target, and average check size based on your company details, team composition, and traction so far.
Got a solid raise figure in-hand but want to know how the rest of your story looks to investors? Check out our new Corporate Diligence Review – a free tool that evaluates how investors will perceive your corporate structure and history—including past raises. It examines the structural foundation of your story so far and gives detailed feedback each point.
Now we’ve got an underlying business engine built on compelling science-fiction and a well articulated funding goal to achieve in our bold-but-believable universe. Next, we’ll talk about the last wrinkle in a raise: the valuation (or valuation cap) and the good news is you don’t need to trained in the ways of the Bene Gesserit to figure it out.
Gust's New Corporate Diligence Review Tool can identify preventable corporate structure issues that come up in diligence, and help guide founders towards fixing them.
This article is intended for informational purposes only, and doesn't constitute tax, accounting, or legal advice. Everyone's situation is different! For advice in light of your unique circumstances, consult a tax advisor, accountant, or lawyer.