Founders’ Guide: Navigating the Investment Landscape with Bryan Duarte

Raising capital is more than just having a great idea; it involves building trust, demonstrating traction, and clearly communicating your vision. At the Founders and Funders 2025 event hosted by Altitude Accelerator, Bryan Duarte, an experienced entrepreneur and Managing Partner of BlackTech Capital, shared critical insights on raising funds. His experiences with both successful ventures and failures provided a balanced perspective, making his advice particularly relevant as investment environments become more cautious.

Key Insights from Bryan Duarte

1. Build Relationships Early: Duarte emphasized the significance of forging relationships with potential investors long before needing capital. He advised founders to start networking early—attending events, engaging in investor networks, and providing updates on their ventures. In Canada’s more conservative investment landscape, relationships can significantly enhance the credibility of a pitch. Founders need to approach fundraising with the mindset of pitching themselves alongside their businesses.
2. Timing is Crucial: The timing of fundraising is essential, as Duarte noted that pre-seed companies should at least have a minimum viable product (MVP). He highlighted that investors often will not back an idea without demonstrated success, especially for new entrepreneurs. The expectations shift as startups progress through stages, from needing evidence of traction in seed funding to showcasing scalability and revenue metrics in later stages.
3. Funding Strategies: Duarte suggested several funding strategies, including bootstrapping, which allows entrepreneurs to retain control while validating their business model. He also referenced grants as useful tools for early-stage development but warned against relying on them solely. For underrepresented founders with fewer personal funding options, angel investors are a valuable resource, as they can offer both financial backing and validation.
4. Debt vs. Equity: Founders must decide between debt financing, which requires repayment but allows ownership retention, and equity financing, which involves sharing ownership but does not require repayment. Duarte argued for a strategic approach to both, emphasizing that debt could be a predictable and manageable option compared to the ongoing expectations of equity investors.

What Investors Look For

Investors assess startups based on several criteria:

• Market Potential: Founders need to demonstrate knowledge of the problem-solving their product addresses and the market opportunity it presents. They should provide evidence-based data rather than inflated projections.
• Team Strength: A capable team is often more important than the product itself, as adaptability and leadership are critical during early stages.
• Scalable Business Model: Founders should articulate how they plan to generate revenue and grow, demonstrating the scalability of their model.
• Path to Profitability: Investors want clear financial projections that outline how the business will eventually become profitable.
• Exit Strategy: Founders should present a credible exit strategy, indicating how and when investors can recoup their investments.

Preparing Your Pitch

Effective preparation is crucial. Founders should understand their audience and tailor their pitches accordingly, utilizing storytelling to create emotional connections. Practicing their pitch without reliance on slides can help convey confidence. Key components to address in a pitch include the problem, desired solution, market opportunity, business model, traction, and financial projections.

After the Pitch

Duarte stressed the importance of follow-up after pitching, including sending a prompt thank-you note and periodic updates about progress. This continuous engagement can keep relationships warm and may influence investors who initially declined to invest.

In conclusion, Duarte's insights underscore that fundraising is an ongoing process that demands clarity, preparation, and authenticity. Entrepreneurs should recognize that building meaningful connections and refining their business are integral to attracting capital. Programs like those offered by Altitude Accelerator can support startups in accessing resources and networks crucial for success.