How much to spend after raising your seed round

Executive overview

Most startups spend too fast. Running out of money is a top-two reason companies die.

Treat every round as if it's the last — because most companies can't raise the next one. The bar gets higher at every stage.

Spend as if you'll never raise again.

Setting a spending framework

• On day one of new financing, define clear milestones with measurable metrics.
• Assume 24 months to hit those milestones.
• Start fundraising again when you have 8 months of runway left — that gives 16 months to prove the milestone.
• Some companies stretch 24 months to 36 or more.

Controlling burn

• Only increase spend (hiring, marketing) when revenue justifies it — and never beyond what revenue covers.
• One tactic: put half the seed round in a separate account and treat it as unavailable for the first year.
• This forces frugality and better prioritisation.