Setting your Capital Raise Goal is more SCIENCE than ART

September 15, 2022

Setting your raise goal is more SCIENCE than ART.

Just because you can raise up to $75M in a Reg A doesn't mean you should. So, what is the science behind setting a solid raise plan for your startup? We have observed that Issuers consider two critical inputs:

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Company Valuation
Investor Acquisition Costs

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‍How valuation plays a role in defining capital raise goal

Let's say your raise goal is $50M. Unless you need to put every single dollar to work immediately, raising that amount in a single campaign might not be beneficial in the long run.

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Instead, we have observed issuers raise that $50M in tranches. A series of raises at $10M, $15M, and $25M allowed these companies to increase value on each successive raise. Companies use this bite-sized approach to raise capital, deploy capital, grow the business, and come back out to the market with more traction, creating a valuation increase. In this scenario, the companies still raise a total of $50M but do so at increasingly higher valuations.

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Similarly, we have observed that companies who raise in a sequence and drive traction and brand exposure in the market, can justify increases in valuation. For example, if a company’s $10M raise is oversubscribed, the issuer has effectively proven to the market an untapped appetite, and this 'proof' can positively impact a company’s valuation.

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“DealMaker Reach has seen the most success with our issuer partners that take a successive, longterm approach to raising capital via community rounds.” - Jonathan Stidd, President of DealMaker Reach.

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How investor acquisition costs should play a role in defining a capital raise cadence

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‍Knowing how much revenue your business generates for every dollar you spend on advertising is critical. Acquiring investors is no different.

At DealMaker, we encourage you to think about your investors as a community that needs to be owned and built by you. So again, in the example of a company having a valuation of $100M and setting a goal to raise $50M, statistics show the company would be spending a lot more to acquire those investors and build that community, than if it opted to do multiple raises.

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Why? Because doing a small raise with a group of interested investors, can create a community of supporters who will be more likely to invest in your company again. And, you get brand exposure to potential investors that considered your first round but maybe didn't pull the trigger. So, in your next round, you've built a natural FOMO that can help you spend less marketing dollars on converting these prospects.

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By building a realistic raise sequence over time, companies drive their valuation AND end up with a much healthier ROAS. It's truly a win-win.

Monogram Case Study - DealMaker (Embed)

When VCs said no, Monogram turned to retail investors. That decision powered their rise from startup to publicly traded company—and even helped them raise an additional $13M privately after their Nasdaq debut.

The Challenge: Raising Capital on Their Terms

The Challenge: Raising on Their Terms

Monogram Technologies was founded with a bold vision: to revolutionize orthopedic surgery with a robotic joint replacement system using custom 3D-printed joints. The market for this technology is massive—approximately $19.6 billion, with over 1 million knee replacements per year. But it's a capital-intensive, regulation-heavy space—and traditional VCs weren't biting.

Instead of compromising, co-founders Dr. Doug Unis and Ben Sexson went all-in on a different path: retail capital. Why?

Control and ownership: Not only were they able to raise the capital they needed to grow the business—they did it on their own terms.
Long-term asset: They wanted to build an army of true believers who wanted to see the company succeed and would continue to reinvest over the years.
A value-add network: Raising from retail allowed Monogram to amass a waiting list of thousands of patients eager to participate in future trials.
Aligned incentives: Their mission to improve patient outcomes and build a better future for those struggling with joint pain resonated with retail investors.

The Power of Retail: Monogram's Capital Journey

Start Date	End Date	Type	Platform	Amount Raised	# Investors
3/13/19	3/31/20	A+	SeedInvest	$14,588,668	6,000
11/16/20	1/16/21	A+	StartEngine	$2,965,501	8,000
1/17/21	2/18/22	A+	StartEngine	$23,647,853	14,082
7/15/22	3/16/23	CF	DealMaker	$4,673,000	2,249
3/1/23	4/8/23	A+	Republic	$232,275	120
3/1/23	5/23/23	A+	DealMaker	$15,958,364	5,198
5/18/23	-	Nasdaq listing
7/24	10/24	Unit Offering	DealMaker	$12,990,103	2,745

Monogram Capital Raise Timeline

Monogram's first direct-to-investor raise was a $14.6M round in 2019. Since then, Monogram has raised retail capital six additional times, using Reg A+ as a springboard to a Nasdaq listing in 2023.

Each raise brought in new believers—and more importantly, kept bringing them back. That's the long-term power of retail capital. It's not just one campaign—it's a compounding asset that grows with the business.

$80M+

Raised across seven campaigns

~40,000

Investors championing Monogram's vision

20%

Of each raise came from previous investors

Marketing Excellence

DealMaker Reach provided strategic investor acquisition services, helping Monogram connect with the right audience through high-impact channels.

Premium Publications

Targeted campaigns in premium publications like Morning Brew captured qualified investors

High-Engagement Webinars

Engaging events that generated over $4.3 million in investments

Community Building

Strategic approaches that fostered a loyal shareholder base

Investment Momentum

Innovative approaches that amplified investment momentum

Monogram's Journey to Success

Monogram's journey has been defined by relentless innovation, strategic fundraising, and breakthrough advancements in robotic-assisted joint replacement. From early-stage research to a Nasdaq listing and beyond, Monogram's milestones reflect its evolution into a pioneering force in orthopedic surgery:

Filed its first patent application in 2017
Conducted clinical studies at UCLA and University of Nebraska
Expanded the team with key hires
Attracted a top-tier advisory board to guide clinical innovations
Signed their first distribution partnerships
Made headlines with cutting-edge live demonstrations
Secured 501(k) FDA clearance for the mBôs surgical system

Nasdaq Debut & Beyond

In May 2023, Monogram Orthopaedics successfully listed on the Nasdaq—a significant milestone offering liquidity and growth opportunities for the company.

For most companies, that would be the end of their story in the private markets. But for Monogram, it was just the beginning of a new chapter.

Public perception says you can't raise privately post-IPO. Monogram proved that wrong.

Defying conventional fundraising norms, Monogram raised an additional $13 million from private investors, powered by DealMaker. This move highlighted the power of a dedicated investor community and provided additional strategic growth capital. Meanwhile, strategic digital marketing for the private offering helped boost the public share price—a win-win for the company and its investors, both public and private.

This was retail capital at its best: strategic, repeatable, and aligned.

One vision. Zero compromises.

This wasn't a one-time raise. It was a multi-year capital strategy.

Retail capital helped Monogram:

Go from concept to commercialization without relying on VCs
Retain ownership and control in a high-burn industry
Build a base of loyal shareholders who invested not once, but over and over again
Uplist to the Nasdaq, and still keep raising post-IPO

This is what makes retail capital different. It doesn't expire—it compounds. And DealMaker is built to maximize that long-term value.

Ready to Raise Capital on Your Terms?

Whether you're pre-revenue or post-IPO, DealMaker gives you the infrastructure, support, and strategy to raise from the people who believe in you most.

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