This Entrepreneur Raised $2.25 Mill In Seed Funding & Wants More Women To Do the Same
When it comes to the tech world, minorities are often underrepresented and underestimated. A quick search about Silicon Valley will reveal that diversity is a big issue from the cubicles to the boardrooms, so it's no surprise that when it comes to seeking investments for our own businesses, we have to fight harder and shine brighter just to prove our value. And it's not just a race thing. In an article on Silicon Valley's diversity problem, Fast Companystated, “when played recordings of the same investment plea read by a man and a woman, people preferred the man's pitch by a two-to-one margin." Ouch.
But the thing about being overlooked is that when you do make noise, people look your way. And one woman in tech is making sure that she's not only talking the talk, but successfully paving the way for others to be heard as well.
In 2003, start-up founder Tina Fitch combined her love of tech and entrepreneurship and launched her travel software company, Switchfly. Through venture capital funding and snagging nearly every major airline, credit card company, and loyalty program in the travel sector, she helped build a $2 billion platform operating in over 50 countries worldwide. After seven years of tirelessly building her business, she sold her portion of the company and took a break, returning to her hometown of Maui, Hawaii to focus on building a family, serving as a mentor to other startups within her community, and fulfilling her desire of running a free-range pig farm.As it turns out, letting go of an old idea allowed for the birthing of a new one. The opportunity to rebuild her personal connections with family and friends led to a vision of building a platform that would allow people to reconnect in a digital way. While pregnant with her second child, she conceived the idea for Hobnob—a mobile-based invitation app that helps users create beautiful event invites that can be sent via text in less than 60 seconds.
“I could be pregnant on a farm in the Pacific and still be connected, but at the same time I found that even with all of these social networks and all of this advancement, people just seem to be more and more isolated, and it was ironically harder than ever to actually be social."
Recognizing a need for technology that enabled real life moments to be experienced and shared in a unique way, Tina got to work on once again bringing her idea to fruition. But launching a start up, even a second time around, would prove to be no easy feat. For one, she was no longer living in the investor-friendly city of Silicon Valley, meaning she had to put her money where her mouth was in order to prove that she wasn't just a one start-up wonder. And as a minority woman in an industry where our presence may be seen but not always felt, she had an equally difficult challenge of representing the next generation of women entrepreneurs set to disrupt the tech sector.
Photo Credit: Hobnob App
But being a girl boss means making it happen despite any opposition, so it's no surprise that this past February, it was announced that Hobnob raised $2.25 million in seed funding from a handful of notable investors.
In an industry that's quick to evolve but slow to embrace, Tina hopes to see more women and minorities continue to make their voices heard by fearlessly going after the big bucks to help back innovative ideas. We had a chance to chat with the CEO on how to successfully snag seed funding for your business, why starting small can lead to bigger opportunities, and why it's important that we break into spaces that we're not typically invited into.
1. Build It And Let Your Results Speak For You
"We basically started [Hobnob] on our own because I felt like the best approach for me is to feel like you have something tangible that people can interact with and see what your vision is. Everyone has to be a good storyteller as an entrepreneur, but results are also the best storyteller. I take raising funds very seriously, meaning you're basically asking someone else to trust you with their hard earned money and you're committing to delivering for them.
"I wanted to make sure that whatever product that they were investing in we felt was truly viable, and that there was a real need for it in the market. So we basically self-funded it to our first beta version. And then we tested it out in Hawaii and it expanded to the U.S. and once we started really getting traction and we saw such a diverse user base jumping onto it, that was when I started having investor discussions because then we realized there was something there."
2. Talk To Friends And Family First
"Seed funding will normally come after friends and family round. A lot of times we have an idea, but maybe you have savings if you're self-funding and just fund yourself while you're building it. But sometimes if you need a little bit of money you can ask friends and family to buy in on your dream, or trust you and support you."
3. Find The Right Type Of Investor For Your Business
"Seed funding is what I'd consider the first professional round with people who have experience investing, and there's a range of people who can participate. There's what you call angel investors, where individuals invest their funds, and then there's people called Micro Venture Capital (Micro-VC) investors, who are venture capitalists but tend to have smaller funds and they're entirely focused on these seed rounds where they can get in for pretty low amounts of money and still have significant ownership, so they're making small bets with potentially big outcomes.
"Then you have traditional venture capitalists, and we happen to have both angel and venture capitalists in our seed round where they have funds in the billions of dollars, but they still realize that the best outcomes that they have are typically with companies where they got in early. So even large VCs are really interested in the right companies and the right people at a very early stage."
Courtesy of Tina Fitch/Hobnob
4. Decide What Is Best For Your Business: A Loan Vs. Seeking Investors
"There are several differences to obtaining a business loan vs. investors for your business, but I'll focus on the three main ones in my view: A loan requires repayment with interest ('debt'), but doesn't give up equity in your company. An investor gives capital to grow to the company in exchange for ownership (i.e. 'equity'). An entrepreneur may not want to give up any piece of her business since, rightfully, she'll be the one slugging away day after day to build it. But some types of businesses - such as ones that require more capital to grow before they can be cash-flow positive and self-fund, or don't have the assets and collateral to obtain a competitive loan, or can benefit from the reputation or connections from a particular investor - can be bigger with a venture investment than without. In other words, you can have a smaller piece of something large, vs. 100 percent ownership of something small or, worse, bankrupt.
"A loan, just like anything obtained on credit, has a repayment/recovery schedule. You should have a strong level of confidence that you will have the cash flow to repay that loan on the terms they require. A venture investor typically is investing in you as much as the company – and may be more accepting of changes to business plan, as long as she remains informed. An investor is going to feel like a partner in the business, and is ideally in it for the long-term play. On the flip side of that, when you qualify for a loan, all the lender cares about is that you repay per their terms. They don't want to influence your business. An equity partner often will want to feel some level of influence and have some level of ongoing insight to your business decisions. So you have to evaluate any equity partner the way you'd evaluate any long-term relationship – very seriously, and based on multiple levels of compatibility and trust.
"This is the most important in my mind: you should only seek out and accept venture funding if you have the intention of bringing them a significant return on their investment. In other words, you should have a plan in mind that will either reap healthy ongoing dividends or a 'liquidity event' – in other words, a sale or public offering – a way for that investor to get their investment back plus the increased value you've built in the business and their shares over a reasonable period of time. 'Lifestyle businesses' are great – those are businesses you want to build primarily to support yourself and your family, perhaps the community of employees you maintain – but aren't designed to reward investors with a higher return on their investment than, say, if she had invested in the stock market or real estate. You should be able to approach investors with the confidence that you aren't asking them for a favor, you are offering them an opportunity – and you need to be authentic and committed to making that message reality."
5. Repeat Customers Can Be Just As Valuable As Showing Profit
"In the case where you have a product or service where you're selling something, definitely the best thing to have is a happy customers and repeat customers. We picked one of the hardest areas to focus on, which is consumer mobile pre-revenue, meaning we don't even sell anything right now. We're basically a free service, and that's honestly a very challenging space to pitch so I think what a lot of investors are banking on is a product that they can try out themselves and if they see a need for it and they like your approach to a product—they feel like the design is beautiful and elegant and efficient—it's almost like the product is the window into your soul and your perspective.
"Everything we built was really geared towards having a beautiful user experience that really translated in the product, so the investors could see and feel that. Also, at the same time they could see that it's really a broad diverse user base that was coming onto the service, and we didn't do any kind of paid advertising—we didn't buy customers. It's called organic growth where they just recommended it to each other and they invited other people to share in it, and they found it on their own and started using it. So to have straight organic growth from such a diverse user base was something that the investors also saw and were really excited about."
6. Treat Investors Like It's A Marriage
"When you're starving for funds, it's very easy for people to be tempted to take money wherever they can get it, and there's no judgment there. I understand that it can be a real struggle and you want to build your business, but it's really like a marriage. Especially in recent years, there are very few overnight success stories. You have to go into the relationship thinking that it's a marriage and you're going to have good times and bad times and you want to pick a partner that's going to be a solid and supportive partner during those bad times as well, so you do have to be selective and it's not just a question of you pitching yourself to them, they should also be pitching themselves to you or you should be evaluating them in that way."
7. Bring Tech Investors to You
"It's funny because I wondered if people would be reluctant to invest in us or if they'd take us seriously, but I think a few things have happened as a result of being [in Hawaii]. One is I feel like we're able to develop a product without the money mentality. We were able to really build and design for the people that we wanted to reach, and Hawaii being such a diverse community ethnically and culturally, it's really a true melting pot, that I feel like it positively influenced our product and how we were able to reach different types of people on the mainland and elsewhere.
"The other thing that I realized was that for the first time big name investors are also recognizing that diverse teams, and that also means geographically diverse, have a different perspective and so they're really to look elsewhere and take a gamble on companies. But again seeing that you have a solid product and customer base or potential. So I feel like they recognized wow you guys were able to build a really beautiful product that's reaching a diverse user base and it's growing organically and you're in Hawaii, that's probably all related, and that's something interesting and intriguing."
8. Recognize Your Power As A Minority
"Hispanic and African American women are the fastest growing entrepreneurial segments in the country growing at rates of 133.3 percent and 191.4 percent respectively from 1997 to 2007. Combined they represent more than two million of the roughly eight million women-owned businesses in the country and more than $14 billion in gross receipts. Further, African American and Hispanic women are three to five times more likely to start a business than their white counterparts (read more).
"I think the reasons for this are powerful: when you don't see the company cultures or products and services that reflect your world view or experiences, you are motivated to build them yourself. Minority women are woefully underrepresented across almost every executive segment in the country – but we are a powerful demographic. So we are harnessing that power and creativity and creating opportunities."
"There are some great resources to read and readily available online. I wish I had some these standardized Series Seed documents when I started by first tech startup – in the past (and even now) several companies get gouged by law firms when trying to set up their first investment. This doesn't need to happen, and I find that if most honorable investors will agree to these types of standardized terms with only minor adjustments, at times. Being a minority, you should be like, wow, I have a powerful weapon, in that I have a particular advantage.
"If you are interested in raising capital for your business, here are a few amazing resources: Serie Seed, Raising Venture Capital For The Serious Entrepreneur, Small Business Administration, MBDA Grant Competitions, [and] Seed Accelerators & Groups."
Find out more about Hob Nob in the video below:
What would your dream start-up be? Are you making any moves to make your business dreams come true? Let us know in the comments below!
- Getting A Small Business Loan, 5 Steps - xoNecole: Women's Interest, Love, Wellness, Beauty ›
- How To Get An Investor For Your Business - xoNecole: Women's Interest, Love, Wellness, Beauty ›
Kiah McBride writes technical content by day and uses storytelling to pen real and raw personal development pieces on her blog Write On Kiah. Follow her on Instagram and Twitter at @writeonkiah.
ItGirl 100 Honors Black Women Who Create Culture & Put On For Their Cities
As they say, create the change you want to see in this world, besties. That’s why xoNecole linked up with Hyundai for the inaugural ItGirl 100 List, a celebration of 100 Genzennial women who aren’t afraid to pull up their own seats to the table. Across regions and industries, these women embody the essence of discovering self-value through purpose, honey! They're fierce, they’re ultra-creative, and we know they make their cities proud.
VIEW THE FULL ITGIRL 100 LIST HERE.
Don’t forget to also check out the ItGirl Directory, featuring 50 Black-woman-owned marketing and branding agencies, photographers and videographers, publicists, and more.
THE ITGIRL MEMO
I. An ItGirl puts on for her city and masters her self-worth through purpose.
II. An ItGirl celebrates all the things that make her unique.
III. An ItGirl empowers others to become the best versions of themselves.
IV. An ItGirl leads by example, inspiring others through her actions and integrity.
V. An ItGirl paves the way for authenticity and diversity in all aspects of life.
VI. An ItGirl uses the power of her voice to advocate for positive change in the world.
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Not too long ago, while in an interview, someone asked me for a top complaint that I hear husbands say (first) and then wives state (second) as it relates to what goes down (or doesn’t go down) in the bedroom.
Ladies first: when it comes to women, I think what comes up more than anything might surprise some: it’s boredom. A lot of wives want there to be more spontaneity instead of taking the “If it ain’t broke, don’t fix it” approach from their partner. As for men? I mean, would anyone be shocked to hear that they wished their wife would initiate sex more often?
I’m telling you, over frequency, technique, and even dressing up more for bed (and yes, those things also come up quite a bit), hands down, what I hear that more men want is for their partner to show them that they are desired by taking the initial steps to make copulation happen…more often.
And so, since I’m all about doing whatever I can to reduce dissatisfaction and frustration in the bedroom department, let’s explore this very topic today — from a few angles. For starters, what it truly means to be a sexual initiator; two, why it’s so vitally important to be a sexual initiator, and three, why it could literally change the entire tone, energy, and outcome of your sex life with your partner — if you’d simply be open to initiating sex more often than you (probably already) do.
What It Means to Initiate Something. LITERALLY.
Giphy
I’m word-literal — there’s no secret about that. So, when it comes to the topic of initiating sex, let’s start with what the word means. To initiate is “to begin, set going, or originate” and “to introduce into the knowledge of some art or subject.” Some synonyms for initiate include begin, open, set up, trigger, admit, introduce, and invest. And when it comes to all of the meanings of these words, between men and women, when it comes to sex specifically, guess who does it more? Men. BY A LONG SHOT TOO: a whopping 60 percent.
When it comes to why a lot of women are so comfortable with men initiating intimacy, many think that, just like men should pursue them for a relationship, it is also “the man’s role” to pursue sex in the bedroom; they literally think that it makes them look desperate or needy for them to be the initiator — yes, even as a wife. What in the world?
Listen, when two people sign up to be each other’s exclusive sex partner until death parts them, it means they are both saying that they desire each other so much that they are willing to make that kind of commitment — and so, there should be no “I don’t want to appear this way or that” when it comes to sexual activity.
So, with all of that ridiculous overthinking out of the way, that should make you want to “set up” some sex plans, “admit” to some sexual fantasies that you may have, and “introduce” some new ideas to your partner; especially since that’s exactly what so many men wish that their lady would do, to begin with.
So, with all of this said, if you’re someone who is hung up on not initiating, first spend some time really processing what the word means. Because when two people are eager to begin sex and invest in each other sexually, that is the recipe for a truly satisfying experience…over and over and over again.
C’mon. Who Doesn’t Want to Feel Wanted?
GiphyI remember once reading an article that said our brain processes rejection the same way that it does physical pain, and y’all, I don’t know about you, but if something is physically hurting me, my natural inclination is to get away from it. Along these lines, when it comes to relationships since research has proven that rejection can lead to things like jealousy, shame, anxiety, loneliness, and guilt — yes, it makes all of the common sense in the world that you would want to do all that you can to make your partner feel wanted…both in and outside of the bedroom because, just like no one wants to deal with physical pain, no one wants to keep dealing with rejection and all of the fallout that comes with it…either.
Actually, when it comes to this particular point, I think that an article that I once read on Psychology Today’s site said it best: “Not only does being needed help define your role in a relationship, but being needed can also influence how satisfied you feel in a relationship.” And before some of you say that “sex is not a need” — the hell you say? I mean, the only purpose of your clitoris is to provide sexual stimulation, so that alone should make us all deem sex (and sexual fulfillment) as pretty damn important.
Plus, by definition, a need is something that is deemed as being essential while also being something that is extremely necessary, and anyone who thinks that a romantic relationship doesn’t need physical intimacy? That’s someone who really needs to remain single because one of the top things that makes a relationship more than a friendship is there is intimacy that’s involved.
Besides, who doesn’t want to feel wanted by their partner — and I do mean, in every way? And when you make the decision to be in an exclusive relationship with someone else, you are declaring that they are someone who pleases you to the point where you don’t need to look for anyone else to do it; and, if that is indeed what you are saying, it doesn’t make sense that you wouldn’t initiate sex with them sometimes (and I do mean more than on their birthday).
One, because you choose them to “fill that role.” Two, because they are the source of your fulfillment in that area. Three, because it’s completely unfair (not to mention totally hypocritical) to expect them to make you feel wanted when you’re not being intentional about making them feel the same way in return. Not to mention the fact that initiating also helps to safeguard your relationship on a lot of levels too.
Since sex is important and rejection is detrimental on so many levels, it’s crucial to make your partner feel sexually wanted and desired by you. One way to definitely do that is to initiate sex.
What Initiating Sex Does for You
GiphySo, what does initiating sex do for the initiator? Something that I tell a lot of my women clients is it helps them to create an atmosphere that puts them in the mood. What I mean by that is, if their husband is perfectly content having sex on the couch during commercials (I’m kind of exaggerating to make a point…kind of…LOL) while they would like some candles, mood music, and rose petals — they can control that if they are the one who initiates.
Another perk that comes with being the initiator is you have more “control” over how the sex goes. The kind of foreplay you want, how fast or slow things go, how intercourse begins — all of this, you have more of a say so in if you’re the one who is initiating intimacy. Why? Well, think about when your bae initiates — doesn’t it seem like you tend to follow his lead more when he’s the one who is first to get the ball rolling?
Oftentimes, when a couple comes to me about being sexually dissatisfied, and I recommend that the one who doesn’t initiate takes more initiative, the one on the receiving end likes the fact that their partner is “running the show” — and the initiator likes “being in charge” more than they thought that they would. As a result, both end up experiencing far more pleasure.
The initiator shows what they want more of while the receiver feels desired in the process. A win/win for everyone.
What Initiating Sex Does for Him
sexy black and white GIFGiphyA couple of weeks ago, while in a session with a client, he was joking about how much he has “too much of a good thing” when it comes to his wife’s libido. Although science says that the fact that men have a higher amount of testosterone in their system, and it is the reason why they typically have a higher sex drive, don’t sleep on a lot of women out there who want to get it in more than their husband does. His wife is one of them. Since she’s a client of mine too (oftentimes, we do our sessions separately), it’s interesting that he’s fine with having sex a couple of times a month while she would like to a couple of times a week.
So, is he denying her when she wants it more often? Nope. The reason why they’re not having more sex is that even though her drive is higher, she still waits for him to initiate. Why? Because she thinks that’s what “the man should do”; not only that but “being wooed” turns her on more.
As I’ve been working on helping them to find a middle ground (because if marriage ain’t about compromise, I don’t know what is), he says that he feels like because he plans a lot of the dates, he wishes that she would initiate more: “I don’t think a lot of women get how hard it is to be a Black man out here. Nothing feels better than knowing that if no one else is thrilled by your presence, your woman is. For us, initiating isn’t just about sex. It’s about feeling wanted as a whole. And when we feel like our woman adores us, there is no greater turn-on.”
I’m not sure what y’all heard, but what it sounds like to me is when we, as women, initiate sex, men feel holistically special and cherished. That makes sense, too, because if we were to put our feet in their shoes, we would probably say the same thing. That’s just one more reason to pull the “gender roles” out of this topic; men and women both want to feel like they are the best thing on the planet by their sex partners. And again, initiating helps us all to feel that way.
What Initiating Ultimately Does for Your Relationship As a Whole
Issa Rae Love GIF by Insecure on HBOGiphyPersonally, I can only imagine how much better sex would be for everyone (who is in a sexual relationship) if people simply initiated copulation whenever they wanted to have it. That way, everyone would feel desired — and what could possibly be wrong with that? Especially if both individuals factored in some of the definitions for initiated that I already shared. Just think about if you rushed home tonight because you read about something that you want to introduce to your man or there’s a fantasy that you have that you want to admit.
The mere conversations alone will help to bring the two of you closer together because, after all, deep intimacy is about minds, bodies, and spirits getting as close as possible…right? And so, yes, by initiating sex, it can bring more closeness and stability to the relationship as a whole.
And what if you initiate and your partner isn’t interested at the time? Or what if you’re shy about initiating due to having a fear of rejection? That’s a fair and legitimate concern. One day, I’ll need to pen an article on how couples should handle situations like that with grace (on both ends) while applying the golden rule of “doing unto others as you would have them do unto you.” For now, I’ll just say that if this is your greatest point of concern, share that with your partner as well.
After all, it’s pretty unrealistic to expect them to always want it when you do (although it’s been my experience and observation that men are almost always far easier to convince…LOL); just know that not wanting sex at the exact moment that you do doesn’t mean that they don’t want you altogether. Besides, oftentimes, a nap or a night of sleep can rectify that issue. Trust me.
____
Rihanna was actually once quoted as saying, “To me, sex is power. It’s empowering to do it because you want to do it.” I personally think that’s a great way to bring this to a close. Make your partner feel wonderful, empower yourself, and strengthen your relationship by initiating sex more often. I can’t think of one reason why it’s not a wise move. Can you?
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Featured image by Jacob Wackerhausen/Getty Images