Scale Up NM

Carlos Murguia, director of the Hunt Center for Entrepreneurship at New Mexico State University, recently graduated from the prestigious Center Leader Academy Certification program, a significant achievement that reinforces the Hunt Center’s mission to elevate the entrepreneurial landscape within the region, and supports its vision of attaining national and international recognition.

Scale Up NM concluded its 2024 Venture Funding Sprint, guiding 10 #tech startups in New Mexico. Through mentorship and networking, the program empowered #startups to refine their financing strategies, preparing them for raising #venturecapital more effectively. ??: https://buff.ly/4fQdF78

Less than 1% of companies raise venture capital ?? Of the ones that do, many struggle to raise a second round. I came across last article of Lenny Rachitsky about raising Seed rounds and I thought it would be very valuable to gather the most important insights ?? Raising a Seed Round 101: Key Insights from Founders of Notion, Figma, Ramp, and More: 1. Why Raise a Seed Round? Scale: Aim to build a large, enduring company. Control: Comfortable with 10%-20% dilution and external input. Funding: Need external capital to build a competitive product or scale faster. Key Insight: If you don’t need VC, don’t raise too early—focus on profitability. —Jason Fried, 37signals 2. What to Prove Before Raising? Commitment: Fully dedicated to your startup. Customer Validation: Talk to potential customers (30+ for SMB, 100+ for consumer). Insight: Demonstrate a unique vision and the ability to execute. Key Insight: Ensure 40% of customers say “Wow!” when you present your product. —Tomer London, Gusto 3. How Much to Raise? Typical Seed Rounds: $1M–$4M, aiming for 24-36 months of runway. Valuation: $20M post-money valuation is typical. Dilution: Expect to sell 15%-20% of the company in a seed round. Tip: It’s better to be oversubscribed than to aim too high. 4. How to Maximize Fundraising Success? Create FOMO: Compress investor meetings into a 2-3 week window. Build Social Proof: Secure angel investments before pursuing bigger funds. Powerful Introductions: Warm intros from influential founders or investors increase your chances. Key Insight: Mystery is seductive—never reveal all your investors until term sheets are signed. —Siqi Chen, Runway 5. Choosing the Right Investors Alignment: Look for investors who share your vision and will add value, not just capital. Long-term Partnership: Treat investor selection like hiring a key employee you can’t fire. Key Insight: Build trust. Choose investors who genuinely care about your business. —Mathilde Collin, Front 6. Should You Announce the Raise? Pros: Boosts credibility with customers and helps with recruiting. Cons: Alerting competitors and triggering VC interest in similar startups. Key Insight: Announce only if it helps solve current challenges. —Josh Miller, The Browser Company - Share this with other entrepreneurs if you found it valuable!

??? Exciting News! ???? I'm thrilled to announce that I have completed and graduated from the Center Leader Academy Certification program! ???? This milestone marks an incredible learning journey designed and led by an international team of experienced entrepreneurship center directors. ???? The CLA Center Leader Certification is a comprehensive program aimed at preparing leaders in higher education and entrepreneurship to manage and grow their centers effectively. ???? Over the past 4 months, I've engaged in over 30 contact hours, exploring six essential modules that delve deep into starting and administrating centers, spanning from leadership strategies to budgeting, ecosystem building, and more. ????? I am proud to join a distinguished group of leaders who have completed this practitioner-based training, enriching my capacity to support innovation and entrepreneurship. ??? I’m grateful for this opportunity to expand my expertise and look forward to applying these insights to drive impactful programs. ???? Thank you to all the industry leaders, mentors, and my cohort peers who made this experience enriching and empowering! ???? #CenterLeaderAcademy #Entrepreneurship #ProfessionalDevelopment #InnovationLeadership

Can you go from $1M ARR to $100M ARR in 7 to 10 years? Note: this isn’t just growth - this is the definition of Venture Scale growth ?? But here’s the catch: Growth at all costs is over So 2024 is all about (capital efficient) Venture Scale growth You could argue that 2023’s push to profitability was a bit of a pass on growth But the VC economic model doesn’t work on profitable low growth startups. So we’re left with Venture Scale but now just in a capital efficient way. Which I think is great for our industry. Because this means real PMF The exuberance of 2020/2021 was all about fake PMF. Everyone loves to say they have it, but very few can actually show it. Be one of those few ?? Focus on finding a repeatable, scalable and capital efficient growth machine As a founder, that's your only North Star Once you do, if you scale to $100M in 7 years, then that’s the classic T2D3: → after you hit $1M ARR → you triple the next year to $3M ARR → triple the year after that to $9M ARR → then double, double, double and a bit more to $100M ARR But take a look at the first few years after $1M ARR ?? Because that's the real definition of Venture Scale The 3x of T2D3 means 200% year-over-year growth for 2 years straight So that's 10% month-over-month growth consistently for 24 months in a row That only happens with real PMF Now the fastest companies (the 1% of the 1%) are actually getting to $100M faster than 7 years... → Wiz and Deel did in just over a year → UiPath* and Slack did in about 2 years → Twilio did it in just under 4 years → Shopify and Carta were around 5 years Note, the clock here is only starting at $1M ARR... And it took UiPath 13 years to go from $0 to $1M ARR - then just 18 months from $1M to $100M ?? And not every company finds real PMF at $1M ARR. Sometimes it takes longer and that’s okay ?? Remember, real PMF (ie truly finding a repeatable, scalable and capital efficient growth machine) is the only signal that you're ready to start scaling And until then, don't worry about $100M Focus on finding a truly repeatable, scalable and capital efficient growth machine first ?? -- ?? Repost to help a founder in your network Click 'visit my website' at the top of this post to register for my free Seed to Series A session ??

Applications for Ski Lift Pitch 2025 are officially open! With us celebrating 10 years, we are looking for #startups from #NM who exhibit: early customer validation and traction; high-growth potential and scalability; and eagerness to partner with venture investors to scale their business. Want to pitch? Applications are open now> https://loom.ly/YhEz1sM #ActivateNM #entrepreneurs #smallbusiness #ElevateYourPitch

Z Lab, led by NMSU civil engineering students Pouya Almasi and Roshira Premadasa, took first place and a $5,000 award with its Dual Approach to Smart Civil Infrastructure Inspection, an innovative solution that combines unmanned aerial vehicle technology with multifunctional structural components. Z Lab’s UAV system enhances safety, accuracy, and efficiency, reducing energy usage by more than 50% and improving damage detection by 7 to 20%.

Justin Crowe, founder of Parting Stone and former Arrowhead Center: New Mexico State University client, transformed his unique vision into a nationally recognized business, even pitching his idea on Shark Tank’s national stage. With early support from our programs, Justin’s journey is a powerful testament to what local entrepreneurs can achieve with the right foundation and determination. Join us at Aggie Shark Tank to support visionary leaders like Justin—Last tickets available! Don’t miss out: https://lnkd.in/gG3bzfae #AggieSharkTank #NMSU #ArrowheadCenter

Venture Funding Sprint achieved significant success by helping promising startups deepen their understanding of fundraising timelines, data room preparation, and valuation methodologies. This comprehensive support empowered participating startups to refine their financing strategies and navigate the complexities of raising venture capital more effectively.