Fueling up.

For the benefit of those not familiar with approaches to funding a start up, this post will be my one-and-only on the topic in the foreseeable future and a very rudimentary introduction (leaning on a few links). I hope it’s helpful for the mildly curious out there who have never worked in/around the space. IMHO — this is nice context and language to have in your repertoire to pepper into cocktail party conversations (I don’t go to many casual cocktail parties that bandy about on this topic, but you get it).

To be clear, I’ve never led “fundraising” for a company before, let alone my own. While I have business, brand and marketing strategy expertise, the process and effort around start-up creation and funding is all-new.

Basic Language:
Stages and Sources of Startup Funding

First, it’s good to have a simple understanding of startup funding stages and sources of funding along the way.

Here’s a nice n’ neat article from “Spacebar Collective” that I think describes the basics terms simply and well:

Guide to Startup Funding Stages: From Pre-Seed to IPO

As referenced in the article, I’m squarely in the “Pre-Seed” bucket, the very earliest stage. To date, I’ve only used my own funds and I’m starting to raise with Friends and Family. My objective, at this stage, is to secure enough funding to successfully launch the brand in 2024 and validate the product and potential of the brand.

This article — “How to raise a Friends and Family Round” from Founders Institute — does a nice job breaking down this round. Note, the article is somewhat dated (from 2019), but I like the way that it’s clearly explained.

Learn, Refine, Learn (on repeat).

I’ve had many conversations with people lately who fall into the “Friends and Family” bucket about the Brand I’m developing. And I need to have many more. What I’m learning is that it’s as much about the journey as it is the destination (getting the capital). I’m getting inputs, insights, and advice — all value-add to the work and immensely helpful.

Some nuggets of wisdom worth sharing:

1. Remember your audience (Friends and Family). When you ‘pitch’… remember that it’s not really (just) about you, the brand, and/or the product, but what’s in it for them. What happens with their investment and what can they expect and/or not expect. And, especially for people who aren’t frequent investors, important to ensure clarity on the risks involved with an early stage venture.
   
   Also, there’s a lot of detail that I included in my first few pitches that I’ve scrapped for the deck to investors. While it showed my passion and thinking about the brand, I was boiling the ocean in the first meetings. I’ve seen when/where/how I’ve lost people. I’ve learned to be much sharper and have honed the story.
   
   For the most part, my story sequence has been framed as:
   • X is an issue. (X = the Problem Statement I mentioned in my last post)
   • The issue of X exists for a broad group of people. (Size of the opportunity)
   • The issue makes people feel (fill in the adjective… empathize… create a real understanding of the problem and the urgency for a solution).
   • A proper solution is required; the issue is not getting addressed but is needed.
   • The solution must do or be XYZ. (“What needs to be true.”)
   • … and then I get into the brand and product as the uniquely designed solution for the problem.
     
2. Be “audacious.” Asking for money is hard. But it’s been helpful to remember that I’m not asking for money for “me.” I’m raising money for the business. It’s business. I’m building a product, value proposition and positioning for a brand and business model that I am (massively) confident and passionate about. I want people to buy into a great business opportunity. It’s not about me.
   
3. Learn along the way — something is gained from every conversation. It’s all valuable. Every meeting helps — the story gets tighter, ideas are shared, friends and connections are deepened or made, introductions are offered, etc.

While the process requires time (many conversations that lead to many conversations), I have loved it. I’m reconnecting with friends, former-colleagues, and past-acquaintances from different stages of my life journey, and meeting incredible new, inspiring people to learn from.

I’ve discovered that being someone ‘starting something’ is like entry into a club. Founders want to help other Founders. There’s an authentic camaraderie and collaboration that I’m finding. It’s refreshing and invigorating; people genuinely want to help each other and have been very willing to share their time and what they’ve learned.

Now that I’m part of the ‘club’ (very early stage entry), if I can ever be of help to someone reading this, please don’t hesitate to reach out.

Cheers.

WFC