Startups have many different funding options available to them. In this lecture to university entrepreneurship students, global climatetech entrepreneur Bryan Guido Hassin shares lessons learned from having raised ~$100M across nine ventures. These ventures, as well as others he has advised, have cumulatively created ~$100B exit value.
4. I have led nine startups with
various fundraising strategies
Antmachine • Bootstrapped (Acquired)
R7 Solutions • $1M Customer Finance (Still going)
TNR • $30M VC (Acquired)
Vinopedia • Bootstrapped (Acquired)
Poken • $6M VC (Acquired)
GIVEWATTS • Crowdfunded (Still going)
Smart OES • $2M Angel (Acquired)
DexMat • $5M Grants (Still going)
D3 • $30M Customer Finance (Still going)
5. Bootstrapping keeps control but
can limit growth
Pros
• Maintain ownership
/ control
• Focus on operating
business
Cons
• Can limit growth
• Undiversified
financial risk
• 2/2 [small] exits
• Share financial burden
Lessons learned
6. Debt is a good deal but often
inaccessible to startups
Pros
• Maintain ownership
/ control
• Lower cost than
equity
Cons
• Security sometimes
untenable
• Finance working capital with
debt
Lessons learned
7. Grants can be a good source of
non-dilutive funding
Pros
• Maintain ownership /
control
• Good for early stage
basic science
Cons
• Sometimes strings
attached
• Reporting conditions
can be onerous
• Hire a professional grant writer
Lessons learned
8. Customer finance is a great deal if
you can get it
Pros
• Maintain ownership
/ control
• Customer
validation
Cons
• Sometimes strings
attached
• Negotiate no-cost value to
provide the customer
Lessons learned
9. Crowdfunding can be powerful for
consumer startups
Pros
• Maintain ownership
/ control
• Customer
validation
Cons
• Letting the cat out
of the bag
• 3:1 planning:execution ratio for
success
Lessons learned
12. Outside investors can help – but at
a cost
Pros
• Fuel for growth
• Credibility
• Additional value-add
Cons
• Most expensive capital
• Lose ownership /
control
• Asshole risk
• Can limit options
• 3/3 less than awesome
outcomes with outside investors
Lessons learned
27. Smart OES Deep Dive
Types of
Fundraising
Raising
Outside
Capital
Smart OES
Deep Dive
28. Smart OES raised three rounds of
angel funding
• It takes just as long to close a $5k investor as a
$300k investor.
29. Former colleagues invested the
most in Smart OES
• Significant trust built when working with someone
• Same with former classmates
30. Second Degree connections
become more valuable over time
• Engage “connected” investors early on
• They are invested in your success, so leverage them!
31. Repeat investors become more
valuable over time
• Engage investors with capability to follow on
47. Hire for diversity, humility, curiosity
Psychological
Safety
Diversity
Curiosity Humility
48. Seek support from secure bases;
be a secure base to others
• To fear risk is
human
• Secure bases love
you even if you fail
• Secure bases give
you confidence to
take risks
• Identify and lean on
secure bases