Ever wondered why less than 1% of venture capital goes to Black and women founders?

Insights from our November 1st Get Funded! Sessions

Author

Serac Ventures
November 04, 2024

Reliable Resources for Raising Capital by Darrel Frater

Welcome to the 9th 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.
Interested in joining the next session? See what VCs are coming next and register here.

1. Session Overview:

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

  • Session #1: Rachel Stinebaugh, Senior Associate at Supply Change Capital
    ​​Supply Change Capital is an early stage venture capital firm investing at the intersection of food, culture, and technology.

  • Session #2: Winston Bennett, Analyst at Naples Technology Ventures
    ​Naples Technology Ventures (NTV) invests in early-stage B2B SaaS companies that exhibit strong value-add in their respective markets.

Ever wondered why less than 1% of venture capital goes to Black and women founders?

Kevin Moore and Darrel Frater share their thoughts with Black Enterprise Magazine about the underlying challenges and solutions for diversifying management teams and the VC ecosystem at large.

2. Office Hours Recap:

Key Takeaways from the Get Funded! sessions on November 1st:

  • Session #1 - Rachel Stinebaugh, Senior Associate at Supply Change Capital:

    • Stage: Seed

    • Industry: Food and Agriculture Technologies

    • Check Size: $500K - $1M

    • How to Apply: Submit at https://supplychange.fund/submit or Contact Rachel directly

    • Key Takeaways from Session:

      • Early Relationship Building: She underscored the importance of founders engaging with potential investors early, allowing them to track the founder's progress and build rapport over time.

      • Tailored Pitches for Investors: Founders were advised to customize their pitch to align with the investor's focus, especially emphasizing relevant aspects of the revenue model and growth prospects.

      • Impact Screening Process: Rachel explained their structured process, which includes an initial intake, an impact assessment for environmental or health benefits, and a pitch to the deal team, concluding with an investment committee review.

  • Session #2 - Winston Bennett, Analyst at Naples Technology Ventures:

    • Stage: Seed and Series A

    • Industry: B2B Enterprise SaaS, with focus on Fintech, HealthTech, InsurTech, and Regulatory Compliance Technology

    • Check Size: $250K - $1.5M

    • How to Apply: Submit at https://www.naplestechnologyventures.com/pitch-to-us or Contact Winston directly

    • Key Takeaways from Session:

      • Defensibility and Differentiation: Winston emphasized the importance of a unique and defensible value proposition in their decision-making process. Companies need to demonstrate a clear competitive advantage.

      • Efficient Fundraising Process: The investment process starts with a brief introductory call, followed by a deeper 60-minute team call, and a data room review, aiming for quick timelines of around four to eight weeks to issue a term sheet.

      • Hands-on Support for Portfolio Companies: Naples Technology Ventures seeks to provide substantial operational and strategic support post-investment, particularly around go-to-market strategies, pricing, and introductions. They prefer to lead rounds and stay actively involved with the company's growth trajectory.

3. Funding Resources:

Resources of the Week:

Book of the Week:

  • The Product-Led Playbook: How to Unlock Self-Serve Revenue and Dominate Your Market (With a Tiny Team) by Wes Bush
    In The Product-Led Playbook, Wes Bush explores the concept of Product-Led Growth (PLG), where the product itself drives customer acquisition, retention, and expansion. The book serves as a guide for startups and small teams looking to gain a competitive edge through self-serve, scalable strategies, without needing a massive sales force. It includes actionable frameworks and case studies to help founders optimize their product to be the primary growth engine.

  • Why I recommend it: This book highlights how a PLG approach can create a sustainable, scalable revenue model. It’s particularly valuable for startups seeking to grow efficiently with limited resources. The Product-Led Playbook is a must-read for founders aiming to build products that “sell themselves.”
    You can get your copy here.

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.

  • Serac Ventures is looking to invest $250K - $500K into 1-2 more deals by the end of this year. Learn more and consider submitting your company here.

4. Founder Spotlight:

Featured Founder: Sequoia Blodgett, Co-Founder of Frame Me

  • Overview: Sequoia Blodgett, a seasoned entrepreneur and award-winning director, co-founded Frame Me, an AI-powered video production platform designed to help businesses create high-quality content swiftly and efficiently. Within just three weeks, Frame Me successfully raised $55,651 from 92 investors through an equity crowdfunding campaign on Wefunder.

  • Their Success Story: Frame Me addresses a significant challenge for businesses: the time, energy, and expertise required to produce engaging video content. By leveraging AI, the platform streamlines the video creation process, enabling businesses to generate compelling videos up to 1,000 times faster than traditional methods. This innovation has resonated with investors and clients alike, contributing to the rapid success of their crowdfunding campaign.

  • Future Plans: Building on the momentum of their initial fundraising, Frame Me plans to expand its platform capabilities and reach a broader market. The company aims to enhance its AI technology to further simplify video production and explore partnerships that can amplify its impact in the creator economy.

What we can take away: Sequoia's approach to building a community around Frame Me's crowdfunding campaign offers valuable insights:

  • Leveraging Personal Brand and Expertise: Sequoia's background as a Telly Award-winning director and former venture-backed tech entrepreneur added credibility to Frame Me, attracting investors who trust her vision and execution capabilities.

  • Engaging Storytelling: By effectively communicating the problem Frame Me solves and showcasing real-world applications, the campaign resonated with potential investors and clients, highlighting the platform's value proposition.

  • Strategic Use of Platforms: Utilizing Wefunder, a leading equity crowdfunding platform, provided a seamless way for investors to contribute.

Sequoia's innovative marketing tactics and community-building efforts demonstrate the power of combining personal expertise with strategic platform use to achieve crowdfunding success. Learn more and consider making an investment into her campaign here.

5. 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. You can view and register for upcoming sessions using this Calendar.

Be on the look out for our newsletter next week 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 targets companies at the seed stage writing checks between $250K - $750K. Our core sectors include fintech, SaaS, and commerce enablement. Learn more at SeracVentures.vc.