Incredible news! Artsugi not only graduated from the Founder Institute, but our company also won the FI Graduation Pitch Competition.
Hello Artsugi Followers:
I have some of the biggest and best news to share with you to date: On Thursday, February 9th (2017), Artsugi not only graduated from the Founder Institute, but our company also won the FI Graduation Pitch Competition.
What I've Learned from the Founder Institute
I am so grateful to have gone through Founder Institute’s program. After facing a couple of hurdles early on in the development of this company, I was feeling a bit discouraged. As an art teacher and an EdTech specialist, this project is very important to me personally, and I knew I wanted to continue with it in spite of the obstacles, but I wasn’t sure how to continue or what steps I should take to move forward.
The Founder Institute helped me better organize my thoughts and resources to develop a more feasible (and exciting) 5-year plan for this startup. I feel as though I have “found my legs” again, and I am ready and eager to move forward with this project.
5 of the Most Important Things I Have Learned from Founder Institute
1) “What would you do if you couldn’t get funding?” (Bootstrapping)
This gem of advice (or of a question) comes from mentor, Charlie Jackson. Prior to Founders, much of my initial planning for this startup involved finding an investor. However, after learning more about bootstrapping practices from Al Bsharah, and after further research and planning, I now realize that (thankfully) much of the work associated with the development phase of this startup is less dependent on finding an investor that I had initially assumed. With this in mind, I have managed to redesign my plans for this project with less reliance on outside investments. As a result, I feel more optimistic than ever about the future moving forward with this startup.
2) Naming and Presentation (Pitch Deck)
Although it might seem like a small detail, I must admit that the name for my startup (The Free Artists Network) that I first entered into Founder Institute with was terrible. Additionally, my logo was outdated and my pitch deck was messy and confusing. I hadn’t realize how much of a difference these items make when pitching to potential investors and connections. I was fortunate to work with mentor, Jason Pang, to revise my pitch deck. Now, after becoming reincorporated under a new name and completely revising our logo, brand, and pitch deck, I am amazed by how much we are starting to feel like a “real company.” Additionally, I have witnessed significantly more positive responses from both founders and mentors during my pitching sessions following the new name and branded deck, and this makes me feel more confident when it comes to pitching to potential investors. First impressions really do matter.
3) Team Building
I now realize that most of the hurdles I had faced early on in the development of this startup were the result of a lack of a solid team. I had worked as a high school art teacher for 5 years; I possess a Masters Degree in Educational Technology from SDSU; and as an EdTech specialist, I have overseen the implementation of online courses and LMS platforms (learning management systems) at over 14 different high schools. As a result, I had initially assumed that my own personal expertise and experience in this field was enough for me to be able to “do it all on my own.” However, I now more clearly see that that is not the case. I need strong, knowledgeable, and experienced team members on my side to help support my startup in areas in which I do not possess as much expertise or experience.
Thanks to the Founder Institute, I have located an advisor who has more knowledge and experience in K-12 sales and CTE funding than I do, Miguel Soria, and I found a team of talented and dedicated developers to help me continue with building this project, Binh Bui (who handles the development for the school LMS and the portfolio network components) and Abdullah Rusafy (who handles the development for the independent study LMS and the components for the overall design and UX of the site).
I am also planning on growing my team by adding additional advisors in time (some of whom fellow founder, Mark Benning of Founderly.co, has connected me with). Mentor, Sergey Sundukoviskiy, has also offered to connect me with additional developers, if needed. Teamwork makes the dream work.
4) Revenue Model and Financial Projections
One of my biggest weaknesses at the time that I entered the Founder Institute was the lack of solidly researched financial projections. I already had a plan for a revenue model (i.e., how I could make money with the business), and I already had potential customers expressing an interest. However, when it came to calculating my financial projections, I must admit, it was not my strong point. As a result, in an effort to “be cautious,” I tended to underestimate both my projected revenue and then my projected expenses, inadvertently undermining my startup’s appeal to potential investors. However, after working closely with mentor, Charlie Jackson (as well as fellow founders, Mark Benning and Grace Poetiray-Brentlinger), I have managed to develop much more realistic and better researched financial projections, which thankfully have greatly surpassed the expectations I had in my initial, more “cautious” projections. I now feel much more confident about pitching to potential investors with these financial projections. Money talks.
5) Fundraising Efforts (and Traction)
Finally, fundraising was an interesting topic for me during my time with the Founder Institute. I had never pitched to an angel investor before, and I had only engaged in one (unsuccessful) crowdfunding campaign through Inediegogo a couple of years ago. Last year, I competed in and was fortunate enough to win a $10,000 grant through the Social Innovation Challenge (SIC) organized by the University of San Diego (USD). I put this money towards the development of our new LMS platform (learning management system). However, I wasn’t really sure where to go from here. Thankfully, my FI cohort received wonderfully informative presentations about fundraising from mentors, Al Bsharah and Charlie Jackson. I learned about the importance of getting traction prior to appealing to investors and engaging in other fundraising practices (and about bootstrapping until one gets said traction). In fact, the lack of traction is likely why my initial crowdfunding campaign didn’t succeed (I only had an idea to present at the time with nothing else to show). I was also fortunate to meet with mentor, Gioia Messenger, who taught me about other avenues for obtaining funding for my unique business model, including government programs and other social innovation programs. Courtesy of my work with these mentors, I now have a much more solid fundraising strategy: (A) I will “bootstrap” until my project is able to show some level of traction; (B) then I will pursue funding from government programs and social innovation programs to support further growth and development; (C) at this point, it would be a better time for me to try to host a more successful crowdfunding campaign; and (D) finally, I will be ready to actively present my startup to potential angel investors.
Overall, I am so proud of myself for what I have accomplished in the Founder Institute. I am equally grateful to all the mentors (and fellow founders) who supported me in achieving the objectives outlined at the start of the semester. As of today, my company is now reincorporated with a new name, a new brand, and a new pitch deck; a more clear position and offering; an experienced legal team; a stronger revenue model and financial projections; a more powerful and dedicated team of advisors, specialists, and developers; a better scaffolded fundraising strategy; and a more productive marketing strategy.
Thank you so much again to Jeanine Jacobson and the Founder Institute for affording me these amazing learning opportunities, experience, and connections.
And thank you to all of you for your continued feedback and your support of my work. Thank you!
Best Regards,
KRISHA MOELLER
Founder/CEO of Artsugi, Inc.
