What a Good Deal Looks Like for Early-Stage Businesses
For startups navigating the challenges of fundraising, understanding what makes a good deal is crucial. This month, Startups Magazine spoke with Kimberley Waldron, Founder of Started PR, and Susanne Chishti, Chair and Founder of FINTECH Circle to get their takes on this important topic.
Here’s a glimpse of key insights from our conversation. For the full story, visit Startups Magazine’s website.
The Value of Female Founder-Led Collaborations
KW: For Started PR, collaboration is about creating value. We admire what Susanne and FINTECH Circle have built—an extensive network, regular angel rounds, and strong founder support. This aligns with our mission to help early-stage businesses navigate investment rounds, retain brand value, and deliver better financial services.
SC: Startups are like diamonds; even with the best technology and teams, success is difficult without visibility. Kimberley’s expertise ensures startups stand out, attract customers and investors, and overcome hurdles. That’s why our partnership is critical for enabling startup success.
What Defines a Good Deal for Startups?
SC: Many founders don’t know what a good deal looks like because it’s often their first term sheet. Investors, on the other hand, see hundreds and know how to optimise them in their favour. To level the playing field, founders need experienced advisors, particularly lawyers who understand term sheets. Founders should also aim to attract multiple offers to strengthen their negotiating power.
KW: Founders should ask themselves whether the deal motivates them. Capital is expensive, so terms must inspire confidence. Beyond financials, consider whether the investor understands your market, aligns with your values, and can offer strategic advantages.
Balancing Financial Terms and Brand Value
SC: Founders often focus on maximising shareholding, but governance and structure are just as important. Misaligned board dynamics can lead to founders losing control. Understanding the long-term implications of deal terms is crucial.
KW: Messaging is critical during fundraising. The public narrative must balance transparency and strategy, focusing on long-term viability rather than hype. There’s been a shift from promoting hyper-valuations to addressing real market problems, which helps build a sustainable brand and attract the right investors.
Attracting the Right Angel Investors
SC: Angels invest their own money, allowing for faster, more personal decisions. They provide capital, networks, and advice. To attract the right angels, founders should highlight their market knowledge, growth potential, and how the angel’s involvement can add value.
Leveraging Networks for Better Deals
SC: Our network connects startups with investors, customers, and opportunities. For example, our Swiss FinTech Tour introduces startups to major Swiss banks. Partnerships like ours with Started PR amplify startups’ reach by combining visibility with targeted communication strategies.
KW: A strong brand attracts investors. PR campaigns that generate inbound interest or even all-inbound funding rounds are measures of success. Effective communication addresses investor priorities and adapts as the company evolves.
The Impact of PR on Securing Investment
KW: Clear communication builds investor confidence. Early-stage startups should focus on credibility, passion, and the founders’ track record. As they grow, the emphasis shifts to product-market fit, traction, and team development. Messaging must evolve to align with investor priorities at each stage.
Common Fundraising Challenges
SC: Fundraising is complex. Institutional investors often mix debt and equity terms that can be difficult to understand. Founders need an experienced fundraising lawyer to protect their interests. Misunderstanding terms can result in founders losing significant value at exit.
Communication Mistakes Startups Should Avoid
KW: One common mistake is focusing on what they want to say instead of what their audience needs to hear. Founders sometimes treat media relationships transactionally rather than building long-term advocacy. Oversharing on sensitive issues, like ongoing negotiations, can also backfire, especially on social media.
Top 3 Tips for Founders
KW:
SC: