How I secured funding for my startup
From a €10k angel check to €240k in convertible notes. The real story of how I raised funding for Stagent, with the lessons I learned along the way.
I didn't set out to raise funding. I set out to build something.
Stagent started as a side project while running Pixelstart, a web agency I later sold. I previously operated VOID, a booking agency, and recognized the inefficiencies plaguing these businesses: spreadsheet chaos, email overload, and manual workflows. Building a superior solution required capital.
The first €10k: Right place, right time
The initial investor wasn't sourced through networking events or competitions. Lennert, known since 2014, became the first backer after hearing about the early mockups and problem statement. He invested €10k without formal documentation, relying on years of industry rapport.
A second €10k followed similarly. The lesson: "luck favors people who talk about what they're building." Constant communication about the project creates unexpected opportunities.
The business plan that changed everything
The third investment request prompted scrutiny. Questions arose about business models, competition, and financial projections. I lacked satisfactory answers and developed a comprehensive business plan through market research and competitive analysis. This exercise yielded €30k additional capital, bringing total funding to €50k and Lennert's ownership to 10%.
What €50k bought us
This capital enabled hiring the first developer and launching marketing initiatives. The prototype transformed into a legitimate startup, though the money depleted quickly.
The seed round: €105k in convertible notes
By 2021, Stagent demonstrated traction with real users and revenue. Rather than pitching an unproven concept, I presented growth metrics and profitability pathways. This €105k convertible note round eventually expanded to €240k.
What actually worked (and what didn't)
Relationships beat cold outreach. Every raised euro came through existing connections or introductions.
A business plan serves the founder. Writing one deepened understanding of the business fundamentally.
Traction transforms conversations. "Look at what's already working" surpasses "trust me" appeals.
Convertible notes expedite fundraising. They bypass months of equity negotiations.
Communication creates serendipity. Constant discussion about projects attracts unexpected support.
What I'd do differently
Clearer early equity structures would prevent later legal complications. Additionally, being more proactive requesting investor introductions from existing backers would have accelerated growth.
The reality of startup funding
Raising money isn't glamorous. It involves awkward conversations, rejection, and prolonged uncertainty. However, the fundamentals remain straightforward: build something people want, communicate widely, identify believers, and request capital.
Hi, I'm Mischa. I've been Shipping products and building ventures for over a decade. First exit at 25, second at 30. Now Partner & CPO at Ryde Ventures, an AI venture studio in Amsterdam. Currently shipping Stagent and Onoma. Based in Hong Kong. I write about what I learn along the way.
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