Now the CEO and Co-Founder of Flo Technologies, Gabriel began his career as an attorney working in the plumbing industry. During that time he dealt with product liability claims for allegedly failed plumbing products – a crucial career step that led him to Flo.
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3 Key Points:
- Your slice of the pie may not be as big when you go partner with venture capital, but you’ve got a whole group of very talented, passionate people that are now on your side that can help you open doors and help grow the right team.
- People who invest in your company are not investing so you can pay yourself a 7-figure salary. People invest in your company to make sure it grows the right way, invests its money the right way, pays its people the right dollar amount… and a glorious salary won’t be one of those things.
- All cash is not equal. You have to find the right investors who share in your vision. You want to celebrate with them when things are great; and when you fall on tough times, you all have to stay aligned and be able to have those tough conversations when they come up.
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Audio Masterclass Show Notes
**Click the time stamp to jump directly to that point in the episode.
- Today’s Audio MASTERCLASS: How to Launch a Family Startup and Land Investment
- [01:43] – Gabriel shares something about himself that most people don’t know…
- [04:42] – Gabriel talks about how he and his father got into the business together.
- It’s 5 times more likely that you’ll have water damage than fire or theft to your home.
- His dad was the mad scientist of plumbing -he’s been in plumbing for over 30 years.
- His dad invented different plumbing solutions; his last invention sold over 80 million units.
- Gabriel and his dad started working together when they had catastrophic water damage in their own home.
- His dad analyzed what the root causes for the water damage was, then set out to invent a device to help avoid water damage in other homes
- When people don’t have any ideas for a business, all they need to do is look around. There are obstacles, challenges, and struggles everywhere, and you might just want to create a solution.
- His father was able to invent a device that could find leaks anywhere in the home, shut off the water, and even pro-actively find problems before they turn into leaks.
- [11:39] – How did Gabriel know they were ready to raise capital to run their business?
- The pain point is way too big; we needed a lot of capital to get the land grab.
- Being very curious and having a network gave me opportunities to spark conversations that led to great advisors.
- You have to get good advisors. You’ve got to get people who know more than you do and who are willing to make introductions for you.
- You’ve got to build a great team.
- [17:03] – The best recommendation for finding great advisors…
- Start with your own network.
- [18:17] – What’s a good percentage of equity to keep in your own family business?
- It depends on the business. It depends on how much capital you need, and how much momentum you get.
- [19:48] – The benefits of getting an injection of capital
- It makes you much more disciplined.
- Gabriel and his father invested a tremendous amount of their time, which is their greatest resource
- People who invest in your company are not investing so you can pay yourself a 7-figure salary. People invest in your company to make sure that company grows the right way, it invests its money the right way, pays its people the right dollar amount… and a glorious salary won’t be one of those things.
- [24:52] – What investment size means.
- You always want to raise more than you think you need.
- Venture capital not only helps build confidence on the business development side, but it also builds a lot of confidence in your team.
- Perception can be reality.
- [27:25] – Gabriel’s experience when it comes to deciding the right investment size.
- Fund raising is hard.
- You need to have a lot of different conversations, especially if you want to be raising the right money from the right people.
- All cash is not equal. You have to find the right investors who share in your vision. You want to be able to celebrate with them when things are great, and when you fall on tough times, you all need to stay aligned and be able to have those tough conversations when they come up.
- You’ve got to have thick skin. You’re going to get a lot of no’s before you get a yes.
- [29:41] – Gabriel shares one thing we should be thinking about when we design a pitch.
- It’s about telling a story.
- Be able to tell your story and be able to explain why you’re the one that’s going to take this huge opportunity and get that market share.
- [31:39] – What happens post-fund raise?
- Keeping in contact with your investor is important.
- You need to immediately think about when your next fund raising is.
- 100% of the reason why startups fail is because they run out of money.
- You have to think about the things that will get you to the next level.
- [34:05] – Gabriel’s parting piece of guidance:
- Your slice of the pie may not be as big when you partner with venture capital, but you now have a whole group of very talented, passionate people who are on your side, and who can help you open doors and grow the right team. It will give you a better chance of reaching success without having to dig deep into your own pockets.
- Visit Flo Technologies website to learn more about Gabriel’s business!
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