Nwanyinma Dike
Welcome to the Atlanta Startup Podcast. I am your host today Nwanyinma Dike, the Managing Director of Startup Runway Foundation, where our mission is to introduce underrepresented founders to their first investors. And I’m excited about this episode, we’re going to give you a quick view into our last showcase, the 25th showcase of the Startup Runway. We were able to have a panel discussion with some very distinguished Startup Runway alumni, particularly Damola Ogundipe, the Founder of Plural, he is a finalist winner from edition 5 in 2018. Kristen Dunning is the founder of Gently Soap and she won in our 18th showcase in 2023, edition 19, we had an insightful discussion about what it takes to get that first check. And I’m excited for you all to get a view into that conversation, which starts now enjoy. Damola, you have raised upwards of close to $13 million beyond, am I correct on that piece? Oh. it’s $14 million. And then Kirsten is incredible to us that your product was featured on Shark Tank. And not only were you featured but you were able to secure a deal. And so both of those things are incredibly impressive and demonstrate what we’re trying to achieve here at Startup Runway. And so for the sake of the finalists in the room and any other founders or aspiring founders in the room, what I want to dig into is what it took for you to get to that first check. So I’ll start with Damola and then pushing the question.
Damola Ogundipe
Yeah, so to introduce myself, my name Damola Ogundipe, a Nigerian born, immigrated to the US when on the squat when you sorta played football with the University of Minnesota, my track after I graduated. So I work here in management consulting, in the healthcare space, and then started Plural. We used to be known as Civic Ego, we have raised a last round of financing, and we rebranded as Plural. And what we did was we built an AI-driven software platform that helps lobbyists track and analyze legislation and regulatory information across the US and in certain countries in Africa. So you can think of like lobbyists or customers or Google Comcast, for our last day, Twitter X, whatever, budget nonprofits, they all have lobbyists, they need software to do the job to use our software to track and analyze, all legislated ready to share information across the country. When I did start up one way in 2018, we just wrapped up an Excel pre-accelerator, the one that Comcast used to run. I don’t think it is I’m not sure if it exists anymore, obviously at Factory. And that was our very first check of the company, which was that acceleration was $20,000. Now the very first check in the company, and I kind of just use that momentum, we use that momentum to try to like get into other programs. So it was like at that time, it was very just trying to figure out how we could scrape together some, some smaller checks, just stick just glue them together. So to $1,000 Check here $40,000 Check their theory doesn’t make a lot of this kind of like Angel type money, but a lot of people was through programs, and over the course of $2.80 script together like $100,000 in no small checks. But that provided a lot of the downs that I needed to be able to get a little bit of a little bit more traction, right? And then that traction led to getting into TechStars. Did TechStars in 2019, Atlanta TechStars, we had more momentum got a little bit more cash users to get more traction, just kind of like phasing it out right, get more traction and then raised our seed round right after that. I don’t know if you graduated from TechStars in late 2019. So that was kind of like the early part of getting some financing until the door was just like hustling to get those small checks, but use it every single dollar as effectively as I possibly can with the idea of how do I get more traction, how can I get this dollar to make me $2 Right to generate more revenue, just being really smart about that and then just showing that momentum showing their progress. With time simply we do right now. It’s just, you know, living more zeros but that same ideology exists in the company today.
Kristen Dunning
Hi, everyone. My name is Kristen Dunning and I am a mad scientist by trade at the University of Georgia and got all my degrees undergraduate and graduate in horticulture and agriculture communication I also did graduate fellowships and progress and soil science. I used my background in medicinal plants after botany, as an agriculture engineer to create a better vaping experience for astronauts so my brand was Gently Soap. My basic essentials are the real Earth to real joy. We’re focused on it. hiring people to use plants to also enhance skin confidence. I think a lot of products for eczema are all about trying to get rid of that kindness. But we’re really like focusing on bringing joy back to the baby experience for people with skin like mine. So our first check, I was very fortunate that I was able to get plugged into a lot of collegiate pitch opportunities. So my very first check came from Uta. So most of my money to date has been to collegiate grants. And for competitions, we went over $300,000 So far, just including a grant from contract petitions. As far as actual fundraising, we did our very first round in receive fall of 2020. Greece just last year, and that fitted on Shark Tank, investment in investment from Pharrell Williams and his rocket machine. And TechStars has also been an event as well. So I guess like, my first, like, advice for mail on your project is just do it, like submit the application and hope for the best there were a lot of grants that I had to apply to where I didn’t get picked, or it was like, very time applying, like 30 times, and I’m trying to do it. I had to step outside my comfort zone because I got to learn how to speak in front of an audience. After all, this wasn’t my personality like before. It was really hard to work up the courage to present my company, especially because it was attached to so much that was me, like my research and my work. I felt like I was having to present myself also. And I think coaching is a little bit different than public speaking in that way because it’s more personal. So I like if you’re going to do it, sometimes you just kind of like push yourself off the ledge because the first one was rough. I probably cried afterward. But I kept going. And now that’s like our biggest thing right has contributed to our success.
Nwanyinma Dike
Thank you so much for sharing that. And one of our our thesis here is that those that first check, make way for more checks. So I want to first verify how true that was for you was an easier conversation, not only one to show up at the next pitch on event, but maybe to have the next investor to sign on. Once you have that first check, want to hear more of your experience. And from after that first check, what happened afterward?
Damola Ogundipe
Yeah, I agree with that. I mean, it’s, it’s pretty, it’s obvious from a logical perspective if one person says yes, it provides a proof point for other people to give them the excuse to say yes to you. So getting that first check, getting some money to the door, using that as a proof point to say like, Hey, other people are validating that my value proposition makes sense. What we’re trying to accomplish makes sense. They see the future and are aligned with us, they believe in me on those first jets is all about you. You know, I believe we’ve slightly pivoted, they pick like this, there are so many kinds of iterations, of plural sums. I guess a lot of them I feel like really subtle, but you know who we are. And what we do now was probably different than who you were and what we did in 2018, we got our first check. All of those people were betting on me, right? To be honest, the CEO, the Co-Founder, but I think providing that proof point and also just the reps you get, right? You start realizing like, what are people interested in a button with a value proposition or about like how I’m talking about this or who I am, so on and so forth. You start getting those reps and know that that’s it. And it helps it just like start with yourself so that when you get it to when you find that right investor, that right Angel, that you kind of know what they’re looking for what resonates to them, just like selling your product to the market, you’re selling yourself and your vision to the investor and there’s gotta be some sort of like product-market fit there so to speak, right? They have to be the right audience to hear that message. But to answer your question directly, that first check makes all the difference in the world I remember our first three investments in R&D the exact conversation with the first three checks on the company. Those people aren’t mocking I’ll do anything for three investors to the day I die, because it was just so much of that belief in us, but that carried that momentum you get other checks but those three first three investors’ mental apps will work for me because it was so much but just like alright, somebody sees me so now he gets it. No, you guys resonate with that or can resonate with that. But what does create that momentum having that first check in that first investable evening so leverage that as much as possible also, because I’m going to say that first check, leverage their relationships. That was probably one of the important things like that first investor, they’re going to evangelize for you to talk to other men. Students, right? So even if it’s an immediate down the row, their their network is no won’t be interested in why they listed in you. In that case, that’s an inside track to get some more dollars it’s become
Kristen Dunning
I definitely resonate with the fact that you said that sometimes there’s more to pick. So just the first check. I think internally, we all put a lot of emphasis on the check that signifies the winner in a pitch competition. But there’s so much more that you get permanent, like the fact that you guys are here to offer feedback to these companies like you were get to network with these companies. That was the most valuable thing for me and every single pitch that I did. So even I always say that like that first pitch competition, that first very nice thing where you’re putting yourself out there, you get so much from it, because that’s the first time anyone is listening, to get your feedback to quarantine your bugs and support to your idea to tell you if it’s good to tell you my app and which direction you take. And I believe that wholeheartedly because my very first angel investment was just someone in the audience who might be very CGI, guys. So it’s really about more about working the room. It’s more about who’s in the audience, like how can you connect with every single person in the audience and see how they can help you. Of course, walking home with money feels good. But you might walk home with more than that and more other ways because you just never know that invest in your company. And it couldn’t be more than a checkbook dreaming magic for you. That’s what’s the case for five very first pitch competition. So just keep putting yourself out there, keep getting on the stage, and keep presenting your idea. Because every single interaction is like how you went like level up your business and get people to know about you to even tell you that you exist. And I think that’s way more valuable than any child. So keep going, no matter the outcome. Because your reservoir of what you’re setting up your Rolodex of how many connections that you’re going to have, it’s going to keep building no matter what.
Nwanyinma Dike
Really measured.
Damola Ogundipe
Just to piggyback on what you said, is just within the context of pitch competition to whatever the result is today. Probably did during like our precede MC stage, like five or six pitch competitions, and I won 111 Like, this is great. It was a reason that I did start up one way but don’t let this discredit it was only going to be one I think that made it right. Honestly, it is not going to be an indicator of one way or another to be straightforward with you, right? There’s something like this is such a long journey. This is such a process. So just want to double down on like, don’t let the outcome of today be discouraged. You don’t at the same energy as it were of the moon, just that he said, there’s so much peace, there’s so many people that are going to potentially support you were here.
Nwanyinma Dike
Thank you guys for sharing those exact points. I think there goes there’s a lot of intentionality that goes into how we put this data together. What I like to say often is that the check screens the finalists into the room, but they often leave with far more riches in terms of advice, and connections, and you guys are verifying those exact points. I actually want to ask one more question and I’ll give the finalists a chance to ask a question and then I’ll check in on where we are on with prizes. I loved how you did Mala how you mentioned that those first three investors gave you a sense that you were seeing how you were able to codify needless not the right word, but identify in those investors either the way they approached you or the way they engage with your product or solution. What was it about those investors that were that might have led to them seeing you maybe better than another word that you might give some advice to the finalists in the room that they should be looking out for for potential investors, hopeful that?
Damola Ogundipe
Yeah, for it’s me to keep it real. My first three investors were black women, black men, and black women. And that’s important, right? Because they had the opportunity to write checks so they were in a position to be like an agency to be able to invest in a company they saw me and saw my potential even if not everything was like super, you know, first-time founder and everything was like perfect you know, I mean how I communicated the value proposition like that like it’s much more refined now raise much money but in 2018, trying to get your first in $20,000, you just took still trying to figure things out. Sometimes investors are looking for some level of refinement and pattern recognition, etc. But these three investors like they were just like a So this is about you, you know what I mean? Not about how perfectly you resent yourself in the opportunity and the thing that you’re that you’re doing. So one thing is, is that there’s, there’s it’s a broaden it, they’re trying to find commonality and common ground, right? It’s not like every see, first of all, every investment I kept saying was blind, he’s talking about the first three, take the biggest risk, right? There’s, there’s meaning and that is something that’s really important to me. And then I do some angel investing, and I understand how important it is for people to be able to write checks, and have that agency. And, and, but I think broadly taking the kind of just taking that away, looking at it from a higher perspective, finding common ground and commonality with your first investors, whether you know, you’re sorry, your company, running mate, right. And I know you’re a multi-time founder, but one of the investors is like, Hey, I have this same problem, right? Finding people that have that experience with you get that kind of like, almost like investing market fit into still, but for whatever the case or you want to get it is important. And that kind of resonated with the first three with again, it’s just about finding that common ground because you only have so much time in the day, you can’t get to talk to every single investor, filtering them out and finding the ones that are going to resonate with who you are, what you do, what you creating, does it make sense to them so on and so forth, makes all the difference in the world. But boy, does that have to work for me and my personal experience. This is the this is what happened. Like the three people that took the first shot on me and us. They were like a brother, I see you. I think what you’re doing is great. Like, they visit every single blind foreigner that comes that comes in on to the to a meeting. But there was something about that commonality where they were gonna look at the SLA, I believe that you met me and that’s why I do this thing. And then that results in..
Nwanyinma Dike
anything you wanna?
Kristen Dunning
Very much about like the ice fire. And very much also, like, I think I’m very fortunate to my shark on Shark Tank, she was like a shark. So she came. And it was like her first time. So I’m the very first Shark Tank company that you’ve ever invested in. And I, I always say something that she always tells me, it’s actually invested in me because she saw my personality. As soon as I walked through the door, she saw me she was investing in. And that is the most important thing because people invest in people. So when you’re talking about that person’s algorithmic ICU that is exactly how that’s most investments work. So I’m saying it’s very important to cultivate relationships. It’s very important to talk to people and to get you on your board that has similar traits to you like cannabis now. So my chart, she is a passionate, different founder. We both started with assistance because we were passionate about something for herbs, baby and sprains, and cupcakes. For me. It was plants and eczema and created a todos. Yes, it’s a lot of synergy there. We understand each other, we understand how we move we understand how we operate, and we are building our business since the same way. So finding someone, especially your very first investor, who might understand to to have a person and even being and how to operate, how to make it better connect to how you grow. It’s how you end up creating a relationship that can last you years until you exit. That message.
Nwanyinma Dike
Thank you for those answers. And so I’ll give the finalists a chance to ask them one question. And I think we have an answer to the ones who are winners. One question for the finalist. You can shout it out.
Speaker 1
Without checking the person with no hope for calling the president.
Damola Ogundipe
So will you all take the first investment will be actual VC money, we’ll be looking for a characteristic often from investors, you know, hey, can you help kids with two traits they made?
Kristen Dunning
For me, and specifically, I was looking for someone who understood my industry. But also understand that you’re not limited to our industry. I know. But is there a variant to Phoenix I have an agricultural science background, but also because my company fits into beauty and personal care. I didn’t want a restaurant that only understood personal care and didn’t understand innovation, but I was breaking into the industry to disrupt it. So I wanted someone who had also invested in other tech companies, especially in the agrotech place and or food or wellness to kind of bridge the gap and understand both of the industries that we’re trying to break through our merging them to create science and media at the same time. And it was very important to me that it was either one on majority or one. I was in a lot of spaces where I was the only woman in the room that was in a lot of spaces where I was the only minority in a room and I didn’t want my business to also be a space where I felt like I was Thought supported and seen in that way. So being understood on that level was very important to me. So walking like the industry in general has flooded Terrell’s canvas, like those are definitely things that I sought out when I was having those conversations with them to make sure that I had diverse experiences. I also have two white men who are invested in my company, but I wanted to have when I walk into the boardroom, it’s a plethora of ideas, a plethora of people also space for it and still feel like honestly, the minority in the room, and I kind of feel like I had to wait time and not have to be much yourself. sounds vague.
Damola Ogundipe
And I’ll be really glad they are gone. The main thing was like, Uh, do you understand my vision and my belief in you? Right? And then like, then obviously, like, I want the money, we need the money, I want the capital. But do you actually, like believe and understand what the vision is? That’s the most important. So that’s what I was looking for it. They didn’t get it. It’s like if you don’t get it, that’s fine. It’s not for everybody. It’s only certain people can only do a certain amount of deals in a year anyway, so but just got to believe and see what I see. Or at least see some of what I’ve seen, right? I believe in vo provision.
Nwanyinma Dike
Damola, Kristen, thank you so, so much for sharing your insight. Was that helpful, you guys? Yes!
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