![]() But, of course, this is a difficult situation for those who are actively trying to fundraise. This is a good sign in an investor-as a founder, you want investors who will double down and help you ride out tough times. With the uncertainty of the current climate, investors have tied up most of their money in their current portfolio companies. Just make sure that, if you do decide to raise capital, you look for investors who prioritize nurturing you as a founder rather than throwing money at you and expecting immediate and skyrocketing growth.Īrlan Hamilton Fast Company Cover Fast Company It takes more time and isn’t comfortable or glamorous, but it means you can sell your equity for more money. You could even try bootstrapping for two to three years, then raise capital. If VC isn’t 100% necessary, explore crowd equity funding, bootstrapping and accelerators and incubators-especially those that aren’t solely focused on catapulting you into the VC race. In fact, she calls it a “recipe for disaster.” Nasty Gal ended up filing for bankruptcy and selling for a mere 10% of its original valuation. For example, Sophia Amoruso, Girlboss founder and a good friend of Hamilton’s, openly talks about the fact that investors handed her too much money for her first company, Nasty Gal. Plus, some founders are given way too much money without enough guidance on how to use it. You give up ownership and power to investors (they could fire you!), you’ll have less to sell when you IPO, and there’s way too much pressure to grow. Venture is right for some companies, but there can be some major drawbacks to it. Find Creative Ways To Raise Funds, Rather Than Relying Fully On VC And always, always, always send individual emails-don’t send a mass message to everyone you could possibly connect with at once.Ģ. ![]() Make sure that they’re someone you actually want to reach out to and identify exactly why you want to reach out so that you’re not wasting anyone’s time. Read anything and everything you can about them, including looking into their social media. When reaching out to people, make sure to do your research beforehand. Reach out to people, observe, take everything in and learn-become an asset through the knowledge you have. But according to Hamilton, there’s no better time than right now to put your head down and keep moving forward. Though restrictions are easing up bit by bit around the country, many aspects of life are still on pause, and the future of different industries is unknown. ![]()
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