Fundraising Process: A Guide by Julia Collins & Sarah Kunst

Julia Collins and the Power of a Strong Brand

Julia Collins has achieved a significant milestone as the first African American woman to co-establish a venture capital-supported unicorn company. Consequently, it’s unsurprising that investors eagerly sought to support her subsequent endeavor, Planet FWD.

A Brand Built for Success

Investor Sarah Kunst draws a parallel between Collins and the highly successful brand, Supreme.

“Julia, much like Supreme, possesses an exceptional ability to cultivate a brand that represents a distinct set of values,” Kunst explained. “Astute investors recognize that aligning with a promising brand early on is crucial. A Supreme t-shirt retailing for $100 can easily command $1,000 in the secondary market.”

Kunst views her role as an investor akin to reselling sought-after sportswear.

Early Confidence in Collins’ Vision

The connection between Kunst and Collins predates the inception of Planet FWD. They both expressed a mutual desire for future collaboration.

Kunst proactively communicated to Collins her willingness to invest in any future project, even without a detailed business plan.

Lessons from Zume

Kunst’s confidence was solidified by Collins’ foresight demonstrated during her time with Zume. Initial reactions to Zume were skeptical, as Kunst remembers.

“Currently, the market features numerous companies valued in the billions within this sector,” she noted. “Prominent entrepreneurs, including Travis Kalanick, are actively exploring ghost kitchens – essentially, less optimized iterations of Zume Pizza’s robotic systems.”

Kunst referenced a quote from Wayne Gretzky, stating, “As someone from the Midwest with a slight interest in hockey, it’s important to anticipate where the puck will be, not just where it is.”

Investing in Planet FWD

Their professional relationship evolved into a friendship, and as Collins developed Planet FWD and prepared for fundraising, a strong foundation was already in place.

Kunst participated in Planet FWD’s initial seed funding round.

Planet FWD represents a continuation of Collins’ track record of identifying and capitalizing on emerging market opportunities.

The success of Julia Collins highlights the importance of strong branding and visionary leadership in attracting investment.

The Importance of Focused Execution in Fundraising

According to Collins, a key takeaway from her experience at Zume was the necessity of minimizing distractions and concentrating efforts on a singular objective.

She described a period of initial disorientation, particularly challenging as she simultaneously launched a company and acclimated to the Bay Area. However, she now possesses a heightened ability to filter out extraneous information and prioritize specific tasks, whether it's a single discussion, product refinement, or essential completion.

Collins emphasizes a deliberate approach to fundraising, a skill honed through successfully securing over $400 million in funding over the past five years.

Her guidance to founders includes establishing a clear start date, a defined completion date, and a well-structured fundraising pipeline before initiating pitches. Consistent tracking of progress throughout the pitching process is also crucial.

Collins illustrated this with her Series A fundraising strategy. She scheduled the launch for September 15th, targeting an initial group of 20 pre-existing investor relationships. All meetings were pre-booked prior to this date.

Remarkably, the round became oversubscribed before all 20 meetings concluded, necessitating careful consideration of investment allocations.

She highlights the value of “soft circling” as a vital component of this methodology.

“Establishing preliminary engagement with investors before formally entering the market can be advantageous,” Collins explained. “A ‘soft circle’ meeting allows investors to become familiar with the company and its potential without immediate investment pressure.”

The Value of Connection

A genuine rapport developed between Collins and Kunst, stemming from interactions beyond purely professional matters. This contributes to a working dynamic characterized by both openness and a lack of friction. They maintain frequent communication, though not exclusively focused on Planet FWD, with Kunst noting that discussing non-work topics fosters a deeper connection.

Kunst observes that while it’s common to highlight successes, founders and investors often struggle to express concerns. “Sharing positive metrics is easy,” she explained, “but voicing anxieties or acknowledging ineffective strategies requires a foundation of mutual trust and respect for constructive dialogue.”

Indeed, Kunst frequently declines investment opportunities with founders who demonstrate an inability to engage in candid and productive conversations about challenges.

“Startup life inevitably involves setbacks,” Kunst stated. “Disruption and problem-solving are inherent to the process. It’s crucial to view obstacles not as personal failings, but as collaborative opportunities for improvement.”

She referenced a popular self-help concept she finds particularly resonant: “The focus should be on tackling the problem *together*, rather than framing it as an adversarial situation.”

Cultivating such a relationship demands commitment from both the investor and the founder, as well as specific personality traits. While intelligence and a compelling vision are common among entrepreneurs, Kunst considers them baseline expectations – “averagely above average.”

She prioritizes integrity above all else.

“The choice between expediency and ethical conduct – whether dealing with co-founders, investors, employees, customers, or the media – reveals a great deal,” she says. “Maintaining integrity is paramount for sustained success, and frankly, it determines whether I’m willing to invest my time and resources.”

Pitch Deck Analysis

The Significance of Your Startup's Name

The Importance of Professional Design

Eliminate the “Proprietary and Confidential” Disclaimer

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A compelling startup name is a foundational element of your brand identity. It should be memorable and clearly communicate the essence of your business.

Effective design is not merely aesthetic; it’s fundamentally crucial for conveying professionalism and credibility to potential investors. Poorly designed decks can immediately detract from your message.

The inclusion of a “proprietary and confidential” warning is generally unnecessary and can even be perceived negatively. Investors understand the sensitive nature of the information and such a disclaimer often appears overly cautious.

Focus on the problem, not just the solution

Investors are primarily interested in understanding the problem you are solving and the market opportunity it represents. Clearly articulate the pain points you address.

While your solution is important, avoid spending excessive time detailing its features before establishing the significance of the problem. Context is key.

Show, don’t tell

Instead of simply stating that your market is large, demonstrate it with data and credible sources. Back up your claims with evidence.

Avoid vague assertions; provide concrete examples and quantifiable metrics to support your statements. Visual representations of data are particularly effective.

Don’t be afraid to show a little personality

While maintaining a professional tone, injecting a degree of personality into your pitch deck can make it more engaging and memorable.

Authenticity can help you connect with investors on a more personal level, fostering trust and rapport. However, avoid excessive informality.

Keep it concise

Investors have limited time and attention spans. A concise pitch deck that focuses on the most critical information is essential.

Eliminate unnecessary details and prioritize clarity. Aim for a deck that can be easily understood in a short amount of time.

Practice your delivery

A well-designed pitch deck is only half the battle. Practicing your delivery is equally important.

Rehearse your pitch thoroughly to ensure a smooth and confident presentation. Be prepared to answer questions effectively.