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How We Secretly Lose Control of Our Startups
Should Kids Follow in Our Founder Footsteps?
The Evolution of Entry Level Workers
Assume Everyone Will Leave in Year One
Stop Listening to Investors
Was Mortgaging My Life Worth it?
What's My Startup Worth in an Acquisition?
When Our Ambition is Our Enemy
Are Startups in a "Silent Recession"?
The 5 Types of Startup Funding
What Is Startup Funding?
Do Founders Deserve Their Profit?
Michelle Glauser on Diversity and Inclusion
The Utter STUPIDITY of "Risking it All"
Committees Are Where Progress Goes to Die
More Money (Really Means) More Problems
Why Most Founders Don't Get Rich
Investors will be Obsolete
Why is a Founder so Hard to Replace?
We Can't Grow by Saying "No"
Do People Really Want Me to Succeed?
Is the Problem the Player or the Coach?
Will Investors Bail Me Out?
The Value of Actually Getting Paid
Why do Founders Suck at Asking for Help?
Wait a Minute before Giving Away Equity
You Only Think You Work Hard
SMALL is the New Big — Embracing Efficiency in the Age of AI
The 9 Best Growth Agencies for Startups
This is BOOTSTRAPPED — 3 Strategies to Build Your Startup Without Funding
Never Share Your Net Worth
A Steady Hand in the Middle of the Storm
Risk it All vs Steady Paycheck
How About a Startup that Just Makes Money?
How to Recruit a Rockstar Advisor
Why Having Zero Experience is a Huge Asset
My Competitor Got Funded — Am I Screwed?
The Hidden Treasure of Failed Startups
If It Makes Money, It Makes Sense
Why do VCs Keep Giving Failed Founders Money?
$10K Per Month isn't Just Revenue — It's Life Support
The Ridiculous Spectrum of Investor Feedback
Startup CEOs Aren't Really CEOs
Series A, B, C, D, and E Funding: How It Works
Best Pitch Decks Ever: The Most Successful Fundraising Pitches You Need to Know
When to Raise Funds
Why Aren't Investors Responding to Me?
Should I Regret Not Raising Capital?
Unemployment Cases — Why I LOOOOOVE To Win Them So Much.
How Much to Pay Yourself
Heat-Seeking Missile: WePay’s Journey to Product-Market Fit — Interview with Rich Aberman, Co-Founder of Wepay
The R&D technique for startups: Rip off & Duplicate
Why Some Startups Win.
Chapter #1: First Steps To Validate Your Business Idea
Product Users, Not Ideas, Will Determine Your Startup’s Fate
Drop Your Free Tier
Your Advisors Are Probably Wrong
Growth Isn't Always Good
How to Shut Down Gracefully
How Does My Startup Get Acquired?
Can Entrepreneurship Be Taught?
How to Pick the Wrong Co-Founder
Staying Small While Going Big
Investors are NOT on Our Side of the Table
Who am I Really Competing Against?
Why Can't Founders Replace Themselves?
Actually, We Have Plenty of Time
Quitting vs Letting Go
How Startups Actually Get Bought
What if I'm Building the Wrong Product?
Are Founders Driven by Fear or Greed?
Why I'm Either Working or Feeling Guilty
Startup Financial Assumptions
Why Every Kid Should be a Startup Founder
We Only Have to be Right Once
If a Startup Sinks, Founders Go Down With it
Founder Success: We Need a Strict Definition of Personal Success
Is Quiet Quitting a Problem at Startup Companies?
Founder Exits are Hard Work and Good Fortune, Not "Good Luck"
Finalizing Startup Projections
All Founders are Beloved In Good Times
Our Startup Culture of Entitlement
The Bullshit Case for Raising Capital
How do We Manage Our Founder Flaws?
What If my plan for retirement is "never retire"?
Startup Failure is just One Chapter in Founder Life
6 Similarities between Startup Founders and Pro Athletes
All Founders Make Bad Decisions — and That's OK
Startup Board Negotiations: How do I tell the board I need a new deal?
Founder Sacrifice — At What Point Have I Gone Too Far?
Youth Entrepreneurship: Can Middle Schoolers be Founders?
Living the Founder Legend Isn't so Fun
Why Do VC Funded Startups Love "Fake Growth?"
How Should I Share My Wealth with Family?
How Many Deaths Can a Startup Survive?
This is Probably Your Last Success
Why Do We Still Have Full-Time Employees?
The Case Against Full Transparency
Should I Feel Guilty for Failing?
Always Take Money off the Table

Where’s the Money? Takeaways From SheWorx100 Summit – NYC

Lisa Wang

Where’s the Money? Takeaways From SheWorx100 Summit – NYC

Preseed. Seed. Series A. Series B. Growth capital. Term sheets. Valuations. Cap Tables. Convertible notes. Market opportunity. Venture Capital. Angel investment. Equity Crowdfunding. Family offices.

While the learning curve is steep, getting funding is about more than just an understanding of terms, it’s about the art of relationships. For female founders, the funding landscape has been less than friendly. According to Crunchbase, the number of female-founded, venture backed companies has plateaued at 17% since 2012. Is venture the only way to go? Certainly not. There are a diversity of funding sources founders can tap into. Crowdfunding, for example, is the only type of funding where women outperform men.The SheWorx100 Summit NYC brought together 200 female founders, over 30 leading investors, and a panel of top female investors and discussed actionable ways to leverage these different sources of capital. Here are the takeaways:

Joanne Wilson – Gotham Gal Ventures, Angel Investor

Angel investors are oftentimes injecting the first round of capital into startups, generally funding round sizes between $200,000 and $1 million. They are not typically beholden to anyone, since they invest with their own money.

Build a solid team and business plan

Scaleable. Customer-ready. Competitive. When it comes to investing, Joanne looks for businesses that have traction and large market potential. “It’s really about – can this company be funded in the next round?” When it comes to making decisions, investors evaluate the strength and well-roundedness of both the team and the business model. Has the team worked together before? Is there a solid business plan in place? Can they survive the grueling fundraising process? Joanne wants to know that the projects she funds will make it to an exit, so that she can get a return. “What I’m looking for at the end of the day are survivors – people who are really scrappy, tenacious entrepreneurs – that no matter what comes at them, they’ll figure out a way to survive.”

Make your first meeting count

A lot of times your first meeting is your only meeting. Joanne’s advice: Do your research. Don’t come too early. Don’t come too late. Know what else the investor has funded.. Be really thoughtful about what it is that you’re doing, what the opportunities are, and what you’ve accomplished so far. “Angel investors make decisions based on their gut, people and the business model.” First impressions count. Don’t set foot in an investor’s office until you know there’s an opportunity that you’re going to connect with them and they’re going to be interested in your business.

Engage with the movers and the shakers

Angel investors should move relatively quickly. When you approach a VC, there is a different amount of diligence required – analysts look at how big the market is, who else is on your cap table, etc. Angels don’t have the same obligations. It shouldn’t take more than 2 – 3 meetings for an angel to buy in or back out. Any angel who takes more than a couple of meetings to make a decision about financing is not someone you want in your business. Don’t bother pitching them. Once the investment is made, reach out to investors. Keep them updated on highs and lows. And don’t be afraid to ask for support. As a founder you should really think about using your investors as advocates. These people literally have a piece of your business and they’re incentivized to help you succeed

Katherine Hill Ritchie – Private Capital Investments, Family Offices

When it comes to family offices, it’s a mixed bag.  Some do early stage investment. Some do late stage. Family offices don’t have to deal with a typical investment structure. There are no dollar limits or holding period limits. There is no formal process or investment committee. This means, if they like your idea, they can invest in it over and over again.

Understand your target audience

Find out as much as you can about the family before you approach them. What are their values? What have they previously invested in? Who is involved in the business? Typically there is one principal directly involved with financing decisions. What other projects has this person worked on? What are their hobbies? Dig. Dig. Dig. The more you know, the better able you are to find some common ground. Keep in mind that in the initial stages of communication, you will likely be dealing with “gatekeepers” or employees. Your goal is to get yourself in front of the primary decision maker.

Personalize your pitch and showcase long-term plans

Investors aren’t just investing in your company, they’re investing in you. Personal relationships mean a lot. Tell your own story. How did you get to where you are? What was your journey? Maybe it parallels their own. Humanize yourself. Don’t be a robot. Embrace interruptions. Make time for questions. Find out what they know and tailor your pitch accordingly. Since family offices have less structure, they may have more money to invest then you are initially asking for. Don’t be afraid to sell them the big dream. Give them a full-scale action plan instead of immediate milestones (in the next 6 months to one year), so that they can decide how big a slice of the pie they want.

Pelli Wang – Principal at SeedInvest, Equity Crowdfunding

Equity crowdfunding is most suitable for businesses who already have traction and are looking to scale their business. Typically, the startup will already have a lead, but needs an injection of a few hundred thousand dollars to keep the ball rolling.

Know your market and your product inside and out

Market is very important. There are a lot of trends in business. Equity crowdfunding platforms, like SeedInvest, tend to strike while the iron is hot. What’s in right now, according to Pelli? Artificial Intelligence. It’s consumer-ready, business-ready and there’s a lot of funding available. It’s a product that’s in demand. When it comes to product development, ask yourself: Is there a demand? If so, what does supply look like right now? Does my product stand out? Do I have the right development team? You need to know your market and your product inside out. Make sure it really matters.

Figure out which platform is right for your business

Every crowdfunding platform operates differently. Find out which platform is the best fit for your company. How many investors do they have in their database? What is their success rate? Are they industry-specific (ie. focus on tech startups)? What are their fees? Know how crowdfunding platforms operate, and what they will expect from you. SeedInvest, for example, runs similar to a fund on the front-end. Preliminary meetings. Investment committee approval. Onboarding process. Quarterly communication. Figure out what your company needs (and can give back) and source exactly that.

Hayley Bay Barna – Venture Partner at First Round Capital

Venture capital can come in just about anywhere in the funding cycle, from seed-stage to mezzanine funding. Every firm will have a different area of interest. Since VC’s are investing on behalf of limited partners, they are more accountable, which means due diligence takes center stage.

De-risk your idea

“We need to see a clear path to 100 million revenue business, and the clear possibility of a billion dollar business.” You need to eliminate the sense of risk. Charisma. Conviction. Past Experience. Current Revenue. Show your panel of investors that you have what it takes to run a successful business. There is no room for self-doubt. When Hayley invests, she uses a 3-point assessment rubric: (1) market (2) product and (3) founding team. You need to sell each point in a way that sparks the imagination. “Don’t be afraid to get in that room and paint a picture about how the world is going to be different 5 – 10 years from now because your business exists.”

Make sure it’s a good fit from the get-go

Do your due diligence. Some investors might not be right for your business. When you take someone’s money and give them equity in your company, you are starting a very long-term relationship. Remember: you’re in the driver’s seat. Ask for references. Reach out to mutual connections on LinkedIn. Find out what their deal is. How involved are they going to be? What expectations will they have for you? Make sure the investor is someone that you want to be working with in the long run. If you do decide to work with an investor, make sure you hold up your end of the bargain. “The best founders are really proactive in terms of updating investors.” It’s ideal to be reaching out monthly. It doesn’t take much. Highlights + Lowlights + Homework + Thank you. A short email, with the three metrics that matter for your business at the top.

These are only some of the take home points that came out of SheWorx100 NYC. We want to thank our members, for the vivacious energy and collaborative spirit they brought to this event. A big shout out to our all-star panel for their actionable advice and expertise. And to Alicia Syrett of Pantegrion Capital, for facilitating such a productive discussion. You can check out coverage of the event on Forbes.com.

Next Up: The SheWorx100 Summit in San Francisco will be on May 10th evening. The Summit brings together 200 female founders and 30 top VCs to build meaningful collaborative relationships that lead to real investment in female founded companies.


Originally published on SheWorx.co

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