Clara Brenner (Tumml Accelerator) at Startup Grind 2016

TL;DR

Clara Rener, the co-founder and CEO of Tummel, shares insights on raising seed funding for early stage businesses addressing urban challenges like transportation, waste, resource management, and homelessness.

Transcript

hey guys how are you doing it's the last Talk of the day uh my name is Clara rener I'm the co-founder and CEO of tummel tummel is uh an organization based here in San Francisco with the mission of empowering entrepreneurs to solve City problems and we do that by investing in really early stage businesses that we think have the potential to address ... Read More

Key Insights

• ✋ Seed funding is becoming the new Series A, and startups may need to raise multiple seed rounds due to higher expectations from series A investors.
• 🥅 Investors have different motivations, financial goals, and traction expectations, so startups should tailor their pitches accordingly.
• 🌱 Impact investors are difficult to find at the seed stage, and crowdfunding platforms may not attract grant funding without other capital sources.
• 🌥️ Startups should focus on target customers, demonstrate technical expertise, and showcase the potential for large-scale impact.
• 🤨 Relationships with investors and industry organizations can be valuable for networking and raising awareness about the startup.
• 😫 Startups should set realistic valuations by researching market comparables and seeking advice from industry experts or bankers.
• 🌱 Convertible debt or equity is commonly used for seed rounds to defer valuation discussions and prioritize execution.
• 🎏 Investors prefer startups with traction, passionate customers, repeat usage, and potential revenue streams.
• 🥺 Having a lead investor and solid unit economics can increase the attractiveness of a startup to investors.
• 😒 Startups should create a comprehensive list of potential investors, starting with at least 100 targets, and use platforms like AngelList for research.

Questions & Answers

Q: How does Tummel select startups for investment?

Tummel looks for startups solving problems identified by mayor's offices that haven't been solved yet. They focus on transportation, homelessness, water utilities, and job training.

Q: What strategies have Tummel companies used to raise seed funding?

Tummel companies have targeted high-profile investors, used crowdfunding platforms, approached industry experts, and built partnerships with leaders in the urban space.

Q: What should startups consider when pitching to different types of investors?

Startups should understand the motivations, financial expectations, and traction requirements of different investors. For example, angel investors may prioritize exit strategies, while venture capitalists may look for long-term commitment from founders.

Q: How can startups tailor their messaging to investors?

Startups should focus on the math: the amount they are raising, the expected equity loss, and the potential return on investment. Additionally, they should highlight their team's skills, milestones achieved, and scalability of the business.

Summary & Key Takeaways

• Tummel empowers entrepreneurs to solve urban problems and invests in early stage businesses tackling core urban challenges.

• The company provides office space, mentorship, and funding to selected startups.

• Clara discusses case studies of Tummel companies in transportation, homelessness, water utilities, and job training, sharing their strategies for raising seed funding.