Michael Porteous from NextRound talks about what Startups should avoid in fundraising.

https://nextround.ai

Startup Fundraising Mistakes Discussion Mary and michael discussed their plan to conduct a live Facebook session. Mary mentioned that she will be editing the recorded session. Initially, Mary planned to introduce michael and express her gratitude for his presence. The main topic of their discussion was about the mistakes startups should avoid when fundraising, with Michael Porteous from Next Round as their special guest.

Timing and Funding Sources for Startups michael, with 38 years of experience in the financial markets, explained the purpose of his business, Next Round, which is to connect startup founders with institutional investors such as family offices and venture capital firms. He emphasized the importance of timing the approach to these investors correctly, as founders often seek institutional funding too early. michael clarified that startups do not necessarily need to be in revenue before seeking institutional funding, and he outlined the typical progression of funding sources, from friends and family to angel investors and finally institutional investors. He also mentioned that the amount of funding a startup can expect to receive varies depending on the source, with friends and family typically providing around $250,000, and the first institutional round often exceeding $1 million.

Startup Funding Challenges and Strategies michael and Mary discussed the challenges and strategies surrounding startup funding. michael explained that startup ventures often prefer to join a funding round rather than lead it, and highlighted the risk of predatory investors offering a lifeline in exchange for a significant stake in the company. Mary suggested that startups should always be aware of their runway and keep their options open for funding. They also discussed the potential for startups to avoid venture capital and bootstrap their way to success. michael emphasized the importance of understanding the different objectives of founders and investors, and Mary recommended paying attention to lines of credit as an alternative funding source.