This Entrepreneur Raised $2.25 Mill In Seed Funding & Wants More Women To Do the Same
When it comes to the tech world, minorities are often underrepresented and underestimated. A quick search about Silicon Valley will reveal that diversity is a big issue from the cubicles to the boardrooms, so it's no surprise that when it comes to seeking investments for our own businesses, we have to fight harder and shine brighter just to prove our value. And it's not just a race thing. In an article on Silicon Valley's diversity problem, Fast Companystated, “when played recordings of the same investment plea read by a man and a woman, people preferred the man's pitch by a two-to-one margin." Ouch.
But the thing about being overlooked is that when you do make noise, people look your way. And one woman in tech is making sure that she's not only talking the talk, but successfully paving the way for others to be heard as well.
In 2003, start-up founder Tina Fitch combined her love of tech and entrepreneurship and launched her travel software company, Switchfly. Through venture capital funding and snagging nearly every major airline, credit card company, and loyalty program in the travel sector, she helped build a $2 billion platform operating in over 50 countries worldwide. After seven years of tirelessly building her business, she sold her portion of the company and took a break, returning to her hometown of Maui, Hawaii to focus on building a family, serving as a mentor to other startups within her community, and fulfilling her desire of running a free-range pig farm.As it turns out, letting go of an old idea allowed for the birthing of a new one. The opportunity to rebuild her personal connections with family and friends led to a vision of building a platform that would allow people to reconnect in a digital way. While pregnant with her second child, she conceived the idea for Hobnob—a mobile-based invitation app that helps users create beautiful event invites that can be sent via text in less than 60 seconds.
“I could be pregnant on a farm in the Pacific and still be connected, but at the same time I found that even with all of these social networks and all of this advancement, people just seem to be more and more isolated, and it was ironically harder than ever to actually be social."
Recognizing a need for technology that enabled real life moments to be experienced and shared in a unique way, Tina got to work on once again bringing her idea to fruition. But launching a start up, even a second time around, would prove to be no easy feat. For one, she was no longer living in the investor-friendly city of Silicon Valley, meaning she had to put her money where her mouth was in order to prove that she wasn't just a one start-up wonder. And as a minority woman in an industry where our presence may be seen but not always felt, she had an equally difficult challenge of representing the next generation of women entrepreneurs set to disrupt the tech sector.
Photo Credit: Hobnob App
But being a girl boss means making it happen despite any opposition, so it's no surprise that this past February, it was announced that Hobnob raised $2.25 million in seed funding from a handful of notable investors.
In an industry that's quick to evolve but slow to embrace, Tina hopes to see more women and minorities continue to make their voices heard by fearlessly going after the big bucks to help back innovative ideas. We had a chance to chat with the CEO on how to successfully snag seed funding for your business, why starting small can lead to bigger opportunities, and why it's important that we break into spaces that we're not typically invited into.
1. Build It And Let Your Results Speak For You
"We basically started [Hobnob] on our own because I felt like the best approach for me is to feel like you have something tangible that people can interact with and see what your vision is. Everyone has to be a good storyteller as an entrepreneur, but results are also the best storyteller. I take raising funds very seriously, meaning you're basically asking someone else to trust you with their hard earned money and you're committing to delivering for them.
"I wanted to make sure that whatever product that they were investing in we felt was truly viable, and that there was a real need for it in the market. So we basically self-funded it to our first beta version. And then we tested it out in Hawaii and it expanded to the U.S. and once we started really getting traction and we saw such a diverse user base jumping onto it, that was when I started having investor discussions because then we realized there was something there."
2. Talk To Friends And Family First
"Seed funding will normally come after friends and family round. A lot of times we have an idea, but maybe you have savings if you're self-funding and just fund yourself while you're building it. But sometimes if you need a little bit of money you can ask friends and family to buy in on your dream, or trust you and support you."
3. Find The Right Type Of Investor For Your Business
"Seed funding is what I'd consider the first professional round with people who have experience investing, and there's a range of people who can participate. There's what you call angel investors, where individuals invest their funds, and then there's people called Micro Venture Capital (Micro-VC) investors, who are venture capitalists but tend to have smaller funds and they're entirely focused on these seed rounds where they can get in for pretty low amounts of money and still have significant ownership, so they're making small bets with potentially big outcomes.
"Then you have traditional venture capitalists, and we happen to have both angel and venture capitalists in our seed round where they have funds in the billions of dollars, but they still realize that the best outcomes that they have are typically with companies where they got in early. So even large VCs are really interested in the right companies and the right people at a very early stage."
Courtesy of Tina Fitch/Hobnob
4. Decide What Is Best For Your Business: A Loan Vs. Seeking Investors
"There are several differences to obtaining a business loan vs. investors for your business, but I'll focus on the three main ones in my view: A loan requires repayment with interest ('debt'), but doesn't give up equity in your company. An investor gives capital to grow to the company in exchange for ownership (i.e. 'equity'). An entrepreneur may not want to give up any piece of her business since, rightfully, she'll be the one slugging away day after day to build it. But some types of businesses - such as ones that require more capital to grow before they can be cash-flow positive and self-fund, or don't have the assets and collateral to obtain a competitive loan, or can benefit from the reputation or connections from a particular investor - can be bigger with a venture investment than without. In other words, you can have a smaller piece of something large, vs. 100 percent ownership of something small or, worse, bankrupt.
"A loan, just like anything obtained on credit, has a repayment/recovery schedule. You should have a strong level of confidence that you will have the cash flow to repay that loan on the terms they require. A venture investor typically is investing in you as much as the company – and may be more accepting of changes to business plan, as long as she remains informed. An investor is going to feel like a partner in the business, and is ideally in it for the long-term play. On the flip side of that, when you qualify for a loan, all the lender cares about is that you repay per their terms. They don't want to influence your business. An equity partner often will want to feel some level of influence and have some level of ongoing insight to your business decisions. So you have to evaluate any equity partner the way you'd evaluate any long-term relationship – very seriously, and based on multiple levels of compatibility and trust.
"This is the most important in my mind: you should only seek out and accept venture funding if you have the intention of bringing them a significant return on their investment. In other words, you should have a plan in mind that will either reap healthy ongoing dividends or a 'liquidity event' – in other words, a sale or public offering – a way for that investor to get their investment back plus the increased value you've built in the business and their shares over a reasonable period of time. 'Lifestyle businesses' are great – those are businesses you want to build primarily to support yourself and your family, perhaps the community of employees you maintain – but aren't designed to reward investors with a higher return on their investment than, say, if she had invested in the stock market or real estate. You should be able to approach investors with the confidence that you aren't asking them for a favor, you are offering them an opportunity – and you need to be authentic and committed to making that message reality."
5. Repeat Customers Can Be Just As Valuable As Showing Profit
"In the case where you have a product or service where you're selling something, definitely the best thing to have is a happy customers and repeat customers. We picked one of the hardest areas to focus on, which is consumer mobile pre-revenue, meaning we don't even sell anything right now. We're basically a free service, and that's honestly a very challenging space to pitch so I think what a lot of investors are banking on is a product that they can try out themselves and if they see a need for it and they like your approach to a product—they feel like the design is beautiful and elegant and efficient—it's almost like the product is the window into your soul and your perspective.
"Everything we built was really geared towards having a beautiful user experience that really translated in the product, so the investors could see and feel that. Also, at the same time they could see that it's really a broad diverse user base that was coming onto the service, and we didn't do any kind of paid advertising—we didn't buy customers. It's called organic growth where they just recommended it to each other and they invited other people to share in it, and they found it on their own and started using it. So to have straight organic growth from such a diverse user base was something that the investors also saw and were really excited about."
6. Treat Investors Like It's A Marriage
"When you're starving for funds, it's very easy for people to be tempted to take money wherever they can get it, and there's no judgment there. I understand that it can be a real struggle and you want to build your business, but it's really like a marriage. Especially in recent years, there are very few overnight success stories. You have to go into the relationship thinking that it's a marriage and you're going to have good times and bad times and you want to pick a partner that's going to be a solid and supportive partner during those bad times as well, so you do have to be selective and it's not just a question of you pitching yourself to them, they should also be pitching themselves to you or you should be evaluating them in that way."
7. Bring Tech Investors to You
"It's funny because I wondered if people would be reluctant to invest in us or if they'd take us seriously, but I think a few things have happened as a result of being [in Hawaii]. One is I feel like we're able to develop a product without the money mentality. We were able to really build and design for the people that we wanted to reach, and Hawaii being such a diverse community ethnically and culturally, it's really a true melting pot, that I feel like it positively influenced our product and how we were able to reach different types of people on the mainland and elsewhere.
"The other thing that I realized was that for the first time big name investors are also recognizing that diverse teams, and that also means geographically diverse, have a different perspective and so they're really to look elsewhere and take a gamble on companies. But again seeing that you have a solid product and customer base or potential. So I feel like they recognized wow you guys were able to build a really beautiful product that's reaching a diverse user base and it's growing organically and you're in Hawaii, that's probably all related, and that's something interesting and intriguing."
8. Recognize Your Power As A Minority
"Hispanic and African American women are the fastest growing entrepreneurial segments in the country growing at rates of 133.3 percent and 191.4 percent respectively from 1997 to 2007. Combined they represent more than two million of the roughly eight million women-owned businesses in the country and more than $14 billion in gross receipts. Further, African American and Hispanic women are three to five times more likely to start a business than their white counterparts (read more).
"I think the reasons for this are powerful: when you don't see the company cultures or products and services that reflect your world view or experiences, you are motivated to build them yourself. Minority women are woefully underrepresented across almost every executive segment in the country – but we are a powerful demographic. So we are harnessing that power and creativity and creating opportunities."
"There are some great resources to read and readily available online. I wish I had some these standardized Series Seed documents when I started by first tech startup – in the past (and even now) several companies get gouged by law firms when trying to set up their first investment. This doesn't need to happen, and I find that if most honorable investors will agree to these types of standardized terms with only minor adjustments, at times. Being a minority, you should be like, wow, I have a powerful weapon, in that I have a particular advantage.
"If you are interested in raising capital for your business, here are a few amazing resources: Serie Seed, Raising Venture Capital For The Serious Entrepreneur, Small Business Administration, MBDA Grant Competitions, [and] Seed Accelerators & Groups."
Find out more about Hob Nob in the video below:
What would your dream start-up be? Are you making any moves to make your business dreams come true? Let us know in the comments below!
- Getting A Small Business Loan, 5 Steps - xoNecole: Women's Interest, Love, Wellness, Beauty ›
- How To Get An Investor For Your Business - xoNecole: Women's Interest, Love, Wellness, Beauty ›
Kiah McBride writes technical content by day and uses storytelling to pen real and raw personal development pieces on her blog Write On Kiah. Follow her on Instagram and Twitter at @writeonkiah.
This article is sponsored by Hulu.
UnPrisonedhas returned for its highly anticipated second season, delving deeper into the complex dynamics of the Alexander family.
The series premiere comes a year after its debut season garnered rave reviews from fans and critics and earned record-breaking ratings for Hulu's Onyx Collective brand. UnPrisoned's success can be attributed to its raw, relatable themes and comedic appeal.
Inspired by creator Tracy McMillan's life, the show follows Paige (Kerry Washington), a therapist and single mother whose life takes an unexpected turn when her father, Edwin (Delroy Lindo) --who was released from prison-- moves in with her and her teenage son, Finn (Faly Rakotohavana).
Throughout UnPrisoned's first season, viewers witnessed how Edwin's incarceration deeply affected Paige's life and relationships. In the series, Paige unpacks her trauma through interactions with her inner child and her online followers. Meanwhile, Edwin is overcoming specific struggles with his own past that led to his life of crime, including a dysfunctional upbringing and his mother's arrest. As the Alexanders attempt to reconcile, new challenges arise.
This new season promises to further explore their unconventional family dynamic. Here are several compelling reasons why season two of UnPrisoned should be on everyone's watchlist.
The Alexander Family Life Is Still In Shambles
UnPrisoned's second season resumes where the series left off, with Paige grappling with the fallout from her troubled therapy practice and Edwin navigating life independently after moving out. Meanwhile, Finn faces his own challenges. The teenager is battling anxiety and seeking information about his father—a topic Paige avoids discussing.
The Alexander Family Are Attending Therapy To Resolve Their Underlying Issues
Amid the chaos in their lives, the Alexander family decides to mend their bond by confronting their past traumas. They seek professional help and attend therapy sessions with a “family radical healing coach,” played by John Stamos, a new cast member. This collective effort aims to unravel the complexities of their shared history and strengthen their relationships.
The process of unraveling each character's internal conflicts and their potential impact on future relationships may clash with Paige's textbook therapy approach. While Paige is used to being in the therapist's seat in both career and family, this forces her into the unfamiliar role of a patient during therapy sessions. This shift would compel her to look in the mirror and try a radically different approach.
The Alexander Family Learned A Big Lesson During A Therapy Session
In therapy, the Alexanders are tasked with addressing their individual traumas to salvage their remaining relationships. One of the family therapist’s eccentric suggestions was an exercise involving a family wrestling match. During this session, Paige faces tough questions about her refusal to share information about Finn's father.
While it's unclear whether this scene is reality or fantasy, the image of the family duking it out in the ring certainly makes for hilarious yet compelling television.
Paige Tries Dating Again Following Failed Relationships
Amid her life's chaos, Paige decides to step back into the dating field. However, her many attempts have left her with mixed results. The dating apps have turned out to be a fail, and an outing with her ex Mal (Marque Richardson), who is also her father's parole officer, doesn’t go quite as expected after he brings an unexpected guest – his new girlfriend.
The situation takes an awkward turn when Mal's new partner learns why the former couple split, partly due to Paige's self-sabotage.
UnPrisoned Is A Perfect Balance Of Comedy And Drama
As a dramedy, UnPrisoned takes a comedic approach to its heavy subjects. The show takes us on a ride with Paige's dating misadventures and navigating a friendship with her ex.
Other lighthearted moments include Edwin's attempts at CPR based on online videos and, of course, the antics of the Alexander family's unconventional new healing coach.
The second season of UnPrisoned is now available on Hulu.
UnPrisoned | Season 2 Trailer | Hulu
Feature image courtesy
'Dear Black Girls': How A'ja Wilson Is Helping Black Girls Heal & Bloom With Confidence
In recent years, books written by Black women, such as Viola Davis, Michelle Obama, and Taraji P. Henson, have adorned our shelves and shown the great trials and tribulations one has had to endure to become the woman we see today. Though their narratives show great accomplishments, they explain in detail the price that had to be paid to achieve their monumental success. Often, this price came at the cost of having to endure unspeakable tragedy. The world was being carried on their shoulders and backs, and they had to learn to balance the weight of it all. Despite the odds, they managed to grow and become exceptionally talented women with limited support or, most of the time, alone.
However, in A'ja Wilson's recently published book, Dear Black Girls, this narrative is changing for the better. The memoir shows that WNBA superstar, and growing legend, A'ja Wilson isn't just a force to reckon with on the court, racking up championships, MVP awards, Olympic gold, and season-record-breaking accomplishments. Her impact transcends the game, reaching into the hearts of young Black women and girls, who like me might have once felt a pang of otherness for embracing their inner tomboy.
Wilson's recently published book offered a powerful remedy, a story that mirrored my own experiences and gently soothed the wounds of not always fitting in. This collection of honest stories is not just about Wilson's journey, it's also a book that holds the potential to heal and inspire countless other Black girls who deserve to see themselves reflected in the pages of a champion.
Although Wilson discusses the tribulations she had to overcome, she didn't have to do them alone and often had more than one support system installed to ensure her success. This book ultimately shows the beauty that grows when Black girls are raised with nourishment, intentionality, and understanding rather than the unrelenting grief and sadness that many believe are necessary to raise Black girls.
In Dear Black Girls: How to Be True to You, the two-time MVP shows us that love, rather than unending tragedy, can be the source of success for all Black girls--past, present, and future. Wilson also shows us how love can occasionally come from an unexpected source--a stranger who only has compassion, empathy, and understanding to offer.
Living While Black
There comes a point in time, in every Black girl's life, where they learn that they are not just a girl, but a Black girl. For me, it was on the playground of my elementary school, where a white girl--who I thought was my friend--called me the n-word when I refused to join her in a fight against a mutual friend. For A'ja Wilson, it was when her "friend" refused to invite her to her house for a sleepover, unless she slept outside. When asked why she had to be the only one to sleep outside, she was quickly informed it had been due to her race. Though her parents discussed it with her and explained why she and the young lady could no longer be friends, A'ja Wilson offers a relatable lens to express the grief of realizing one's otherness.
The year she discovered her Blackness meant a difference, Wilson felt alone and began isolating herself. It wasn't until she met a woman who worked in the cafeteria that she understood the importance of being seen by someone who looked like her. In Dear Black Girls, Wilson teaches the importance of representation and finding someone who "looks like you" and actively cares and checks in with you. Though the young readers of this book will most likely never meet Wilson, she provides her novel as a stand-in role model who actively sees how alone some Black girls feel in the world and tells them lovely: "I see you, I got you."
Finding Oneself
There is a certain power in discovering one's "why." In Dear Black Girls, Wilson explains that in order to find oneself or one's reasons for doing things, it might be important to look to your elders. The ones that could make you believe in yourself. For Wilson, it was her grandmother. Her grandmother was her place of solace and the person she felt closest to. Before she picked up the game of basketball, A'ja's grandmother believed she was special and would achieve so many things in life.
Through this belief, she nurtured Wilson and taught her to believe in the good that everyone had to possess. She taught Wilson that Black women could be heroes, and knew how to "walk the walk" and "talk the talk." She taught Wilson, and in turn, Wilson has taught Black girls, that finding oneself can be done at the hands of the ones that we love. And that if one's love is strong enough, we can "freeze it, and preserve that safe space forever."
It's Okay to Be Different
In school, Wilson was considered a "slow learner." Diagnosed with dyslexia at the late age of 16, she believed she had not been as "smart" as the other kids. Wilson would freeze up in class, and despite loving to write narratives and the school itself, she found she did not catch on with her peers as quickly as she liked. She spent hours on end stressing about being different, so much so, that at times the thought of her otherness became debilitating and all-consuming. With her family and in her solitude, she understood who she was. However, among her friends and in class, she found that she didn't know who she was, nor who they wanted her to be.
From this, she taught Black girls that being a teen is stressful enough, so being oneself should be easily embraced. Though, she admits to not knowing the right thing to say, do, or act, and therefore is unable to give us "cheat codes," the best thing a young Black girl can do, is just be.
Find Your Gardener
I often say that Black women have learned to grow without nourishment. So, in reading Dear Black Girl, it was a refreshing change of pace to read that Wilson had been adorned with love, guidance, honesty, and protection by strong support systems in her life. One of those support systems was Wilson's father. Her father taught her many things in life, but one that was most essential was the importance of perseverance and overcoming mediocrity. See, despite being the best in her career, Wilson and basketball did not mesh well from the start. Instead, she had been known to try many things and was lackluster at best.
Nevertheless, when Wilson was told that she did not play well by her father--after asking why she wasn't getting any playing time--she finally learned to overcome her challenges.
Not because she suddenly practiced more, or believed she could do anything with time. She became better because her father gave her the option to walk away from the sport. He allowed her to be scared, to be unsure of what she wanted in life, and freed her of the stress of absolutes. Through encouragement, he became her gardener--always trying to bring out the best in her through "easy" and "tough" love. In Dear BlackGirls, Wilson encourages Black girls to find their "gardeners," the people in their lives who bring out the best in them, drive them crazy and are never afraid to tell them how it is. The person that pulls out all of the weeds and negativity, and leaves enough space for you to receive sunlight and bloom.
Gaining a Nonsense Detector
While finding a gardener, Wilson also encourages Black girls to find or gain a "nonsense detector." A nonsense detector is just as it sounds, someone who can detect the nonsense that the world is attempting to bring to them and help them identify what it truly is. They are the person who is willing to approach a spade and call it by its name. In Wilson's life, this was her mother. A'ja's mom encouraged her to think logically about her education and its relationship to her basketball career.
She was the person Wilson called when she learned to drive in a new state or deal with the stress of her newfound career. Through her mother's encouragement, she learned not to chase after boys or some concept of a new sense of self, instead, she learned to make decisions with her best interest in mind. In doing so, she chose family, which meant more time with her grandmother, which she would not have had if she hadn't learned to listen to something that encourages no-nonsense.
Grief Has No Timeline, Knows No Bounds
In 2017, during her junior year of college, A'ja Wilson was known as one of the best players in the NCAA. After two seasons of coming up short of winning a national title, she had finally accomplished her goal of winning with Dawn Staley's South Caroline Gamecocks. However, the win was bittersweet, because the champ had been grieving the loss of her grandmother, one of her biggest support systems.
During this time, Wilson discovered that grief could not be neatly packed away in a box, waiting to be unraveled when she had prepared to deal with it. She noted that it was an unending rollercoaster where lows felt all-consuming and endless.
In Dear Black Girls, Wilson discusses the importance of experiencing grief at its pace, and on your own timeline. She explains to young Black girls that the feeling of despair and paralysis is normal and that instead of trying to climb out of the sadness, sometimes it is beneficial to wade through it, with the people you care about. Not only this, she encourages Black girls to embrace support that may be considered unexpected, through a beautiful anecdote involving Dawn Staley.
The champ mentioned the coach drove down to her house, upon hearing about the death of her grandmother, and sat in silence with the athlete as she cried. She informed her that she could take all of the time that she needed and that the "team would be waiting for her when she was ready to return."
You Don't Know What You Don't Know
The issue that many people hold today is they expect to be perfect. Though we know perfection is merely a concept, and the only thing perfect about perfection is the word itself, many dwell on being perfect and having the foresight to ensure it is so. When perfection is inevitably unattainable, we punish ourselves for not knowing better or being fallible. Nevertheless, dwelling on things, especially in relation to being perfect, is nothing more than wasted energy.
In Dear Black Girls, Wilson--through a humorous anecdote of her WNBA drafting day--points out that everyone makes mistakes and that many should not be ashamed for not knowing what they hadn't known before. Instead, beauty lies in learning and giving oneself credit for the knowledge that you now have for navigating future situations. Instead of beating yourself up, Wilson tells young Black girls there is no point in beating themselves up and to allow grace in moments of uncertainty and error.
Protect and Nurture Your Mental Health
The idea of seeking therapy is often a hurdle for Black women. With societal expectations and generational aversions, the concept of the "strong Black woman" often overpowers the necessary, and sometimes dire assistance Black women should seek. In Dear Black Girls, A'ja Wilson points out that most Black women are the first, or one of few, in their families to accomplish significant achievements, such as going to college, getting a corporate job, or making a high-figured salary.
This results in pressure that cannot be seen as relatable by family members, and often results in anxiety disorders, growing, unrelenting pressure, and crippling stress. To solve this, Wilson encourages Black girls to seek help outside of themselves and their friends, to ensure they are not taking on the weight of the world, simply because it was placed on their shoulders. Black women need someone to talk to, especially when it has been ingrained since birth that we should nurture and care for everyone but ourselves. By seeking a therapist, this narrative can change, and the idea of being a "strong Black woman" can come from the idea of learning to be vulnerable and asking for help.
Be Your Own Hero
It is heroic to take control of your own life. Being your own hero gives you confidence and reassurance to face obstacles directly, to follow your passion, and to define success how you see fit. It can be powerful and gratifying to become the best version of yourself and to allow yourself to be. In Dear Black Girls, Wilson teaches Black girls their final lesson, "If you can see them [your heroes], then you can be them." Many Black girls do not seek certain positions in life because they have never seen people who look like them in certain positions.
Nevertheless, Wilson explains the importance of having and seeking out representation, either in life or in media. Then, she encourages young girls to pursue that life they dream of, because anything is attainable with hard effort and--most importantly--love.
Check out A'ja Wilson and the 2024 Paris Women's Basketball Olympic team from July 26 through August 11.
xoNecole's I Read It So You Don't Have To is a recurring series of self-discovery that breaks down self-help books into a toolkit of takeaways and tips that are meant to assist you in finding the best life you can live. Take what works for you, and leave everything else where it is.
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