Welcome to episode 7 of Fundraising Demystified. In this episode, we had the pleasure of speaking with Brandon Peterson, the CEO and co-founder of Geokey. We discussed various aspects of fundraising, including the importance of product market validation, the evolution of pitching at different company stages, and the need for founders to consider more than just monetary investments when seeking investors.
Brandon Peterson: From Family Business to Proptech Startup
Brandon Peterson comes from a family of serial entrepreneurs and started his journey in the small business sector. Eventually, he ventured into the multifamily housing space and created an innovative platform called Geokey, a cloud based mobile-access solution to doors, gates, elevators, for commercial real estate. They've recently raised a total of $4.2MM from investors
Peterson emphasizes the significance of mentorship and the trap that early-stage founders often fall into—the belief that they must know everything. He encourages humility and being open to feedback, even admitting when you might be wrong. This mindset allows for growth and adaptability in the constantly evolving business landscape.
Product Market Validation and the Fundraising Journey
Geokey's journey to success involved several key milestones. Peterson describes the process of bootstrapping, refining the product, and finding clients before expanding into new markets. It took approximately three years for Geokey to identify the perfect fit for their product and fully commit.
The fundraising journey for Geokey involved raising a total of $4.2 million. Peterson highlights the importance of three crucial elements: people, product, and profit. Only when all three checkboxes are ticked can a startup be truly successful in its fundraising efforts.
Peterson also discusses the unique challenges faced by Midwestern startups, including the need for more big unicorns to emerge from the region.
The Art of Pitching and Identifying the Right Investors
Peterson shares his experiences of pitching to numerous investors, estimating that he has pitched to around 50 or 60 individuals. He emphasizes the need for founders to avoid lengthy, formal presentations and instead engage investors in meaningful conversations. The key is to establish a partnership and align values and communication expectations.
When it comes to identifying potential investors, Peterson advises utilizing your team and their networks. He highlights the importance of understanding whether your startup needs funding or strategic partnerships to achieve its goals. Today, starting a business requires having the best people around you and complementing each other's skills.
Standing Out in a Noisy Industry
Geokey faced challenges in a busy and competitive market, but their hardware-agnostic technology and patented solution set them apart. Additionally, understanding the numbers and diving deep into financials is crucial for all founders. By focusing on the three P's—product, people, and profit—startups can effectively plan for their financial needs and avoid unnecessary stress.
Looking Ahead and Connecting with Geokey
If you'd like to learn more about Geokey and their journey, visit their website at geokeyaccess.com.
We would like to express our gratitude to Brandon Peterson for joining us on the podcast and sharing his inspiring story of raising $4.2 million as a founder in Nebraska. His success serves as a testament to the potential for growth and innovation in the Midwest startup ecosystem.
Links mentioned:
Links mentioned: Geokey website - https://www.geokeyaccess.com/
Follow Brandon on Linkedin - https://www.linkedin.com/in/brandon-peterson-6ab6b997/
Hosted by Jason Kirby - https://www.linkedin.com/in/jasonrkirby/
Email Jason at jason@thunder.vc
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