We're excited to announce the latest episode of Fundraising Demystified, where 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 at that point in time, 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.
Links mentioned:
Follow Caitlyn on Linkedin: https://www.linkedin.com/in/caitlynkr...
Nalu Bio: https://www.nalubio.com/
Hosted by Jason Kirby - https://www.linkedin.com/in/jasonrkirby/
Email Jason at jason@thunder.vc
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