What is your number one tip for other entrepreneurs about raising money?
Ask A Founder with Kareem Aly, Co-Founder and CEO of Kabata, Almir Brljak, Co-Founder and COO of Sinn Studio, and Robert Thelen Co-Founder and CEO of Rownd
Tune in as we sit down with three visionary founders: Kareem Aly, Co-Founder and CEO of Kabata, Almir Brljak, Co-Founder and COO of Sinn Studio, and Robert Thelen, Co-Founder and CEO of Rownd. In this episode, these founders each share their number one tip for other entrepreneurs about raising money.
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Tips for Entrepreneurs Raising Money
We asked these founders what their number one tip about raising money would be for fellow entrepreneurs. Here’s what they said:
Be clear with your vision. Know what you’re going to build with the funds that you’re asking for.
Almir Brljak, Co-Founder and COO of Sinn Studio
Raise the right amounts so don’t raise too much. There’s no such thing as raising too little.
Robert Thelen, Co-Founder and CEO of Rownd
“Raise enough that makes sense. But don’t go out there and say, ‘I’m going to raise a $10 million round.’ Just have this vision. Raise a tiny percentage based on the risk that you have, and then you can raise another round, another round. You can have 10 pre-seed rounds before you have a seed round. The thing about the seed round is it’s just the round before the A. So you can keep on having pre-seed rounds as long as you want, but don’t raise too much money. We ended up leaving a few million dollars on the table, and I’m happy we did. We hit breakeven. It forces you to reach breakeven faster. It forces you to be very thoughtful about your money and it forces you to focus on one problem, not on 10.”
Don’t give up. Get used to hearing no.
Kareem Aly, Co-Founder and CEO of Kabata
“It’s very easy from the outside looking in to see these whatever, 5 million, 10 million, $50 million rounds, and think that this founder just had it so easy and had six term sheets, et cetera, et cetera. It almost never actually works like that. You probably get 10, 50, 100 nos first, and then you get that one believer who really believes in you, and then it kind of snowballs after that into a big round. So just stay the course. Don’t get down. Get used to people saying no. Most people are going to be hesitant and not believe in your product and your vision, but if you get that one person to believe, that’s what will drive you and make it worth it.”
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