A Strategy for Outsized Returns: Building a Capital Efficient Business
shegun.substack.com
Capital efficiency is back in style for startups, which is a great thing. The habits and mindsets we are forming — and in some cases, forcing — now around capital efficiency will serve founders well. In my founder journey, it was invaluable. I was trying to build a software startup in Birmingham, Alabama, in 2013! And in healthcare, where I had no prior experience. So I couldn’t blame the doubters. It took me eight months of fundraising to get my first check. I had to learn how to keep building, growing, and surviving. It took some begging and a lot of borrowing, but thankfully, no stealing. We eventually raised $250,000 from three local angels. That was all we raised to get significant traction. While we were already showing some signs of traction at this point, it was still early, and I will gladly admit our raise probably saved us from dying. Either way, I’m eternally grateful to those who took a chance on us, and I was very determined to make the most of it.
Thanks for sharing more details about your early journey, Shegun.
It's wild that it 8 months to get your first check and great that you found angels for the initial $250k. More founders should be capital-efficient and I appreciate your tips on how to get there.
Thanks for sharing more details about your early journey, Shegun.
It's wild that it 8 months to get your first check and great that you found angels for the initial $250k. More founders should be capital-efficient and I appreciate your tips on how to get there.