As a startup company, you may choose to bootstrap your funding. In fact, some business owners find it more comfortable to do so, as was the case for Michelle Eichner and her first company. From bootstrapping her company to success, she talks about her journey to creating a financial model that works. According to Michelle, it is important to make well-researched assumptions and reasonable predictions for business growth, such as when and where to increase or reduce your financial resources.
Michelle also talks about why she eventually chose to raise capital externally for her second company. Building her digital product was a more competitive venture than her previous emailing platform. She explains why bootstrapping was no longer an option in this case. Furthermore, Michelle tackles the benefits of attracting investors and using special purpose vehicles.
Do you want to know which type of funding is the best fit for your business? Listen to this episode to know more!
3 reasons why you should listen to the full episode:
- Learn how Michelle transitioned from bootstrapping her business to raising capital and seeking investors.
- Explore how using special purpose vehicles can help you raise capital.
- well-researched business projections are crucial for your financial model.
- [04:53] Starting as an Entrepreneur
- [06:44] Michelle’s Second Company
- [12:14] Bootstrapping for Pivotal Veracity vs Raising Capital for Digitile
- [15:24] What If Digitile Was Founded in the 2000s?
- [18:46] Choosing to Raise Capital for Digitile
- [20:32] Digitile’s Financial Model
- [23:09] The Changing Model of Digitile
- [27:39] The Benefits of SPVs
- [33:01] Determining the Amount of Investment
- [34:51] A Checklist for Capital Raising
- [37:02] Understanding Your Financial Numbers for a Well-Thought Pitch Deck
- [42:52] What Michelle Would Do Differently
- [48:02] Hiring a CFO
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