Funding 101 - Fundraising Resources for Founders

Making of a Unicorn Founder #49

Written by Jason Kirby | Nov 21, 2023 3:44:00 PM

What's Below in Issue #49:

📰 - A look into what makes a unicorn founder

📊 - Data behind where unicorn founders come from

🎙️ - Podcast Ep. 24 - Season 1 Finale

🆓- Free startup resources

💵- Premium startup resources

 

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Making of a Unicorn Founder

This week we had a founder ask, “Does attending Harvard Business School guarantee my startup will be successful?” 

Obviously not.

While he was not truly serious, he did highlight a thought many founders we meet have – if I only had studied something else. If only I had studied somewhere else. If I only had worked somewhere else -THEN, I would easily raise this round.

However, we want to highlight that the path to successful entrepreneurship is much more diverse than what is often seen as the golden path to Silicon Valley. While certain schools have produced more Unicorn founders than others, it would be a mistake to think that it is the most common way to become a successful founder. 

A recent study by Endeavor looked at 200 Unicorn founders to study their backgrounds and found several fascinating and counterintuitive findings. However, working with founders at Thunder, we can see these trends amongst our founders as well.

  1. Thinking Harvard – think again. Only 1/3 of unicorn founders have bachelor’s degrees from top-level institutions. The number does rise to a bit less than 50% when looking at those who completed higher education. However, it is not a given path to success.
  2. Don’t drop out of school! 97% of unicorn founders have a bachelor's degree. Being able to finish a project to the end is a good indicator that the founder can see their startup to the end. Additionally, (as the next point explores) these degrees were the foundation for the first part of their careers.
  3. Founders have on average 10 years of industry experience before starting their own business. The stereotype of the “successful college dropout” is a misconception. Founders need real-world experience, build a network, and learn business skills from mentors. It is NEVER too late to begin a startup!
  4. The best way to learn is by doing. More than 50% of unicorn founders never worked at large employers and started at a successful startup where they learned the business knowledge and leadership skills, they needed to start their own business.
  5. Only 20% worked for an elite employer. It may seem that VCs love founders who work at large tech firms or the top consulting firms. However, these experiences don’t necessarily give founders the skills they need to lead a startup. Having a varied work experience in the startup world is much more likely to lead to success.
  6. Being international is a good sign. 55% of US-based unicorn founders are immigrants or second-generation immigrants. Many speak about how the struggles they had to overcome or see their parents overcome, taught them the grit and determination they needed to succeed.
  7. Studying business is not very useful. While knowing the theoretical ways to run a business and handle the finances is great, it does not help create a product. 61% of unicorn founders have studied science or engineering while only 19% studied business.

When thinking about how you don’t have all the “classic” founder characteristics, realize that most of the unicorn founders did not. There is no single path to successful VC fundraising and building a unicorn. Embrace your unique background and realize that it is the reason you WILL succeed. 

Relevant Articles to Unicorn Founders' Backgrounds

  • Where Do Unicorns Come From? - 👉 Endeavor
  • Why the Myth of the College-Dropout Billionaire Is So Enticing - 👉 Entrepreneur
  • Unicorn CEOs: What did they do before? - 👉 Medium
  • What Makes A Unicorn Founder? Not What Silicon Valley’s Conventional Wisdom Says. - 👉 Forbes

Data Corner

Where Unicorn Founders Come From

To visualize the article above, here is a chart produced by Endeavor to track the background of the 200 unicorn founders.

Noticing the variety of pathways to success is important for every founder to realize. There is no single correct path.

Fundraising Demystified Episode #24 is Live!

This is the final podcast for Season 1. Enjoy your holidays, and we will be back in January with new episodes.

This week on #FundraisingDemystified, we have the privilege of hosting Jordan Bantista, the acclaimed PR expert for startup founders. With an impressive background working with billion-dollar startups like Yelp Ro, and Article, Jordan shares his invaluable insights on the importance of PR in the fundraising journey, how to get media coverage, and the power of storytelling for startups.

Jordan has been the driving force behind startups securing game-changing press coverage and making profound industry impacts. Tune in to uncover the art of crafting compelling story pitches, forging meaningful relationships with journalists, and crafting a PR strategy that will catapult your startup's visibility to new heights. If you're eager to harness the formidable force of PR and propel your fundraising success, don't miss this must-watch episode! 🚀

Key takeaways from this episode:

  1. PR is crucial for startup success: PR helps tell your personal and company story, differentiate from competitors, and stay top of mind for media opportunities. It's an essential component of your overall marketing strategy.
  2. Engage with media early on Building relationships with reporters through media relations and thought leadership can help you get on their radar before a capital raise. Don't wait until the last minute!
  3. Incorporate PR into your marketing strategy: PR should be integrated into your comprehensive marketing plan, alongside advertising, SEO, events, and community management. It's not a standalone effort but rather a crucial component that can amplify your overall brand visibility and success.

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: 

  1. Access to VC firms' team tabs to see active partners of the fund & their LinkedIn
  2. 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
  3. Ability to filter your matches and adjust your profile
  4. LiteCRM to track your progress
  5. Request intros to VCs directly through the platform
  6. Get our fundraising guide on how to increase your odds of getting a meeting
  7. Upgrade to lifetime access (one-time fee of $497) and get a free coaching session

Let's stay in touch:

Written 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
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