Welcome to episode 10 of Fundraising Demystified. In this episode, we had the pleasure of speaking with George Richardson, the CEO of AeroCloud, a cloud-native airport management & passenger processing platform. They've recently raised a $12MM Series A bringing their total capital raised to $16M+.
We talk about how George switched from being a professional race car driver to starting his own company, how they timed the fundraise with only 2-3 months runway left, the fundraising process that helped them book 100 investor meetings & close the round in just 3 months. George is based out of the UK and shares some incredible stories and advice with founders seeking capital. Let’s dive in.
Aerocloud was born out of the idea to provide airport executives with crystal ball-like predictive tools using AI and software. George saw an opportunity to disrupt the industry by targeting small to medium-sized airports that lacked innovators. The goal was to create a platform that would revolutionize airport management and passenger processing, offering a fresh perspective to an industry in need of innovation.
Today, Aerocloud has raised a total of around $16 million, with a recent Series A funding round securing $12 million. The company has come a long way since its inception and continues to grow.
One of the key challenges for any founder is finding the right investors, and timing their fundraising efforts. George shares his insights on how Aerocloud approached the process. They spent about a month building a strong fundraising process, recognizing that success in business is often a result of hitting numbers and having the right intentions.
When it came to finding seed investors, George leveraged his network and contact book. He believes that speaking to enough people eventually leads to finding investors who are interested in supporting your venture. He also emphasizes the importance of investor crossover, as co-investing can be beneficial and create a strong team dynamic.
George stresses the need for founders to factor in legal processes, which can sometimes be lengthy and challenging. From his experience, he recommends setting aside a minimum of five weeks for the legal aspects of fundraising.
Choosing the right investors is crucial for the long-term success of a company. George shares his criteria for selecting investors, including the size of the fund, their ability to provide follow-on capital, and their focus on B2B enterprise SaaS. He values his investors who have consistently supported Aerocloud through multiple funding rounds, showcasing their commitment to the company.
When it comes to board members, George looks for individuals who won't pressure him to sell too early and who have relevant operational experience. He believes that founders should carefully consider who they accept into their cap table, focusing on those who align with their vision and goals.
George outlines his criteria for investing in companies and founders. He looks for companies that disrupt large legacy incumbents and operate in markets dominated by a maximum of ten companies. Additionally, he seeks founders who have the ability to stay committed to their vision and overcome challenges.
One of the key questions George asks founders is about their hiring process. If a founder can demonstrate a solid hiring strategy, it increases their chances of receiving investment. However, George emphasizes that each company's unique circumstances should be taken into account when evaluating its fundraising potential.
George's final advice for aspiring entrepreneurs is to maintain persistence and determination. He believes that those who possess a hunter's nature and a drive to win will ultimately succeed. However, he cautions founders to be wary of the challenges and risks that come with entrepreneurship, urging them to be careful when making critical decisions.
As we wrap up the conversation, George extends an offer to provide 30 minutes of his time per week for advice on running a company or raising a seed round. He hopes to create opportunities for others, just as he has found in his own journey with Aerocloud.
In conclusion, George Richardson's story with Aerocloud is a testament to the power of innovation, persistence, and building the right team. From racing cars to revolutionizing airport management, George's journey is an inspiration for all aspiring founders looking to conquer the fundraising landscape.
Links mentioned:
AeroCloud website - https://aerocloud.com/
Follow George on Linkedin - https://www.linkedin.com/in/george-richardson-a7520615a/
On Block / Off Block Podcast - https://open.spotify.com/show/5b7PiXHek6FypzYIafb4Y5
Hosted by Jason Kirby - https://www.linkedin.com/in/jasonrkirby/
Email Jason at jason@thunder.vc
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