#17: Who should or should not raise venture capital? And how? - Gesa Miczaika
Despite the glamorous image of venture capital, it's not a funding source that fits all. Who should and who absolutely should not raise venture capital to finance their business? How can you make the fundraising process less painful? And finally, is there a way for an outsider to break into the VC industry? Dr. Gesa Miczaika offers straightforward and deep answers to these questions.
Gesa is the founding partner at Auxxo Female Catalyst Fund, a venture capital firm co-investing in startups with at least one female founder in Europe.
This episode has many practical tips for women founders!
"Venture capital is a very specific animal."
Gesa sheds light on Venture Capital from an insider point of view. She explains why Auxxo invests in women-led businesses, the specifics of their fund and what differentiates them from other VCs. In Auxxo, Gesa and her co-founder built an atmosphere where women founders are encouraged to take care of themselves and can ask any questions without being perceived as stupid.
“We’re bringing the human to the center of venture capital.”
Founders’ self-audit for raising venture capital
Gesa and Darya discuss how founders should assess if venture capital is the right funding source for them, and Gesa shares self-audit criteria. Do you tick all of them?
Market potential of at least 5 billion EUR
Revenue potential in the first couple of years
Being honest with yourself: What company do you want to build? Are you aiming for hyper-growth?
You should be ready to have VC involved in various strategic decisions including hiring or purchasing.
What could make it easier for founders to raise capital?
Gesa offers practical advice on fundraising. The fundraising process should be structured, and as a founder, you need a tool to document every step of this process and feedback from the VCs to iterate efficiently. Gesa also explains the benefits of raising money from business angels first and how angels can propel your fundraising campaign at a later stage.
People and organizations mentioned in the episode:
Judith Dada, general partner at La Famiglia VC
Anu Duggal, founding partner at Female Founders Fund
Gloria Baeuerlein, angel investor and VC
Julia Dous, founder and CEO at Grow Diverse
More about Dr. Gesa Miczaika:
Gesa is the Deputy President of the German Startups Association and a member of the "Young Digital Economy" Advisory Board to the Minister of Economic Affairs and Energy in Germany. An experienced business angel, Gesa co-founded Evangelistas, a network of female business angels with more than 190 members in Germany. She is based in Berlin, Germany.