Chrys Bader on how Vidly completed a round in just over a monthRead more...
Part II of a look at Xoopit's fundraising lessons and advice
Xoopit had a chance to take more than its initial round of $1.5 million when it was just getting started. But rather than take the money upfront, Xoopit said "no."
Bijan Mirashi, co-founder and CEO of Xoopit, which was formed in the fall 2006, tells John Bautista, host of fundRazor, that he thought raising 12 to 18 months work of capital was a more prudent route than taking in capital for a few years. Taking just enough cash would give Xoopit the opportunity to build a product, iterate a few times and figure out hte right product market fit, before scaling, said Mirashi.
"Sometimes having too much money too soon can be distracting for the business b/c it could lead etnrepreneurs to make decisions to try things that they wouldn't try when they have to just have limited funds." "When you have limited funds you have to make very, very hard, painful trade offs. It's those hard painful trade-offs that force you into something specific and valuable."
Xoopit eventually raised a Series A round of $5 million.
In this segment, listen to Mirashi also explain the importance of having the right board members and how Xoopit board members Foundation Capital's Charles Modlow and Accel Partners' Theresia Gouw Ranzetta have helped unlock doors for the company.
Finally, Mirashi's advice on fundraising. "First and foremost, get involved with the pro's - professional investors and angels who've done this before."
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Read more from our "fundRazor" series
Garry Tan and Sachin Agarwal on saving money by raising a $750,000 note rather than an equity roundRead more...
Co-founder AJ Asver shares fundraising tips and why Y Combinator is a good home for startupsRead more...
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We are creating Xoopit to help you take the effort out of organizing and retrieving your digital life, wherever it is. There's too much stuff out there and it's impossible to keep your fingers around it.
It's time to clear the clutter...
Xoopit's innovations in search engine technologies allow to deliver the next generation of search, productivity, and social media applications to Internet users.
Our passion is in building smart, simple applications that work for you. We've all grown tired of fussing with applications to get things done. Over the coming months, we will be rolling out a series of applications that make finding and repurposing your information 1 click or query away.
The company was founded around the baristas of San Francisco and through hundreds of hours of personal interviews. Most of these meetings felt like psychotherapy sessions. Relating to all of you is what drove us to build Xoopit.