E19 Raising Startup Capital & Pleasing Your Investors with Matt Smith and Jean-Luc Johnstone

Raising capital is a balancing act. On the one hand, you receive funding that can expedite growth. Conversely, you lose equity and risk losing your company if you don’t play your cards right. What should business owners understand about raising startup money? What are the investor expectations if they help you jumpstart a product or service? 

 

CleverProfit’s Matt Smith and Jean-Luc “JL” Johnstone share their take on raising capital and making investors happy. We discuss what it means for your business if investors pour money into it and explain the different rounds of fundraising. We discuss what S.A.F.E. Notes are and their risks and advantages. We describe the difference between bootstrapping and fundraising and what you can learn from both. Matt and Jean-Luc also share their takes on the economy, where we’re heading, and the fundraising challenges many startup businesses are encountering in the post-pandemic world.

 

“The more money you have, the faster you can grow.” – Jean-Luc Johnstone

 

This week on the Expensive Advice Podcast:

Why a small business would need more capital

The various rounds of fundraising

What a S.A.F.E. Note is and its advantages for startups

The risk of S.A.F.E. Notes for investors

The process of the seed and pre-seed rounds

The different “series” involved in funding

What startups should remember when raising capital

Running your business vs raising capital

The primary downside to fundraising

The key difference between bootstrapping and fundraising

What you can learn from bootstrapping and fundraising

What our Advisory Team thinks about the current state of the economy

Why we’re seeing more companies struggle to raise funds

Connect with Matt Smith and Jean-Luc Johnstone:

Matt Smith on LinkedIn

Jean-Luc Johnstone on LinkedIn

Turning Boring Money into FUN Money

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