How to get investment for your startup: Real stories of founders and their rounds.

Raising investment can be one of the most challenging and transformative stages in the life of any startup. Beyond the numbers, each round of funding is a story of learning, falls, successes, difficult conversations, changes of course... and, above all, knowing how to tell your project well.

Throughout our 15 years of experience, in Tetuan Valley we have accompanied more than a thousand entrepreneurs on this path, from those who found their first investor in an impromptu pitch, to those who needed to pivot completely before closing their round.

In this blog we collect the real learnings of two alumni from different editions of our Startup School program: Lucía Martínez Pradofounder of Breakevent (Startup School 20) and Alvaro AyllonCEO of Maternify (Startup School 23). Both share, frankly and without embellishment, how they experienced the process of raising investment: what they learned, what they would do differently and the advice they would give today to those who are about to launch their first round.

If you are thinking of opening your first round, or if you have already gone through one and are looking for new keys to continue growing, these stories are for you.

Photo by Lucía Martínez Prado

Lucía Martínez Pradofounder of Breakevent

1. In the process of seeking investment, what did you think would be difficult and then turned out to be easier? And the other way around?

   "Being the sole founder I thought it would put more barriers in my way than it finally was, it is true that it made the process a bit more difficult but it was not an impediment to close any of the two investment rounds.

   In the opposite case, I thought there would be more value placed on the product we had and the vision for it, but the focus was almost always on financial and business metrics."

2. What detail made the difference in your speech to investors?

   "The team, the vision and the knowledge we have of the sector we work in."

3. Raising investment is also about managing emotions: was there ever a moment when you thought about throwing in the towel? How did you manage it?

   "I never thought about throwing in the towel but it's clear that it's a roller coaster on an emotional level, you have to know how to manage that well to handle it in the best possible way and not get too frustrated."

4. What was your biggest mistake in the investment round and what did you learn from it?

   "I think my biggest mistake was not having better qualified the investors I spoke to, in terms of the sectors they invest in, the situation of their funds, etc. That would have saved me a lot of meetings and I could have used that time to talk to others with whom I would have had more possibilities."

5. What advice would you give to a startup that is about to raise its first round and is afraid of losing control (dilution, intrusive investors, etc.)?

   "They should analyze very well the type of investor they want to be part of their project because they will be with them for a long time, they can make them grow and help them, or they can become a problem. It is also important to have a good lawyer or attorney to help negotiate the termsheets to sign good conditions for everyone and that there is no abusive clause."

6. Beyond the money: what value did the investors who entered your round bring you?

   "They help us and support us in many things, the truth is we are very lucky to have them as part of the project because they are always willing to lend us a hand or put us in contact with whoever we need."

7. If you had to define in one sentence what you learned from this process, what would it be?

   "Frustration management without a doubt, the ratio of one investor telling you yes is very low, before that you've talked to 50 or 100 who have told you no."

Photo by Alvaro Ayllon and Clara Quintana

Alvaro AyllonCEO of Maternify

1. In the process of seeking investment, what did you think would be difficult and then turned out to be easier? And the other way around?

   "Nothing that I thought was going to be difficult then ended up being easy. In investment rounds there is nothing simple ;)"

2. What detail made the difference in your speech to investors?

   "Having everything under control and up to date."

3. Raising investment is also about managing emotions: was there ever a moment when you thought about throwing in the towel? How did you manage it?

   "This is enough for a podcast. As long as the personal and professional balance makes up for it, you don't throw in the towel. Fortunately, that's how it is in our case. Leaning on your environment (family, friends and fellow entrepreneurs) and asking for professional help if you need it is important."

4. What was your biggest mistake in the investment round and what did you learn from it?

   "Underestimate the timing, even if you're conservative. The market changes and it takes you a while to figure it out if you don't figure things out months in advance of launch."

5. What advice would you give to a startup that is about to raise its first round and is afraid of losing control (dilution, intrusive investors, etc.)?

   "That you have some good lawyers to be able to ask these questions to. That you never fail to be able to answer, as up to date as possible based on your turnover, runway etc, these 2 questions: why are you doing this round and what are your objectives?"

6. Beyond the money: what value did the investors who entered your round bring you?

   "Focus on the positive side and ego on the negative side. But in my case, I know that ego is a false sense of success, because in one year your company can die."

7. If you had to define in one sentence what you learned from this process, what would it be?

   "If your startup is round, you have to fall in love with the monster that is the investor." 

As you can see, raising capital is not just about raising financing: it is an intense process that tests the vision, resilience and negotiation skills of any founder. But it is also an opportunity to grow, learn and surround yourself with people who believe in your project.

At Tetuan Valleywe have been training and accompanying entrepreneurs like Lucía and Álvaro for more than 15 years. If you are also building something and are looking for a community that really pushes you forward, we invite you to discover our programs and become part of our network.

So, join our communitybecause entrepreneurship with others is better lived (and survived).