For startup founders, navigating this initial stage of building a business can be daunting. Finding the right co-founder, securing your first customers, and obtaining funding are critical steps that can make or break your startup’s success.

This webinar is your roadmap to securing a startup co-founder, attracting customers, and raising capital effectively.

Tooraj Helmi, an experienced entrepreneur, will guide you through the essential strategies for building a strong foundation for your startup. With a wealth of knowledge in the startup ecosystem, Tooraj knows what it takes to achieve early-stage success.

In this information-packed webinar, you’ll learn:

Defining a Founder

Tooraj describes a founder as someone who identifies a common problem and devises a scalable, simple solution. Understanding this fundamental role is the first step in building a successful startup.

Top Three Responsibilities of a Founder

• Excite: Mastering storytelling and pitching to engage stakeholders is crucial. Learn how to create compelling narratives that attract investors and partners.
• Execute: Building a team to turn your vision into reality. Tooraj shares insights on how to recruit and manage a team effectively.
• Excel: Focusing on securing cash and investments. Discover strategies for fundraising and managing finances to ensure your startup’s longevity.

Finding a Startup Co-Founder

Finding the right startup co-founder is about practicality over perfection. Tooraj highlights key characteristics to look for, such as being organized, flexible, having a matching communication style, and possessing proven skills. He also provides strategies to find a co-founder, leveraging networks from previous jobs or academic connections.

Building a Product

Developing a prototype or app requires careful planning and budgeting. Tooraj discusses the critical considerations for building your product, ensuring it meets market needs and is developed efficiently.

Acquiring Customers

The first customer is crucial for any startup development team. Tooraj explains the importance of timing for outreach and how to define and find your ideal customer persona (ICP). Learn creative strategies for customer acquisition, drawing on examples like Airbnb using Craigslist and Zenefits initially selling to HR departments.

To learn more, see if you qualify for membership to join Founders Network.

About the Speaker

Tooraj Helmi is the founder of Apsy Inc., where he leads the creation of AI-driven products transforming software development. With extensive experience in building robust product and engineering teams, and a focus on key performance metrics, Tooraj’s leadership and innovation have propelled Apsy into international markets.

Summary

“Startup Founder Firsts: How to Secure a Co-Founder, Customers, and Cash with Tooraj Helmi,” is a must-watch for any entrepreneur looking to build a strong foundation for their startup. Gain practical strategies to find the right startup co-founder, attract early customers, and secure funding to fuel your startup’s growth.

Watch now and take the first step towards driving your startup’s success.

Where’s the Money Going?

Investors are pouring funds into several key areas within robotics. For example, workplace robots addressing labor shortages and automating tasks like delivery and material handling are a major recipient. We’re also seeing significant investment in surgical robotics, with startups developing technologies for minimally invasive procedures. The rise of humanoid robots, with the potential to revolutionize various industries, is another area attracting considerable capital. This targeted funding across diverse robotics segments highlights the vast potential for innovation and disruption within the industry.

Workplace Robotics

Workplace robotics continues to be a major recipient of funding, with startups developing solutions to address labor shortages and automate tasks like delivery, material handling, and weed removal.

• Bright Machines (San Francisco): This leader in factory automation secured $126 million in combined Series C funding and debt financing, led by BlackRock. Their technology streamlines factory workflows and optimizes production processes.
• Collaborative Robotics (Silicon Valley): Focused on collaborative robots (cobots) that work alongside humans, the company secured a $100 million Series B round led by General Catalyst. Cobots are poised to play a significant role in the future of manufacturing, fostering a more collaborative and efficient human-robot work environment.
• Carbon Robotics (Seattle): Developer of AI-powered weeding robots, Carbon Robotics has raised a total of $85 million, with its latest funding round coming in a May Series C. Their robots offer a sustainable solution for weed control, reducing reliance on herbicides and addressing labor shortages in the agricultural sector.
• Bear Robotics (Redwood City, California): This company designs mobile robots for various applications, including hospitality, assisted living, and warehouse operations. They recently closed a $60 million round led by LG Electronics. Mobile robots offer immense potential to streamline logistics and automate tasks across diverse industries.

Humanoid Robots

Investment is also flowing into startups developing humanoid robots, a concept long relegated to science fiction.

• Figure (Sunnyvale, California): This self-described “AI robotics company” developing a general-purpose humanoid robot attracted significant interest, securing a whopping $675 million in a February Series B round. Backers include tech giants Nvidia, Microsoft, and Amazon. Figure’s ambitious vision for humanoids has the potential to reshape our understanding of human-robot interaction.
• 1X (Norway & Silicon Valley): This international startup raised $98 million in January to advance its line of humanoid robots, including the human-like NEO and the wheeled EVE. 1X believes the humanoid form factor is ideal for integrating advanced AI with the physical world. Ultimately, the company envisions these robots working in agriculture, construction, and healthcare, with a focus on hazardous and repetitive tasks.

Surgical Robotics

Surgical robotics remains a hotbed for investment, with startups developing technologies to improve minimally invasive procedures.

• Medical Microinstruments (Jacksonville, Florida): This developer of robotic-assisted microsurgery technology secured $110 million in a February Series C round led by Fidelity. Their technology aims to replicate human hand movements at a micro scale, expanding treatment options for soft tissue surgery. Advancements in surgical robotics have the potential to revolutionize healthcare by enabling minimally invasive procedures with improved precision and outcomes.
• Ronovo Surgical (Shanghai): Focused on robotic-assisted laparoscopy, Ronovo Surgical recently closed a $44 million Series B funding round. Laparoscopic surgery offers numerous benefits for patients, including shorter recovery times and reduced pain. Robotic assistance can further enhance the precision and safety of these procedures.

To learn more about robotics startups, see if you qualify for membership to join Founders Network.

A Golden Age for Robotics Startups

The robotics industry is experiencing a gold rush, with funding surging in 2024. This surge is fueled by the confluence of a booming AI sector and a growing demand for automation solutions. Moreover, investors are hungry for innovation at the intersection of these fields, presenting a golden opportunity for robotics startups.

The landscape is ripe for disruption across various sectors. Workplace robots offer solutions to labor shortages and streamline production processes. In the healthcare field, surgical robotics advancements promise to revolutionize procedures. Similarly, humanoid robots, once relegated to science fiction, are now attracting significant investment.

For startup founders, the time is now to capitalize on this momentum. Investors are eager to back well-defined visions that leverage AI and address critical needs. Therefore, startups should focus on developing robots that are not only capable but also scalable and cost-effective. This will ensure long-term adoption and position them for success in the current market.

This is a pivotal moment for the robotics industry. By seizing the current opportunity, both startups and investors can play a key role in shaping the future of human-robot collaboration and ushering in a new era of innovation and progress.

To learn more about robotics startups, see if you qualify for membership to join Founders Network.

Understanding Your Funding Options

Startup funding programs come in various flavors, each with its own set of criteria and benefits. Familiarize yourself with these core categories before diving in:

Grants

These are essentially “free money” awarded to startups that meet specific eligibility requirements. Grants are often tied to specific industries or initiatives, and don’t require repayment. Explore grant opportunities through the Small Business Administration (SBA) or Grants.gov.

Guidance: Research grant databases like GrantWatch or Idealist to identify grants relevant to your industry and stage of development. Carefully read through application guidelines and eligibility criteria to avoid wasting time on programs you don’t qualify for.

Small Business Loans

Traditional banks and credit unions offer loans specifically tailored for startups. These loans require repayment with interest, but offer a more flexible approach compared to grants. Research loan options from the SBA or explore lenders specializing in venture capital.

Guidance: Before applying for a loan, solidify your business plan and financial projections. Lenders need to understand how you’ll use the funds and how you plan to repay the loan with interest. Consider building a business credit history through responsible use of credit cards or small business lines of credit.

Angel Investors

These are high-net-worth individuals who invest directly in startups they believe have high growth potential. Angel investors often provide not just capital, but also mentorship and valuable industry connections. Platforms like AngelList connect entrepreneurs with potential angel investors.

Guidance: Refine your elevator pitch to succinctly explain your business concept, market opportunity, and competitive advantage. Network actively with angel investors in your industry. Attend industry events, join online communities, and connect with accelerators or incubators that have connections to angel investors.

Venture Capital (VC) Firms

VC firms raise capital from a pool of investors and invest in promising startups with the potential for high returns. Securing VC funding can be highly competitive, but offers significant financial backing for rapid growth. Research prominent VC firms within your industry and tailor your pitch accordingly.

Guidance: VC firms typically invest in startups with high growth potential and a clear path to profitability. Ensure your business plan outlines a scalable solution with a large addressable market. Research the investment theses of specific VC firms to understand their areas of interest before reaching out.

Crowdfunding Platforms

Platforms like Kickstarter and Indiegogo allow you to raise capital from a large pool of individual contributors. Crowdfunding is a great way to validate your concept, generate pre-sales, and build a community around your brand.

Guidance: Develop a compelling crowdfunding campaign with engaging visuals, a clear value proposition, and exciting rewards for contributors. Leverage social media and influencer marketing to generate buzz and attract potential backers. Remember, crowdfunding often works best for tangible products with a clear consumer appeal.

To learn more about startup funding programs, see if you qualify for membership to join Founders Network.

Top Startup Funding Programs

• National Science Foundation (NSF) SBIR/STTR Programs: Offers grants and funding opportunities for innovative startups with strong scientific or technological components.

• Department of Energy (DOE) SBIR/STTR Programs: Similar to the NSF program, but targeted towards clean energy and sustainability ventures.

• Minority Business Development Agency (MBDA) Business Grants: Provides grant funding and business development assistance to minority-owned startups.

• National Institutes of Health (NIH) SBIR/STTR Programs: Supports the development of biomedical technologies through grants and funding opportunities.

Matching Your Startup to the Perfect Program

With a grasp of the funding landscape, it’s time to find programs that align with your specific needs. Consider these factors when evaluating potential matches:

• Industry Focus: Many programs target specific industries like biotechnology, clean energy, or social impact ventures. Identify programs that align with your startup’s domain to increase your chances of success.

• Stage of Development: Are you in the ideation phase, or do you have a minimum viable product (MVP) ready? Different programs cater to various stages of development.

• Location: Certain programs are geographically restricted, so prioritize opportunities within your region or state. Explore resources offered by your local Small Business Development Center (SBDC) for guidance.

Beyond Funding

Startup funding programs often extend beyond just financial backing. Many provide valuable resources and support, such as:

• Mentorship: Seasoned entrepreneurs or industry experts can offer invaluable guidance and help you navigate challenges.

• Networking Opportunities: Programs often connect you with other founders, investors, and potential partners, fostering valuable connections within the entrepreneurial ecosystem.

• Business Plan Development Assistance: Workshops and resources can help you refine your business plan, a crucial document for securing funding and attracting investors.

Remember: Preparation is Key

Before applying to any program, ensure you have a clear and compelling business plan in place. This document should outline your business concept, target market, competitive analysis, financial projections, and a detailed plan for how you’ll utilize the funding. Additionally, hone your pitching skills to effectively communicate your vision and convince program administrators or investors of your startup’s potential.

Securing funding is a crucial step in launching your startup, but remember, it’s not the finish line. The journey requires perseverance, resilience, and a willingness to adapt. Utilize the resources provided by funding programs, leverage the support of mentors, and continuously refine your business strategy. With a well-defined plan, a captivating pitch, and the right funding in place, you’ll be well on your way to transforming your innovative idea into a thriving company.

To learn more about startup funding programs, see if you qualify for membership to join Founders Network.

According to a recent report by Carta, the total cash invested in startups held relatively steady in Q1 2024 compared to the previous quarter. however, the number of funding rounds dropped by a significant 29%. This shift reflects a more selective approach from venture capitalists who are focusing on fewer, larger deals with a proven track record.

This new reality presents a challenge, but also an opportunity for innovative startups with strong fundamentals. Understanding the current funding trends outlined in Carta’s latest report is crucial for navigating this evolving landscape. This article will provide a deep dive into the data, unpacking key insights for startup founders.

A Slower Pace of Fundraising Demands a More Focused Approach

While the total cash invested in startups grew slightly in Q1 2024, the significant drop in deal count indicates a shift in investor behavior. VCs are prioritizing quality over quantity, favoring established startups with a clear path to profitability. This means founders need to be laser-focused on their pitch. They should highlight strong unit economics, a differentiated product offering, and a compelling vision for the future.

Bridge Rounds Bridge the Gap in Funding

The rise of bridge rounds signifies a strategic move by startups to extend their runway while they wait for more favorable fundraising conditions. This short-term financing allows them to maintain momentum and achieve key milestones that could strengthen their position for future funding rounds. However, founders should carefully consider the terms of bridge rounds. They may come with higher interest rates or stricter repayment schedules.

Down Rounds: A Sign of Adjusted Valuations

The concerning increase in down rounds reflects the decline in startup valuations since the pandemic boom. To counter potential valuation concerns from investors, founders should prioritize demonstrating financial strength. A data-driven approach will help build confidence in your company’s long-term viability and increase your negotiating power during funding rounds.

The West Coast Advantage Persists

Startups on the West Coast, particularly those in California, continue to dominate the venture capital landscape. This geographical concentration highlights the importance of building connections within these tech hubs. However, founders in other regions shouldn’t be discouraged. Consider alternative funding sources like angel investors, crowdfunding, or even exploring opportunities in emerging tech hubs outside the traditional coastal enclaves.

Series C Reemerges as a Beacon of Hope

The positive trend in Series C funding is a welcome sign for startups that have achieved product-market fit and demonstrated traction. VCs are more receptive to investing in companies that have overcome the initial hurdles and are poised for significant growth. For founders approaching a Series C round, showcasing a clear roadmap for scaling the business and achieving profitability will be critical for securing investment.

To learn more about the startup fundraising market in 2024, see if you qualify for membership to join Founders Network.

Later Stage Deals: Quality Wins Over Quantity

The scarcity of later-stage deals underscores the increased scrutiny from investors on a startup’s long-term viability. VCs are prioritizing companies with a proven track record of growth and a well-defined path to an exit, whether through acquisition or IPO. For startups aiming for Series D or later funding, building a strong narrative around sustainable growth, a large addressable market, and a clear exit strategy will be paramount.

IPO Market Shows Signs of Life, Offering Potential Exits

The potential rise in IPO activity in 2024 could be a positive development for late-stage startups seeking an exit strategy. Founders should stay updated on market conditions and be prepared to capitalize on any windows of opportunity for public listings.

Employee Stock Options: A Window into Employee Confidence

The data suggests a potential decline in employee optimism regarding their companies’ future prospects. This reinforces the importance of transparent communication from founders. Regularly update employees on the company’s vision, progress, and future plans to maintain morale. This ensures everyone is rowing in the same direction.

Layoff Trends Signal Market Volatility

While the decline in layoffs observed since early 2023 is a positive sign, the January uptick serves as a reminder of the ongoing market volatility. Founders should be prepared to adapt their strategies and make strategic cost-cutting decisions if necessary to weather potential economic headwinds.

 Adapting and Thriving in a Changing Market

The startup fundraising market in 2024 presents a unique set of challenges and opportunities. By understanding the current trends, tailoring your approach, and remaining adaptable, you can increase your chances of securing funding and achieving your entrepreneurial goals. Remember, a successful fundraising strategy requires a compelling narrative, a focus on strong fundamentals, and the ability to navigate a dynamic market landscape. So, chart your course, leverage the data, and set sail towards your entrepreneurial horizon.

To learn more about the startup fundraising market in 2024, see if you qualify for membership to join Founders Network.

After facing formidable challenges in 2023, characterized by a closed exit market and a substantial decline in capital distribution to limited partners, the stage is set for a resurgence in VC fundraising. In 2023, the U.S. economy outperformed expectations, with a 5.2% increase in GDP in Q3. The Federal Reserve’s indication of a potential decrease in interest rates in 2024 signals the conclusion of the current rate hike cycle. The lower volatility index and improved liquidity expectations in 2024 create a favorable environment for VC fundraising, surpassing the challenges faced in the previous year.

As startup founders prepare to navigate the intricate terrain of venture capital funding in 2024, this blog explores the multifaceted landscape, encompassing opportunities, challenges, and emerging trends that will shape the journey ahead.

The IPO Comeback

The 2023 IPO drought is expected to thaw, with M&A activity also on the rise. Public companies and private equity firms are sitting on significant cash reserves, hungry to invest. This spells good news for startups, especially those facing a tight funding environment.

However, whether the IPO market truly recovers remains a critical question. While interest rates and inflation are expected to stabilize, external factors like geopolitical tensions can always throw a curveball. However, several highly anticipated IPOs like Reddit and Stripe are expected in 2024, potentially paving the way for a broader market comeback.

Right-sizing the Market

Perhaps the most significant trend for 2024 is the right-sizing of the venture market. Valuations across the U.S. VC ecosystem have corrected from 2021 highs, leading to trends such as co-investments, extensions, down rounds, and significant cuts in unicorn valuations. Some unicorns face cash depletion and profitability struggles, potentially compromising valuations in an uncertain 2024 environment. 

Gone are the days of easy money and sky-high valuations. Investors are now demanding sound unit economics and a clear path to profitability. Startups that can demonstrate strong fundamentals and a focus on sustainable growth will be better positioned to secure funding.

State of Tech

The market correction has unfortunately led to layoffs and closures across the tech industry. This trend is likely to continue as companies strive for profitability. While this paints a bleak picture, it also presents an opportunity for well-managed startups to fill the gaps left by those who faltered.

Additionally, while AI captured the lion’s share of investor attention in 2023, there are whispers of a potential slowdown. Inflated valuations and concerns about the true number of viable winners are leading some investors to re-evaluate. Expect a shift away from AI-wrapped marketing and sales platforms and a potential cooling-off in early-stage AI funding. However, established players like Google and Microsoft remain heavily invested, ensuring continued activity in the sector.

Tips for Startup Founders

In this dynamic  environment, what can you do as a startup founder seeking VC funding? Here are some key takeaways:

Focus on fundamentals: Demonstrate strong unit economics, a clear path to profitability, and a realistic valuation.

Embrace adaptability: Adjust your strategy based on market conditions.

Highlight your team’s diversity: Showcase the unique strengths and perspectives your team brings to the table.

Build strong relationships: Cultivate connections with potential investors and build trust through transparency and communication.

Seek alternative funding sources: Explore options like grants, debt financing, or crowdfunding.

Remember, even in a challenging market, there are still opportunities for well-prepared and adaptable startups. By understanding the key trends and taking a strategic approach, you can increase your chances of getting the funding you need to achieve your goals.

Want to learn more about venture capital trends? See if you qualify for membership to join Founders Network. 

In the cutthroat world of Silicon Valley, where polished pitch decks and polished suits compete for the fickle gaze of investors, Jacqueline Samira stands apart. She’s not a brash VC whisperer or a PowerPoint maestro. Her weapon of choice? Authenticity, empathy, and a fierce dedication to building something far more valuable than fleeting funding: human connection.

Jacqueline is the founder and CEO of Howdy, a company shaking up the tech talent landscape by tapping into the vibrant pool of Latin American software developers. But Howdy isn’t just about filling recruitment quotas. It’s about crafting a revolution built on mutual respect, cultural understanding, and a vibrant community that transcends borders and bridges the digital divide.

In a February 1 webinar for Founders Network, Jacqueline will share how she successfully secured $21 million in funding without ever sending a deck to a single investor. Jacqueline will unveil her unique approach to communicating your message to venture capitalists, allowing founders to maintain control of their narrative throughout the fundraising process. 

Gain valuable insights on creating a compelling narrative that not only resonates with investors but has them eager to contribute to your venture even in today’s economic landscape.

Her webinar will also cover:

• Effective methods for communicating your vision without the reliance on traditional decks.
• The art of creating captivating video pitches, ensuring genuine engagement from your audience.
• The drawbacks of traditional decks and their impact on the accurate interpretation of your message.

Here’s a sneak peek of her startup journey.

The Birth of Howdy

Before Howdy, Jacqueline wasn’t a stranger to building empires. With over 15 years of experience driving sales, scaling teams, and disrupting industries, she had the know-how to navigate the corporate labyrinth. Yet, something gnawed at her. The soul-crushing churn of talent, the impersonal transactions masquerading as relationships, the relentless focus on numbers devoid of humanity – it felt hollow.

So, in 2018, she took a daring leap of faith. Armed with a vision that defied convention, she launched Howdy. Instead of the usual transactional model, she built a platform that fostered connection, not competition. As a result, Howdy isn’t just a talent platform; it’s a cultural melting pot. 

Howdy connects U.S. tech companies with talented developers from across Latin America, but the magic lies in the “Howdy Houses.” These vibrant co-working spaces aren’t just offices; they’re hives of collaboration, shared laughter, and cross-cultural exchange. Here, developers not only build code but build friendships, break down stereotypes, and discover the power of working together in an environment that celebrates their unique strengths.

In the early days, Jacqueline bootstrapped Howdy to generate $3 million in annual revenues by 2021. This enabled her to attract investment from Y Combinator, Greycroft and Obvious without a pitch deck. Now, Howdy is forecasted to generate $35 million in 2024 in annual revenues. 

How to Pitch Investors

While decks can be valuable tools for data visualization and summarization, Jacqueline says they often paint a one-dimensional picture of your venture. She believes funding is about much more than a polished pitch. It’s about building relationships, finding the right fit, and sharing a vision that ignites shared passion. 

Here are some tips:

1. Tell a Story, Not a Presentation: Trade dense bullet points for a narrative that captures the heart and soul of your business. Weave together data, anecdotes, and personal experiences to create an emotional connection with investors. Make them not just understand, but feel the problem you’re solving and the impact you’ll make.
   
2. Focus on the WHY, not the WHAT: Investors aren’t just funding ideas, they’re backing passionate founders. Clearly articulate your purpose, your driving force. What unique perspective do you bring to the table? How does your venture solve a problem beyond a market need? Let your passion shine through and inspire belief.

3. Build Relationships, not Transactions: Remember, investors are humans too. Ditch the robotic pitch and engage in genuine conversation. Listen actively, understand their interests and concerns. Show them you’re not just after their money, but that you value their expertise and guidance.

4. Embrace Creative Formats: Think beyond the PowerPoint. Consider captivating video pitches that showcase your team, your product, or the positive impact you’re making. Infographics, interactive prototypes, or even live demos can bring your story to life in a memorable way.

5. Authenticity is Key: Don’t try to be someone you’re not. Investors can sniff out artificiality from a mile away. Be yourself, flaws and all. Share your story authentically, your struggles and triumphs. Vulnerability can be your greatest strength, fostering trust and a genuine connection.

To learn how to craft a winning investor pitch, click here to attend Jacqueline Samira’s webinar on February 1.

Since 2011, Founders Network has fostered a culture of peer-to-peer mentorship and support, empowering thousands of members to build transformative companies. This has resulted in a powerful pipeline of promising startups, including unicorns like Docker, ProductBoard, and Braze.

FN Fund represents a natural evolution for our community. It allows FN to leverage our deep understanding of early-stage startups to provide crucial funding and support to the next generation of tech unicorns.

Why FN Fund?

The launch of the FN Fund was driven by three key objectives:

Capitalizing on Missed Opportunities. We have witnessed countless member companies achieve remarkable success, but access to capital remains a critical challenge for many early-stage ventures. FN Fund aims to bridge this gap and provide valuable funding to deserving startups within our network.

Strengthening the FN Community. By directly investing in our members, we further align our goals with their success. This incentivizes us to invest even more in programs and initiatives that equip our founders with the tools and resources they need to thrive.

Democratizing Access to Capital. We believe that access to startup funding should not be limited by background or privilege. FN Fund is committed to supporting diverse and underrepresented founders, fostering a more inclusive and equitable tech ecosystem.

What to Expect from the Fund:

FN Fund focuses on investing in pre-seed and seed-stage startups, providing crucial funding support to startups during their critical early stages. Here’s what to expect:

Investment Stages. The Fund invests at pre-seed ($25K-$50K) and seed stages ($250k-$300k).

Standard Offer. Founders can choose between a $25K investment for 2% equity or a $50K investment for 3% equity.

Portfolio Benefits. In addition to funding, portfolio companies receive access to valuable resources like peer roundtables, investor introductions, thought leadership opportunities, brand exposure, and ongoing mentorship.

Our Holistic Approach

FN Fund goes beyond mere capital investment. It offers a comprehensive support system designed to propel startups from the early stages to sustainable growth

FN Fund provides a unique blend of resources and opportunities tailored to accelerate your startup’s growth:

Portfolio Roundtable. Monthly meetings where portfolio founders can share insights and experiences, fostering a collaborative and supportive environment for learning and growth.

Access to fnInvestors. Personalized intros to Founders Network’s extensive network of 100+ angel investors and venture capitalists to help you quickly raise your round. 

Thought Leadership. Opportunities to speak at Founders Network events and global conferences, enhancing your startup’s visibility and establishing you as a thought leader in your industry.

Brand Exposure. Promotion to our global audience of 300,000+ tech enthusiasts and potential investors through our blog, newsletter, and social channels, positioning your company for success.

Peer Mentorship. Tailored guidance and support from experienced founders through our mentorship platform and exclusive peer-to-peer networking events.

Getting Funded

To qualify for funding from FN Fund, founders need to meet certain criteria. FN Fund believes in investing in companies with the potential for exceptional growth. To qualify for funding, your startup should have a strong team, ideally with a passionate technical co-founder and prior entrepreneurial experience, a compelling product addressing a real market need with a functional MVP, initial customer traction, and revenue potential.  

Meeting these criteria will strengthen your case for funding:

Prior Exit(s) or Complete Team. Demonstrating experience and team strength is crucial, ideally with a co-founder and a functional MVP.

Initial Traction. Companies should have initial traction in the form of customer acquisition, revenue generation, or significant validation from key stakeholders.

Membership in Founders Network. Participation in the Founders Network community is mandatory, allowing the Fund to assess your commitment and alignment with our values.

The Funding Process:

FN Fund follows a streamlined process to evaluate potential investments:

Meet Criteria. Ensure your company meets the basic criteria for consideration.

Initial Meeting. Schedule an initial meeting with the Fund team to discuss your venture.

Deck Review. Submit your pitch deck for evaluation by the Fund’s investment committee.

Deal Memo. If your pitch is successful, you’ll receive a deal memo outlining the terms of the proposed investment.

Reference Checks. The Fund may conduct reference checks with individuals familiar with your company and team.

For Prospective Members

Prospective members can expect a unique and valuable experience through Founders Network:

Exclusive Community. Joining the network grants access to a close-knit community of over 600 experienced tech founders, offering invaluable peer-to-peer mentorship and support.

Focus on Lifelong Success. The network goes beyond short-term gains and prioritizes the lifelong success of our members, fostering a culture of collaboration and mutual support.

Comprehensive Resources. Members gain access to a robust online platform, educational programs, personalized support, and opportunities to connect with investors and potential partners.

Pathway to Funding. Membership serves as the first step towards potentially qualifying for funding from FN Fund, providing a direct path to securing capital.

FN Fund is more than just an investment vehicle. It’s a catalyst for innovation and growth, empowering the next generation of tech founders. By joining Founders Network, you gain access to a powerful ecosystem of support and resources, paving the way for your startup’s success. With the support of the Founders Network and potentially FN Fund, you can significantly increase your chances of establishing a successful and impactful tech venture.

Ready to unlock your startup’s potential? Apply for FN membership today.

To learn more about 2023 startup funding trends, see if you qualify for membership to join Founders Network.

The startup landscape has undergone a remarkable transformation in 2023, characterized by a significant slowdown in global venture capital funding. Total funding in the U.S. plummeted by 42% compared to 2022. This was caused by a multitude of factors, including lingering economic uncertainty, rising interest rates, and geopolitical tensions surrounding the war in Ukraine. This decline has undoubtedly impacted the startup ecosystem, prompting entrepreneurs and investors to reassess their strategies and adapt to the changing dynamics.

Despite the overall downturn, pockets of resilience and innovation emerged. Climate tech startups continued to garner substantial investment. Investors are increasingly recognizing the urgency of addressing climate change and the potential of innovative solutions to mitigate its effects. Additionally, startups harnessing technology to revolutionize healthcare and education attracted growing interest. 

In this blog, we’ll look at 2023 startup funding trends so far this year and strategies for thriving in the current climate. 

We will explore how increased scrutiny of valuations, the rise of alternative funding sources, and the importance of AI and fintech are all influencing the way startups secure funding. We will also examine the challenges and opportunities presented by these trends, and provide practical advice for startups.

Key Trends Shaping the 2023 Startup Funding Landscape

In the face of a shifting financial landscape, several key trends have emerged, shaping the trajectory of startup funding in 2023.

Micro-VC funds, which typically invest smaller amounts of money than traditional VC funds, have emerged as a significant force in the funding landscape, particularly for early-stage startups. This trend reflects a shift towards democratizing access to capital and supporting a broader range of innovative ventures.

Additionally, investors are increasingly recognizing the importance of diversity and inclusion in the startup ecosystem, leading to more investment in female-founded startups, startups founded by entrepreneurs from underrepresented backgrounds, and startups addressing social and environmental issues.

While software and fintech continue to dominte in terms of securing funding, other sectors moved up the ranks to take a larger portion of 2023 startup funding.

Climate Tech Ascends

Investment in climate tech startups reached an high of $7.6 billion in the third quarter of 2023, surpassing previous records and signaling a growing recognition of the need for innovative solutions to address the climate crisis. This surge stems from the mounting threat of climate change, coupled with the growing availability of government funding and support, as well as increasing investor appetite for environmentally conscious ventures.

Climate tech startups are tackling a wide range of challenges, from developing renewable energy sources to improving energy efficiency, fostering sustainable food production methods, and advancing carbon capture and storage technologies. These innovative solutions hold the potential to mitigate the effects of climate change and transition towards a more sustainable future.

Healthcare Innovation Takes Center Stage

Startups leveraging technology to transform healthcare continued to attract significant investment in 2023, with total funding reaching $28 billion. This trend is driven by factors such as the aging population, the rising cost of healthcare, and the increasing demand for personalized medicine.

Technology is enabling startups to develop innovative solutions for disease prevention, diagnosis, treatment, and monitoring, offering promising advancements in patient care and outcomes. These advancements include artificial intelligence (AI)-powered diagnostics and treatment recommendations, wearable devices for real-time health monitoring, and telemedicine platforms expanding access to healthcare services.

Education Enters the Digital Age

Startups employing technology to enhance education also experienced robust investment in 2023, with total funding reaching $16 billion. This growth is fueled by the demand for online education, particularly in the wake of the COVID-19 pandemic, and the growing popularity of personalized learning approaches.

Technology-enabled education platforms are transforming the way students learn, offering greater flexibility, accessibility, and individualized instruction. These platforms provide adaptive learning experiences, personalized feedback, and engaging content, catering to diverse learning styles and fostering a more effective and engaging learning environment.

2023 Startup Funding Trends

Global VC Funding Declines

Total global VC funding in 2023 stood at $221 billion, a significant drop from $381 billion in 2022, representing a 42% decrease. This decline highlights the impact of the broader economic slowdown on the startup ecosystem.

Late-Stage Funding Adapts

The median late-stage funding round in 2023 settled at $100 million, reflecting a decrease from $150 million in 2022. This shift suggests a more cautious approach from investors, favoring companies with proven track records and lower risk profiles, as they navigate the uncertain economic climate.

Seed-Stage Funding Faces Challenges

The median seed-stage funding round in 2023 stood at $2 million, down from $3 million in 2022. This decrease indicates increased scrutiny from investors, as they prioritize funding startups with strong founding teams, clear business models, and a compelling path to market.

Strategies for Startups to Thrive in the 2023 Funding Landscape

Despite the challenges posed by the economic downturn and the changing dynamics of the VC funding landscape, startups can adopt several strategies to enhance their chances of success and secure funding:

Demonstrate Strong Fundamentals. Startups should focus on building a solid foundation, with a compelling business model, a clear market opportunity, and a strong team with relevant experience and expertise.

Develop a Clear Value Proposition. Articulate a clear and concise value proposition that highlights the unique benefits and problem-solving capabilities of the startup’s solution.

Prioritize Traction and Validation. Demonstrate traction and validation by hitting early milestones, securing customer adoption, and garnering positive feedback.

Network and Build Relationships. Cultivate relationships with potential investors, mentors, and industry experts who can provide valuable guidance and support.

Seek Alternative Funding Sources. Explore alternative funding sources, such as angel investors, crowdfunding platforms, or government grants, to diversify funding options.

Adapt and Pivot When Necessary. Remain agile and willing to adapt the business model or pivot the strategy based on market feedback and changing circumstances.

Navigating the Ebb and Flow with Resilience and Innovation

The 2023 startup funding landscape presents a unique set of challenges and opportunities for entrepreneurs. While the overall slowdown in VC funding may pose obstacles, there are still avenues for funding and growth for startups. By adopting strategic approaches, startups can secure the necessary resources and bring their ideas to life.

To learn more about 2023 startup funding trends, see if you qualify for membership to join Founders Network.

To learn growth hacking tips for startups, click here to watch Mehrad Yaghmai’s webinar.

Mehrad Yaghmai is a systems thinker. His career started when he moved to Dubai – after graduating from the University of California, San Diego. The move allowed him to work on projects that inspired his entrepreneurial spirit.

“As I developed expertise, I got really involved with the startup ecosystem over there. I started getting pulled into workshops at different co-working spaces and incubators to share my knowledge and how I’d worked to build systems from scratch,” he shares.

As time went on, Mehrad found that many of his roles tasked him with thinking as an entrepreneur to creatively solve problems. This also led him to work for companies that were not often thought to be sustainable, but that offered solutions that were climate-positive.

After a decade abroad, Mehrad moved back to a California much different from the one he had left. The year was 2020 and wildfires turned the San Francisco sky red. The effects of the climate crisis loomed.

This drastic change led him to turn his concern into action by founding Cool Climate Collective where he invests in climate tech and uses his startup expertise to help founders build impactful companies.

In a Founders Network  webinar on Octobern 4, Mehrad will share growth hacking tips for startups. In addition, he’ll detail his framework for how founders can integrate a climate-first lens into any industry.

His session will cover:

• How to develop a climate-first business model
• How to best leverage growth hacking tips to scale sustainable businesses
• The power of using systems thinking to create new business angles
• Advice for how to integrate an eco-lens atop any business model

Investing In Climate Tech

Cool Climate Collective brings together investors and operators from across the world who are at the intersection of climate and technology. Their mission is to accelerate solutions to climate change.

“One of our strengths is that we’ve pulled in a lot of other operators or founders like myself who are able to support our founders,” says Mehrad. “We always start with ‘What are you trying to figure out?’ and then match our founders with another expert who can help them solve that issue.”

At Cool Climate Collective, founders and investors have options to join their syndicate, pitch a startup, co-fund businesses, or offer mentorship to up-and-coming founders. In addition to traditional support, mentors help founders navigate the world of grant funding or building private-public partnerships. This enables them to grow their impact to meet the unique challenges of founders within the field.

As a collective, the team has supported plant-based food companies such as AKUA, methane-reducing innovators including Alga Biosciences, and clean energy leaders like Moneytree Power.

An Unsuspecting Path Into Sustainability

Mehrad’s path into eco-investing was achieved by taking a path less traveled. Initally, he began working for a variety of companies in Dubai where he stumbled upon climate-smart businesses in unexpected places.

“I briefly worked with a thermal energy storage company in Dubai. I never thought of it as a climate company, but just a brilliant operational efficiency play to capture wasted heat,” says Mehrad.

This work taught Mehrad that eco-efficiencies can be uncovered and integrated into any business model. Today, he uses these learnings to offer ecosystem building to founders. His focus is on growth hacking by creating plans to penetrate markets that are yet to exist.

“The very basic statement of: ‘This is a problem for a billion people.’ I think that’s a massive market and a massive opportunity space,” says Mehrad. 

Thinking Outside of The Box

With this ethos, Mehrad looks to push founders beyond a ‘green tax’ or brand positioning that aims to sell climate initiatives as a virtue play. Instead, he focuses on finding the greater ‘why’ and positioning consumers around this.

“Take social enterprises, for example. One model is to offer a percentage of proceeds to support a cause. Another way of operating is to think outside of the box. If focused on land, I think: ‘Well there is someone who cares about this land’. Whether that’s the city, state, or others I try to get to the custodians who want to preserve it. From there, I focus on designing models to create a more institutionalized impact,” he shares.

Mehrad encourages all founders – whether sustainability-forward or not – to connect and collaborate with him to see if there may be a hidden eco-edge waiting to be integrated within their startup.

To learn more about growth hacking tips, register for Mehrad’s webinar on September 28. 

To learn more about building bullet-proof investor-founder relationships, click here to watch Josh Krammes’ global keynote.

Josh Krammes is co-founder and COO of Hatchet Ventures where he is on a mission to ensure underestimated entrepreneurs get a shot at breaking into the coveted circle of startup success. The group leverages its experience as operators and founders of venture and private equity-backed startups – representing billions of dollars in M&A, exits, and IPOs – to support founders along their startup journey.

On September 20, Josh will lead a global keynote to provide insight into how his team is cracking the code to champion women, people of color, immigrants, members of the LGTBQIA+ community, military veterans, and the greater network of underestimated startup founders. His talk will detail the lessons he’s learned as a startup founder and how mentorship has been his unsuspecting key to success.

During Josh’s global keynote, he will share his model for bullet-proof investor-founder relationships, in addition to covering:

• How to pick the right business advisors
• How to vet equity investment offers
• Mistakes to avoid for first-time founders
• A proven model for mentoring underestimated founders

Betting On The Underdog

It is no secret that the investment landscape has work to do when it comes to achieving equity.

According to CrunchBase, Black and Latinx founders have raised just 2.4 percent of total venture capital invested since 2015. This ‘trillion-dollar blind spot’ also finds that women and minority founders experience 80 percent less business capitalization than businesses as a whole.

While it’s easy to point out the opportunity for improvement, even funders with the best intentions have struggled to break down these capital access walls.

Hatchet Ventures is one of the latest advisory firms to make a pledge to tackle the startup funding gap. To get it right, their hands-on approach begins with pairing founders with mentors who have faced the same challenges as them to guide them along the startup journey. It’s a model that was developed, in part, by Josh’s own learnings as a first-time founder.

“I had no advisors when I started my first company. I had mentors that I considered helpful, but I was young and a first-time founder and I didn’t know the importance of securing the right advisors,” he says.

Becoming Trusted Advisors

Hatchet Ventures understands the importance of strong investor-founder relationships. Their advisory model is proof of what is possible when a startup engages its advisors correctly.

“We just launched in October last year, and we already have 20 startups in our portfolio. Of those 20, we’ve helped close seed rounds for five of them and then two more of our portfolio companies should close theirs this month,” says Josh. “We have more than 40 startups that we’re working through to see if we mutually want to work together. I anticipate another half of those being signed up by the end of Q1 this year.”

Hatchet Ventures organizes its 50+ person advisory group to leverage its individual networks to make new connections. The group works with underestimated founders by surrounding them with a team and a group and a community of advisors who are all former builders. Most of this network is their core demographic.

“If you look at our advisory group of more than 50 people, there are only ten who identify as straight white males. So we’re sort of flipping the switch on this sort of DEI motion and saying that we’re going to build this with successful people who have done this before that represent the community we’re trying to help,” says Josh.

When founders work with the Hatchet Ventures team they are paired with CROs, CTOs, and go-to-market experts to help them best solve any problem they are facing.

“We don’t approach Hatchet as charity. We approach hatchet as sort of exactly what it sounds like. It’s a hatchet and we’re going to use it to bust down the doors for our clients,” he says.

Pick Your Team Wisely

Outside of Josh’s fervor to expand his model of working to support more entrepreneurs, he offers one core piece of advice for both founders and investors: Pick your team wisely.

“The most important thing about our model is having been afforded the invitation to be an advisor to startups in the past. If anything sticks from our model at Hatchet, I hope it’s that if you’re going to make the decision to give an advisor equity, you remember that it’s perpetual. And that that advisor now works for you,” he says.

Josh wants founders to take control of their equity relationships by ensuring that they come with a mutual return. His belief is that founders should be in communication with their investors every month. As a founder, if you are not seeing this, Josh encourages you to re-think your approach to investor-founder relationships.

“If you’re an advisor with equity, I feel that it’s your responsibility to work for that founder,” says Josh.

To learn more about building bullet-proof investor-founder relationships, click here to watch Josh Krammes’ global keynote.