Founder of the Captain, Demetrius Gray has raised $107.3 million to date, but he’s not the first. His first startup, his WeatherCheck, didn’t do as well as he envisioned, but the business paved the way for his current success.
“The incentives weren’t aligned,” explains Gray.
His current startup, Captain, advances money to contractors for home repairs after natural disasters, and is reimbursed by insurance companies or the government.
The idea resonates with investors. Using the methods outlined below, Gray was able to raise his $100 million venture his debt and his $7.3 million private his equity.
I appreciate his experience raising capital, sharpening pitches, networking, and the invaluable nugget of knowledge he shared with me about the strategies he found most helpful as a black founder. Summarized.
Raising Funding as a Black Founder
Gray has developed many mentoring relationships, especially in the Black entrepreneurial community. He says he often sees black founders stop trying to raise money too quickly.
He says everyone hears “no,” but it’s important to keep pushing. Eventually you’ll find investors and funds who love what you do.
His second tip is to put on a show.
“This is a performance,” he says. “Black community [is] A community of many entertainers and athletes. Take cues from greats like Serena Williams, Mike Tyson, Floyd Mayweather and LeBron James and treat it like a performance. ”
3 ways to lift
I break down the method Gray used to raise money into three steps.
“People see the headline ‘Raise $107 million.’ It means that it was Demetrius Gray, Founder, Captain
Achieve Pitch Perfect with Tier 3 Investors
While it’s normal to aim for top-tier investors on the cap table, Gray says don’t discount smaller VCs. He used several Tier 3 VCs as pitch feedback soundboards.
“Most VCs would be a little shocked to find they were being used that way, but it happens all too often. [with] Smaller funds and lesser-known VCs,” he says.
Unless you’re completely barking the wrong tree, this tactic doesn’t waste the VC’s time either. Minor checks may still come from lower tier VCs.
