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Why we picked it The cleanest milestone-based runway framework we found: raise for 18 to 24 months because fundraising itself burns about 6 months, leaving 12 to 18 months of pure execution to hit the milestones that earn the next check. Its 'first round is raised on a promise, second round is measured by performance' line is the exact logic your use-of-funds slide has to survive.
The Runway Equation: How Much to Raise and When to Spend It
From NYU Entrepreneurship by NYU Entrepreneurial Institute 10 min read
- Budget 6 months to actually close a round, so a 12-month raise leaves almost no execution time; target 18 to 24 months to give milestones room to land
- Define the specific go or no-go milestones that make the next round fundable before you set the amount, then back into the number from there
- Your first round is judged on the promise (team and vision) but your next round is judged on whether you deployed capital to hit exactly what you said, so the use-of-funds slide is a commitment, not a wish list
