DM

Danielle Morrill

02/24/15

@ Y Combinator

I've been fundraising non-stop for three years, and this is the first couple of months where I haven't been doing that.

DM

Danielle Morrill

02/24/15

@ Y Combinator

I got into Y Combinator in the summer of 2012 after applying on a whim, just minutes before the deadline.

DM

Danielle Morrill

02/24/15

@ Y Combinator

The first million dollars I raised felt easy because I was raising money from people I knew well, who were investing in me personally.

DM

Danielle Morrill

02/24/15

@ Y Combinator

I learned that I didn't really know anything about fundraising or venture capital, which was a significant realization for me.

DM

Danielle Morrill

02/24/15

@ Y Combinator

Sometimes the things you think are not a good use of time can turn out to be valuable, while things you think are great uses of time may not be.

DM

Danielle Morrill

02/24/15

@ Y Combinator

We had a beautiful growth graph, but we realized we were running a business with only a 5% margin, which isn't sustainable for a software company.

DM

Danielle Morrill

02/24/15

@ Y Combinator

We decided to stop working on our initial business model and pivot to something else, which involved a lot of difficult decisions, including letting go of our team.

DM

Danielle Morrill

02/24/15

@ Y Combinator

When I pitched the idea of building a Bloomberg for startup investors, it sounded ridiculous, but the investors ended up investing on the spot.

DM

Danielle Morrill

02/24/15

@ Y Combinator

We consolidated our expenses and committed to staying together as a team for a year, hoping something good would happen.

DM

Danielle Morrill

02/24/15

@ Y Combinator

We had a $500 a month budget for food, which forced us to cook all our meals and be resourceful as we built the company.

DM

Danielle Morrill

02/24/15

@ Y Combinator

Mattermark found product-market fit very early, which is a rare and fortunate occurrence in the startup world.

DM

Danielle Morrill

02/24/15

@ Y Combinator

By the end of 2013, we reached $500,000 in annual recurring revenue, which prompted us to start thinking about raising a Series A.

DM

Danielle Morrill

02/24/15

@ Y Combinator

I faced a cease and desist on my apartment while trying to raise a Series A, which added pressure to our situation.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

I felt like an impostor when I had to tell my team that we would keep paying them despite not having an office anymore.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

We raised our Series A after initially facing many rejections, but ultimately secured $3-4 million from various investors.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

Raising from many investors can create momentum, but managing a large number of investors can be challenging, often referred to as a 'party round.'

YC

Y Combinator Cast

02/24/15

@ Y Combinator

Surviving is more important than adhering to advice against raising a party round; sometimes you just need to take the money and move forward.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

No matter how perfect things appear on the outside, the reality is often messy, and that's okay.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

When you receive an offer from an investor, take the money and move forward; if you don't get an offer, keep believing that you will.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

Fundraising is a numbers game; the more meetings you have, the more likely you are to get a yes after going through many no's.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

To get that first meeting with investors, leverage your network and seek introductions rather than cold emailing.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

Fundraising is fundamentally about believing in what you're doing and proving its value to others. If you know your product is good and can demonstrate traction, you're already ahead of the game.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

Being part of Y Combinator provides invaluable exposure and credibility, especially for founders who may not have connections in Silicon Valley. It creates a unique momentum during fundraising, culminating in a demo day where you can present to top investors.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

During fundraising, focus on meetings that are likely to lead to investment. If a conversation isn't going in a favorable direction, steer it back to the path that leads to funding.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

Raising a seed round is akin to consumer sales, while raising a Series A is more like enterprise sales, requiring deeper relationships and the ability to educate potential investors about your business.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

Transparency with your team during fundraising is crucial. Sharing both good and bad news helps maintain trust and keeps everyone aligned on the company's goals.

YC

Y Combinator Cast

02/24/15

@ Y Combinator

Exposure is essential for startups. Communicating regularly about your progress and challenges can be effective, even if you feel your product isn't perfect yet.

Fundraising Panel at Female Founders Conference 2015

Takeaways