Startups & Investment: A Guide to Securing Funding

Building Founder Clout for Startup Success

During a recent Extra Crunch Live session, Sarah Kunst, a founding partner at Cleo Capital, analyzed the success of Supreme, the popular streetwear brand, and its implications for startup founders.

Her central argument was that founders should cultivate a personal brand with significant respect and influence. This strong reputation will attract investors eager to participate in any new venture they launch.

The Value of a Strong Personal Brand

Kunst illustrated this point by noting the substantial markup on Supreme products. A $100 retail item can easily fetch $1,000 online, positioning investors as those simply capitalizing on existing demand.

She posed a crucial question for investors: which founders possess the potential for growth and return that justifies early investment?

Beyond FOMO: Demonstrating Insight

This perspective provides a compelling framework for generating enthusiasm around a startup. While FOMO (fear of missing out) can be a short-term tactic, it isn't a sustainable strategy.

As Kunst highlighted, founders should showcase their accumulated expertise and insights gained throughout their careers, independent of fundraising efforts.

Creating a product or service is relatively straightforward; however, imbuing it with meaning requires a founder with a unique background and perspective.

What Makes a Founder Stand Out?

This could be a founder with a successful prior exit, a groundbreaking achievement – such as being the first Black woman to build a unicorn company – or direct experience with the problem they are addressing.

Further details regarding building a fundraising process, the practice of "soft-circling" investors, and a common pitfall in pitch decks are available on the site.

Related Content

• Pregame Y Combinator Demo Day with Equity – Prepare for the Y Combinator Demo Day with insights from Equity.

• The lightning-fast Series A – Explore a Series A funding round that took three years to materialize.

• Poshmark’s Journey to IPO – Learn how Poshmark transitioned from Series A funding to becoming a publicly traded company, featuring Manish Chandra and Navin Chaddha of Mayfield.

Embracing the Power of No-Code Solutions

A recent Series E funding round has established Airtable’s valuation at $5.77 billion.

Key Takeaways: Airtable represents a significant evolution beyond the traditional spreadsheet, offering a more versatile and feature-rich experience. The company is a prominent force within the growing no-code movement.

Founder Howie Liu has recently made Airtable’s API publicly available, fostering greater developer creativity and expansion on the platform.

Further Insights

• Transitioning to a no-code company can be achieved in three key steps.
• The current enthusiasm surrounding GPT-3 appears justified.
• Artificial intelligence-driven fintech solutions are now functioning on a large scale, attracting increasing investor attention.

The expansion of no-code platforms is reshaping how businesses approach software development.

This shift allows for faster prototyping and deployment of applications.

Farmland as an Emerging Investment Opportunity

According to Climate Editor Jonathan Shieber, agricultural land is increasingly being recognized as a significant asset class, attracting attention from innovative marketplace startups.

Key Takeaways: AcreTrader, a company aiming to democratize farmland investment, is attempting to replicate the accessibility of platforms like Robinhood for land purchases. This illustrates the perceived profitability of land ownership in the eyes of many investors.

Carter Malloy, the CEO of AcreTrader, notes that while private equity firms receive considerable attention for their involvement in land acquisition, the majority of farmland remains in the hands of individual families and smaller landowners.

“We have observed a consistent trend of increasing offering sizes coupled with shorter funding periods in recent months,” Malloy stated. “This demonstrates the rapidly escalating interest in this remarkably stable asset class.”

Related Developments

• Shell’s Gamechanger Accelerator has chosen three companies to participate in its energy transition program.
• New opportunities are developing for businesses specializing in carbon accounting, particularly as cities like Los Angeles introduce relevant proposals.

The growing number of investment avenues available is reminiscent of two further stories worth exploring:

• Gumroad is focused on broadening the reach of equity crowdfunding.
• Changes to crowdfunding regulations are anticipated next week, though many venture capitalists have yet to fully acknowledge their potential impact.

TechCrunch Updates and Opportunities

The following information presents valuable opportunities for both emerging founders and investors seeking to expand their networks and knowledge.

Initially, a discount is being offered for the TechCrunch Early Stage conference, a two-day virtual gathering designed for founders, investors, and industry operators. Utilizing the code “TCARTICLE” will grant a 20% reduction in ticket price, providing access to sessions featuring prominent figures.

These sessions include insights on bootstrapping strategies from Calendly’s Tope Awotona alongside OpenView’s Blake Bartlett, guidance on securing Series A funding from Kleiner Perkins’ Bucky Moore, and essential financial advice for founders delivered by Alexa von Tobel.

Furthermore, preparations for TechCrunch Disrupt 2021 are already underway. Super early-bird passes are currently available for under $100, offering access to this entirely virtual event.

Finally, we extend our gratitude for your continued support. Feel free to reach out with any inquiries, and we look forward to welcoming you to these events.

Weekly Tech Roundup

This week's key developments, as highlighted by TechCrunch (TC).

Transportation & Regulation

Uber is currently facing scrutiny regarding its implementation of facial recognition technology for driver verification processes.

The use of this technology raises privacy concerns and questions about potential biases.

Private Company Dynamics

Five notable trends are emerging within the leadership structures of rapidly expanding private companies.

These trends reflect the challenges and opportunities inherent in scaling a business quickly.

The Future of Healthcare

A shift may occur in healthcare delivery, with applications potentially being prescribed by medical professionals instead of traditional pharmaceuticals.

This suggests a growing role for digital therapeutics in patient care.

Social Responsibility in Tech

Tech companies are urged to actively oppose the recent surge in anti-LGBTQ+ legislative efforts.

Taking a stand on social issues is increasingly expected of organizations in the technology sector.

Fintech & Mobility Insights from Extra Crunch (EC)

Fintech companies are recognizing the importance of integrating social features to enhance their payment platforms.

The addition of social elements can drive user engagement and foster community.

Corporate Governance & Emerging Markets

Snowflake's decision to eliminate its dual-class share structure prompts consideration of whether other companies should follow suit.

This move aims to improve corporate governance and shareholder rights.

The Evolution of Transportation

The business model of "Mobility as a Service" (MaaS) is gaining traction, transforming how people access transportation options.

MaaS integrates various transport methods into a single, user-friendly platform.

Reader Engagement

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Your input helps us improve and deliver the information you need.

Stay tuned for next week’s update.

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