{"id":43749,"date":"2023-10-20T15:30:52","date_gmt":"2023-10-20T15:30:52","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/four-key-lessons-on-raising-capital-from-investorists-3-3-million-series-b-funding-round-startupsmart\/"},"modified":"2023-10-20T15:30:52","modified_gmt":"2023-10-20T15:30:52","slug":"four-key-lessons-on-raising-capital-from-investorists-3-3-million-series-b-funding-round-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/four-key-lessons-on-raising-capital-from-investorists-3-3-million-series-b-funding-round-startupsmart\/","title":{"rendered":"Four key lessons on raising capital from Investorist\u2019s $3.3 million Series B funding round – StartupSmart"},"content":{"rendered":"
\"Jon<\/div>\n

When it comes to raising capital, startup founders need to seriously consider whether it\u2019s the best approach and make the decision before it\u2019s too late.<\/p>\n

Investorist founder Jon Ellis says this is one of the many lessons he has learned after closing a $2.5 million Series A round in July 2015 and securing a further $3.3 million in a Series B round this month.<\/p>\n

With the latest round came new investors Andrew Sypkes, whose early-stage investments include Aconex, Canva and RedBubble, and Adam Clarke, who created bookarestaurant.com and sold it to the US-based Priceline Group.<\/p>\n

\u201cWhen we opened this round, we were looking for money and quality of investors who could take us through to Series C and IPO [initial public offering],\u201d Ellis tells StartupSmart.<\/em><\/p>\n

Ellis, who comes from a family of entrepreneurs and jumped into startup life after a former boss\u2019s aggressive reminder that someone else pays his wages, says Investorist initially bootstrapped the business before seeking external investment.<\/p>\n

Read more: Investorist founder Jon Ellis reveals how he is growing his $2 million property business by 30% each quarter and expanding to the United States <\/strong> <\/strong><\/p>\n

Today, Investorist has amassed over 5000 customers in 25 countries and more than $45 billion worth of property is listed on its platform.<\/p>\n

\u201cWe\u2019re the world\u2019s only B2B off-the-plan property platform,\u201d Ellis says.<\/p>\n

\u201cWe\u2019re more than double our size, we are now in America and we\u2019re established in the UK.\u201d<\/p>\n

When a startup decides to raise capital, it\u2019s important to understand what investors are looking for, and Ellis says the Investorist team has learned a lot since their Series A round.<\/p>\n

\u201cThis time round we had a real business that was really scaling, we really understand the customers\u2019 needs,\u201d he says.<\/p>\n

\u201cWe\u2019re still learning but we have our business model locked down [and] we have our direction locked down.\u201d<\/p>\n

Be upfront about the stuff that isn\u2019t great<\/h3>\n

In this round, Ellis says one of the toughest questions investors asked was about what was not going well with the business.<\/p>\n

\u201cWhat are the key metrics that you look at every week and I want to see the bad ones,\u201d he says.<\/p>\n

\u201cWhen you\u2019ve got a scale-up company, you\u2019ve got idea risk, market risk and global economic risk, and then you\u2019ve got execution risks.\u201d<\/p>\n

Ellis says founders really need to show they have what it takes to address the \u201cstuff that isn\u2019t great\u201d.<\/p>\n

\u201cThat is hard from a business owner\u2014and a person [whose] naturally tendency is marketing\u2014you kind of always want to show a glossy picture.\u201d<\/p>\n

Raise for growth<\/h3>\n

Ellis says it\u2019s crucial to think strategically about when and why you need investors<\/a>.<\/p>\n

It\u2019s a lesson he says Investorist learned the hard way during its Series A. At the time, it became a race for time because the business hadn\u2019t started early enough and was under a lot of pressure as money began to run out.<\/p>\n

\u201cRaise for growth, not survival,\u201d he says.<\/p>\n

Being first to market isn\u2019t everything<\/h3>\n

\u201cIn my startup, we\u2019ve had different periods of time where we\u2019ve thrown ourselves at the market and thought it\u2019s all about market share and speed,\u201d Ellis says.<\/p>\n

But being the first to market and having the largest piece of the pie isn\u2019t the only path to success, the entrepreneur says.<\/p>\n

\u201cIt\u2019s about quality of business as well,\u201d he says.<\/p>\n

\u201cThere\u2019s only very few businesses that can survive off of being massive.<\/p>\n

\u201cNot every business is going to be the next Facebook.\u201d<\/p>\n

Have the right team<\/h3>\n

Now at the Series B stage, Ellis says the Investorist team now comprises a global digital marketing director, a chief technology officer, a chief financial officer and a new sales director who each bring a mix of skills and experiences to the table.<\/p>\n

For Ellis, \u201chaving a really good team of senior people is so valuable\u201d.<\/p>\n

Follow StartupSmart on<\/em> Facebook,<\/em> Twitter, LinkedIn and iTunes.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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