Align your goals with serving others, unlock a new level of drive

Welcome to the 2nd edition of The Get Funded! Newsletter—where we break down the latest from our Get Funded! Office Hours session on Twitter/X and equip you with tools to take your fundraising to the next level.

Missed this session? Listen to the recording here.

1. Session Overview:

This week, we hosted two insightful sessions with our fantastic guest investors:

• Session #1: Amanda Williams, Program Manager at gener8tor Prosper HealthTech Accelerator
  ​Providing up to $90K in funding, The Prosper HealthTech Accelerator connects cutting-edge, health technology startups to the coaching, capital, and connections they need to build and grow their businesses.

• Session #2: Bryan Huang, Venture Scout at LeverageVC
  Bryan is a Super Scout, collaborating with over 30+ VC funds to back the best in class pre-seed and seed companies writing checks between $250K - $1.5M.

We also had our Pre-Show Founder interview with Derrick Walton, Co-Founder & CEO at Spheros. Spheros is a data management tool that allows organizations to share and collect data with ease, without sacrificing trust. Recording here.

2. Office Hours Recap:

Key Takeaways from the August 23, 2024 Session:

• Amanda Williams (Prosper HealthTech Accelerator): Amanda provided insights into the healthcare sector, specifically around digital health startups. She stressed the importance of building partnerships, especially with clinics and healthcare providers, as a key traction metric. Amanda also advised startups to focus on how their solution directly impacts patient outcomes and integrates with existing healthcare systems.

• Brian Huang (Venture Scout): Brian highlighted the importance of focusing on market viability, product differentiation, customer acquisition strategies, and financial health when conducting due diligence on startups. He emphasized the critical role of the founding team in driving the company's success and the need for startups to demonstrate sustainable revenue or significant user acquisition depending on their stage.

• Highlighted Pitches:
  1. Nick Zeckets, Co-Founder & CEO at Air Traffic Control

  Nick's pitch stood out for its clear articulation of how Air Traffic Control connects into major revenue and marketing systems, like HubSpot, to create an interest graph that predicts the best content for engagement. Nick’s understanding of the inconsistency in venture expectations around what constitutes “pre-seed” and how he’s strategically positioning his company to attract investors was particularly impressive, showcasing his understanding of how investors are currently thinking about the market.
  Takeaway: Tailor your fundraising approach by deeply understanding how different investors define and assess pre-seed versus seed stages. Dedicate your time towards investors that align with your stage.

  2. Gabby Shires, Co-Founder & Head of Product at FoodFresh

  Gabby’s pitch focused on FoodFresh, an end-to-end platform allowing healthcare providers to prescribe diet plans to treat chronic illnesses. What stood out was Gabby’s personal success using the app to lose 180 pounds, which adds a powerful, personal validation to the product’s efficacy.
  Takeaway: When pitching, highlight personal success stories that demonstrate the effectiveness of your product; this adds credibility and validation to your business case.

3. Funding Resources:

Resources of the Week:

• A Very Unique Fundraising Hack: This founder created a Linkedin Job Post titled “Advisory Board Member & Strategic Angel Investor” and it has been a crazy lead magnet for qualified Angel Investors. Check out his listing and consider testing out this strategy yourself!

• A Case for Taking on Small Strategic Investors: This investor wrote a $5,000 first check and introduced the founder to a VC who then offered him a $800,000 investment. Check out this Linkedin post to learn more.

Book of the Month:

• Pitching Hacks! by Venture Hacks: How to pitch startups to investors. This is by far my favorite book on fundraising for founders. It’s only 90 pages and gets right to the point. Download the free PDF here. Email me your biggest takeaway from the book!

Alternative Funding Sources:

• Access up to $2M in non-dilutive debt financing. Request funding here.

• Raise up to $5M in equity capital through a Community Round. Request information here.

4. Founder Spotlight:

Featured Founder: Derrick Walton, Co-Founder & CEO at Spheros

• Overview: Derrick is the Co-Founder and CEO of Spheros, a company that offers a secure data transfer solution for businesses. With a background at Bank of America, Derrick transitioned into entrepreneurship to tackle the growing challenges of data security and management, particularly in the context of small businesses and the gig economy.

• Their Success Story: Spheros began by addressing the needs of parents sharing their children's data securely with companies. This initial success led to an expansion into the B2B sector, where Spheros is set to launch a data management platform by the end of September. Derrick's proactive approach to regulatory compliance and his focus on building a strong technical team have been key factors in their progress.

• Future Plans: Derrick plans to launch the B2B version of Spheros' data management platform soon and is preparing for a fundraising round following the product launch. The focus will be on gathering client feedback, achieving product milestones, and securing 5-star ratings to strengthen their market position.

What we can take away: Derrick’s journey with Spheros highlights the importance of focusing on your strengths and learning from your gaps as a founder. His strategy of proactive regulatory compliance and the emphasis on customer-centric product development are valuable lessons for any founder looking to build a successful startup.

5. Investor Insights:

• Amanda Williams, Program Manager at gener8tor Prosper HealthTech Accelerator:

  • Stage: Pre-Seed

  • Industry: HealthTech

  • Check Size: Up to $90K

  • Geography: US

  • Other Criteria: Companies must be willing to participate in-person in Birmingham, AL

• Bryan Huang, Venture Scout at LeverageVC:

  • Stage: Pre-Seed & Seed

  • Industry: Agnostic

  • Check Size: $250K - $1.5M

  • Geography: Global

  • Other Criteria: Bryan works with over 30 VC firms that each have their own criteria for investments

Pro Tips:

• From Amanda Williams: "Be transparent about your challenges and open to feedback, especially from key players in your industry. This approach not only builds trust but also helps in making informed pivots when necessary."

• From Brian Huang: "Focus on building relationships with smaller investors who believe in you and your vision. These connections can be the key to unlocking larger opportunities down the line."

6. Tweet of the Week:

That’s all for this week’s edition of The Get Funded! Newsletter. We hope you found these insights valuable as you continue your journey to securing funding.

What’s next? Be sure to join us for the next Get Funded! Office Hours session on Friday, August 30th. You can register for upcoming sessions using this Calendar.

Be on the look out for our next newsletter where we’ll bring you more actionable advice, resources, and success stories.

Let’s All, Get Funded!

Best,
Darrel Frater
Investor at Serac Ventures
Twitter/X | Linkedin | Preneur

P.S. If you enjoyed this newsletter, forward it to a founder you know who could benefit from these insights!

P.S.S. Got ideas or suggestions for Get Funded? Shoot me an email at [email protected] for us to discuss!

About Serac: Serac Ventures is an early-stage venture capital firm that invests in founders bringing new perspectives to solve hard problems. We target companies at the seed stage writing checks between $250K and $750K. Our core sectors include fintech, SaaS, and Commerce Enablement. Learn more and consider submitting for funding at SeracVentures.vc.