We got to where we are with 250K, and are pretty close to product/market fit. We have paying customers, a great product and a repeatable sales model. However, for us to really step on the accelerator and grow, we need to hire A+ salespeople. We can pay them from cashflow, but that will slow things down. We'd rather raise a small amount of capital (i.e. < 1M) so we can hire a couple of great sales guys and really speed up the growth of our business.
Just a tangible example of why our startup needs money!