It’s time to dispel some common myths about fundraising.
I meet a lot of compelling founders that end up *rejecting themselves* for reasons that are simply myths — well, hopefully, no longer!
The myths:
MYTH 1: The “I need X”. Usually: I need to be a serial / exited founder. OR, I need to have attended Stanford, MIT, Harvard. OR, I need to have received an MBA.
Let’s not disqualify yourself so easily. 😉
There are many firms that back founders from all walks of life — even firms that *specialize* in some of the following founder archetypes: college drop-outs, immigrants, first-time founders, failed founders, underrepresented founders, PhDs, etc.
Successful founders can come in all shapes, sizes, and backgrounds — often, unconventional ones. Investors recognize that unorthodox paths can unlock new and refreshing perspectives.
Investors are not just seeking a template checklist of experiences for the founders they back. More importantly, it’s the qualities/skills/competencies gained from personal and professional experiences, and how that maps to success.
MYTH 2: I need to live in the Bay (or NYC).
COVID has expedited a remote-first working environment. We’re also seeing new start-up hubs (like Miami, my home base, and even places like Nashville and Raleigh) attracting notable VC funding.
Several businesses have been founded over the past 2 years while operating virtually. I’ve even heard anecdotes of co-founders (and several team members) not having met IRL yet.
A better way to rethink any hesitation around building outside of a big tech hub — how does your location best serve your business? How are you accessing the resources/talent you need to win? If you’re able to demonstrate successful execution in your chosen location, this concern is out. Also, there happen to be several firms that focus on “overlooked geographies” or identify as “geography agnostic” (like us).
MYTH 3: I need a co-founder.
Solo-founders are more common than you think. It depends on your business and gaps, but if you are equipped to go from 0->1, you’re not “alone”.
Some investors will pass on solo-founders (as some will pass on a certain sector or stage).
Not everyone will be your buyer, and that is perfectly OK.
MYTH 4: I need an investor network.
There are several firms that have an open application to pitch (like us) or respond to DMs / cold emails.
Investors are more accessible than ever, particularly emerging managers. It’s amazing the doors that open with a bit of hustle—even without a network.
MYTH 5: If I don’t raise in x weeks I’m a failure! 🙁
Most businesses take time to raise rounds. This is true especially in down markets, if you have a contrarian point of view, or if you’re not building in one of the “sexier” categories (eg web 3, climate).
Just because you don’t raise a lightning-fast round (more of an edge case than reality), it doesn’t mean your business doesn’t have merit. Don’t believe the hype.
