Key Capital
sat down with
Omar El Defrawy
of
Sylndr
to learn about key lessons in building a strong cap table from day 1. Read more about what he had to say below...
- How did you build your captable? Starting with Friends and Family:?We initiated our fundraising with a friends and family round. This approach allowed us to start building our MVP with fewer challenges in raising funds, as there was minimal resistance to valuations or terms. The initial investments were largely based on trust in our capabilities and the potential of our business idea. Scaling to Institutional Investors:?After securing support from friends and family, we started approaching?institutional investors. Originally, we planned to raise a modest amount between $1-3 million. However, after consulting with experienced VC partners and considering their advice, we decided to increase our target to over $10 million. This decision proved prudent, and essential in
Sylndr
's ?survivability, as we anticipated and countered the drying up of market liquidity in the latter half of 2022. Diverse Investor Base:?We aimed to attract investors from various locations. This strategy not only broadened our network but also ensured that our investors had the financial depth to participate in future funding rounds, providing us with a more robust financial backing.
- Looking back, what would you have done differently?? Prioritizing speed and efficiency in funding rounds, focus on?streamlining our processes to spend less time negotiating and more time in the business.?
- What worked well on your cap-table? Starting our fundraising with a priced equity round was instrumental in shaping our company's foundation. This?choice ensured that proper governance structures were put in place right from the beginning. It facilitated the establishment of balanced terms and rights, which effectively protected the interests of both founders and investors.
- Any Advice to founders on managing their capable? Allocating less time to valuation discovery and discussions. Instead, your primary focus should be?ensuring that the company is well-capitalized and supported by high-quality investors. Securing investors who will not just support the current round but will also be instrumental in future rounds,?ensuring that you're not merely looking for immediate funding but are building long-term partnerships that will sustain and propel our growth over time
- Investor/Founder that you most got advice from in your journey?
Moataz El Etreby
,?my co-founder and the very first person who believed in Sylndr's vision, and who has been instrumental in Sylndr's?progress and success. Also,
Basil M.
,?the one that kept pushing me secure more capital to achieve our growth ambitions and ensures that we're building?a?a well-structured company right from the start
