Raising capital and having a cofounder by Adam Erlebacher, Fabric Technologies
June 19, 2019
Adam Erlebacher
Founder and CEO of Fabric Technologies
“Starting a company is a really tough thing and it’s critical to have a cofounder alongside you who you can really share the work with and to find the right investor who shared your long term vision for the company”
Adam Erlebacher sat down with us to shed some insight on his experience with founding Fabric Technologies and to give some advice to founders who are just beginning in entrepreneurship.
He discusses with us two main talking points which consist of his experience in raising capital for his then startup business and why he believes having a cofounder for a startup is such a crucial aspect to consider.
Consider all options to raise money for your company
Before seeking the help of institutional investors, he raised money through angel investors who he believed to share his vision in the long-term for Fabric Technologies.
Though some may consider initially going to venture capitalist firms to raise money as being more traditional, he challenges this and urges founders to consider what is best for their company as opposed to what was best for other companies.
Everyone will experience a unique path in creating a successful business. Therefore, everyone will encounter unique requirements. This wasn’t to suggest that venture capitalism isn’t the way to go early on but only serves to remind entrepreneurs to not be afraid of going with instincts by keeping in mind that it’s important to find the right investors who understand your project and your vision and with whom you get along with.
Update your pitch to the investors depending on the stage of the company
Additionally, he shared his insight on a potential problem people may come across during these early funding stages. Having raised an angel round, seed round, and series A round, Adam Erlebacher found it at times perhaps difficult to decide if he needed to change his original vision as investors began to fund his company. There’s a balance however and he shares with us how one should go about approaching this dilemma.
At the angel and seed rounds, the stake is mostly about the project vision. Then, at the series A round, the challenge is more about the product, results, and the development plan with the need to assess the vision’s potential adjustments.
Learning to accept change only to an extent that is productive is critical if the company values are to hold up during its progression. While the initial vision should be focused on throughout the life of the company, understanding that change is both inevitable and necessary will help the startup in the long run.
Why having a cofounder is important
He was also able to explain the importance of having a cofounder. Starting a business is certainly difficult and founders will be met with large sums of work. It’s crucial to able to delegate the tasks at hand to people who are on board with you and who share the same vision and motivation that you as a founder have.
Furthermore, founders should make an earnest effort in building strong relationships with cofounders as it will not only promote a more pleasant working environment but will be important when trying to overcome obstacles together.
Chemistry between founders and cofounders should apply not only on a personal level but of course a professional level as well. Having complementary skills allows for an efficient team.
Having diversity among the founding team helps split responsibilities in a logical and efficient manner.
This short video will give you valuable information that can be used throughout the span of your business.
About Adam Erlebacher, Fabric Co-Founder & CEO
Adam Erlebacher was formerly COO at Simple where he led Simple’s growth from pre-launch to hundreds of thousands of customers (acquired by BBVA). Prior to Simple, he co-founded PlaceVine, an online advertising marketplace (acquired 2011), and led business development at AI startup Colloquis (acquired by Microsoft). Earlier, Adam specialized in technology, media, & telecom transactions at JPMorgan. He received his B.A. from Tufts University and an M.B.A. from The Wharton School.
About Fabric
Fabric is a one-stop that helps protect your family’s financial future. They offer a free will, tools to organize your family’s finances, and affordable life insurance.
Learn more at meetfabric.com