WhoBuilt

on Raising a Series A as a Female Founder

Dec 18, 2019· 1 h 3 min· 7.2K views·Watch on YouTube

Speakers

Y Combinator host talks with Amber Atherton, CEO of Zyper, and Iba Masood, co-founder and CEO of TARA AI, about raising Series A rounds, choosing investors, and leading their companies afterward.

From early ventures to Series A

Masood describes TARA AI as an end-to-end product management tool, while Atherton says Zyper helps major brands connect with their superfans. Masood traces TARA’s roots to research on GitHub developers and says the company raised a $3 million seed round after pivoting. Atherton had previously raised a $1.2 million seed round in London.

Running a focused fundraising process

Atherton says Zyper’s Series A process took about two months, with a fund pipeline, a prepared investment memo, and a data room organized from the start. Masood says TARA’s process from first coffee meeting to term sheet took nine days, though closing took longer. Both describe fundraising as demanding sustained focus and careful coordination.

Choosing the right investor

Both founders emphasize evaluating the partner who will work with the company, rather than choosing based on a fund’s name or the highest valuation. Masood looked for investors who understood TARA’s technical product and customers, and spoke with founders at portfolio companies. Atherton advises asking direct questions, checking references, and ending conversations when a fund does not understand the business.

Navigating identity and building conviction

Masood describes feeling pressure to adopt the appearance and communication style she associated with a male-dominated industry, and says learning to be herself took time. Atherton says founders need conviction grounded in traction and a strong team, while also being honest about the company’s prospects. They discuss the need for investors to match founders with partners based on relevant expertise.

Growing the company after the round

After raising, Atherton focused more on company culture and recruiting, while Masood says TARA grew from about five full-time employees to a planned 21 by year-end. Masood stresses hiring people who have experience building early teams and giving strong leaders ownership of their areas. They also discuss board preparation, sharing updates with the team, and setting measurable OKRs.

Takeaways

  • Evaluate the individual investor’s expertise, working style, and references before choosing a fund.
  • Prepare a clear investment memo, an organized fundraising pipeline, and a data room before meetings begin.
  • Ask investors to explain their decision process and what steps remain before a term sheet.
  • Build fundraising conviction from customer traction, product progress, and a credible team.
  • After a Series A, hire for the stage you are in and give capable leaders ownership of their domains.

Mentioned in this talk

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What was claimed 14

  • feature
    Tara: Helps product and engineering managers specify products, gain insight into the development lifecycle, and monitor software development progress.
    “We help product managers and engineering managers spec out their products”
    YouTube
    Unverified1 source· Talk
  • ceo of
    CEO
    “the co-founder and CEO of TARA AI”
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    Unverified1 source· Talk
  • founded
    co-founder
    “I'm Iba Masood, the co-founder and CEO of TARA AI.”
    YouTube
    Unverified1 source· Talk
  • metric
    Zyper: Worked with Fortune 500 companies to identify their top 1% of fans.
    “help them identify their top 1% of fans”
    YouTube
    Unverified1 source· Talk
  • feature
    Zyper: Helps brands identify their top fans and bring them into a community to co-create products or become brand ambassadors.
    “Zyper helps brands connect to their superfans to build community.”
    YouTube
    Unverified1 source· Talk
  • metric
    Tara: Raised $3 million in total seed funding, announced in 2018.
    “we raised $2.8 million, so we had $3 million total and called it a $3 million seed.”
    YouTube
    Unverified1 source· Talk
  • metric
    Tara: Raised $4 million at seed before Demo Day.
    “We raised $4 million then”
    YouTube
    Unverified1 source· Talk
  • metric
    Tara: Series A fundraising process from first coffee meeting to term sheet took nine days.
    “from the first coffee meeting to the term sheet, was nine days”
    YouTube
    Unverified1 source· Talk
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