After raising Fund that Flip’s $11 million Series A Round, Fund that Flip’s Founder and CEO, Matt Rodak, wrote an article for TechCrunch on some observations about what happened after the round closed.
Matt’s article highlighted some of the downsides of raising and announcing a financing round, which included phishing attacks, ransomware attempts, and poorly-worded “chain-letter” emails and calls from a variety of service providers.
Matt also offered some candid advice for some of the various solicitors that reach out after a startup’s fundraise is complete:
“If you’re going to reach out cold to a company immediately after a fundraise, realize that you are not alone in this endeavor. This means that even if you craft the perfect email, it’s likely going into a black hole. Don’t be discouraged — it’s not because we’re jerks or because we don’t value your product or service. It’s that there is A LOT of noise after a fundraise. There are congratulatory emails, press releases, TV hits, internal communications, new investors/board members, new strategic initiatives… the list is endless.
Not to mention that for the last 6-8 months, the founders have been running the business while simultaneously raising capital, both of which are full-time jobs. In the few days after the raise, and when we have to get back to growing the business at breakneck speed, the last thing we want to do is hear a pitch.
So be strategic: have some empathy, send over a bottle of wine with a handwritten note and call me in 30 days. I promise we’ll still be hiring, looking for that new office space or exploring bank relationships. And in 30 days when that noise has died down, at least slightly, we’ll be in a much better place to understand that value your company brings.”
Read the full article onTechCrunch’s website.