Finding Xpeeria’s First Investors

There is no tried and true formula or algorithm for finding investors. From Shark Tank to Kickstarter, angel investors to friends and family, there are so many different ways to fundraise. For Xpeeria’s founder, Joelle Parenteau, the process of raising her first round of funding was unconventional (and unplanned) to say the least.

She confesses to having a slight advantage fundraising for Xpeeria: having worked hard for the previous three years successfully starting up a small company that now sustained her, some would say she had earned her stripes in the startup world. She had proven she knew what it meant to hustle, and in the process gained confidence, respect as a young entrepreneur, invaluable experience, and a support network.

Another advantage? She didn’t initially actually know she was fundraising. Just a couple weeks after first sharing her idea with a friend who urged her to pursue it, Joelle had a coffee meeting with the co-founder of a very successful startup. He asked what she did and so she thought why not share her idea with him to see what he thought. His answer caught her totally off guard: he loved the idea and asked if she was fundraising. “Uh… yes?” And that’s how it all began...

But now she needed a valuation. Once again she admits there really wasn’t much of an art or science to it. She very roughly estimated how much money she would need to get started. She did not need the cash for herself since her first company allowed her to live comfortably enough, but she would need cash for developers. A quarter million seemed reasonable. She also quickly researched average valuations for early rounds of funding and asked her friend what he thought. After all, she had nothing but an idea. $1 million seemed like a good number. Sure, why not?

She’d also heard you should expect to give away about 20–30% of your startup in each round of funding. Raising $250,000 at a valuation $1,000,000 would mean a post-money valuation of $1,250,000. So the $250,000 she would sell to investors would essentially represent 20% — the ideal scenario. Done. That would be her number.

With one investor already interested she began sharing her idea; casually mentioning she was fundraising. Next thing she knew people were asking her for more details — inspired by the idea and intrigued by the opportunity to invest in a startup. Here’s a glimpse at the seemingly random encounters that became Xpeeria’s first round of investor:

The Friend of a Friend

Joelle’s told a friend she was fundraising and he responded that ‘he had friends with money’ and asked if she’d like an intro. “Sure?” The friend in question did not live in Ottawa, so she picked up the phone and gave him a call. He was interested. A few days later her emailed her with a few more questions. She answered. He asked where to transfer the funds to. Simple. To this day, Joelle has yet to meet this investor tucked away in North Bay.

The Lawyer

This same friend also introduced her to a lawyer whom she met over coffee. After a 30 minute chat, he also was interested. A week later Joelle received an email “I’m in”. He agreed to the amount and the terms. Shortly thereafter, on Christmas Eve she got another email: asking if he could double up. The ultimate Christmas gift.

The Cop

Next came a coffee meeting at Whole Foods. The guy she was meeting saw a cop he knew so he called him over and the conversation turned to Xpeeria. Fundraising was casually mentioned. Joelle was completely unaware this had turned into an impromptu pitch and didn’t think much of it when he asked for her number. An hour later she received a call. He had spoken with his wife, and they were interested, asking for more details, and eventually deciding to invest.

The Poker Player

For those who don’t know, Joelle is an avid poker player. She plays weekly with a group of friends in Ottawa. At one of these weekly home games, Xpeeria came up. She explained the idea and the progress fundraising. Once again, it was simply a casual conversation. The next day she received a message from one of the players she’d met for the first time at the previous night’s game. He was interested in the company and asked her to go to lunch. He brought along his wife who told Joelle that when her husband come home from the game talking to her about Xpeeria; they loved the idea, and wanted to invest. After the lunch meeting they were in.

The Friend

That guy who’d first asked Joelle if she was fundraising is now Xpeeria’s lead investor, a key advisor, on the Board of Directors, and one of her closest friends. He believed in her idea from the beginning and continues to support her all along the way.

From friends of friends, to casual coffee meetings, or around poker tables, Joelle has shown that potential investors are everywhere. It’s about getting out there and sharing your vision — but not without having put in the work beforehand so you have a compelling story to tell. While it isn’t always easy to find investors, anything is possible.

Having now used this initial funding to build an MVP and get their beta product out for early user testing in the Ottawa market, the next step for Xpeeria is their seed fundraising round which will open soon. And who knows what kind of stories we’ll have from that — stay tuned!