„Whenever you can avoid fundraising.“
Most of the time, it is preferable to start without external financing as it pushes you to keep your costs low and generate revenues quicker.
Entrepreneurs are often faced with this trade-off: Should I spend my time on product development and customer acquisition or should I spend my time raising external financing which helps me to accelerate product development and customer acquisition?
Please be aware that financing usually takes 6-12 months and can also fail. Even if it is successful, it does not mean you can accelerate product development and customer acquisition immediately.
To achieve this, you have to interview, hire, train and if necessary dismiss employees, implement structures and processes, manage investors, etc. As a result, first, you are busy with raising money, then you are busy with spending money, which keeps you away from product development and customer acquisition.