3 Tips for Raising Venture Capital Funding

With SendHub's recent $2 million seed funding score making headlines, the company's co-founder Garrett Johnson provides three tips for securing venture capital support

Garrett Johnson, co-founder of SendHub, provides tips for raising venture capital (Image:)

Messaging startup SendHub continues to make news with the launch of its much-anticipated iPhone app today. The mobile app will allow businesses and individuals to access features offered on the web platform such as sending messages to large groups and adding contacts, among other elements.

Garrett Johnson, co-founder of SendHub, aimed to create a service that made it easier for businesses, educators, healthcare workers and virtually anyone to send texts to individuals and groups of any size. Well, he certainly has. At least that’s what his investors think. SendHub recently announced it scored $2 million in seed funding from venture capital heavy hitters like Kapor Capital and Menlo Ventures, among other public and private investors.

At the grassroots level of any startup, the top question posed is: What problem does my idea solve? For Johnson, the problem was, “How can teachers better communicate with students and parents?” His initial solution was to build a quick and easy-to-use text message-based communication system. (What kid do you know that can’t text?)

Using SendHub is as simple as creating a message, picking a free phone number, and sending out a text blast. Let’s say a high-school teacher wants to keep her students up to date on ACT/SAT testing dates, and college application/scholarship deadlines. The teacher can create a SendHub account, choose a local number, and send out the text messages via web interface or their phone to remind students (and parents) of the important dates.

Recipients can reply with a keyword to “opt-in” and receive future messages. The value add for the recipient is receiving up-to-the-second updates on their phone only from sources they approve. The sender can quickly build a contact/customer database without collecting emails, Twitter handles, or Facebook usernames.

While SendHub is a free service for users sending up to 1,000 messages/month, paid plans with unlimited messaging start at $10/month. The service gained popularity when its simple yet effective communications platform transcended socio-economic barriers. (What person do you know without a phone?)

Not to mention that SendHub didn’t have a huge launch or marketing blitz. Instead, the startup began small, but quickly grew to over a couple hundred paid users, who as of February sent close to 30,000 messages per month. That growth attracted the attention of the startup crowd. “Investors will be hesitant to give you funding if they don’t have some type of indication that they are going to get a return,” says Johnson.

Click here to see Johnson’s tips for raising venture capital funding…

Pages: 1 2
ACROSS THE WEB
  • Pingback: 3 Tips for Raising Venture Capital Funding | BrothaTech

  • Osita Enezuagu

    I am a subscriber to blackenterprise, got my April copy twice, one in early April, and another April copy on the 5th of May. I need my May issue.
    Osita.

  • hervey callahan

    hello I am wrighting because I have been tring to open up a barbeque and pizza restaurant here in chicago, I have a great location good food and a workerable business plan but no money. I need some one to take a chance and finace me please give me a call for all the information and details at 708-515-1307 thank you hope to here from someone soon. herb

    • Jory

      Do you really think anyone is going to call you with your education level? “I am wrighting”? no its “I am writing”. Your going to have to level up if you want to own a business because i guarantee no one is going to call you. I’m only 18 and i know this, i didn’t even read the rest of your paragraph because it probably has more errors.

      • Rhonda

        Jory, before you start to criticize and throw stones, please be mindful of your own misspellings. First, your 2nd sentence, “Your going to have…” should be “You’re going to have…”. Grammer lesson for today…”your” shows possession and “you’re is a contraction of you are”. Secondly, the “i” should be capitalized in your paragraph.

        We can offer help in a nonjudgmental manner which will be more palatable for people to receive.

      • Tbestyet

        fortunately young man the rest of the world is not as judgmental as U R. He can do great if he has what it takes and that does not include grammar. As U get older, try to exercise some tolerance for those less fortunate than yourself. Did U know that the founder of Wendy”s (Uncle Dave) never finished high school. No I am not telling others not to finish school, but rather, Life is not over because t
        one does cot complete school. 

  • Steven Lemon

    Herb;
    Without divulging any proprietary information, could you send us a copy of your business plan outline for review?
    Or give me an address of some kind so that I can send you a preliminary information application.

    Our company is part of an investor network that targets small startups like yours. We are not brokers, we are investors who provide the funding ourselves, so you don’t pay US for our help. I would love to submit your project for inclusion in our next meeting.
    Regards
    Steven Lemon
    Stephen Frazier Group, Inc.

  • Chiazor Arah

    Hello Stephen,

    Is there any way you can send me the information packet as well? I am also in the midst of launching my own startup here in Scottsdale AZ. I am looking for funding opportunities in order to be successful launching my start up. I would appreciate any assistance you can offer me. Thank you in advance.

    Chaz Arah

  • Samantha Tette

    My name is Samantha Tette and I’ve been working on starting my own business, Tett Community Development (TCD) which will be located in Smith’s Station, Alabama. TCD is a company that will provide affordable rental homes in a “community based” atmosphere for low and moderate income families where affordability is not within their reach. I’ve completed my business plan and need some ideas on how/where to find start-up money. Thanking you in advance for any information you can offer.

  • Pingback: An Army of Entrepreneurs: Are You Ready to Enlist? @ Natalie Madeira Cofield