TechCrunch Live: Tonkean’s CEO on Realignment of Fundraising Expectations
This week on TechCrunch Live, I had the opportunity to speak with Sagi Eliyahu, co-founder and CEO of Tonkean, and Joanne Chen, partner at Foundation Capital. Our conversation centered around Tonkean’s journey from a no-code development platform to securing multiple funding rounds. As you may have guessed, this story is not just about fundraising; it’s also about the importance of realigning one’s expectations when seeking capital.
From Pitch Rejection to Seed Round
Tonkean was founded in 2015 with a no-code development platform. When Sagi pitched Tonkean to Joanne Chen at Foundation Capital, he received a rejection. However, Sagi didn’t give up. He continued to keep in touch with Joanne, and six months later, Foundation Capital led Tonkean’s seed round, with Joanne joining the company’s board of directors.
The story doesn’t end there. Over time, Tonkean went on to secure two more funding rounds, with investors from Lightspeed and Accel joining the mix. As Sagi explained, this experience taught him a valuable lesson: founders must realign their expectations around fundraising. This means being better prepared and having a more realistic understanding of what it takes to secure capital.
The Importance of Realignment
So, why is realignment so crucial in the context of fundraising? According to Sagi, it’s all about preparation and understanding the process. When founders have unrealistic expectations, they may not adequately prepare for the challenges that come with securing funding. This can lead to frustration and disappointment down the line.
Realignment, on the other hand, allows founders to approach fundraising with a clear understanding of what they need to do to succeed. It’s about being realistic about the time, effort, and resources required to secure capital. By doing so, founders can better prepare themselves and their teams for the challenges that come with fundraising.
Working with Your Board of Directors
One of the key takeaways from our conversation was the importance of working effectively with your board of directors. As Sagi explained, having a strong relationship with your board is crucial in navigating the complexities of fundraising.
When Joanne Chen joined Tonkean’s board of directors, she brought a wealth of experience and expertise to the table. Her involvement not only helped to inform the company’s strategy but also provided valuable guidance on how to navigate the challenges of fundraising.
Compliance Without Adoption
Another important topic that came up during our conversation was the importance of compliance without adoption. As Sagi explained, it’s all too easy for companies to focus solely on complying with regulations rather than adopting best practices.
However, this approach can lead to stagnation and a lack of innovation. By prioritizing adoption over mere compliance, companies can stay ahead of the curve and continue to innovate and grow.
Addressing Blind Spots in Leadership
As we discussed Tonkean’s journey, it became clear that Sagi and his team have had their fair share of challenges. However, one of the key lessons they’ve learned is the importance of addressing blind spots in leadership.
By acknowledging areas where they may be lacking or unaware, leaders can take proactive steps to address these gaps and build a stronger, more resilient team.
Structuring a Pitch Deck
Finally, our conversation touched on the topic of structuring a pitch deck. As Sagi explained, a good pitch deck is not just about presenting your company’s vision and goals; it’s also about showcasing your unique value proposition and demonstrating a clear understanding of the market.
When structuring a pitch deck, founders should focus on highlighting their key differentiators, as well as providing concrete examples of how they plan to achieve success. By doing so, they can create a compelling narrative that resonates with investors and helps to secure funding.
Conclusion
In conclusion, our conversation with Sagi Eliyahu and Joanne Chen provided valuable insights into the world of fundraising and what it takes to succeed. From realigning one’s expectations around capital to working effectively with your board of directors, there are many lessons that can be applied to any startup or growth-stage company.
As we continue to navigate the complex landscape of venture capital and entrepreneurship, it’s more important than ever to prioritize preparation, innovation, and effective leadership. By doing so, founders can build strong, sustainable companies that drive growth and success in their respective markets.
Upcoming TechCrunch Live Event
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Additional Resources
For more information on Tonkean and their journey, check out the following resources:
By staying informed and up-to-date on the latest trends and best practices in venture capital and entrepreneurship, founders can build stronger companies that drive growth and success in their respective markets.