Lynn Perkins, CEO and co-founder of UrbanSitter, recently walked Athena members through the path to investment for startups. Urbansitter is an app and website that’s making it easier than ever for parents to find, book, and pay trusted childcare.
Learn our key takeaways from the salon below. Members can view the full recording in the Resource Library.
- Before taking money, have an honest conversation about the type of capital you want and how that will influence the trajectory of your business. Think through the different sources of capital, such as small business loans, loans from friends and family, and venture capital, to understand the impact of each and make an informed decision. When you take on venture funding, there is an expectation that you will achieve certain metrics with aggressive growth in 12–18 months. Small business loans have a slower trajectory.
- Do your research. Use resources like TechCrunch and Angel Network to see the investments venture firms have made that are similar to yours. You’re more likely to get meetings if it comes through a recommendation, so find common connections with partners of the firm through LinkedIn.
- Select the right investor for your company. Is this someone who is going to take a lot of time and energy at board meetings? How do they want to communicate? How is the relationship between the potential investor and the CEO?
- Think through every step of your plan and the rationale behind every decision to scale quickly. UrbanSitter launched in three cities that were vastly different from each other to prove their concept. This allowed them to learn what processes worked and how to automate them to replicate growth faster in their next city launch.
Athena members gain access to exclusive events where they can learn boardroom and leadership best practices, engage with other members, and ask questions to propel their journey to the boardroom and C-suite. By joining Athena, you will build your board-savvy and rise through the ranks of leadership.