Welcome to the Thunder Founder Newsletter Issue #28!
We have just launched our new weekly podcast for founders, where we interview founders who recently raised capital covering topics related to fundraising, hiring, scaling, product development, marketing, and more.
Our podcast, Fundraising Demystified, features interviews with successful founders who share their insights, stories, and advice on how they navigated the fundraising process. You will also hear practical tips and guidance on raising a round in the current market climate. These founders were most likely in your shoes within the last 6-12 months.
You'll learn from the best, avoid common pitfalls, and get inspired by the journeys of other founders.
Search for "Fundraising Demystified" to find us on your favorite podcasting platform. Let us know what you think by replying to this email or by subscribing to your favorite podcasting platform. We've released 2 amazing episodes already, check them out below.
Fundraising Demystified: Podcast Introduction
Episode 1: Jeff Beck, Co-founder, AnswersNow
In this episode, Jason Kirby talks to Jeff Beck, CEO and co-founder of Answers Now. Jeff, a licensed clinical social worker, shares his experience of raising an oversubscribed Series A of $11 million for his platform that enables autism support.
Here are the main topics discussed in the episode:
- Jeff's fundraising journey for his healthcare startup
- Tips and tricks for fundraising, including building relationships with VCs as a first-time founder and diligence potential investors
- Insights into the fundraising landscape and how to succeed
- The complexity of Jeff's business and how they have been able to successfully improve outcomes without the need for in-person visits
- The lessons learned from the convertible note structure
- The challenges of balancing fundraising with running a business
- Tips for founders seeking to raise funds
Here are some key takeaways from the episode:
- It's important to have a clear idea of how much you want to raise and what you want to use it for
- Focus on telling a strong, compelling story to attract investors
- Pay attention to body language when meeting with investors
- Understand the motives behind investor decisions and be prepared for the unexpected
- Focus on building strong teams, being transparent with customers, and prioritizing mental health
Episode 2: Caitlyn Krebs, Co-founder, Nalu Bio
In this episode, Jason Kirby interviews Caitlin Krebs, co-founder of Nalu Bio, a biotech company working with cannabinoids and chemistry. Caitlin shares her inspiring story of overcoming challenges as a female founder and successfully raising $12 million in Series A financing for her company.
Here are some of the main topics discussed in the episode:
- Challenges faced by female founders in securing funding in the cannabis industry
- Importance of diligence for entrepreneurs in deal-making
- Strategies for juggling work, family, and personal health as a founder
- Understanding the growth trajectory of a company before and after raising capital
- Factors to consider when investing in a company operating in the cannabis industry
- Valuation and negotiation process for a Series A term sheet
- Overcoming hurdles from investors who don't understand or agree with a company's approach
Here are some key takeaways and lessons from the discussion:
- Entrepreneurs should focus on finding investors who are fully committed and believe in their vision, rather than wasting time on those who do not have capital or are not upfront about their intentions.
- Persistence and maintaining good rapport with investors are crucial for founders who receive rejections. Successful outcomes by diverse founders will set new patterns for investors to follow.
- Entrepreneurs should be prepared for the due diligence process that comes after the term sheet. Keeping in touch with VCs, even if they are not funding the company, can lead to future funding opportunities.
- Being capital efficient is one of the core strategies of a business. Founders should be aware of the size of the company before and after raising capital to understand the growth trajectory of the team around them.
- Credibility and trustworthiness of the team, differentiation, and leveraging team members from other industries are important factors for VCs when investing in a company operating in the cannabis industry.
- Founders should focus on the capital that will allow them to operate and reach milestones, rather than worrying too much about dilution. It is crucial to make sure that you truly like and trust the investors before committing to the deal.
- Persistence and grit are key qualities for success in the entrepreneurial world. Despite the challenges, it's essential to stay persistent and have the grit to keep going.
Let's stay in touch:
Written by Jason Kirby - https://www.linkedin.com/in/jasonrkirby
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