Civic News
Thriving Tech Communities Month

Fundraising is harder now, founders say, so ‘be able to tell a story’

CEOs in wearable devices and fusion energy offered tips to fellow entrepreneurs during a fishbowl at the Technical.ly Builders Conference.

(L to R) Amit Kumar Singh and Yasmine Mustafa at the 2024 Builders Conference. (Kaela Roeder/Technical.ly)

Every founder developing a business, no matter the industry, has to deal with a few shared aspects. One of those is fundraising.

That key concern formed the basis of a fishbowl discussion between two mid-Atlantic founders at Technical.ly’s Builders Conference on Thursday. The convening, part of the annual Philly Tech Week, brought founders and business leaders from numerous cities together to network and learn from each other. The financing-focused conversation was one of various sessions on topics ranging from business ecosystem building to how founders handle marketing and customer outreach.

The session featured insights from Yasmine Mustafa, CEO and founder of ROAR in Philly, and Amit Kumar Singh, CEO and cofounder of NearStar Fusion in Chantilly. ROAR is a B2B wearable safety device company, while NearStar Fusion is a plasma gun fusion energy firm.

The founders spoke about their experiences in fundraising and developing investor relationships. Here are two primary insights from the conversation, facilitated by Maryland Momentum Fund Managing Director Mike Ravenscroft.

Raising money is more difficult nowadays than in recent years

As another Builders session pointed out, the cheap money era is over. Singh and Mustafa addressed this dynamic, noting how investors are being more intentional about where they put their money. Both founders have had investors asking more questions than they have experienced before.

One tactic Mustafa has used is to build out scenarios for what investors can expect back based on similar customers. This can help build trust.

“They want to make sure that they’re choosing wisely,” Mustafa said.

To get funds, it’s all about the pitch, Singh said. It’s also important to show proof your startup will be successful. This is especially crucial for complex tech companies like Singh’s, which are about six years pre-revenue and still in the development stage.

“You have to be able to tell a story,” Singh said. “Why are you going to succeed where others are not?”

Investor relations are a balancing act

Funder engagement is important, Mustafa said, but there isn’t time to speak to each and every one of her company’s investors.

She instead sends out a monthly update to all 71 of her investors, which lets her efficiently keep people in the loop and show the team’s hard work. It’s also a way for her to protect her time and set boundaries.

Investors can be confidants and great resources, Singh noted. He’s close with one particular investor of NearStar Fusion who he can ask tough questions.

He also recommended, despite the difficulty, being selective with investors. It’s hard to turn down money, but if the funder isn’t a good fit with the team, bringing that person on won’t be the right call in the long run.

Ravenscroft of the Maryland Momentum Fund, a vehicle to support the commercialization of innovations from the University System of Maryland, also noted how connected the investor community is — and impressions are crucial.

“When you are talking to one investor, you are talking to four,” Ravenscroft said.

The entrepreneurial community is very united, and it’s important to take advantage of that when handling fundraising or other aspects of starting a company. Joining peer groups is a way to meet people going through similar experiences, Singh said.

“Being an entrepreneur is a very lonely lifestyle. Almost nobody in your life will understand what you’re doing except for other entrepreneurs,” he said. “Join these peer groups that have entrepreneurs because you realize things that you think are unique to you are actually not, and then you can share them in a way that really relieves a lot of stress.”

➡️More from the 2024 Builders Conference

This story is a part of Technical.ly’s Thriving Tech Communities Month. See the full 2024 editorial calendar.

Companies: NearStar Fusion / ROAR / University System of Maryland / Technical.ly

Before you go...

Please consider supporting Technical.ly to keep our independent journalism strong. Unlike most business-focused media outlets, we don’t have a paywall. Instead, we count on your personal and organizational support.

3 ways to support our work:
  • Contribute to the Journalism Fund. Charitable giving ensures our information remains free and accessible for residents to discover workforce programs and entrepreneurship pathways. This includes philanthropic grants and individual tax-deductible donations from readers like you.
  • Use our Preferred Partners. Our directory of vetted providers offers high-quality recommendations for services our readers need, and each referral supports our journalism.
  • Use our services. If you need entrepreneurs and tech leaders to buy your services, are seeking technologists to hire or want more professionals to know about your ecosystem, Technical.ly has the biggest and most engaged audience in the mid-Atlantic. We help companies tell their stories and answer big questions to meet and serve our community.
The journalism fund Preferred partners Our services
Engagement

Join our growing Slack community

Join 5,000 tech professionals and entrepreneurs in our community Slack today!

Trending

The person charged in the UnitedHealthcare CEO shooting had a ton of tech connections

From rejection to innovation: How I built a tool to beat AI hiring algorithms at their own game

Where are the country’s most vibrant tech and startup communities?

The looming TikTok ban doesn’t strike financial fear into the hearts of creators — it’s community they’re worried about

Technically Media