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CL

Carolynn Levy

09/20/19

@ Y Combinator

It's exceedingly rare for a company to raise a small amount of money and never need more funding, as companies typically require additional capital to grow.

Video

YC

Carolynn Levy - Modern Startup Funding

@ Y Combinator

09/20/19

Related Takeaways

KA

Kofi Ampadu

05/06/25

@ a16z

It's rare for a company to be profitable from day one; outside funding plays a big role in sustaining a company while it grows.

YC

Y Combinator Cast

05/21/16

@ Y Combinator

Not every business needs to fundraise; many successful companies have built profitability without raising money.

CL

Carolynn Levy

09/20/19

@ Y Combinator

Most startups raise money by selling a part of their company, typically through preferred stock, rather than common stock, which is not sufficient for raising meaningful amounts.

GR

Geoff Ralston

10/11/18

@ Y Combinator

When raising money, assume it might be the last time you'll be able to do so; raise enough to reach profitability without needing more funds soon.

CL

Carolynn Levy

09/20/19

@ Y Combinator

If a company never raises a priced round, the SAFE only converts if the company is sold or goes public, which is a rare scenario.

YC

Y Combinator Cast

06/09/22

@ Y Combinator

Historically, successful companies were built with much smaller seed rounds, indicating that the current funding environment may be skewed and that adequate funding can still lead to success.

YC

Y Combinator Cast

06/09/22

@ Y Combinator

The recent trend in funding shows that companies are now expected to raise more money upfront to prepare for potential market changes, ensuring they remain fully funded during downturns.

SH

Severin Hacker

05/19/25

@ 20VC with Harry Stebbings

It's often harder to raise a small amount of money than a larger round because of the expectations that come with higher valuations.

MS

Michael Seibel

05/07/22

@ Y Combinator

Raising the next round of funding is often harder than founders anticipate, especially in a changing economic environment.