The Ask
The specific funding amount and terms a startup requests from investors during fundraising.
Definition
"The Ask" refers to the specific funding request made to investors, typically presented at the end of a pitch. It should clearly state how much money is needed, what percentage of equity is being offered, and how the funds will be used to achieve specific milestones.
Components of The Ask
Amount Requested
Specific dollar amount needed
Equity Offered
Percentage of company ownership
Use of Funds
How money will be allocated
Timeline
How long funding will last
Best Practices
- Be specific about the amount and terms
- Justify the valuation with comparable companies
- Show clear milestones achievable with funding
- Present a realistic timeline for next funding
- Demonstrate progress since last funding round
Real-World Example
Series A Ask: $3M for 20% equity at $15M valuation
"We are raising $3M for 20% equity to hire 10 engineers and 5 sales reps, which will help us reach $5M ARR in 18 months."