Speed dating for fundraising
It's hard like lifting a weight because it's intrinsically hard to convince people to part with large sums of money. But much of the other kind of difficulty can be eliminated.Fundraising only seems a puzzle because it's an alien world to most founders, and I hope to fix that by supplying a map through it.But that fast growth means investors can't wait around.If you wait till a startup is obviously a success, it's too late.To founders, the behavior of investors is often opaque—partly because their motivations are obscure, but partly because they deliberately mislead you.And the misleading ways of investors combine horribly with the wishful thinking of inexperienced founders.The initiative, which was certified for the ballot early last month as Initiated Ordinance 300, would require most new buildings of at least 25,000 square feet to have gardens, solar panels or other “green roof” components.They would have to cover at least 20 percent of their roofs’ surface, depending on a building’s size, and the requirement also could be triggered by roof replacements on existing buildings. 18, members of the Colorado Real Estate Alliance filed paperwork forming an opposition committee called Citizens for a Responsible Denver.
So what tends to happen is that they all wait as long as they can, then when some act the rest have to.
The initiative is spearheaded by a group of environmental activists that includes Denver resident Brandon Rietheimer.
They argue that the requirement for green roof components would help reduce the urban “heat island” effect.
A typical trajectory might be (1) to get started with a few tens of thousands from something like Y Combinator or individual angels, then (2) raise a few hundred thousand to a few million to build the company, and then (3) once the company is clearly succeeding, raise one or more later rounds to accelerate growth. Forces Fundraising is hard in both senses: hard like lifting a heavy weight, and hard like solving a puzzle.
And at Y Combinator we get an increasing number of companies that have already raised amounts in the hundreds of thousands.