Venture Capital backed companies typically go through unique stages of business. Although experiences range and the timing of stages vary by company and industry, a typical VC backed company goes through the following stages.
We recently connected with David Daneshgar, Co-Founder of BloomNation, a community marketplace for people to list, discover, and send unique floral creations by local artisans across the country.
David describes the greatest challenge in finding an investor was “finding someone we really liked, shared the same vision and connected with to lead the deal…We realize that it’s almost like a marriage and you want to make sure that those are the people you want to work with for years to come.” Typically gaining a board seat, investors have deep relationships with the company.
BloomNation raised a Seed round of funding for $1.65M one year ago. Looking back over the year David’s advice to new entrepreneurs is to not over-optimize: “Everyone wants the best partners, the best valuation, to raise the most money, the least dilution, the best terms, etc. But you can’t have everything and the sooner you get a couple of your bucket list items checked off and just move with the business the better.” Prioritizing what is most important to the founders and being flexible on less important issues enables the company to progress quicker.
With about 6.5M companies being founded and 2,700 companies receiving venture funding each year in the US, not everyone will make the cut. David notes “at the end of the day by being venture backed, you are one of the very few that made it to this stage and now the most important thing is to execute.”
How would you execute a Seed round?