{"id":204822,"date":"2020-02-18T11:31:44","date_gmt":"2020-02-18T08:31:44","guid":{"rendered":"http:\/\/ww-vb.mine.nu\/w108\/define-the-why-and-plan-ahead\/"},"modified":"2020-02-18T11:31:44","modified_gmt":"2020-02-18T08:31:44","slug":"define-the-why-and-plan-ahead","status":"publish","type":"post","link":"https:\/\/hameed.nwar.uk\/sa\/define-the-why-and-plan-ahead\/","title":{"rendered":"Define the \u2018why\u2019 and plan ahead"},"content":{"rendered":"

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Fundraising can be daunting at the best of times, but when you\u2019re an early-stage startup founder<\/span><\/span> looking to raise your first million<\/span><\/span>, the idea<\/span><\/span> of having to pitch to investors<\/span><\/span> can be even more intimidating.<\/p>\n

How exactly do you go about planning your raise while also trying to get a business<\/span> off the ground?<\/p>\n

I spoke to three tech founders to get a better idea<\/span> about what the process entails.<\/p>\n

Pleo\u2019s Jeppe Rindom: Think about the \u2018why\u2019<\/h2>\n

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Jeppe Rindom is the co-founder<\/span><\/span> of Danish fintech startup Pleo, which offers a company<\/span><\/span> payment<\/span><\/span> card solution in hope of automating expense reports and simplifying company<\/span><\/span> spending.<\/p>\n

[Read: Your first step to raising \u20ac1M: Fewer investors and bigger sums]<\/em><\/p>\n

Pleo has raised \u20ac73.8 million ($80 million)<\/span> to date, having closed a\u00a0 \u20ac51.6 million<\/span> ($56 million)<\/span> Series B in May last year.<\/p>\n

Rindom describes raising his first million<\/span> as \u201ctangible endorsement that some other people<\/span><\/span> believed in our vision.\u201d<\/p>\n

\u201cThe biggest challenge<\/span><\/span><\/span> is the constant seesaw between securing diversified funding<\/span><\/span> while trying to find, mature, or instill your product<\/span>\u2013market<\/span> fit while scaling<\/span><\/span><\/span>, both in the market<\/span><\/span><\/span> and as a team<\/span><\/span><\/span>,\u201d Rindom added.<\/p>\n

So, how do you go about fundraising<\/span>? Now with the benefit of hindsight, the entrepreneur<\/span><\/span>\u00a0believes it\u2019s important for founders<\/span> to trust their gut and \u201cdefine why from the very start \u2014 not just what your idea<\/span><\/span><\/span> is, but why it matters.\u201d<\/p>\n

Soldo\u2019s Carlo Gualandri: Don\u2019t pick the easy option<\/h2>\n

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Carlo Gualandri, the founder<\/span> of Soldo, recently closed a \u20ac56.3 million<\/span> ($61 million)<\/span> Series B led by Battery Ventures and Dawn Capital, with participation from Accel, Connect Ventures, and Silicon Valley<\/span><\/span> Bank<\/span>.<\/p>\n

Soldo, which has so far attracted \u20ac76.6\u00a0million<\/span>\u00a0($83.2 million<\/span>), is Gualandri\u2019s fifth company<\/span>\u00a0and offers a pre-paid business<\/span> card and automated business<\/span> accounts.<\/p>\n

Raising the first million<\/span> was easy given his track record, Gualandri told me, but he acknowledged he could have done things differently.<\/p>\n

\u201cYou should always subject yourself to the highest level of challenge and criticism<\/span><\/span> because if you don\u2019t do it yourself, the market<\/span><\/span> will<\/span><\/span> do it for you and the world can be very unforgiving. So, in hindsight, choosing the easy path made me a little softer and I paid for it later on.\u201d<\/p>\n

Goodlord\u2019s William Reeve: Planning is key<\/h2>\n

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William Reeve, who previously co-founded LOVELFILM.com and Secret Escapes, is the CEO<\/span> of\u00a0Goodlord, a lettings platform in the UK<\/span><\/span>.<\/p>\n

To date, the London-based startup has raised \u20ac19.4 million (\u00a316.2 million<\/span>) and made headlines<\/span> after closing a \u20ac2.4 million<\/span> (\u00a32 million<\/span>) Seed in May 2016, followed by an \u20ac8.2 million<\/span> (\u00a37.2 million<\/span>) Series A in March 2017, and an \u20ac8 million<\/span> (\u00a37 million<\/span>) Series B in October 2018.<\/p>\n

Reeve hasn\u2019t been involved with Goodlord from the very beginning but explained that Goodlord\u2019s<\/span><\/span> first raise under his watch<\/span><\/span> coincided with steering the business<\/span> in a new direction.<\/p>\n

\u201cIt meant the fundraise<\/span> was actually a humbling process as it showed how people<\/span> were willing to back us whilst we changed track,\u201d Reeve explained.<\/p>\n

The big learning<\/span> at Goodlord, Reeve told me, was not in the fundraising<\/span>, but in what the business<\/span> did next.<\/p>\n

\u201cFor example, time and resources were lost by trying to re-platform the technology following a fundraise<\/span><\/span>. That sort of project<\/span><\/span> is something we wouldn\u2019t do again\u201d<\/p>\n

Raising your first million<\/span>, although difficult, isn\u2019t impossible: Just make sure you put in the hard work at the beginning, think about what you\u2019re trying to do and why, plan<\/span> accordingly, and consider raising larger sums from fewer investors.<\/p>\n

Like what you\u2019ve read? On Growth Quarters, we strive to go beyond generic \u2018fortune cookie advice\u2019 and learn directly from\u00a0<\/em>people<\/span>\u00a0<\/span>who have\u00a0<\/em>walked<\/span>\u00a0<\/span>the\u00a0<\/em>walk<\/span><\/span>. And this summer, at\u00a0<\/em>TNW Conference 2020\u00a0in\u00a0<\/em>Amsterdam<\/span><\/span>, we\u2019ll take Growth Quarters\u00a0<\/em>offline<\/span>\u00a0<\/span>with a vibrant\u00a0<\/em>program<\/span>\u00a0<\/span>dedicated to sustainable<\/span>\u00a0business<\/span>\u00a0<\/span>growth. Hear from those leading the world\u2019s most successful\u00a0<\/em>companies<\/span>\u00a0<\/span>and get actionable insights to help you grow professionally.\u00a0<\/em>Get early bird tickets now\u00a0and\u00a0<\/em>learn more about the Growth Quarters track.<\/em><\/p>\n

\n Published February 18, 2020 \u2014 08:00 UTC\n <\/p>\n<\/p><\/div>\n