This post is an interesting reflection on why some founders try to raise too much money.
For Aaron Harris, venture capital is meant to support growth, not to finance runway.
The need for financing should be based on what the company can build over a realistic period of time, not on what would allow it to survive over a even longer period.
Raising too much capital can be the symptom of a lack of confidence.
A founder’s decision on how much money to raise in any given round is more art than science. It is a fraught decision since it necessarily forces founders to make predictions about the future. There is no perfect answer, and over-optimizing around any single factor is a mistake.