Raising money? Then you better know your numbers – women in tech wrap-up
With more women entrepreneurs emerging in the tech market, raising capital is first and foremost on the minds of founders. During the AZTB women in technology breakfast, a panel of founders and an investor shared their secrets to getting funded.
Numbers are one of the most important thing for any entrepreneur to know, Cathleen Raffaeli, CEO and Managing Director of the Hamilton White Group, said.
Investors only care about one thing at the end of the day and that’s return on investment, she said. And when an entrepreneur is pitching to an investor and they don’t know the important numbers that will help their venture succeed they can miss out on funding opportunities, Raffaeli said.
“When you get into a more serious investor and you’re sitting across the table at an arm’s length you’ve got to know your numbers,” Raffaeli said with emphasis.
Passion can go a long way too, she continued. There have been times where Raffaeli has seen investors come in with a mediocre idea, but because they were so passionate about the idea investors were impressed.
But at the end of the day, knowing the numbers was top priority, she said. Practice and become comfortable with important numbers about your company and have friends poke holes in your business plan, Raffaeli said.
This is the route for earning investment capital. Two successful women entrepreneurs were at the breakfast and spoke about how they succeeded in the tough world of technology without traditional investments.
Aby Moore, a 3D/2D artist working on the upcoming Xbox One and Playstation 4 game, Grave, used Kickstarter to help fund the game.
Folks who supported Grave were able to ask for additional features to be added to the game or have their digital likeness included in one of the game’s many ghosts, Aby Moore said.
Well-known video game live streamers even played early access versions of the game, letting people know about the Kickstarter campaign, which lead to more funding, according to Moore.
Another way to start a venture is to fund everything yourself. Renee Moore, founder of Spa Fly a mobile salon, was at the talk and she spoke about how she sold her home, bought another home with a mortgage and lowered her expenditures to start her venture.
“I was willing to do everything I needed to do to make (Spa Fly) happen,” Renee Moore said.