Should You Raise Money or Sell Your Startup

There comes a point in time for every startup where the decision has to be made whether to raise more capital in order to build it out further or just put it up for sale. After advising companies on mergers and acquisitions and raising capital for over 15 years in Silicon Valley and New York, Stephen Gurney, CFO and Managing Director of the San Francisco-based investment bank Viant Group, has some recommendations on how to approach this decision. At what point should companies make the decision to either raise more capital or sell? In the case of a capital raise - the build option - I would say at the point when there is six months’ worth of cash burn in the tank or when a clear need for more funds presents itself.