Fireside Chat, Interview, Panel
Fundraising Panel at Female Founders Conference 2016
Y CombinatorTalia Frenkel, Katelyn Gleason, Aarthi Ramamurthy, Liz Wessel, Kat Manalac, Caitlin Gleason
- Conversations regarding sex or menstruation will become less awkward as dialogue shifts toward serious pain points, market opportunities, profit margins, and social strategies.
- A strong social strategy combined with a solid bottom line is expected to inspire consumers, attract top talent, and engage partners.
- Founders can succeed in fundraising by having precise knowledge of their numbers and being prepared to answer any question immediately.
- Investors who insist on reviewing a deck prior to a meeting as a fund policy will cause the presenter to decline the interaction.
- After securing the first check, the fundraising process is expected to become significantly easier by leveraging the initial investor's network.
- Founders must persist through repeated rejections, viewing the process as a necessity rather than a choice.
- Surviving a grueling fundraising process is predicted to instill confidence that building a company is manageable and not daunting.
- Founders who survive initial rejections and demonstrate monthly growth and traction can expect some investors to change their minds approximately one year later.
- Most investors who initially say "no" genuinely mean it but may phrase it as a rejection due to their own history or ask the founder to return when a lead investor is secured.
- Founders should not take investor rejection personally, as the interaction is a business transaction.
- Founders can return to investors who previously said "no" because an initial refusal does not equate to a permanent rejection.
- Founders are advised against reacting negatively to rejection, as the industry is small and these individuals can provide valuable learning opportunities.
- Founders should avoid getting "too passionate" or taking feedback personally, instead remaining logical and sticking to the numbers.
- Pitching requires speaking succinctly and reaching key performance indicators quickly to accommodate investors pitched frequently.
- Founders must articulate a story capable of building a multi-billion dollar company to satisfy institutional funds.
- Providing insights to investors unfamiliar with the business is viewed as an opportunity to teach rather than a negotiation hurdle.
- Founders should admit to not knowing specific terms, suggesting they "sleep on it," and should clarify they are first-time founders when necessary.
- Founders are expected to face moments where they are questioned about their persistence, requiring them to stick with their mission.
- Founders should maintain confidence in their own business knowledge, recognizing they are likely 100 to 1,000 times smarter about the business than potential investors.
- Founders who do not want to raise money should not do so simply because others are, as not every venture needs external funding.
- A fast and efficient fundraising process is critical, as a prolonged process can destroy a company.
- Building a product and creating value is expected to make potential investors much more inclined to invest capital.
- Founders must plan to read extensively and consult smart people to understand deal terms, board control, equity grants, and their impact on company trajectory.
- Fred Wilson's "MBA Mondays" blog series is identified as a helpful resource for learning specific fundraising terms.
- Confidence in pitching involves discussing accomplishments, knowing when to negotiate or decline gracefully, and reminding oneself that hostile interactions do not define the business.