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PART 2: Why Startups Actually Raise Money Now that we understand the difference between bootstrapping and fundraising, the next important question is: Why do startups actually raise money? Many first-time founders assume that raising funds automatically means the startup is successful. But in real…

PART 2: Why Startups Actually Raise Money Now that we understand the difference between bootstrapping and fundraising, the next important question is: Why do startups actually raise money? Many first-time founders assume that raising funds automatically means the startup is successful. But in reality, good startups raise money for very specific strategic reasons. Let’s first look at the good reasons to raise funds. A startup should raise capital when it wants to scale something that is already