How I Raised My Seed, Series A, & Series B

This episode of Ambition Today is supported by: Finta, The Capital Copilot 

In October 2024, Finta hosted a panel for LA Tech Week called "How I Raised - Seed, Series A, Series B." Featuring founders exploringthe unique challenges and insights of securing capital at different stages of their company. Our incredible panel for this event consists of:

David Kervin‍

Proteus Space ($8M Raised) - Revolutionizing satellite design with AI-driven platforms, aiming to reduce the time and cost of deploying satellites through automation and cutting-edge technology.

Gaurav Bhattacharya

Jeeva ($16M Raised) - Harness AI-driven customer intelligence, helping companies optimize their customer experience and reduce churn through actionable insights​.

Scott Wayman

Kangarootime ($37.5M Raised) - A leading innovator in the childcare management software industry, Kangarootime has risen to the forefront, providing vital solutions for daycares and preschools.

 

Key Fundraising Insights From This Episode:

1. Getting Investor Buy-In: Confidence Over Convincing

Founders emphasized that successful fundraising begins with confidence, not just pitching facts. Believing in your mission sets the tone for investor meetings, as confidence drives a stronger, more resonant narrative.

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2. Parallel vs. Sequential Fundraising Processes

Gaurav shared that sequential meetings can be a trap, leading to prolonged efforts. Instead, structuring outreach as a concentrated, parallel push creates urgency and FOMO among investors, leading to quicker commitments.

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3. Navigating Round Dynamics with Clear Milestones

For each funding stage, specific milestones are critical. Scott noted that Series B investors expect well-established product-market fit and sales efficiency, while Series A focuses on validating product intent. Seed rounds, by contrast, require strong founder conviction and a scrappy dedication.

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4. Leveraging Warm Intros for Better Outcomes

Cold outreach has a low conversion rate. David and Gaurav underscored the importance of warm intros, building relationships long before "the ask," as connections formed early often convert to funding opportunities.

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5. Pitfalls in Equity Structure and Term Negotiations

Gaurav and Scott highlighted the importance of a clean cap table and an informed approach to term sheets, particularly for liquidation preferences and convertible notes, which can heavily dilute founder control if unchecked.

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6. Evolving Pitch Focus: Metrics Over Mission at Later Stages

With each funding stage, the pitch shifts. For Series B, Scott mentioned that metrics and market dynamics become critical to justify high-value funding rounds, moving beyond storytelling toward quantifiable business growth.

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7. The Role of Timing and Market Trends

Market trends, such as the rise of AI, can be powerful, but founders caution to present technology realistically. David shared that aligning milestones with tech waves and managing investor perceptions is essential for positioning within emerging sectors.

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8. Finding the Balance in Deal Terms and Equity Retention

David noted that while SAFE notes and convertible debt can expedite early funding, they can also lead to significant dilution. Founders should prioritize understanding term sheets and use cap table modeling tools like Carta to project long-term equity impacts.

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9. Building and Utilizing Investor Relationships Over Time

David emphasized the value of maintaining relationships with VCs who may not invest immediately. Regular updates and casual interactions allow investors to track your progress and feel more comfortable when it's time to commit.

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10. Strategic Use of Milestones to Drive Up Valuation

Meeting critical operational or revenue milestones before the next round can significantly enhance valuation and interest. Scott's journey highlighted that proving product-market fit and high sales efficiency before Series B can allow for strong, valuation-focused negotiations.

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11. Positioning Within Tech Waves for Strategic Advantage

Each wave of technology (e.g., AI, blockchain) offers a unique angle for storytelling and market positioning. Scott and Gaurav recommended founders lean into tech trends authentically, showcasing how the wave aligns with their pr