Employee to CTO Co-Founder Raises $18M for Tech-Enabled Service
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Raising $18M in Capital With a Pitch Video Instead of a Pitch Deck
Frank Licea, CTO of Howdy, a hiring platform focused on connecting Latin American software developers with US companies, joined Jason Kirby on the podcast. Here are the key takeaways:
How Howdy started:
- Frank faced talent shortages while working as an engineering leader in Austin due to high competition and rising salaries.
- He saw existing solutions like freelancer platforms and big outsourcing firms weren't ideal for building long-term, quality teams.
- Howdy was born to provide a platform where US companies could hire, manage, and retain Latin American software developers as if they were local employees.
Bootstrapping vs. Y Combinator:
- Howdy began bootstrapping as they didn't see initial investor interest in their service-oriented business model.
- They achieved profitability early on, making their growth self-sustainable.
- Joining Y Combinator provided access to mentors, investors, and the potential for faster scaling.
Masterclass in Finding a Technical Co-founder:
- Frank shared his experience finding Jacqueline, his co-founder and CEO.
- Shared values and alignment on long-term goals were crucial for building a strong partnership.
- Offering equity splits that reflect the contributions and risks each co-founder takes is essential.
Fundraising experience:
- Howdy raised $3 million in seed funding after Y Combinator
- They waited until near demo day to maximize leverage and attract bigger checks.
- They used a video instead of a standard pitch deck to stand out and communicate their story effectively.
- They ended up raising a total of $18M from YC and Greycroft.
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