Timing the raise of your first venture round is an important consideration. I have heard some argue that if you try to raise VC too early, you can leave investors with a bad taste in their mouths and an unwillingness to consider your company again in the future. If you wait too long to start your raise, your company could go bankrupt, you may need to make salary cuts that cause you to lose key employees or your competitors may have an improved chance to grab market share before you.

The conventional answer to this question is a good one: “raise money when you can.” Capital markets can dry up, competitors can lock up investments from VCs before you knock on their doors and other opportunities can steal the attention of the investment community. While there are exceptions to every rule, the longer you wait to start the fundraising process, the wider the window generally is for exogenous factors to impact the chances of your success in that process.

Furthermore, as I detail in my post, Meet Early – Demonstrate A Trend, socializing your concept with a VC early in the company’s development can be an effective way to demonstrate the competency of the management team.

You should be aware, however, that your company is not likely to receive funding unless it has met the milestones that are typical for each stage of a company’s funding lifecycle. You should be sure to approach investors that invest at your stage.

In sum, there are a lot of stars that need align in order for your company to raise capital. If a window to raise capital presents itself you probably should jump through it.