Expensive Advice with Adam Rundle

Expensive Advice with Adam Rundle


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

August 31, 2022

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:




Turning Boring Money into FUN Money



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