Lessons Learned in Fundraising With Forecastr

Whether you’re just starting out or seeking to expand your business, seeking outside capital can be overwhelming. Where do you begin? What are the best funding options for your business, crowdfunding, small business loans, venture capital, angel investors?

Our portfolio company Forecastr is an online platform that helps founders build financial models that impress investors. They exist to give founders confidence in their financial health and forecast. We recently spoke with the Forecastr team about what they’ve learned about the funding process, the obstacles they’ve tackled, and what they look for in investors. Here is their funding story.

What led to the decision to seek funding to grow your business?

I’d built a startup in the past and bootstrapped it for some time. It was difficult and stressful at times, and I felt that with this company, the opportunity was so large that if I could avoid that stress, I would rather take less stress early on and give up the equity.

What funding route did you end up taking, and why?

We took an angel route at first, raising $750k from local angels, then took the VC route, raising $2.5M from mostly VC investors. We went to angels first because we wanted local investors, and we were really too early for any larger VC checks at that time. We then went the VC route because it was the path of least resistance to get the funding we desired, and VCs are strategic partners for us, since we sell to the venture ecosystem.

What is something you learned through the funding process?

It’s all about trust. Metrics are just one way to build trust, but trust is what it’s all about at the end of the day. Find interesting ways to build trust with your potential investors over time, build a great business, and you will receive the funding you need.

What advice would you give someone looking to fund their business?

Start early. You can never talk to an investor “too soon”, trust takes time.

What were you looking for in your investors?

I was, and still am, looking for smart, kind people who are experienced in both startup investing and the venture ecosystem, while still being “human-first.” I like investors who understand that there is more to life than business, that while we all want to do well and will work tirelessly hard to get there, we must take care of ourselves.

How has your business had to pivot or adjust over the past year?

Fortunately, we really haven’t had to. We had a good knowledge base going into starting the company and appear to have hit the mark for the most part. There is a lot of work still to be done, but we’ve been able to stay the course thus far.

What obstacles did you have to overcome to get where you are today?

So many. Building the go-to-market product was probably the biggest challenge for us to date. It took us over 12 months, full-time, to get the product fully into the market, with plenty of little bumps along the way. Early on, it’s all about product and customers.

What kind of impact are you hoping Forecastr makes on the entrepreneur community?

We want to help founders get a better handle on the financial health of their companies so they can avoid obstacles and achieve better outcomes. At a minimum, if we can help just one company hire more people, survive longer, thrive, and profit, then we have something to be proud of. We would like to do this for tens of thousands of companies around the globe.

What are you excited about for the future of Forecastr?

Launching a VC fund and investing in awesome startups that have great founders, and even greater forecasts.