Raising 500 k€, 1 M€ or 5 M€: what really changes
Depending on the amount, the investors, instruments, preparation and governance are not the same.
The size of a raise does not only change the figure written in the shareholders' agreement. It determines who you will meet, what you will be asked for and how governance will change. The benchmarks below are general trends: every file is different.
The main differences
| Around 500 k€ | Around 1 M€ | Around 5 M€ | |
|---|---|---|---|
| Typical investors | Friends and family, business angels, business angel networks, community | Groups of business angels, seed funds, investor community | Venture capital or growth capital funds, family offices |
| What is looked at first | The team and the first signs of traction | Measurable traction and an emerging business model | Steady growth, solid unit economics, a structured team |
| Common instruments | Shares, BSA-AIR, honour loans on top | Shares, convertible bonds, public debt on top | Preference shares, growth debt on top |
| Documents expected | Deck, simple forecast, cap table | Deck, detailed forecast, basic data room | Full data room, in-depth legal and financial due diligence |
| Governance after the raise | Often light: regular updates | Sometimes a strategic committee | Often a board with investor representatives |
What does not change
- The need must be linked to specific milestones, whatever the amount.
- The valuation must be justifiable by traction, not by wishful thinking.
- Investors fund a team as much as a project.
- A raise takes time: start several months before you need the cash.
How to choose your amount
Start from your milestones
What needs to be achieved to make the next round of financing easier: a level of revenue, a product, a market?
Put a figure on the path
Monthly burn × number of months, plus investments, plus a safety margin.
Check it against dilution
The amount must remain compatible with a reasonable dilution, given your current valuation.
The “How much can you really raise?” calculator does this calculation from your own figures, and the dilution simulator shows the impact on your cap table once the amount is set.