FD Ep. 30 Frank Licea

Employee to CTO Co-Founder Raises $18M for Tech-Enabled Service

-------------------------------------------------------------------------------------------------------------------------------------------

New Government Law Could Cost You $500/Day!?

Congress passed the Corporate Transparency Act (CTA), and now qualifying businesses must submit a Beneficial Ownership Information Report or be subject to government fines up to $10,000 or $500/day with potential jail time.

It's a harsh punishment, but we've partnered with BOI Zen to make easy to get compliant and stay compliant to avoid the government from taking your fresh capital.

You'll never have to worry about getting fined with our friends at BOI Zen

Get Compliant Today

-------------------------------------------------------------------------------------------------------------------------------------------------------------

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.

Watch it Now

-------------------------------------------------------------------------------------------------------------------------------------------------------------

Free Fundraising Resources

🤓 - Free pitch deck reviews - Submit your deck

💸 - Access working capital fast - Explore options for free

😍 - Free list of AI Recommended VCs - Apply for free

👨‍💻 - Free fundraising coaching session - Schedule 15 minutes with us

-------------------------------------------------------------------------------------------------------------------------------------------------------------

Premium Resources

🗓️ - Book a one-hour private capital strategy call - Book Now

💫 - Pitch deck design services for founders by VCs - Decko

💼 - Startup Legal Services - Bowery Legal

📚 - Startup Friendly Accounting Services - Chelsea Capital

-------------------------------------------------------------------------------------------------------------------------------------------------------------

Upgrade to Thunder Premium to Unlock:

• Access to VC firms' team tabs to see active partners of the fund & their LinkedIn
• Navigate a VC's portfolio to see relevant portcos or competitors, quickly find their founders on LinkedIn to connect with them, and request warm intros 

  A downloadable CSV with the investor emails & LinkedIn URLs
• Ability to filter your matches and adjust your profile
• LiteCRM to track your progress
• Request intros to VCs directly through the platform
• Get our fundraising guide on how to increase your odds of getting a meeting
• Upgrade to lifetime access (one-time fee of $497) and get a free coaching session

Upgrade Now

-------------------------------------------------------------------------------------------------------------------------------------------------------------

Let's Connect:

• Hosted by Jason Kirby - https://www.linkedin.com/in/jasonrkirby/
• Subscribe to our weekly newsletter for market and industry news and tips when it comes to raising capital and growing your business - https://join.thunder.vc
• Seeking to raise capital? Get your list of target VCs by creating a free profile here - https://web.thunder.vc
• Looking to raise debt? Explore tailored debt options for free by completing a profile at https://debt.thunder.vc
• Thank you for being a loyal subscriber to Fundraising Demystified. We appreciate your support, and we're excited to continue bringing you more inspiring stories from successful founders.