Despite being a well-known investor in Canada and one of the stars of the French-Canadian version of ‘Shark Tank,’ this entrepreneur got his funding needs wrong twice. In the new podcast Masters of Scale, LinkedIn co-founder and Greylock partner Reid Hoffman explores his philosophy on how to scale a business — and at Entrepreneur.com, entrepreneurs are responding with their own ideas and experiences in our hub. He’s also the founder and CEO of AmpMe, an app that syncs devices together so that they play the same music at the same time — effectively turning a bunch of phones and tablets into a giant speaker system. When we raised the Series A, the initial term sheet was for $5 million, and we saw a lot of demand from investors. […] I said, hey, maybe we should leave it open up to $8 million and see how it goes. Because it will give me more runway, and it’ll put a little less stress on the company. Yes, I’ll be diluted a little more, but the dilution was something I could live with, in exchange for buying more runway and just peace of mind of not having to raise again in 12 months. [To play music with AmpMe, users can use their local music library or multiple integrated streaming services.] I thought that after adding four or five different sources, like Spotify and SoundCloud, I’d be good to go. To keep up, we needed to build a five-person team to integrate new music sources every month. Why I Spent Hours Conducting Research for My First Clients — When you talk to entrepreneurs about raising money, do you suggest this to them — that they should raise more than they think they need? If it’s a business that does not forecast any revenue for the next couple of years, I think you should definitely take more, because it’s going to be harder than you thought. If it’s a business that’s already generating revenue, it’s a question of minimizing dilution as well. […] if you really have the goods, and you have the right team, the right momentum, the right PR, the right market, I think if you show some exclusivity and some hard-to-getness, it might play in your favor.