DURHAM – Back when iScribes founder Dr. Jared Pelo was trying to get his medical documentation startup off the ground, his funding fell through.
“We were bankrupt,” recalled the emergency medical physician, who ended up taking out a $300,000 personal loan to float the company.
“Luckily, having an M.D. behind your name, banks will give you money.”
In the end, it all turned out well. He had a successful exit in 2017. But perhaps more importantly, his team never abandoned him at his weakest moment.
“They all stuck with me. [They could have left], but none of them did.”
That was one of his “proudest moments” he told a 100-strong crowd gathered at WeWork’s DurhamID on Tuesday evening.
A “fireside chat” at WeWork DurhamID on Tuesday night.
It was all part of a “fireside chat” aimed at bringing founders and venture capitalists together, and focusing on how they can work together to grow and scale.
Moderated by Ronnie Eubanks., a partner at Cherry Bekaert, the discussion covered everything from what makes startups fundable, to how founders and funders handle clashes when they disagree about the next step.
One thing that wasn’t discussed is the current cloud hanging over host WeWork and its planned public offering.
According to recent reports, the global co-working firm is aiming to scale back its plans for a massive public offering, or delay it and raise more investment capital.
“We are unable to comment at this time,” said WeWork’s senior public affairs manager Alyssa Botts when approached at the event.
Founders’ common mistakes
It didn’t matter much to the proceedings.
David Jones, co-founder of Bull City Venture Partners, entertained the audience with several stories of his successes and failures on the VC circuit.
He was also quick to point out some common mistakes of founders when chasing capital.
“I’m always amazed when entrepreneurs are scared of competition on Day one. They want us to sign, and they don’t want to talk about it to anyone. They want to keep it secret.”
Apparently, that’s a no-no. “Software and tech, you need to open up and share that. You need to get input from other perspective customers.”
Ronnie Eubanks and Dr. Jared Pelo.
It’s also important to focus on the “first five or 10 customers,” not revenue, because they are the key to the business, he said.
Another mistake: raising capital too early.
“A lot of companies will pour on the gas maybe a little bit before they have the bottom of the market fit,” he said. “It doesn’t really play out well if you haven’t figured out that [out]. Wait until you do.”
WRAL TechWire was among the sponsors of the event.
