Fundraising Advice from Female Founders

TL;DR

Female founders in Seattle share their experiences and advice on fundraising, highlighting the challenges they faced and the strategies they used to overcome them.

Transcript

okay hi everyone next part of the the session is going to be a fundraising panel where we have three ladies from the Seattle scene who is going to impart some advice on how they've they've approached fundraising and and some of the lessons that they've learned my name is Kirsty Nathu I'm one of the partners at Y Combinator I'm the CFO there so I lo... Read More

Key Insights

• 📊 Only 2% of VC funding in 2017 went to all-female founding teams, while only 12% went to mixed-gender teams, highlighting the need for increased gender diversity in fundraising.
• 💰 Raising funds for a medical device company proved challenging for one founder, who found success by appealing to investors' optimism for changing the world and their willingness to take risks.
• 🏢 The founder of The Riveter emphasized the importance of confidence and projecting a strong image when pitching to angel investors and early-stage investors who are largely investing in the founder.
• 💼 Startups should leverage warm introductions, utilize tools like LinkedIn, and explore their existing networks for potential angel investors who will invest in the founder rather than just the company.
• 💭 Perseverance and a good support network are key to coping with the emotional and challenging aspects of fundraising, with co-founders, family, and friends providing crucial support during the process.
• 🌐 Geographical differences in fundraising include Silicon Valley investors being more risk-tolerant and doing less due diligence, while New York investors are more focused on financials and exhibit more skepticism.
• 🔄 Fundraising strategies may vary when approaching individuals versus institutional investors, with a more professional, business-oriented approach working better for institutional investors.
• 🌟 Knowing your numbers inside and out is crucial when seeking investment, as investors expect confidence and a deep understanding of the financial aspects of the business.
• 🔑 Entrepreneurs are advised to plan their fundraising in advance, create a fundraising plan, and be prepared with an organized deck and a list of targeted investors. They should also seek feedback from experienced CEOs to improve their pitch.

Questions & Answers

Q: What percentage of VC funding in 2017 went to all-female founding teams and mixed-gender teams?

In 2017, only 2% of VC funding went to all-female founding teams, while 12% went to mixed-gender teams.

Q: How did Beth Kolko at Shift Labs approach fundraising for her medical device company?

Beth Kolko tapped into investors' optimism and desire to create global change, which helped her secure funding, primarily from Silicon Valley investors after participating in Y Combinator's demo day.

Q: What advice does Amy Nelson of The Riveter give about presenting numbers during fundraising?

Amy Nelson emphasizes the importance of knowing your numbers inside and out when pitching to investors, as it demonstrates your knowledge and confidence in your business.

Q: How did Kristen Hamilton at Karat cope with the lows of fundraising?

Kristen Hamilton relied on her co-founder and team for support, as well as her family and exercise, to cope with the challenging moments of fundraising. She also recommends seeking feedback from other CEOs who have successfully raised money.

Q: Why does Kristen Hamilton mention the importance of targeting warm introductions in fundraising?

Warm introductions from trusted connections increase the likelihood of investors taking the time to listen to your pitch and consider investing in your business. It establishes a level of trust and credibility.

Summary & Key Takeaways

• Beth Kolko, founder of Shift Labs, explains that fundraising for a med tech company can be particularly challenging, but tapping into investors' desire to change the world and think globally can help.

• Amy Nelson, CEO of The Riveter, emphasizes the importance of confidence, strong numbers, and professionalism when pitching to investors, whether they are individuals or institutions.

• Kristen Hamilton, CEO of Karat, highlights the significance of perseverance and building a strong support network to cope with the lows of fundraising, along with utilizing warm introductions and seeking feedback from other CEOs.