YC
Founders of Science Exchange, Goldbely, and The Flex Company Discuss Fundraising
@ Y Combinator
08/17/17
Takeaways
KM
Kat Mañalac
08/17/17
@ Y Combinator
Fundraising is a significant challenge for founders, and it's crucial to share experiences and insights about it.
EI
Elizabeth Iorns
08/17/17
@ Y Combinator
I recently announced that Science Exchange has raised a Series C round, which is a significant milestone for our company.
EI
Elizabeth Iorns
08/17/17
@ Y Combinator
I'm Elizabeth Iorns, founder and CEO of Science Exchange, a marketplace for outsourced research and development, working with major pharmaceutical and science companies.
VT
Vanessa Torrivilla
08/17/17
@ Y Combinator
I'm Vanessa Torrivilla, co-founder and chief creative officer of Goldbely, a marketplace for iconic regional foods delivered to your door.
VT
Vanessa Torrivilla
08/17/17
@ Y Combinator
Goldbely recently raised $10 million in a Series A round, and we're currently doing well in the market.
EJ
Erika Jensen
08/17/17
@ Y Combinator
I'm Erica Jensen, co-founder of The Flex Company, which offers a new menstrual product that replaces traditional options like tampons and pads.
EJ
Erika Jensen
08/17/17
@ Y Combinator
We closed a $4 million seed round in September, and our product allows for mess-free period sex and can be worn for 12 hours.
EJ
Erika Jensen
08/17/17
@ Y Combinator
Fundraising is similar to hiring; it's essential to align with investors who believe in your mission and product.
EJ
Erika Jensen
08/17/17
@ Y Combinator
During Y Combinator, we practiced our pitch extensively, receiving valuable feedback from peers and mentors.
EJ
Erika Jensen
08/17/17
@ Y Combinator
Storytelling is crucial in fundraising, especially in the early phases, to resonate with investors and convey the business's potential.
EI
Elizabeth Iorns
08/17/17
@ Y Combinator
We learned that focusing on the market size and economic benefits of our business was more compelling to investors than just the excitement of our product.
VT
Vanessa Torrivilla
08/17/17
@ Y Combinator
We made sure to present food items during our pitches to illustrate our marketplace concept and create a connection with investors.
EJ
Erika Jensen
08/17/17
@ Y Combinator
When pitching, it's important to understand what metrics investors want to see and to practice with less critical meetings first.
EI
Elizabeth Iorns
08/17/17
@ Y Combinator
The fundraising landscape has changed significantly, with the median Series A funding now close to $10 million, compared to $3-4 million in the past, raising expectations for startups.
EI
Elizabeth Iorns
08/17/17
@ Y Combinator
In early fundraising stages, investors focus on vision, market opportunity, and team, but by Series C, they expect evidence of product-market fit and large enterprise clients using the platform.
YC
Y Combinator Cast
08/17/17
@ Y Combinator
Raising money is inherently difficult for everyone, but as a woman, I try not to enter negotiations thinking it will be harder for me due to my gender, as that mindset can give the other party an advantage.
YC
Y Combinator Cast
08/17/17
@ Y Combinator
It's crucial to prepare thoroughly for a Series A round, ensuring all financial models and key performance indicators are ready, so you can present consistent information to all investors.
YC
Y Combinator Cast
08/17/17
@ Y Combinator
When seeking funding, identify investors who have expertise in your industry, such as those who have invested in similar products or have a strong presence in e-commerce.
YC
Y Combinator Cast
08/17/17
@ Y Combinator
In the early stages of fundraising, it's common for the entire team to focus on raising funds, which can slow down company operations, so it's important to balance fundraising with maintaining business growth.
YC
Y Combinator Cast
08/17/17
@ Y Combinator
Having a co-founder who can focus on fundraising while the other co-founders manage operations can help maintain company momentum during the fundraising process.
YC
Y Combinator Cast
08/17/17
@ Y Combinator
It's important to recognize that every founder faces challenges, and being open about those struggles can help build a supportive community where everyone can share their experiences.