'My pre-seed fundraise was unsuccessful - here's what I learnt'
rel Eve co's Jasmine Bennett shares what she wished she'd known about raising funds as a Black, female, FemTech founder.
Founder Jasmine Bennett shares her fundraising journey with her FemTech start-up rel Eve co. - and why her experience hasn’t deterred her from raising funds again. Over to you Jasmine..
From bootstrapping to fundraising as a founder
When I first set out to fundraise, I was totally unprepared.
I had never raised before, and had just officially launched my startup rel Eve co. just six months prior.
rel Eve co. is an ecommerce platform for sustainable period care essentials and specialty goods. I created it after realising that while there is an abundance of period care products available in the US, there are very few online shops dedicated to selling them in one place.
It soon became clear that although I had prepared to be bootstrapped, I actually needed to raise capital quickly.
So, I decided to start a fundraise round on my own, without any prior experience or support.
Fundraising and VC investments are the most popular way to raise capital, so I figured it was the best route for me to take for my company.
What happened during my fundraise
The fundraise process was scary, uncomfortable, and mentally exhausting. But it was a learning experience I will never forget.
During the fundraise, I received little to no interest from those I reached out to.
This is not uncommon seeing that Femtech founders receive just 2% of healthtech investments and Black female founders receive less than .13% of all VC funds.
As the data clearly shows, my opportunities are extremely limited.
Being the ambitious, vision-focused woman I am, I decided to set out on a journey against all the odds to blaze a new trail for Black Femtech founders in the US hoping to fundraise just like me.
Unfortunately, my first raise was a failed attempt. After reaching out to about 50-60 investors and angels, I hadn't received a positive lead by the end of the year.
When the fundraise round ended, I took a (much needed) 3-week break from the company to reflect, strategize, and rest after enduring the mental excruciating process of rejections.
Fundraising is hard
I realised that there were lots of things that I didn't know about how to properly execute a fundraise round and I lacked the knowledge of what investors and angels look for when founders are reaching out.
The fundraising process is difficult even for seasoned investors raising a Series B round. Most investors in the US are still becoming familiar with the Femtech industry and are still learning about the importance of investing in women's health and wellness brands.
Even though my fundraising journey did not turn out like I thought it would, it was an unforgettable experience that I appreciate.
Sharing my experiences
Here are some tips that I can share from my unsuccessful fundraise round:
Build your network
My social network and supportive LinkedIn community is amazing. I’ve met and have been able to connect with so many other great founders in the Femtech industry. I thought that my network was strong enough to get the connections I needed, but it wasn't.
Seeing that I was very new to the Femtech industry and hadn't established a wide range of networks, I wasn't able to find the interest needed to successfully end my fundraise round.
Most leads are generated through warm intros and in-person meetings, so developing relationships and networking is a huge part of fundraising.
I'm currently increasing my network and finding that it is easier to make connections through others that I meet or are connected to.
Build your company
It was extremely difficult to balance running my company and completing my fundraise round simultaneously. Doing all the necessary tasks such as social media marketing, logistics, and keeping up with emails got lost within the fundraise process.
After looking back, I would have spent more time and focus on marketing, branding and social media than I did on the actual fundraise. Emailing potential leads and meeting virtually is necessary, but what's most important is gaining traction and building the brand.
Focus on strategy, more than your deck
Just like many other founders, I read plenty of articles and watched countless videos of how to craft the perfect pitch deck. I found that a pitch deck isn't necessarily the best way to gain interest in your startup.
What's most important when it comes to fundraising is GTM strategy, budget and the founder story. I learned that having a high-growth marketing strategy that will bring in significant revenue is important. I also found that my personal story of why I started the company is what builds connection to my start-up and draws people in.
What's next for my startup
Since I've learned so much from my prior fundraise experience, I've decided to take the new knowledge and begin a new fundraise round this month, the right way. I'm getting ready to dive back into the fundraise process, raising a pre-seed round for my company.
I plan on this next round ending successfully, becoming another learning experience that I can share to inspire other founders (especially Black Femtech founders) looking to raise their first round.
Find out more about rel eve co.: www.releveco.com
References:
Fundraising stats for Femtech companies and Black women: