Female Founders Conference - Seattle | Summary and Q&A

TL;DR

Female founders share their experiences and advice on fundraising, emphasizing the importance of perseverance, building a support network, and knowing your numbers inside and out.

Key Insights

• ⚕️ Medical device company Shift Labs has raised around $2 million, largely from investors in Silicon Valley, who were more willing to take on risk and believed in the company's vision for global impact.
• 💼 Female forward workspace and community, The Riveter, has raised $720,000 in seed funding and is currently in the process of raising a seed round. CEO Amy Nelson emphasizes the importance of knowing your numbers and presenting your business as a strong opportunity to investors.
• 🧠 Predictive hiring platform Karat has raised $15 million over three rounds and CEO Kristen Hamilton highlights the importance of perseverance and building relationships with investors based on trust.
• 💪 Founders stress the significance of having a strong support network to help cope with the highs and lows of fundraising, including co-founders, friends, and family.
• 💡 Founders share advice they wish they had known when starting their fundraising journey, including sticking with the hard parts, having a clear plan and timeline, and getting initial practice pitches with less intimidating investors.

Transcript

hi everyone if you could take a seat that'd be awesome I'm Cadman yella I'm one of the partners at Y Combinator I wanted to thank the Riveter for hosting us here today I love this space I don't like I wish I lived in Seattle so I could work here every day so I'm cat I'm one of the partners at Y Combinator and for those of you who might not be very ... Read More

Questions & Answers

Q: How can founders leverage their personal networks when fundraising?

Personal networks can be a valuable source of early investment, as friends, family, and colleagues who know and trust the founder are more likely to invest in the individual's capabilities and potential success. These networks may also provide warm introductions to other potential investors, expanding the founder's reach. However, it is important for founders to approach these conversations in a professional manner, clearly presenting the business opportunity and demonstrating knowledge of the numbers and market potential.

Q: What strategies can founders employ to cope with the challenges and lows of fundraising?

Founders can rely on a strong support network, including co-founders, friends, family, and mentors, who can provide emotional support and guidance throughout the fundraising process. It is important to maintain perseverance and a positive attitude, as fundraising can be a long and difficult journey. Additionally, taking time for self-care, such as exercising or practicing mindfulness, can help alleviate stress and maintain mental well-being during the ups and downs of the fundraising process.

Q: What is the significance of knowing the numbers inside and out during fundraising?

Having a deep understanding of the financial aspects of the business, including revenue projections, market potential, and potential risks, is crucial when seeking investment. Investors want to see that the founder has a strong grasp of the company's financials and can articulate how their investment will generate returns. Knowing the numbers inside and out instills confidence in potential investors and demonstrates the founder's competence and commitment to the business. It also aids in adapting the pitch and addressing investor concerns or questions effectively.

Q: How can founders adapt their fundraising approach based on geographic locations?

Different geographic locations may have varying levels of risk tolerance and investment preferences. In Silicon Valley, for example, investors are more risk-tolerant and may require less due diligence, while financial investors in New York prioritize thorough due diligence before making investment decisions. When approaching fundraising in different regions, it is essential to tailor the pitch and key messages to fit the local investment climate and expectations. Warm introductions from local networks can also be beneficial in building relationships with investors in specific regions.

Summary & Key Takeaways

• Beth Kolko, co-founder of Shift Labs, shares the importance of tapping into people's optimism and desire to change the world when fundraising, and emphasizes the value of angel investors who invest in both the founder and the business.

• Amy Nelson, CEO of The Riveter, highlights the need to approach fundraising as a professional business conversation and to nail the numbers, as well as leveraging warm introductions and having a supportive network.

• Kristen Hamilton, CEO of Karat, emphasizes the importance of perseverance and leveraging personal connections when starting out with fundraising, and discusses the differences in fundraising strategies based on geographical locations and the stage of the company.