Advice From Three GAN Startups That Recently Raised Series A and B Rounds
Ask anyone what it’s like to raise money, and you’ll probably get one answer:
Raising money is difficult. Very difficult.
Just how difficult? Our data show that it takes the following amount of months, on average, for GAN Startups (the nearly 9,500 best-in-class companies that have been through one of 100+ GAN Accelerators around the world) to reach each round:
Seed: Six months
Series A: Another 15 months, after Seed
Series B: Yet another 17 months, after Series A
So again, the road is long, and usually very hard.
Which is why I wanted to ask three startups that have done it about how they got there and what fundraising advice they might share with other founders.
Here’s what they said.
Peerfit
Find Them Online: peerfit.com
GAN Accelerator: Tampa Bay Wave
Location: Fully remote but call Tampa, Florida (U.S.) home.
Finished Raising Series B: January 2018
What they do: A universal account for fitness that’s redefining wellness at work.
What they had to say:
We decided we wanted to raise a Series B because we were at a growth inflection point and we wanted to pour fuel on the fire, allowing us to scale exponentially. If we were going to give one piece of advice to other founders as they fundraise for Series B, it would be this: Always be networking. That way, when it’s time to raise, you already have great connections and relationships that help you get a deal done with who you want, not just anyone who’s willing to take a meeting. The best advice we have in terms of getting to a place where you can even consider raising a Series B is to focus on growing exponentially. That, and it’s important to understand the right order of operations necessary to get your business to the next major milestone. But always remember: Just because you can do something doesn’t mean you should.
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Instabug
Find Them Online: instabug.com
GAN Accelerator: Flat6Labs
Location: Cairo, Egypt
Finished Raising Series A: April 2016
What they do: In-app feedback and bug reporting for mobile apps.
What they had to say:
Our best advice is to choose the right partners because you’re forming a long-term relationship. Generally, that’s investors that strongly understand the landscape and the market you’re in, that have a strong portfolio of companies you can partner with or get advice from, and that share the same vision for your company. If you’re eventually hoping to raise multiple rounds of financing, focus on building something people want and hire the best people you can in order to help you do that. Hiring can be tough, but we’ve worked to be really intentional about creating a strong culture and have made sure to document that culture with well-defined core values and other processes that support those values. However, the most important thing is just growing the business; focus on that and the best people will always be attracted to fast-growing companies.
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ONTOFORCE
Find Them Online: ontoforce.com
GAN Accelerator: imec.istart
Location: Gent, Belgium; Boston and New York City (U.S.)
Finished Raising Series B: January 2018
What they do: Pioneering semantic search technology for information management.
What they had to say:
Start early and search for smart and committed money. Look for people who understand and support you — people who have the knowledge and the network to grow your business. If you’re looking to get to Series B funding, be open and transparent and keep people informed on the go. Make sure you deliver on your promises and show traction; it’s the key thing that helps you to get to this round. But, our go-to tactic when it comes to fundraising? Ask for money and you’ll get advice. Ask for advice and you’ll get the money.
Originally published at www.gan.co on September 4, 2018.
