Daniela Andrade’s Post

The Fearless Fund announced it will permanently close its grant program for Black women business owners after a year-long battle over racial discrimination. At the risk of not everyone playing nice in the comments, I must say I thought at first this was a mistaken headline. Not only am I all for VC's and venture funds to establish specific criteria for minorities and other underfunded demographic groups, I have been a firm supporter in this effort. However, I've often felt and asked myself, "What about this founder? This startup would be a perfect for that startup grant, or venture fund?" But, they didn't qualify because of race, gender, nationality, or location. Will this ruling be the catalyst for more lawsuits like this one? I've never directly worked for a Venture Capital Firm or for Fund directly, nevertheless I've strongly felt on some level, that there are better ways to address these facts: • Just 0.48% percent of all the VC funding in 2023 went to Black founders. (Crunchbase) • Women hardly fared any better, with around 2% of VC money raised in 2022. "How about trying these two things. Give it a shot, what do you got to lose?' 1) VCs be more selective, take the time to see beyond the potential shiny but fake 🦄s. I know it's their job to choose the ones that are sexy, like space, EV, and AI. What if an industry standard agreement 🤝 is agreed upon which all VCs adhere to invest a minimum of 18% in the underfunded founder led startups mentioned earlier? 2) VC Firms incentive VCs and scouts to find and fund the underfunded. Reward them with X. That, is progress. It's not ALL bad by the way. There's an uptick in interest from seed funders in startups–Steve Case ’s Rise of the Rest Seed Funds and Revolution Ventures are part of it. Other examples of secondary-market-focused VCs include Village Capital and funders such as Urban Catalyst that focus on startups sited in Opportunity Zones. BUT, it's not enough. #VentureCapital #Funding #Founders #Startup #VC

💡 SaaStock Reflections: 5 Fundraising Insights for Early-Stage Founders. Last week at SaaStock, I found myself bouncing between two extremes—presenting to early-stage founders navigating their first fundraise on Monday and tee-d up to discuss the high-stakes challenges of CEOs with >£1bn valuations on Wednesday. The contrast reminded me of one thing: the learning curve never stops, whether you're just getting started or leading a unicorn. For founders getting started, the world of fundraising can be one of the biggest learning curves. So, I’ve pulled together the top takeaways from Monday’s session to help demystify the process for those thinking about raising for the first time. Here’s what I’ll break down this week: ❓What’s happening in VC fundraising? ❓The ‘Power Law’ and why VC isn’t right for 99% of businesses. ❓Alternatives to VC and when they make more sense. ❓How to choose the right VC for you. ❓How much to raise and when is the best time to do it. 1️⃣ So, what’s happening in VC fundraising?? 😕 Still stress in the system. It is hard to speak with conviction (markets hot, markets not, valuations back up, valuations down, down rounds over…a lot of pain still to come etc). The reality is 2020/21 were anomalies (unfair yardsticks to measure against) BUT covid, gov stimulus, inflation, monetary policy, political uncertainty and war have and still massively impact fundraising. 🪟 IPO window closed and M&A activity weak. Public SaaS multiples are way down relative to a couple years ago - 80% of SaaS companies that went public in 2020/1 are trading below their issue price. The IPO window has been closed and M&A activity weak. ⌛Liquidity for VCs has stretched to longer time horizons. According to Carta only 9% of 2021 funds have seen any return vs 25% for the 2017 vintage at the same checkpoint. 3 years in is early for a fund, but it is an important mark as it is when GPs start looking to raise their next funds. 🫰So, LPs are more selective. Whilst returns are stretching out to longer time horizons, the NASDAQ is on a rip and interest rates are high, so alternatives to VC have become relatively more attractive to LPs. So, LP capital is being more selective. Less money is going to fewer VCs compared to a couple of years ago (“flight to quality” for LPs). ✈️ What does this mean for founders? It is relatively harder to raise now than a few years ago. Seed to A conversion had dropped to 15% from 30%+. Ultimately, VCs have refocussed on finding companies best suited to “traditional VC return profiles” (“flight to quality” for VCs, too). Founders raising VC are held to an incredibly high bar. Tomorrow I will cover the mathematical reality of the ‘Power Law’ and why VC isn’t right for 99% of businesses. #VC #fundraising #saastock #albionVC

📢 Exciting Event for Female Founders! 📢 Boston New Technology and Prepare 4 VC are thrilled to promote an exclusive event hosted by our ecosystem partners at The Startup Station. Startup Station has teamed up with StartupSchool.NYC, to provide something especially designed for early-stage female founders: “The Emotional Side of Venture Investing - How Do Investors Evaluate Female Founding Teams?” We all know the fundraising journey for female founders is challenging, and the stats can be disheartening. But this is NOT a reason to give up. This event will help you understand how VCs evaluate the only non-numerical component of a venture - a founding team - and how you can turn this information to your advantage. 🗓️ Date: June 27th 🕛 Time: 12 PM EST Register: https://lu.ma/lse01zqw 🎙️ Speakers: Victoria Yampolsky: Serial entrepreneur, strategic CFO advisor, and expert in financial modeling and valuation. Victoria has helped founders raise $50M in venture capital. Founder of the Startup Station. Mark Gold: Award-winning managing director who built a $450m portfolio of early-stage startups from scratch for The City of New York. Founder of StartupSchool.NYC and former Managing Director of 2020 Startups Accelerator. 🔈 Special Guest: Jeanne Mariani Sullivan: Veteran venture capital investor with over 25 years of experience. Early investor in Oracle. Former Board of Trustees member of the New York Hall of Science and the Global Board of Trustees of Astia. 💡 Why Attend? Learn the specific characteristics investors look for in founders. Discover the key questions investors use to determine if you possess those traits. Gain immediate actions you can take to succeed in fundraising. UPDATE: More than half sold out! Register now! Don’t miss this unique opportunity to gain the knowledge and tools you need to excel in your fundraising efforts. Secure your spot today! #FemaleFounders #VentureInvesting #StartupStation #StartupSchoolNYC #BNT #Entrepreneurship #Fundraising

"Gen Z doesn’t want to work!" It’s a myth I’ve heard often, but data from Apeiron Ventures' recent research paints a very different picture. Over 62% of Gen Z participants in Europe expressed a strong desire to start their own business within 3–5 years - a clear sign they’re not anti-work but redefining it. It’s also fascinating to see their approach to mentorship and funding. Collaboration and teamwork are central, but they’re keen to maintain autonomy. With 54% showing interest in raising venture capital and others exploring crowdfunding, Gen Z is crafting a new model for leadership and innovation. Far from rejecting work, they’re reshaping it to align with their values. If this is the future of entrepreneurship, it’s an exciting one! #GenZ #FutureEntrepreneurs #SocialImpact #Innovation

EXCLUSIVE FUNDRAISING WORKSHOP Psst! Psst! There's an exclusive event happening in New York April 16-17. 🤫 (Which is why we're posting this on a Friday evening. If you're fortunate enough to see this, read on...😊) We've gathered a group of venture capital and fundraising professionals, experts, and founders to help startup founders succeed in raising capital. At this workshop, you'll have the unique opportunity to gain valuable insights from VCs, including HubSpot Ventures, on their investment criteria for startups. You'll also collaborate with a skilled expert in strategic storytelling to craft your startup's perfect pitch. The event starts with an informal gathering on the evening of April 16. This is your chance to break the ice with drinks, bites, and great conversation. It's the perfect opportunity to connect with fellow workshop participants, share insights, and build relationships in a relaxed and friendly atmosphere. Then, on the 17th, join us for a 6-hour workshop where leading investors and experts will share valuable insights about effective fundraising strategies, including how to craft a compelling pitch deck. Participate in hands-on workshops to enhance your startup's visibility and appeal. Connect with 125 other startup founders, investors, and experts to gain invaluable insights from top VCs. You'll learn from: * Arjun Mahadevan, CEO of doola and winner of HubSpot's Million Dollar Pitch Competition last year * Matt W Gore of OPTIO - Strategic Storytelling * Olivia O'Sullivan, partner at Forum Ventures * Nate Morgan, an investor at HubSpot Ventures * Kelsey Aina, Head of Startup Partnership for HubSpot for Startups Because this event is exclusive, you'll need to contact either Annie Fei or Melissa Braxton-Rasumoff for more deets. Good luck! (photo used is by Chase Baker on Unsplash)

Excellent points on startup fundraising. Highly relevant and pratical tips for founders... 👇 Yesterday at OneEleven it was great to hear insights from: - William Ma, CFA - VC at MaRS Investment Accelerator Fund - Azrah Manji-Savin - Co-Founder at Syzl - Nafis Ahmed = Director at YSpace, York University My top takeaways from the AMA for startup fundraising: 🎯 Qualify your investors: VCs will take meetings, so don't waste your time on ones that aren't a fit. Do they invest in your vertical? Are they actively writing cheques? 📖 Prep work = Quicker fundraise: before you even need a dollar, make sure that you are curating your list of "qualified" VC funds. Look on Crunchbase, ask fellow founders, scour LinkedIn. 💸 ABF ➝ Always Be Fundraising: the best to time to ask for money? When you don't need money. As soon as you get your existing round, start building relationship for the next. So the time you need money, they know you and your startup's successes. 📶 Fundraise on Traction: especially in the pre-seed and seed stage, it's not enough in this funding environment to fund on a concept. Show that customers are using and/or paying. 🤔 No's = Data Points: the most resilient founder are those that don't take no's personally. It sucks to hear a no, but don't leave without a clear understanding of why. VCs owe you a response, even if you have to follow up a couple times! Any other advice on fundraising? Leave your comments below, I'd love to hear them. Happy scaling 🚀 P.s. shout out to Mike Azzano for moderating and the Boast team for a great event!

As a founder, I've noticed two polarizing views on LinkedIn regarding startup funding: VC money versus bootstrapping. Many discussions tend to villainize VC funding while glorifying the bootstrapped path. However, 𝗯𝗼𝘁𝗵 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵𝗲𝘀 𝗮𝗿𝗲 𝘃𝗮𝗹𝗶𝗱, and as a founder, you don’t have to commit to just one until your company either succeeds or fails. It’s entirely possible to switch between these strategies as your journey unfolds. If you start by bootstrapping, seeking VC funding later when you’re ready for growth is perfectly acceptable. Conversely, if you’ve previously raised funds, returning to bootstrapping when you have a financial cushion is also a viable option 🔄. Raising VC money should not be the sole focus; it’s merely 𝗼𝗻𝗲 𝘁𝗼𝗼𝗹 in your toolkit for driving success. Securing one round doesn’t lock you into a never-ending cycle of fundraising until Series Z. Ultimately, it’s up to you as a founder to determine what’s best for your company at any given time. For early-stage founders like myself, I recommend exploring both paths early on to see what resonates with your vision and aligns with your growth stage. If you choose to pursue VC funding, timing is crucial—good VCs suggest starting the process 3-4 months before your runway runs out to ensure you have the resources needed to keep operating smoothly. Embrace the flexibility in your funding strategy, and remember that the right choice will depend on your unique circumstances! Feel free to adjust any part of it to better match your voice! #startups

Here's the harsh reality of being a black founder: We must build our businesses as if an investment will never come. Because the reality is they most likely won't. Being a startup founder *requires* a certain amount of delusion. You have to BELIEVE you can win, even when the odds are stacked against you. However, you have to remain within the realm of possibility. If you're a black founder and you're not looking at the investment history of the firms you talk with, you're doing yourself a disservice. If a VC has zero black founders in their portfolio, there's a very, VERY, low chance you'll be the first. Instead, focus on building a business on the pathway to profitability, REGARDLESS of if you receive funding. That way you're inviting investors to be part of your success, instead of asking them to bankroll it. Is it fair? No. But the reality is that since the 1980s only ~1,200 companies founded by a Black or Latino person have ever raised over $1M in venture capital. Recognize the realities of our situation and use that data to your benefit. Don't fall into the false belief that we have the same opportunity as our white counterparts, because the truth is we don't.

Sharing this because, much like the insight I shared with yesterday’s post, it represents a vital truth that we all need to grasp. Arjay Ruggles stands out as one of the most remarkable founders I’ve had the privilege of encountering in my journey (and believe me, that’s a significant number!). Our conversations have delved deep into the challenges he’s faced due to institutional racism within the tech industry — whether those obstacles were deliberately placed by others or not. Despite this, Arjay has continually overcome these hurdles, dedicating himself to creating outstanding products that genuinely make a difference in people's lives. His guidance is invaluable, especially for BIPOC entrepreneurs or indeed anyone from a marginalised community striving to make their mark. Focusing on the road to profitability is key to achieving your goals. Getting entangled in the expectations of others, who may only be looking to appear as though they’re making a difference, can only lead to discouragement and make your aspirations that much more difficult to realise. #startups #founders #diversity #investment

Less than 2% of all venture funds go to women-founded companies! We've heard the stats, so let's meet some women striving to make a difference. Allison Byers, founder and CEO of Scroobious, is quickly driving innovation by removing barriers to partnership among diverse founders, investors, and service providers through scalable online education, community, and data-driven curation. She co-authored California Senate Bill 54, which was signed into law and requires venture funds to report diversity metrics. Her TedTalk would be titled Fundraising for the Rest of Us (also a book). "For far too long, we have relied on VC as the primary funding source for our innovation economy. However, the VC business model is not appropriate for most startup founders and small business owners. It has also evolved into one of the most inequitable resource distribution systems. Only 1.8% of venture capital dollars go to women-led founding teams and only 0.5% go to Black founders. These numbers haven't meaningfully changed in decades and are declining. We are in a funding crisis, which inhibits economic growth and generational wealth creation." Angelica Maestas is the Founder and General Partner of SevenFive Ventures, where she leverages extensive healthcare and startup experience to drive their mission of improving health equity. They invest in early-stage health tech startups that make healthcare more accessible and effective, focusing on solutions for underserved communities. On LinkedIn, you'll find her talking about her work in healthcare. "This drive for impact has served as my north star in my professional pursuits and is deeply rooted in my lived experience. As a child, we were often homeless. Though my mother often worked multiple jobs, she didn’t have the education or access to resources that could’ve afforded us a safe and stable home environment, much less, quality healthcare. I’ll remain in this space until I see the desperately needed impact in making healthcare accessible to the historically overlooked." Carrie Colbert is the founding and general partner at Curate Capital, founded in 2021 to support female-founded consumer brands. Carrie and team closed fund 1 in 2022 at $15 million - 50% oversubscribed, with nearly 80% of investors being women, including influencers with over 10 million followers. As an influencer herself, Carrie realized the power of influencers investing and has been a pioneer of the #influentialinvesting concept. She often talks on LinkedIn about Empowering Women Entrepreneurs. "I champion increased investment in women-led businesses, advocating for more opportunities and resources to support female entrepreneurs. Increasing Representation of Women in Venture Capital: I passionately support expanding the presence of women in the venture capital industry. I strive to advocate for more excellent representation and leadership roles for women investors to ensure a more balanced and equitable investment ecosystem.