Unfolding the Maze of Funding Deep Tech; Metafold - DRT S2E14 - Ft. Moien Giashi, Alissa ross
503:15 Elissa's transition from PhD in Mathematics to becoming a Geometry consultant
04:24 Wait! What's Geometry consulting?
05:13 What problem does Metafold solve?
06:42 1-min Metafold pitch!
07:49 The decision process from consulting to product business
09:50 Focusing on a particular use case; transition from hardware + software to only software (and surprise! Covid's impact)
11:38 Elissa's take on what deep tech means
12:47 Moien's take on what deep tech means
13:46 Go-to-market strategy and business models for deep tech
15:45 Can you bootstrap a deep tech company?
16:58 Assumptions deep tech founders make about how they should pitch to investors
18:30 A Pitch to an investor has to tell the story of how both the company and the investor are going to make a lot of money
21:28 What does it mean with investors say "no" to your briliant idea (hint: not much)
22:30 Founder - investor fit
24:53 How can deep tech founders learn how to talk to investors?
27:04 How to build confidence to talk about business stuff with investors as a very technical person
30:43 Moien's take on how pitch deck should be structured (and bizzare relationship deep tech founders have with money)
35:37 Do accelerators help deep tech founders?
37:48 At some point you need capital not more mentorship
39:03 How will previous experiences guide Elissa's next fundraising round
40:55 Amir's rant on funnels and systems for fundraising
41:21 Wrap up and verdicts
KEY TAKEAWAYS:
1. Metafold is a software company that provides design software for additive manufacturing to make it easier and faster to get complex geometry products to market.
2. It originated from a geometry consulting firm as a hardware company, but pivoted to a software product driven by the desire to have a broader impact to unblock engineers from making progress with 3D printing innovations.
3. The process of raising funds for the startup involves navigating the pressure from investors to have a narrow focus on a single use case for the technology while staying true to a grand world-changing mission.
4. "Deep technology" solutions have significant R&D risk associated with them in addition to the usual business and market risks "shallow technology" solutions have.
5. Investors care about how the company plans to make them money and the depth of the technology only matters to make sure the dream founders are selling actually works (due diligence).
6. Bringing on professional investors is more about a strong collaboration between the company and its investors beyond just capital, and demonstrating a clear understanding of that aspect is crucial in convincing investors to provide funding.
7. Deep tech founders are in love with their technology, but as they mature as business people, their pitch evolves to emphasize the business case and value proposition.
8. It is rare for deep tech founders to talk about things they don't understand deeply with confidence. Therefore learning the business language, financials, and sales is crucial in sounding confident and credible when talking to investors.
9. There are many ways to self-educate on business topics: accelerators, advisors, courses, founder communities, mastermind groups, ... but ultimately all the above has to enable the founder to validate their business and tell an exciting story about their future growth.
10. Accelerators are very good ways for deep tech founders to get started, but they should educate themselves about what they need out of that experience and proactively pursue it.
11. It is important to focus on building your business and securing capital, not just mentorship. It is okay to drop out of an accelerator program if it's not a good fit for your company, and you need to make sure terms you are committing to are suitable.
12. When approaching a seed round, have a well-defined approach and plan. This includes having business momentum, a well-structured sales funnel, and a systematic process for dealing with investors. Align your approach with the investor's systems and workflows to ensure success in raising funds.