How Startup Fundraising Works | Startup School

Ғылым және технология

YC Group Partner Brad Flora has seen startup fundraising from every angle: as a founder, as one of the most prolific angel investors in Silicon Valley, and now as a YC Group Partner. Brad has coached hundreds of companies on fundraising. In this talk, he shares stories and advice on how modern startup fundraising works.
Paul Graham Fundraising Essays:
www.paulgraham.com/fundraising...
www.paulgraham.com/startupfund...
www.paulgraham.com/convince.html
www.paulgraham.com/herd.html
Geoff Ralston's Fundraising Guides:
www.ycombinator.com/library/4...
• Fundraising Fundamenta...
YC Fundraising Resources:
www.ycombinator.com/library/2...
www.ycombinator.com/library/6...
www.ycombinator.com/library/7...
www.ycombinator.com/library/4...
www.ycombinator.com/library/3...
Apply to Y Combinator: yc.link/SUS-apply
Work at a startup: yc.link/SUS-jobs
Chapters (Powered by bit.ly/chapterme-yc) -
00:00 - Intro
00:27 - Fundraising resources
02:13 - 7 fundraising myths
04:06 - Raising money is glamorous
06:51 - The need to raise money before starting a startup
10:10 - My startup need to be impressive to raise money
13:56 - Raising money is complicated, slow, and expensive.
18:04 - I am going to lose control of my company
21:58 - I need a fancy network to raise money
23:43 - If investors reject my startup its a bad startup
26:35 - Wrap up - This isn't for you

Пікірлер: 143

  • @ycombinator
    @ycombinator Жыл бұрын

    For detailed advice on how to actually get in touch with investors and set up meetings, check out this video: www.ycombinator.com/library/71-how-to-get-meetings-with-investors-and-raise-money For YC's comprehensive guide to seed fundraising, check out this guide: www.ycombinator.com/library/4A-a-guide-to-seed-fundraising

  • @nicolasguillenc

    @nicolasguillenc

    Жыл бұрын

    thank you 🙏🏽

  • @paramveerdhoot6415

    @paramveerdhoot6415

    Жыл бұрын

    Do people still invest in hardware startups.... I feel like funding for hardware startups is rare and nearly non-existent now?

  • @benholmquist3589

    @benholmquist3589

    10 ай бұрын

    I was about to ask this question! Good pin.

  • @wumbo2421
    @wumbo2421 Жыл бұрын

    I'm currently 23, live in Southeast Asia, not from a rich family, and I just started out my career. Never in my life before thinking about building a startup. But in the past few weeks, I have watched several YC videos and get inspired to build my own startup! Sure I still have a lot of work to do, but learning from all of these great videos, I get assured that it's not impossible. Thank you YC for the great inspirations.

  • @DaniIhzaFarrosi

    @DaniIhzaFarrosi

    Жыл бұрын

    Fellow southeast asian here, good luck 🍀

  • @mathewtomas8058

    @mathewtomas8058

    Жыл бұрын

    Do you have a technical background? I’m looking for a co-founder.

  • @behikulo_TJ

    @behikulo_TJ

    10 ай бұрын

    Hi @wumbo2421 want to connect?

  • @pranavpalasamudram6119

    @pranavpalasamudram6119

    10 ай бұрын

    I'm from a similar place. It's amazing when you focus and just build what people want!

  • @ernestoquismorio3271

    @ernestoquismorio3271

    9 ай бұрын

    Atta go SEA!

  • @pulsenewsarena
    @pulsenewsarena Жыл бұрын

    "Coin-operated lizard people" ... I will forever remember this when approaching investors. Lol. And Thank You!

  • @minaraver
    @minaraver9 ай бұрын

    I'm building an assistive technology company and had an investor tell me during a meeting HE asked for, "This is a great idea. Someone can do this, but I don't think it's you." So I stopped fundraising, dialed back my vision to the first, smallest, most accessible piece and it's working! While almost everyone around me is trying to stop me, it's great to have videos like this that prove what I'm doing is exactly how founders win. Thanks!

  • @stellaariana1276

    @stellaariana1276

    4 ай бұрын

    Yea don't listen to those people. Would probably just as easily take your idea and have someone else fulfill it. It's a tactic meant to discourage. I hope it's going well!!

  • @machapuis
    @machapuis9 ай бұрын

    His last phrase: "You can do this. You can do this." 😢❤

  • @allthingsgenai
    @allthingsgenai Жыл бұрын

    Thank you. This is a fresh breath amidst all the negativity. Why don’t we have a world where builders get more air to experiment and find something people want. I have spent countless hours on my own to come to that stage. Now I have a business which is generating revenues. Still fighting and will keep fighting.

  • @aldousbendana1382
    @aldousbendana138216 күн бұрын

    I'm 1 year into my business of agricultural products trading and talking to different investors and pitching for additional capital. I'm really glad I was able to stumble upon YC videos. My goal is to build my own feedmill to supply premium quality feeds at a reasonable cost for Filipino livestock and poultry farmers! I'm now planning to apply for YC's funding. Love from the Philippines, YC!

  • @RuRichelieu
    @RuRichelieu Жыл бұрын

    Proudly bootstrapping but love the content!

  • @lesptitsoiseaux
    @lesptitsoiseaux6 ай бұрын

    Brad, I'm 47, a senior technical product manager who coded before. I'm building an app that solves the problem of trust between people. Your video was a soothing balm to my heart :) Being very conscientious in everything I do I tend to over engineer and worry too much. Very thankful for your video. Cheers from Vancouver! :)

  • @livlabsfitness
    @livlabsfitness Жыл бұрын

    Recommended viewing! Brad has a knack for simplification. This video is worth the time of every founder just starting (or struggling through) the early fundraising journey.

  • @leonidkhoroshko9585
    @leonidkhoroshko95852 ай бұрын

    This is some kind of different reality which i guess works in US only. I think i`ve spoken to 100+ investors, spending 1.5-2 years and raising 0 before i realized that all those investors are not interested in you or your team or your product. All they ask is what is your revenue and growth rate. Thats it. At first they will say "oh you are too early for us, but please let us know when you will reach X MRR" then "or you are too late for us, there is too much competition". Even though in your pitch deck it is clearly explained why you are different. Long story short, after we stopped chasing investors and focused on business, we managed to make it work organically without investors. Now we have entities in US, Europe, Asia and continue to grow.

  • @shimacharles
    @shimacharles Жыл бұрын

    Thank you, Brad. I learn a lot each time I watch a Y Combinator video. The journey is not for the faint of hearts.

  • @chunyuou9944
    @chunyuou99446 ай бұрын

    The last bit is the biggest challenge for me, “you can do this”, thank you Brad.

  • @TheAccountabilityKing
    @TheAccountabilityKing Жыл бұрын

    This was just the video i needed for my confidence to manifest my start up. Thank You for this!!

  • @_orangutan
    @_orangutan Жыл бұрын

    I'm currently building my MVP. I'm more on the technical side of things so these videos are absolutely informative. I'm still going through a couple of books as well, just to name a few.: - The Startup Owner's Manual - The Lean Product Playbook - The Lean Startup - The Founders Dilemma Keep up the great educative videos.

  • @richardmakura

    @richardmakura

    Жыл бұрын

    Don't leave out Rework!

  • @dennisorbison7318

    @dennisorbison7318

    Жыл бұрын

    do you happen by chance looking for a startup partner?

  • @realmuzfi

    @realmuzfi

    Жыл бұрын

    I am looking for a technical partner, I am also technical.

  • @piyushdeshmukh4706

    @piyushdeshmukh4706

    Жыл бұрын

    ​@@realmuzfi Can we sync to brainstorm and know more?

  • @reprovedcandy

    @reprovedcandy

    7 ай бұрын

    @@dennisorbison7318 Hey man, you've got to be more relevant in your approach here. You should ask what type of engineer the person is and gauge their interest in working on your product by presenting a high level about what you're aiming to build and what validation you've already done and why you're looking for a technical partner instead of continuing to contract/outsource etc. Your odds of finding someone go up by 100x+.

  • @foundergen3266
    @foundergen3266 Жыл бұрын

    I really thank you for this video. I always wanted to know that. And you took away my fears because now I understand that everything is so simple. You always imagine everything to be so difficult when you read about start-ups in the media. Thank you very much

  • @chapterme
    @chapterme Жыл бұрын

    Chapters (Powered by ChapterMe) - 00:00 - Intro 00:27 - Fundraising resources 00:50 - Paul Graham Essays 01:27 - Tactical guides 02:13 - 7 fundraising myths 02:28 - About 04:06 - Raising money is glamorous 06:51 - The need to raise money before starting a startup 08:19 - Example - Solugen 10:10 - My startup need to be impressive to raise money 12:49 - Example - Retool 13:56 - Raising money is complicated, slow, and expensive. 15:33 - SAFE - Simple agreement for equity 17:05 - Example - Asher Bio 18:04 - I am going to lose control of my company 19:17 - Example - Zapier 20:29 - Bootstrapping forever sucks 21:58 - I need a fancy network to raise money 23:18 - Best for Founder to talk to investors 23:43 - If investors reject my startup its a bad startup 24:00 - Example - nVision 25:09 - WhatNot 26:35 - Wrap up - This isn't for you

  • @astrarai-thesobercoder

    @astrarai-thesobercoder

    Жыл бұрын

    Thank you.

  • @jakirsenglishworld1151

    @jakirsenglishworld1151

    5 ай бұрын

    2:01

  • @jakirsenglishworld1151

    @jakirsenglishworld1151

    5 ай бұрын

    15:33

  • @zayyanusmani5360
    @zayyanusmani53607 ай бұрын

    Thank you so much Brad. I neededdd to hear the last part. "I def can do this". Much Love

  • @cheeseshaper
    @cheeseshaper2 ай бұрын

    Simply an amazing video. I learned so much from it that I had no idea about. So many misconceptions addressed and debunked. Thank you!

  • @aif1992
    @aif1992 Жыл бұрын

    One of the best videos I watched about Start-ups. Thank you!

  • @boriszhilinskiy8187
    @boriszhilinskiy8187 Жыл бұрын

    Extremely transformational and inspiring! Thank you so much!

  • @godwinchukzy9906
    @godwinchukzy99066 ай бұрын

    I'm about to start up my business!Thank you so much yc for all this videos, actually fund raising is very hard.

  • @TheLivesyoutouch2023
    @TheLivesyoutouch20234 ай бұрын

    One of the best video on fundraising and Investors… this will give strength to many entrepreneurs 🤟🏻🙏

  • @alexanderj4545
    @alexanderj45457 ай бұрын

    Great video Brad! #2 depends on your market. Medical Device development is somewhat different, although some of these ´fail fast´ procedures can be used.

  • @nftsasha
    @nftsasha19 күн бұрын

    Thanks, fam. The last 2 links under "YC Fundraising Resources" are 404s

  • @gregoryburne5251
    @gregoryburne5251 Жыл бұрын

    Such concise and helpful advice. Especially at 1,75 speed. It’s a deluge.

  • @tobiasomeyi1776
    @tobiasomeyi1776 Жыл бұрын

    Thanks very much. Great and enlightening information...Keep up the great work YC🙌🙏

  • @sammiezzy
    @sammiezzy Жыл бұрын

    Great video, full of top-level advice

  • @duongtt3
    @duongtt3 Жыл бұрын

    (V3) super helpful for me! thank you so much for those valuable resources and sharing🙏🏻

  • @carlatashkadeh5890
    @carlatashkadeh5890 Жыл бұрын

    Thanks YC. You gave me courage to dream big with Loodio!

  • @jakestryker35
    @jakestryker3510 ай бұрын

    Excellent presentation ! Very straightforward

  • @youssefsaid6076
    @youssefsaid6076 Жыл бұрын

    Amazing video! Simple and to the point 🎉

  • @user-lb2gu7ih5e
    @user-lb2gu7ih5eАй бұрын

    By YouSum 00:05:01 Raising money is not glamorous; it's about quiet conversations. 00:07:01 Start working on your startup before raising money. 00:10:12 Investors are convinced by progress, not impressive pitches. 00:14:02 Fundraising can be quick, simple, and inexpensive with safes. 00:17:28 Implementing safes can change power dynamics when talking to investors. 00:18:06 Seed rounds today offer founders more control than ever before. 00:20:30 Bootstrapping a company forever is challenging and not recommended. 00:22:00 Investors prioritize profitable ideas over fancy networks when investing. 00:23:46 Rejection from investors doesn't signify a bad startup idea. By YouSum

  • @amarelswtor5446
    @amarelswtor544610 ай бұрын

    Thanks Brad. Loved the energy!

  • @Plokhoj
    @Plokhoj Жыл бұрын

    Thanks for the video, you definitely can motivate people 😊

  • @marcesmack
    @marcesmack Жыл бұрын

    Thanks man. This was exactly the video I needed to watch. And I mean it. 💯

  • @terencelewis8856
    @terencelewis8856 Жыл бұрын

    Excellent advice, practical and executable.

  • @nathancovey
    @nathancovey7 күн бұрын

    “You don’t need every investor to like what you’re building, you just need a few of them to believe.”

  • 10 ай бұрын

    Such a great video and content. Thanks Brad!

  • @Chalewey69
    @Chalewey69Ай бұрын

    This was great information, thank you for sharing!

  • @darrinakpambang3810
    @darrinakpambang38109 ай бұрын

    Good day. Yc videos are the best out there. Can’t wait to have meeting with you

  • @superhanuta
    @superhanuta7 ай бұрын

    I really needs to see this, thank you!

  • @eliagreenberg4500
    @eliagreenberg4500 Жыл бұрын

    Great content! What makes bootstrapped startups not make enough money? Isn't it a reflection of how valuable your product is to the customers?

  • @manasgond3633
    @manasgond3633 Жыл бұрын

    Lovely video. Do YC help company to raise apart from their batches/ selected company?

  • @satyamskillz
    @satyamskillz Жыл бұрын

    Useful insights!

  • @ronlussari
    @ronlussari Жыл бұрын

    Great video. You are an exciting communicator.

  • @tsaplin2528
    @tsaplin2528Ай бұрын

    Awesome!! So helpful! Thanks a lot 👏🏻

  • @WTK839
    @WTK8393 ай бұрын

    one of the best videos I've seen.

  • @bluelaurel
    @bluelaurel6 ай бұрын

    15:15 typical seed round 15:35 agreement template drafted by YC combinator 22:16

  • @learninmachine
    @learninmachine Жыл бұрын

    Thank you so much. I just wish I lived in the USA. Getting the visa is the hardest thing for me.

  • @yashdrums6468
    @yashdrums6468 Жыл бұрын

    Great video! Thank you.

  • @patkorie
    @patkorie9 ай бұрын

    Thank you for this video.

  • @thedimplenest
    @thedimplenest6 ай бұрын

    Thank you for this seriously!

  • @razvangrigore322
    @razvangrigore3222 ай бұрын

    Great advice and one of the best videos on the subject I saw in a while. Just one note missing: What if you are not from the US? Do the SAFE’s logic still apply for an EU company?

  • @withfirapp
    @withfirapp Жыл бұрын

    Thank you so much Brad

  • @mysteriousshadow395
    @mysteriousshadow3959 ай бұрын

    I like the enthusiasm

  • @carloslfu
    @carloslfu10 ай бұрын

    Awesome video Brad!

  • @aureliammbasu6622
    @aureliammbasu6622 Жыл бұрын

    Very insightful..!!

  • @mushfiquekhan
    @mushfiquekhan Жыл бұрын

    thanks Brad for this awesome video, can you pls advise/suggest/guide, how I can talk to you for 10/15 mins only, I've my product/LIVE ready and its been used and liked too, just need a little of your time, pls advise or even YC can assist too, just need a little assistance here.

  • @phasematerialsresearch9319
    @phasematerialsresearch9319 Жыл бұрын

    Thank you.

  • @dani.dimitrov
    @dani.dimitrov5 ай бұрын

    I love you guys. Keep up the good work!

  • @hiranga
    @hiranga Жыл бұрын

    Question - how did early Zapier SAFE investors get return on their investment? How did they "cash out" ?

  • @randyschwaggins
    @randyschwaggins Жыл бұрын

    Love the video and advice. One point that I wanted to ask with regards to pre-rev startups...isn't there a minimum bar you need to show investors at this stage? Ie...even if you have a well presented idea and SAFE agreement in place, isn't it still massively important to present investors with; A. Well documented research to establish the product/market fit B. Something that resembles an early-stage MVP C. A team that looks (on paper at least) able to reach early commercialisation You didn't seem to touch on these points...but maybe you did and I just missed it...I just seemed to hear you talking about various businesses where you or other investors invested, based simply on a well presented idea. Surely an business idea...even one that makes total intuitive sense...isn't enough to secure investment pre-rev without the founder identifying - at the very least - a large body of potential customers who say they suffer from the problem that the potential product/service is being designed to solve? And moreover suffer enough to be willing to buy a solution to that problem? Any thoughts on this would be much appreciated!

  • @JamrockVybzTV
    @JamrockVybzTV10 ай бұрын

    Good stuff, thank you.

  • @recks1151
    @recks1151 Жыл бұрын

    love this guy

  • @domore1287
    @domore1287 Жыл бұрын

    Thank you

  • @BravoandBrave
    @BravoandBrave Жыл бұрын

    very useful. thanks

  • @cashyong8903
    @cashyong8903 Жыл бұрын

    Would this apply for service based start-ups as well?

  • @tylerthefailure
    @tylerthefailure Жыл бұрын

    Great video!

  • @Wasalami
    @Wasalami Жыл бұрын

    "Hundreds of thosands" :D Great video through!

  • @j5665
    @j56659 ай бұрын

    So, I've got a question: Are SAFEs available for those startups outside of North America? (Can the company be formed in 🇺🇸, but the founders reside elsewhere? Say Britain, for instance).

  • @vincentblue2455
    @vincentblue2455 Жыл бұрын

    Wow! Thanks man

  • @purawalker2537
    @purawalker25376 ай бұрын

    About to invest in my own App. Hopefully people love it.

  • @Johnnymarzo
    @Johnnymarzo Жыл бұрын

    The reference about zapier and how their first round was all SAFEs, how did those first investors get their money if that round was contingent on then next round which you said never actually happened?

  • @amirankurtanidze6966

    @amirankurtanidze6966

    Жыл бұрын

    actually there is written either max valuation or discount on stocks, if the next round happens or in 2 years (as an example) whichever comes first.

  • @oltreenrico6021
    @oltreenrico6021 Жыл бұрын

    God bless y'all!

  • @thanhnamnguyen7477
    @thanhnamnguyen7477 Жыл бұрын

    thank you

  • @matildeamarchandable
    @matildeamarchandable11 ай бұрын

    Thank You for the inspiring talk! Namaste $$$

  • @web3global
    @web3global Жыл бұрын

    Amazing video 🚀

  • @daveb4446
    @daveb4446 Жыл бұрын

    This is great advice. It’s important to be practical and avoid following glorified stereotypes. Real life is nothing like the glorified stories on the internet.

  • @plexradio
    @plexradio5 ай бұрын

    I have a startup idea, The device u r using to switch camera angel , we should make a foot version for it

  • @bennykokmusic
    @bennykokmusicАй бұрын

    Inspiring

  • @BunhakHong
    @BunhakHong Жыл бұрын

    It’s aha moment and great advices.

  • @samzbest
    @samzbest Жыл бұрын

    brilliant

  • @singhala
    @singhala Жыл бұрын

    Great video. However, the hardest part is to line up the zoom calls. Which is not covered in this video

  • @ycombinator

    @ycombinator

    Жыл бұрын

    We appreciate the feedback! We understand this video focuses more on the broader fundraising process and mentality required, but we've published content in the past that provides detailed advice on how to actually get in touch with investors and set up meetings: www.ycombinator.com/library/71-how-to-get-meetings-with-investors-and-raise-money

  • @scadeline805
    @scadeline8052 ай бұрын

    🔥🔥🔥 THANK YOU SO MUCH

  • @organizer14
    @organizer142 ай бұрын

    How did founders find the angel investors to present to?

  • @Thecoolestjen4477
    @Thecoolestjen44772 ай бұрын

    Do you know of any start up business grants for women who live in America but that can be used internationally to help obtain property and infrastructure?

  • @klausmaster5454
    @klausmaster5454 Жыл бұрын

    Hi , i am having over 100 user daily but without revenue because its beta tester version of AI startup . Does i need start charging them or no need , to get found raising ?Customer feedback is really great 100% 5 stars 🎉 . Now fine tuning of model starting to be really expensive and we really need investors .

  • @camiloandresleguizamon3624
    @camiloandresleguizamon3624 Жыл бұрын

    Great thanks a lot

  • @craig4229
    @craig422926 күн бұрын

    Epic content

  • @nicolasguillenc
    @nicolasguillenc Жыл бұрын

    thank you thank you thank you

  • @cody5304
    @cody5304 Жыл бұрын

    helpful thx

  • @SevenClips__
    @SevenClips__7 ай бұрын

    Nice Video 💯

  • @prithviye
    @prithviye Жыл бұрын

    talking with an angel, got a term sheet, and having to do thousands in legal fees for my seed round. is this normal, and if not, should i search for a different angel?

  • @ycombinator

    @ycombinator

    Жыл бұрын

    By using a SAFE there should be no legal fees: kzread.info/dash/bejne/rHaJyrOJgLafcbw.html

  • @rahul__kryadav
    @rahul__kryadav8 ай бұрын

    Does YC take stakes of the company for the $500 investment?

  • @shounakShetty
    @shounakShetty Жыл бұрын

    Someone needs to make a video about Lead Investors and Strategic Funds.

  • @datadoctor6205
    @datadoctor62053 ай бұрын

    Wish I knew these earlier.

  • @genericdeveloper3966
    @genericdeveloper3966 Жыл бұрын

    This video was right on the money (pun intended).

  • @blockchainbrudda3051
    @blockchainbrudda30518 ай бұрын

    I love you all.

  • @khierwenlucagbo5346
    @khierwenlucagbo53466 ай бұрын

    Do you need a contact for investors ?

  • @bittukumar-rv6rx

    @bittukumar-rv6rx

    Ай бұрын

    I do.

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