How to Raise Capital for a Startup: 6 Tips From a Silicon Valley Veteran

Brad Porter boasts an impressively long and successful career, but he’s still actively learning and refining his approach to raising capital.Brad’s 30-year career highlights include deploying over 500,000 robots as the vice president and distinguished engineer of robotics at Amazon, as well as accelerating robotics as CTO of Scale AI. Now, as the head of Collaborative Robotics, Brad and his co-founders, Jane Mooney (formerly of Amazon) and Steph Tryphonas (formerly of Tellme and Microsoft), are pioneering the future of robotics in fields ranging from manufacturing to healthcare to domestic spaces. As Brad explains, “When I started Collaborative Robotics, I was kind of looking around saying, is there anything that solves this more simply than humanoid?—and didn’t see anything.”That’s when the Collaborative Robotics team developed their “cobots” by using holonomic motion. “[The cobot] can move in any direction,” Brad explains. “It can load and unload boxes, totes, and carts from shelving space or grab existing carts and move them around.” Thanks to robust language models as well as navigation planning, autonomy, and sensing, users can even talk to the cobot. You could say, for example “take this tote down to reception,” and the cobot will follow your instructions. These robots are “collaborative and able to work in and around humans, but they don’t have a humanoid form factor,” explains Brad. These are the robots of the near future. In this article, Brad talks about his journey so far with Collaborative Robotics. He outlines the importance of networking, shares the book that got him through the seed round, and explains why, ultimately, you have to stay nimble to stay viable. How to raise capital for a startup1. Leverage your networkFor Brad, nurturing relationships is paramount. Thanks to his decades in the industry, he already had a deep bench of supporters by the time he established Collaborative Robotics. When it came time to secure seed money for his new venture, Brad started by reaching out to his network; he was able to procure more than $2 million in this “friends and family pre-seed round.” Brad notes that in this earliest stage, people were really investing in him more than the technology—he didn’t even put together a pitch deck! 2. Stick to the playbookBrad credits Bolt founder and CEO Ryan Breslow’s book Fundraising with guiding him through the seed money round. “It is pure gold,” says Brad. “Every single strategy in there worked perfectly. Everything he described made sense.”Prior to his experience at Collaborative Robotics, Brad hadn’t personally spearheaded a fundraising drive. But, he adhered to Breslow’s strategy, even when it seemed counterintuitive, and in the end it paid off. In just three weeks he solicited more than $11 million from a collection of motivated VCs and angels, including Ali Partovi (Neo, Khosla Ventures, 1984 Ventures, and Calibrate Ventures), to get Collaborative Robotics off the ground.Brad notes that Breslow’s advice helped him develop the fine art of “piquing people’s interest without giving up everything.” You want your introduction to be just revealing enough to secure a call or in-person pitch. 3. Don’t be afraid to get commercial Brad recognizes that he benefited from fortuitous market timing in the seed round. By the time Collaborative Robotics was ready to pursue Series A funding, the environment wasn’t quite as friendly for fundraising. “This is not the market to be purists,” Brad remembers thinking. “This is the market to get commercial as quickly as possible, and to be able to bootstrap yourself if you need to.”He continues, “I don’t think anyone had any real concern as to whether Brad Porter, a distinguished engineer from Amazon with his track record, could build technology. The question was, can Brad Porter sell to enterprises?”Noting that it’s easiest to raise money when you don’t need to, the Collaborative Robotics team committed to securing at least two marquee customers, including the Mayo Clinic, in an effort to increase cash flow and demonstrate viability. 4. Systematize your outreach strategyWhen Brad started working on securing Series A funding, he initially tracked potential investors using a Google Sheet. But it quickly became clear that this approach wasn’t detailed enough to meet his needs.To solve this, Brad developed a more structured method, creating individual profiles for each investor to keep track of ongoing conversations and follow-ups. He recommends breaking your outreach process down into its smallest parts to stay organized and on top of things.“The system was really helpful for keeping track of the various conversations… it was just a simplifier,” he says.In the end, Brad’s strategy paid off. Collaborative Robotics raised $30 million in Series A funding, led by Sequoia Capital. Previous investors, including Jeff Wilke (former CEO of Amazon Consumer), Fuel Capital, and MVP Ventures, also contributed.5. Be ready to sail when the wind changes After closing Series A, Brad didn’t anticipate raising a Series B until 2025. He was keeping his lines of communication open with Series B level investors, but for the most part, he was focused on getting robots built and out in the field in preparation for an investor showcase. But a couple of things happened that made him revise his plans. First, the buzz around robotics started to pick up; investors concluded that AI was on the precipice of enabling advanced robotics. Plus, AI robotics company Figure AI closed a monster round of fundraising, further drumming up interest in robotics in general. Brad could feel the winds shifting. He conferred with advisors Emil Michael of Uber and Alfred Lin of Sequoia Capital. “I think maybe I should put my sail up and see if I can raise right now,” Brad remembers saying. Everyone was in agreement: when conditions change, you have to alter your strategy accordingly. Collaborative Robotics decided to open up their investor showcase to include a select number of potential Series B investors. “We didn’t run a process in Series B, we just followed up with people after that event,” Brad explains. In just eight weeks, Brad ended up raising $100 million led by General Catalyst. Existing investors Sequoia Capital, Khosla Ventures, Mayo Clinic, Neo, 1984 Ventures, MVP Ventures, and Calibrate Ventures also participated, along with Bison Ventures, Industry Ventures and Lux Capital.6. The process is difficult—own it If drumming up capital and keeping a startup afloat sometimes feels like you’re running a gauntlet, Brad says that there’s a good reason for that—it’s because you are. “The process is almost set up to test your conviction in your idea,” Brad explains. Ultimately, the best thing that a founder can do is to accept this reality, and run headfirst into the fray. “The more you think it’s not hard, the more it will beat you up,” Brad warns.The key to success is to have enough confidence in your idea to keep going in the face of adversity, and enough humility to reflect and refine your pitch when you hear “no.” At the end of the day, Brad encourages entrepreneurs to pursue the right investor with dogged determination. “You will get better,” Brad says, “you will get better at selling, pitching, and handling rejections, and you will find someone who believes in you and the conviction you have.”Article is based on an interview between Nathan Beckord and Brad Porter on an episode of Foundersuite’s How I Raised It podcast.

How to Financially Prepare to Start a Business: 5 Tips

In the excitement of becoming self-employed, it’s easy to overlook some of the most important areas of your finances. However, if you want to be successful, you need to make sure you are ready for what comes your way–for both your business and personal finances.
How to prepare financially to start a businessAs you set up your business, don’t overlook the following financial realities:1. Insurance
One of the biggest mistakes you can make is to overlook the insurance that you will need as a business owner. If you work out of your home, you need to make sure you have a rider for the business use of your home. You might need other types of insurance as well, depending on your business. Research the types of insurance you need so that your assets and your self-employed income are protected.
2. Benefits
Many of us dream of being self-employed. One advantage of working for “the man,” however, is the benefits package. In addition to health insurance, you might have access to a retirement account matching contribution, and special perks like childcare and gym memberships. Some companies even provide cars or smartphones.

Once you leave your job, you will need to create your own benefits package. Carefully consider the cost involved and make it a point to do your best to supply the lack. If you have a life partner, you can coordinate benefits in a way that won’t leave you in a lurch.
3. Credit
Establishing business credit can be harder than you think. Many self-employed entrepreneurs don’t think of this, but the reality is that personal credit might be necessary when you first apply for business credit. Many lenders will take your personal history into account, especially if your business is relatively new. You will need to take this into consideration because it’s normally better if you can manage to keep your business and personal finances separate.
4. Variable income
In the back of your mind is probably the knowledge that you won’t have the same cash flow that you used to. However, it still comes as a shock to many when they first try to navigate a variable income. Your variable income can make it a little harder to plan your spending. You need to try to find a baseline, and then set aside money when you make “extra” each month. That way, you will have resources to draw on if you need to.

Setting up a large cash reserve before you quit your day job to strike out on your own is a good idea, too. That will give you something to rely on as you get your business off the ground.
5. Taxes
When I first started my business, I didn’t think about taxes, and I ended up with a nasty surprise. Remember that you should pay quarterly taxes, and that you should also keep in mind state taxes. I learned this the hard way. After I got my federal taxes under control, I realized that I had forgotten my state taxes the next year and was still unpleasantly surprised. Don’t let that happen to you. Pay attention to what you owe, and make it a point to pay your taxes regularly.

With a little planning, you can make it work as a self-employed person. But if you aren’t on top of things, your personal and business finances can weigh you down.

How to Raise Money From LPs: 7 Tips for Startups

David Zhou is a busy guy.As the head of investor relations at Alchemist, a San Francisco-based venture fund and accelerator focused on enterprise startups, David manages the operation’s limited partner (LP) relationships.He has plenty to do. Since its founding in 2012, Alchemist has accelerated over 650 startups—including LaunchDarkly, Privacera, and MoEngage—that have collectively raised over $3.9 billion in capital. On top of his role at Alchemist, David runs the blog Cup of Zhou, which he bills as “weekly investor musings to go with your morning coffee.” He has also launched a podcast devoted to demystifying the LP called Superclusters, on which he interviews some of the biggest names in startups and LPs. As you might imagine, we covered a lot of ground when David discussed what he has learned raising capital for a venture fund. In this article, he talks about the importance of cultivating relationships, shares some strategies for connecting with motivated LPs and explores the usefulness and limitations of leveraging logos. Tips for raising money from LPs1. Nurture relationships now When it comes to making connections, there’s no time like the present. David abhors interactions that feel overly transactional or impersonal. Instead, he prioritizes personal touches and genuine interest in people and their priorities. “We’re human beings,” he explains. “We want to be cared for, we want to feel like we’re important individuals. This is true for LPs, this is true if you’re a founder, this is true for investors you chat with as well.” David credits Mark Suster of Upfront Ventures with introducing him to a Zig Ziglar quote that has become a mantra for him: “People don’t care how much you know until they know how much you care.” He advises to take the time to foster relationships with people now, even if you’re not in funding mode.“There is no way to time the market,” David explains. “Whether you [raise it] today or tomorrow, you should start building relationships now. Because market timing is always obvious in hindsight, but not obvious in foresight.”2. Cast a wide netWe’re talking, really wide. “Talk to your lawyer, talk to your accountant, talk to your banker, talk to your dentist,” says David. “Convince them, pitch it to them, see if it resonates with them.” This is a particularly effective strategy for funding small ventures, according to David. He says, “If you’re running a $10 million, $15 million fund, any one of those people could be a great LP to invest.”David also says to keep in mind that fostering relationships with LPs may pay off in unexpected ways down the line. Successful LPs and fund managers often know other motivated investors, with whom they can put you in contact when it’s time to fundraise. 3. Keep networking events small and personal“The easiest way to get to know LPs, and have other people introduce you to LPs, is to host events: intimate dinners of six, eight, or ten people” David explains. Inviting someone to an interesting event is a much easier ask than getting on an LP’s schedule for a 30-minute pitch.David notes that larger events can be great for networking, while smaller-scale get-togethers allow you to build strong, warm, and genuine relationships with particular LPs. To help build those relationships, he has gone so far as to host escape room events in which all the clues were based on a group of LPs’ anecdotal stories. Is the legwork worth it? “You do a lot of research,” David concedes, but ultimately “every single individual is like, oh my God, this event was designed for me.”Nothing beats a personal touch. 4. Open doors by asking for advice Another simple, low-stakes way to connect with LPs is to reach out to them for advice and get an idea of what they would do in a particular situation. “Investors love giving advice, because it’s free,” David says. “And if you come back, and tell them that their advice actually went somewhere, it’s a good dopamine hit for a lot of folks.”He advises, when querying LPs, keep it casual, and go into it with an open mind. You may not actually end up following their guidance, but you’ve strengthened a connection for the future.“It’s all about investing in lines, not dots,” David says. “It’s much better for you to build that relationship over time. [The LP] will see how you think over time, how you react to pitfalls, as well as your best moments.” This empowers the LP to “finally decide that they’re going to invest in your next fight.”Caution—David cites this bit of wisdom from early-stage investor Scott Belsky and author of The Messy Middle: “If you sometimes listen to your investors’ advice, you might fail. If you always listen to your investors’ advice, you’re guaranteed to fail.” In other words, don’t feel pressured to follow an LP’s advice just because they shared it; make the choice that’s right for you. 5. Tap into your value as an educator David has found that LPs, especially small family offices, are somewhat unique in the world of venture capitalism, because they are often motivated by educational opportunities. “For the smaller LPs out there, venture capital is not an asset class, but an access class,” David explains. “They’re looking to learn, they’re looking to find deal flow, they’re possibly looking for co-investment opportunities. They’re not necessarily geared towards financial return.”So, lean into this inclination! When pitching to LPs, highlight the collaborative assets you bring to the table. How can working with you make them a better investor? 6. Remember, repetition is your friend There’s a well-known adage in the world of advertising that states a person needs to see an ad seven times before it actually resonates with them. David has found that the same thing is true in venture capitalism. Taking a nugget of wisdom from Tim Ferriss, author of The 4-Hour Workweek, David stresses that connecting with LPs doesn’t need to be super time intensive and elaborate. “This part is extremely important,” David says. “You want to connect for even 30 seconds, 10 seconds. [Your outreach] lives rent-free in the mind of the person you want to get in front of.”Here’s one way that David puts this principle into action: when David discusses something on his podcast that he thinks is relevant for a particular family office or pension fund, he’ll forward a clip of the pertinent section to his contact. He links to the full podcast, in case the LP has an interest in the larger discussion, but he makes it easy for people to engage with his content even if they’re exceedingly busy. Not every email or call has to be an invitation or pitch. Sometimes less is more. 7. Leverage logos…within reasonDavid finds that the most fundable operations at this moment in time are spinouts doing niche verticals with concentrated portfolios. If you can leverage a logo or track record, these can be powerful motivators for LPs.He says, “In this world, people like LPs are relying on pattern recognition…and the easiest patterns to recognize are brands and logos. If you are a spinout, it is much easier to tell your story, and at least to get face time with an individual.” David also cautions against highlighting tenuous or late-stage connections.At the end of the day, however, it comes down to integrity and strength of vision. “If people can approach me with intellectual honesty before I even have to go through that analysis…I love that a lot more than hiding things under the hood and bundling your track record together with previous things.”This article is based on an interview between Nathan Beckord and David Zhou on an episode of Foundersuite’s How I Raised It podcast.

How to Turn Your Business Idea Into Reality in 7 Practical Steps

As the very successful Walt Disney once said, “If you can dream it, you can do it.” And as a successful entrepreneur myself, I can confirm that you can make your dreams come true if you set your mind to it, persevere, and give it all you got. But, making your business idea a reality doesn’t happen overnight. It takes time, patience, and a ton of hard work.

So, how do you make your business idea and dream come to life? Let me walk you through it.

Turning your business idea into a reality

Got a solid idea for a product or service? Awesome. Now it’s time to get going and make your idea a reality. But in order to do that, you have to be willing to put in some legwork. To get your idea off the ground and help your business dream come true, start with these seven steps:

1. Do your research

When trying to bring your business idea to life, start by doing some research. Look at:

The market
Potential competitors
Your audience

Your product or service won’t get off the ground if there isn’t a viable market for it. So, take some time to really dig in, research, and find out if your idea is sound. To help with this process, consider also doing a SWOT analysis to analyze strengths, weaknesses, opportunities, and threats to your business idea.

2. Narrow down your target audience

I mentioned your audience earlier, and I’m going to mention it again. Why? Because pinpointing the right target audience for your startup can make or break your business’s success. So if you want your idea to work, narrow down your target audience.

To find the ideal audience for your idea, you can:

Conduct a market analysis
Create customer personas
Analyze competitors
Look for trends
Conduct surveys
Collect demographic data
Consider psychographics (e.g., values, hobbies, etc.)

You can’t try to sell your service or product to everyone under the sun. It’s not realistic because not everyone is going to have a want or need for what you’re planning on offering. Also, people have different pain points. So, find your ideal customer who would want to buy from you and narrow down your audience as much as possible.

After you get a good idea of whom you want to target, it will become easier and easier to determine next steps, like marketing strategies.

3. Establish a financial game plan

Unless you’ve found a way to grow money on trees, chances are you’ll need some type of funding to support your entrepreneurial dream. Before you can set your dream in motion, you need to have a good idea of how you plan to finance said dream. Luckily, owners have a lot of business funding options, including small business loans, lines of credit, and investors.

When planning, you should also get a good idea of how much you’re going to be spending by forecasting future finances and keeping expenses in mind.

The more prepared you are financially, the easier it will be to get your business off the ground and sustain it for years to come. Not to mention, going in while being financially unprepared can cause you to become one of the 38% of businesses that fail because they run out of cash or fail to raise new capital (yikes!).

4. Write up a business plan

Along with financial planning comes an even bigger plan: your business plan. Your business plan is like a road map for your company. It details every little thing about your business, from funding to marketing. And it should answer a variety of questions about your business, like what problems your solution will solve and whom you want to target.

Your business plan can help you further understand your market, obtain outside funding from lenders and investors, and strategize your company’s future. So, what all should you cover in your business plan? Include the following sections:

Executive summary
Company description
Market analysis
Organization and management
Service or product line
Marketing and sales
Funding
Financial projections

Not sure how much to include in your plan? The general rule of thumb is the more details the merrier. But, don’t go overboard when it comes to text. Make your plan easy to read and digest by spacing out text, using bullet points, and including images (e.g., charts and tables).

5. Test your idea

Prior to taking some bigger steps, like registering your business, make sure your idea works. And what better way to do that than test it out?

Whether you have a service or product, you need to test it before officially launching your business. Otherwise, you can wind up with disgruntled customers. Or worse, no customers at all.

Testing your idea before fully investing in it can give you insight on any changes you need to make and the longevity of your idea. To test out your product or service, you can ask family or friends for feedback, interview your target market, or conduct focus groups.

Conducting testing allows you to get honest feedback about your idea without fully committing to it. You then can use that feedback to make improvements to your product or service before you unveil it to the world.

6. Set reachable goals

Another big aspect of running a business is setting goals. And when you’re chasing after your entrepreneurial dream, you need to set goals to help stay on track and motivate yourself.

When it comes to setting goals, be realistic. Set reachable goals that you can actually obtain within a reasonable time frame. Not ones that are nearly impossible to achieve, especially as a new business owner.

Consider using SMART goals, or specific, measurable, attainable, relevant, and time-bound goals. That way, you can outline your goals and ensure you don’t miss any important details.

Here are some examples of goals you can set for yourself while making your business idea a reality:

Get feedback from X friends and family.
Secure funding by the end of the year.
Get X customers by quarter 3.

7. Take action

Again, making your business idea a reality doesn’t happen within a few hours, days, or even weeks. It takes time and baby steps. But once you’re ready to dive in and have prepared everything (hint, hint: steps 1-6), you can begin to take action.

After you get your ducks in a row with your business plan, target market, etc., you can start taking action in other areas, such as:

Registering your business
Securing a location
Building your website
Advertising
Hiring employees
Choosing an accounting method (e.g., accounting software)
Setting up payroll if you have employees

Making your business idea a reality is a step-by-step process

All of these steps can seem intimidating, but trust me, they’re oh-so worth it in the end.

Don’t be scared off by your big to-do list. Instead, take it one day at a time, and slowly but surely you can turn your business idea into a reality.

RELATED: 11 Steps to Validating Your Startup Idea

13 Ways to Learn Entrepreneurship From Other Entrepreneurs

As an entrepreneur, it’s important to stay on top of the latest trends in your industry. There are many different ways to do this, from networking to following news articles to listening to podcasts. To find out the best approach, we asked young entrepreneurs the following question:Q. Entrepreneurs often seek to gather and share information. What is your preferred method for finding out what’s important from others in your field?1. Listen to industry-related podcastsI prefer listening to industry-related podcasts. Because of the audio format, I can listen and learn while I’m doing other things. This makes it easy to stay on top of what’s important and what’s on trend, and still get other things done at the same time. Find a podcast that features a lot of guests so that you can hear varying opinions on the same topic. —John Turner, SeedProd LLC2. Seek information from your connections Email newsletters are a great way to get an introduction and overview of what’s new in your field. Beyond that, I’ve found that the best conversations about my industry have been with connections through mutual friends, investors, and colleagues. —Kyle Wiggins, Keteka3. Read articles from multiple sourcesMy Flipboard is curated to the topics I want to know more about. I read probably 10-plus articles a day on different topics I want to know more about. I also don’t only read from one source, either, as that will limit my intake to one vein, so I get articles from at least 50 different publications. Reading is hands down the best and fastest way I have found to learn what I want to know quickly. —Ben Walker, Ditto4. Join niche social media groupsThe best way to receive and share information is through niche social media groups. They are great places to network, share ideas, and find out new things happening in the industry. I also tune into podcasts that focus on startups and other business-related topics. —Blair Thomas, eMerchantBroker5. Be a student of your industry I stay on top of trends and the latest news in my industry by being a constant student of the field. I make time every day to read posts on Medium, watch YouTube videos, or explore blogs from people who are doing interesting work. This keeps me engaged and growing as a professional, and as engaged as I was when I was younger and everything was still new to me. —Kristine Neil, Markon Brands6. Follow quality publications via Feedly I’m involved in multiple industries, from SEO to motorcycles, and read highly reputable online publications on a daily basis. I use Feedly, which organizes information into subject categories. I organize mine into content marketing, SEO, motorcycles, business development, etc. That way I choose the headline that will provide the most value for that moment, and can return to the others when needed. —Ron Lieback, ContentMender7. Subscribe to trade group publicationsParticipation in trade groups or industry-specific organizations can be very helpful. For instance, my local bar association offers numerous networking events and monthly journals to highlight recent developments in our industry. Reviewing the monthly journal helps me stay up to date with changes in my industry and identify future market trends. —Matthew Podolsky, Florida Law Advisers, P.A.8. Ask others directlyI tap into a community of entrepreneurs within the Entrepreneurs’ Organization to learn more about what’s important in my field. I do this because I don’t have the patience to read a lot of research and I would rather hear about someone’s personal experiences before I put time into reading more about specific subjects. I trust those people and the culture of sharing in the group. —Vladimir Gendelman, Company Folders, Inc9. Go to specialized eventsTypically, I like talking to people in person about new information in my industry. I find it helpful to attend niche events and discuss these thoughts and ideas face to face. You’ll also get a chance to see the technology or advancements in action! —David Henzel, LTVPlus10. Participate in group chatsI’m involved in a few different fields of business. Some have a bit of overlap while others form a completely separate niche. In order to stay informed of developments and happenings in all these disparate circles, I participate in group chat rooms across different platforms. One of these groups is over iMessage, another is in a Slack channel, while yet another is in a Google Meet group conversation. —Bryce Welker, Beat The CPA11. Visit entrepreneur-focused websitesOne of the best ways to find out what’s important to other entrepreneurs is to read the websites that they typically peruse. Four of the best include Inc., Mashable, Forbes, and BusinessWeek. Inc. is geared towards real-life information for entrepreneurs, Mashable is good for tech and media, and Forbes and BusinessWeek are better for objective commentary. —Andrew Schrage, Money Crashers Personal Finance12. Find and follow your industry experts I am always monitoring the latest and greatest in marketing and publicity, which is an ever-changing and growing industry. This includes following some of my favorite, credible experts via email subscription; Twitter, Facebook, Instagram and LinkedIn feeds; and blogs. I also follow credible industry groups to stay in tune with the latest and greatest news, tips, trends, and conferences. —Angela Delmedico, Elev8 Consulting Group13. Reach out and invite people to meet upThe best way to keep tabs on your industry is to go out and meet others, either for coffee or at events and meetups. We handle international taxation, and in our industry, discussing tax issues is fun and exciting, and CPAs are always willing to share their viewpoints, interpretations, and client situations since there are so many grey areas. Don’t be afraid to reach out! —Vincenzo Villamena, Online TaxmanRELATED: 10 Business Podcasts Every Entrepreneur Should Be Tuning In To