Hello,
Today we’re talking money.
Fundraising is harder than ever to get, but it’s also easier than ever to get wrong. The dried-up landscape can leave founders with their backs against the wall, ready to accept less-than-ideal financial setups.
Hexa Scale partner Augustin has seen many companies come to a dead end for this exact reason. Maybe they have a mismatched investor, been diluted out, burnt their cash too quickly, or even raised too much too soon. There are many ways a company’s funding foundation can go wrong, but they all have a similar impact: significantly reducing a company’s chance of survival.
Augustin’s goal is to help companies get back on track. Over the last couple of weeks, he’s uncovered several insights into making your company financially sound in 2024.
The good news is, fundraising might not be your only option.
Files from Hexa
📈 Financing for startup survival: 9 lessons from the frontlines
Understanding the best financial path for your company often comes from listening to those with firsthand experience. That’s why Hexa Scale partner Augustin hosted a panel with founders and financial experts who've navigated these challenges themselves. Anh-Tho Chong (co-founder of Lago, who recently raised $22M), Axel Guidicelli (co-founder of Ulysse), and Martin Vielle (partner at Clipperton) shared their stories on fundraising, achieving profitability, and planning for exits. Their insights showed the importance of early preparation in fundraising, the benefits of pushing toward profitability, and the strategic advantage of being ready for potential exits. Each story highlights the diverse strategies available to companies when trying to reach the next stage of growth.
🕳️ The pitfalls of fundraising in 2024: strategies to avoid
If you do go down the fundraising route, there are some watch-outs. From relying too heavily on business angels to accepting funds from misaligned investors, no money is better than the wrong money. He stresses the importance of sound unit economics over rapid scaling and warns against the dangers of excessive cash burn and premature fundraising. Through conversations with many entrepreneurs, he takes a look look at these traps and how to steer clear of them. A must-read for founders navigating the field of startup funding, offering pragmatic advice to ensure sustainable growth.
Other files we recommend
Not all about financing, but they were too good not to share just because they don’t fit our theme
❌ Investing 101’s trough of feedback
Kyle Harrison gives a very honest (and slightly ruthless) reflection on why VCs can be reluctant to give feedback to founders.
👩🎤 June’s founder-led marketing
Co-founder and CEO Enzo Avigo is a perfect example of how it can work to position yourself at the forefront of your company’s marketing efforts as a co-founder, and he explains why it works so well.
🎙️ Notion’s interview with its cofounders
It’s rare to hear cofounders of Notion Ivan Zhao and Simon Last in an interview, and there are many wisdom nuggets in these 50 minutes of reflection.
News
🥈 Hexa is the #2 startup hub in Europe
We were really proud to be given the second spot last week in the Financial Times’ ranking of Europe’s best startup hubs. The ranking was based on many things, including alumni feedback and success, and we couldn’t be prouder of our ecosystem. A big thanks to everyone for helping us hit this milestone.
🤖 Cycle (HX20) AI launched
An AI-enabled way to close the feedback loop! Doing the latter has been their mission from the get-go, but Cycle’s product has become a whole lot more powerful with its new AI integration that sits at the core of the product. Big well done’s to Mehdi and the whole team.
📚 Tengo (HX23) published the tender study of the year
Aiming to democratize the tender process, last week the team published a must-see study to help businesses win more tenders. Complete with actionable tips and a look at how AI is starting to transform the process, the team is increasingly solidifying their market leadership through initiatives like this.
Jobs
Product Manager at Hexa Health
Product Designer at eFounders (Hexa’s future of work vertical)
Thanks for reading! If you have any questions or suggestions for this newsletter, don’t hesitate to hit reply. In the meantime, you can follow us on LinkedIn & Twitter.
Cheers,
The Hexa Team