Let's Start Up Issue 10 | We can do hard things 💪
POV: You're a founder building a startup
Hi there 👋 Welcome to the Let's Start Up newsletter, curated by me, Janine Sickmeyer, a tech founder turned angel investor. Follow me as I share startup tips, industry news, founders you should know, and investors putting their money where their mouth is. Let’s Start Up, is a community of its own with an emphasis on the overlooked and underrepresented.
What's In This Issue 🗞
A brief look into what you'll be reading about.
My thoughts on the future of startup capital
14 must-read newsletters if you like mine
Two powerful entrepreneurs to follow
Startup news and founder celebrations
What's On My Mind 💭
I’ve been thinking…
This month I got to be a judge for Pitch Practice, a show on Clubhouse where founders pitch their startups to an audio room full of 300+ people. It's intimidating to get up on stage and talk to people about your company or idea, especially when it's your first time! Believe me, I've been there. But instead of presenting over Zoom or in Clubhouse, I flew to big cities and pitched in cold board rooms full of older men wearing suits. I stood there in my uncomfortable high heels and pencil skirt, holding my chunky laptop and a binder of software mockups I literally sketched. I got torn apart every single time. By the end of my 6 months of fundraising, my pitch deck was on version eight-hundred because every investor I talked to seemed to think the style of the deck was up for debate. I was there seeking money to build my product and grow my company but instead, I got suggestions on font size, color changes, and basically anything that made them feel in charge. I could write a book about it all, oh wait... I am!
When you are a founder pitching investors for funding, this is not a time to seek approval or deck revisions. You have to go into the meeting with confidence, proudly give your pitch, end your sentences with a period, and stick the landing with a strong call to action.
You aren't asking investors to give you money for a charity, you're asking for them to be a part of your journey and be part of your success. They should be honored to be asked. Not the other way around.
Most first-time founders, however, are uncomfortable talking to investors, and through my many founder mentorship calls this week, I discovered a few areas that I think should be worked on before even getting to the VC meeting.
Founders should learn more about different options for capital. VC isn't the only capital access goal for startups but most first-time founders who don't know what goes into a VC fund often just think the fund is passing on them because of XYZ reason when it might simply be that the fund can't justify a high enough return to their LPs (the people putting money into the fund). There are a lot of resources out there to learn more about VC but I would start with Brad Feld's book Venture Deals.
Along those lines, there is a misconception among first-time founders that the more people on the cap table, the harder it is to maintain. I can tell you I used to think this too. I didn't want small checks from multiple people for fear of them all "telling me how to run my business" or getting in the way of my building. This isn't always true. Most angels will be happy to get a monthly newsletter update that includes the status of the product, customers, team, any big wins, challenges, asks, and runway left so they can be as helpful as possible and not to stand in your way.
Alternate access to capital should be normalized. Bootstrapping or self-funding, friends and family, crowdfunding, accelerators/incubators, angels/operator-angels, founder-friends, business loans, or even available grants are all viable options for raising capital. And yes, I do know how much work it is to do even just one of these. But if founders were celebrated in the news for securing a large business loan or working their tail off to bootstrap, maybe it would feel normal to take these routes too.
Bootstrapping is hard. Really hard. And not paying yourself for months or even years can really take a toll on your mental health and relationships. I tweeted this week that people don't like to hear about the realities of bootstrapping and I was talking mainly about when people ask how I did it and succeeded. It was no walk in the park and yes I know I'm here now talking and sharing my story but that's because I was in hiding for 5 years while I wasn't paying myself and going through really hard things. But you know what, we can do hard things.
I've talked to thousands of founders this year and reviewed hundreds of pitch decks and while I have only been able to personally invest in a few, I am so inspired by these entrepreneurs and the sacrifices they make, the creativity and innovation in a time of stillness, and the struggles and pivots they've had to endure to catch up or keep building this year. It's incredibly energizing to meet with people who are passionate about their business. So no matter that route you take for fundraising, know that there are operator-angels out there like me everywhere who are excited about the opportunity to be a part of your team, want to help in any way possible, and will stay out of the way because we've been there. Former founder, operator-angels might be the next big thing in venture.
What I’ve Been Working On 💁🏻♀️
Things I care about that I want to share
Must-Read Newsletters (if you like mine)
We're on issue 10 of the Let's Start Up Newsletter and it's been so much fun so far. The goal of this newsletter was to expand my network and help overlooked founders grow their startup. I'm so grateful for all of your support and kind words about my newsletter. But I'd also like to share the other great newsletters and digests out there. If you like my newsletter, I think you’ll love these!
💥 Bonus Newsletter: Deal Flow Edition 💥
Sign up to be on the Bonus Newsletter: Deal Flow Edition of my newsletter in January. I'll pick 25 startups to feature that are currently fundraising and send it out to everyone with the terms and a brief note about the startup but not include the name or founders to encourage investors to reach out to learn more! Founders, sign up here: https://airtable.com/shrxICQtjx7CUcVyR.
Recently Hit the Stands 📰
Things in the news I think you should check out
Operator-Investors: The Future of Venture Capital
Early-stage investing might be going through a transformation. The next wave of investors is Operating Fund Managers. Think about it like how coaches are the best players. Operators are typically founders and early employees of startups and tech company executives who start their own fund. According to this article, Operator-Investors have several advantages like the ability to "separate hype from opportunity" and a more tactical approach.
How to Pick an Investor in Good or Bad Times
When it comes to choosing an investor, rely on your instincts. Choosing an investor is a lot like hiring a boss, and you should make sure they're someone you want to work with. It's important to pick someone who can provide constructive feedback and help your startup as much as you might need. Learn how you can find the right investors for your startup from Mike Meyer, CEO and founder of Quip.
Black Women Will Be 'the Mark Zuckerbergs of the World'
Sandra Johnson, a former IBM Engineer believes that entrepreneurship is a "better path for young people of color than corporate America." After spending 26 years at IBM with an electrical engineering Ph.D., Sandra went out on her own to start a remittance app called geeRemit. As a former CTO, she saw the struggles diverse candidates faced, and she is inspired by the number of people of color who are breaking barriers in entrepreneurship.
At Blck VC, Under 30 Investors Frederik Groce And Sydney Sykes Are Driving Venture Capital Forward
Blck VC was founded in 2018 by Frederik Goce and Sydney Sykes. And in 2020, the investment firm has made a huge impact on the venture capital space with fellowship programs, training, and fundraising. The two founders are both under 30 years old and are dedicated to funding Black founders, as well as supporting and mentoring them. Their influence is acting as a catalyst for change as many VC firms commit funds to diverse founders.
MacKenzie Scott Announces $4.2 Billion More in Charitable Giving
MacKenzie Scott, ex-wife of Jeff Bezos (CEO of Amazon) is disrupting the norms of philanthropy. Just this year, MacKenzie donated almost $6 billion dollars. Her most recent charitable donation was to organizations that focused on basic needs like food banks. She paid sums up front without any strings attached in efforts to help women, people of color, and people living in poverty who have suffered during the pandemic.
Hot Take of the Week 🔥
Somebody had to say it.
A Little Birdie Told Me 🐦
Tweet of the week.
Walk the Walk 💰
Investors putting their money where their mouth is.
Pharrell Launches Black Ambition Accelerator
Pharrell Williams, producer and rapper, just launched an incubator for Black and Latinx entrepreneurs. Black Ambition is for founders of tech, design, healthcare, and consumer products startups. This initiative includes both capital and mentorship and training to help close the racial wealth and equity gap.
Meghan, The Duchess of Sussex, makes her debut as a startup investor
One of Meghan Markle's core causes is gender equality, and she is using that mission to power her investing. Her first investment was in Clevr Blends, a startup that makes instant oat-milk lattes. Meghan is is passionate about supporting womxn founders to help close the gap.
HealNow raises $1.3 million to bring online payments to pharmacies
HealNow, an onboarding and payments platform for pharmacies secured $1.3 million in funding from SoftBank Opportunity Fund and Alabama Futures Fund. Started by Halston Prox and Joshua Smith, HealNow helps retail, specialty, and mail-order pharmacies offer online payments and on-boarding for their customers, improving the process entirely. Customers are sent a link to a secure portal where they can enter in any information necessary, eliminating the need for manual entry for the pharmacy.
Arlan Hamilton launches Arlan Academy
Founder of Backstage Capital Arlan Hamilton just unveiled her newest project, Arlan's Academy. The platform consists of courses for entrepreneurs and creatives covering a wide variety of topics. New classes are added every week, and they're taught by industry experts and Arlan herself. Arlan's academy makes these courses accessible and affordable with the option to purchases classes individually or in a bundle. Take a look for yourself, the courses are valuable for all entrepreneurs.
Capital Factory just announced
Capital Factory is holding its 4th annual Black in Tech Summit, which includes a $100,000 Investment Challenge. The competition is on February 16th and will highlight 5 tech startups. Any tech or consumer startup with a Black founder can apply to compete. The winner will receive access to a mentor network and admission to the Capital Factory’s VIP Accelerator, in addition to capital.
New Wave is a new European seed fund headed up by ex-Accel VC Pia d’Iribarne
Pia d’Iribarne just started New Wave, a European early-stage venture capital, with French entrepreneur and investor Xavier Niel. The first funding round is $56 million, and this large amount was raised in only 3 months. The firm has already started making investments in seed and pre-seed startups in Europe. The average check sizes are between $500,000 and $2 million.
Founders You Should Follow 👀
Meet these founders who are making moves.
Ariel Lopez, Knac
Ariel Lopez is the CEO and Founder of Knac, a talent evaluation platform that uses data to help companies not overlook great candidates. For over 10 years, Ariel has worked in the recruiting field building teams, and in addition to growing Knac, she is also a career coach. The hiring process is often overwhelming, and it's impossible for recruiters to sift through all of the applications on their own. Knac removes bias and helps companies screen all resumes. This is a tool any company can benefit from using, and I'm excited to see this product once it launches. Take a look at Knac's website to learn more about how Ariel Lopez is transforming the hiring process.
Chantelle Marcelle, Marketing Strategist
Marketer and entrepreneur Chantelle Marcelle is an experienced professional who specializes in B2B marketing. She has over a decade of communication and branding experience in a number of industries, including tech, health care, and education. Chantelle acts as a sidekick to help companies craft a story. In addition to her services, Chantelle is the founder of a newsletter packed with marketing tips and is a Fellow of CEO Action for Racial Equity Fellowship at Herrman through PwC.
What Founders Need to Know 🤔
When you think of an investor, the first thing that comes to mind is probably a source of capital for your startup. Elizabeth Yin, Co-Founder and General Partner at Hustle Fund explains what investors offer beyond capital in this Twitter thread.
Amanda Robson, principal at Cowboy Ventures, listed out the most common reasons her venture firm rejected B2B startups at the seed and pre-seed stages. Read why to identify holes in your fundraising strategy.
The piece of advice "talk to customers more," isn't as helpful as you might think because of confirmation bias. Unfortunately, we hear what we want to hear when talking to customers. Matin Movassate shares how you can get rid of confirmation bias.
Natalie Sportelli turned to Twitter to ask founders the question "what's the most important thing your vc firms helped you with this year?" See the replies for advice and drop your personal experience.
Startup Bookshelf 📚
What our community is reading this week.
Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones by James Clear
James Clear, an expert on habits, shares ways you can stop your bad habits and pick up good ones. By picking up behaviors that seem little, you'll put yourself on a track to success. James Clear presents a proven system to help you get back on track, overcome a lack of motivation, and make time for new habits. This book is great for startup founders!
Goodbye Burnout 🎧
Podcast episodes to clear your mind or get you moving.
Dominique Soucy (PürInstinct) On Inventing a New Sport | Forward Thinking Founders
Dominique Soucy founded PürInstinct, a sport that's a mix of basketball, rugby, football, and soccer. This sport is played without contact, and is high-speed. Dominique Soucy guest starts on this episode of Forward Thinking Founders to talk about inventing a new sport.
House of Wise Founder, Amanda Goetz, on how she transitioned from FT employee to founder
My friend Amanda Goetz was just interviewed on the Justin Brady Show. Former VP of Marketing of the Knot, Amanda struck out on her own to grow House of Wise, a luxury CBD brand that is focused on women. She shares her experience of raising capital and starting her business while still employed full time.
Alexis Ohanian, Co-founder of Reddit and Investor, recently founded Seven Seven Six, his new VC fund. The firm just made its first investment in Dispo, a social network that emulates disposable cameras. In this podcast episode, Alexis Ohanian shares how he got into the world of startup and investing and more about Seven Seven Six.
Before you go 🚪
Check out what you might have missed
Latesha Byrd created a career journal for women and you need to get it!
Let's recognize the funds making a change in the ecosystem
We're all exhausted. Here's how you can lead your team through the second wave.
Thanks for reading! I’ll catch you next time. And don’t forget to share Let’s Start Up with your community!
"Alternate access to capital should be normalized."
Do you include STOs and other DeFi approaches in that?