The startup capital needed prior to launching a business will depend on many factors and vary for every company. Ajay recommends to raise a little money early on to take out a couple of risks and continue to raise incremental amounts until you remove most risk. In other words, find the minimum you need to get to the next inflection point.
Your path might look something like this:
To start, identify what the smallest amount is needed to get a product out the door that people love.
Once you’ve done that, figure out what the next thing is you need to overcome.
Once you scale that (and can demonstrate that you’ve done so in a cost-effective way, getting customers to come back), then you can expand your product line.
Build out a set of products that drive repeat usage and result in your average spend per household going up.
Make sure you have enough money to get to the next milestone, but not so much money that you scare off investors. The goal is to prove more and more, and take more risk off the table.