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[Original air date, July 4, 2023] In this special episode, I bring you a curated selection of the best lessons, stories, and candid reflections about raising venture capital. You’ll hear directly from some of the strongest fintech entrepreneurs around the world spanning four continents.
The founders featured in this episode have built revolutionary companies - many of them multi-billion-dollar enterprises. To get there, they’ve been successful at raising venture capital from some of the most respected investors in the world. They reveal lessons they’ve learned and pass on valuable insights from their experiences.
You’ll hear from nine founders:
- Alex Prot, CEO/Co-Founder of Qonto
- Laura Spiekerman and Tommy Nicholas, Co-Founders of Alloy
- Itai Damti, CEO/Co-Founder of Unit
- Brynne McNulty Rojas, Co-Founder of Habi
- Katlego Maphai, CEO/Co-Founder of Yoco
- Jorge Combe, CEO/Co-Founder of DD360
- Kurt Lin, CEO/Co-Founder of Pinwheel
- Rob Petrozzo CPO/Co-Founder of Rally
Whether you’re an aspiring entrepreneur just starting your journey, or a seasoned founder facing new challenges, I hope you find valuable takeaways in this episode.
In this episode, we discuss:
Alex Prot, CEO/Co-Founder of Qonto - $700 Million Raised
Qonto is one of the largest fintechs in all of Europe. They've raised over $700 million and reached a $5 billion valuation in 2022. Alex advises founders to raise money only when they're ready and to have a clear plan, knowing potential investors, setting a timeframe, and determining a suitable amount to raise. After the process, one should return focus to operations and growing the business.
Laura Spiekerman and Tommy Nicholas, Co-Founders of Alloy
Alloy has raised around $200 million and the company was recently valued at $1.5 billion. But Laura and Tommy are not afraid to share that their success came after years of struggle and countless rejections. They are also big believers in luck, but argue founders can create their own luck by being open to various opportunities and networking in the industry.
Itai Damti, CEO/Co-Founder of Unit
Unit has raised almost $170 million. As a repeat founder, Itai stresses the importance of paying attention to VC feedback, as rejections often highlight potential risks that could lead to failure. He also reminds founders that execution and de-risking will determine a company's success, NOT investors.
Brynne McNulty Rojas, Co-Founder of Habi
Habi has raised over $300 million and Brynne shares some tough moments and why she believes that while board members and investors can be helpful at later stages, early on, it's challenging for outsiders to significantly influence the company's trajectory.
Katlego Maphai, CEO/Co-Founder of Yoco
Yoco is a South African company that has raised close to $200 million. Katlego recounts the struggles of raising venture capital in South Africa almost a decade ago, back when there was barely any tech funding in the continent. As a silver lining to the tech slowdown of 2022 and 2023, he highlights that African startups, having already grappled with funding issues, are very well equipped to handle market crunches.
Jorge Combe, CEO/Co-Founder of DD360
Jorge Combe from DD360 shows us that there is another way. The company was bootstrapped with no outside funding for a long time, but years later decided to raise a $91 million Series A. Jorge shares the advantages of bootstrapping and emphasizes that this approach imparts discipline, forces prudent spending, and encourages reinvestment for growth. In fact, they’ve had over 70 months of profitability since getting started.
Kurt Lin, CEO/Co-Founder of Pinwheel
Kurt believes that fundraising is about building long-term relationships with partners who genuinely understand and believe in your vision. He emphasizes the importance of finding a true believer, who can become a strong evangelist for your company and help bring others on board.
Rob Petrozzo, CPO/Co-Founder of Rally
Finally, Rob Petrozzo reminds startup founders that while good relationships with investors are important, they aren't necessarily there to be your friends. Their ultimate goal is a binary outcome - they expect a return on their investment within a certain timeframe.
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So You Want to Raise Venture Capital? 9 Founders Who've Raised $1.8 Billion in Collective Funding Share Lessons