⭐ Highlights from Mike Kapps’s AMA

What key qualities should you look for in a co-founder?

“Shared values are crucial. Spend time together to observe behaviors and ensure alignment in beliefs and commitment. Trust your gut instincts, as you'll be working closely for long periods. Early signs of misalignment can lead to issues, so address fundamental questions early on.”

How do you assemble an elite founding team?

“Recruit mission-driven people passionate about your goals. Be transparent and involve them in decisions. Incentivize and support them to build a strong, values-aligned culture. Elevate your team by promoting their work and letting them shine, creating a resilient, motivated unit.”

How do you deal with rejection during fundraising?

“Raising funds was challenging, despite previous success. Rejection was common, even after a successful exit and strong team assembly. Timing and market conditions played a significant role. Persistence, exploring alternative funding options, and understanding investors' concerns were key. Rejections are normal; stay resilient and prepared.”

How should you prepare for fundraising?

“Build relationships before fundraising by having initial conversations and connecting with VCs and mentors. Use your network to get warm introductions and create a list of 40-100 potential investors. Prepare and rehearse your pitch thoroughly. When ready, initiate a blitzkrieg approach to create FOMO among investors by contacting everyone within a short period. Secure early commitments from notable angels for credibility. Be adaptable, seek honest feedback, and pivot as needed. Return to investors with improvements based on their feedback.”

What challenges did you face during the acquisition process, and how did you overcome them?

“We had just raised a $5 million Series A and were prepared to scale, but competitors had more funding, and differentiation was a concern. Burned out, I was open to selling. Valor Capital, also an investor in Gympass, facilitated the acquisition. Gympass, fresh from a $250 million round, saw our tech as ready and valued our attainable solution. The negotiation, akin to fundraising, required convincing diligence and resilience, often done solitarily. The acquisition completed in April 2022, with most of our 70 employees, especially the leadership team, staying on to grow the product.”

For the full AMA, click here.

📅 Upcoming AMAs

• July 18 at 12pm PST: Ahmed Mirza, Investor at Techstars

  • Ahmed leads investments at Techstars LA, Techstars Space, and Techstars Healthcare accelerators.

• July 23 at 4pm PST: Clara Hong, Founder and CEO at Smore

  • Smore is a leading no-code SaaS platform that allows you to easily build your own interactive forms.

📺 Past AMAs

Missed any of our previous AMAs? No worries! You can catch up on all the guests here.

• Will Drewery, Founder and CEO at Diagon (AI-powered procurement platform)

• Gaurav Seth, Founder and CEO at PierSight Space (maritime surveillance using satellites)

• Tejes Srivalsan, Founder and CEO at Poppin (event-based social media)

• Christie Marchese, Founder and CEO at Kinema (film distribution platform)

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