129. Everything You Need to Know About Raising Capital with Cindy Eckert

Three Ps

Cindy Eckert introduces her three Ps strategy for entrepreneurship: Paper Towel, Preach, and Pick Wisely. She emphasizes the importance of having a clear vision from the start, likening it to jotting down ideas on a paper towel, which helps articulate goals to potential investors. Cindy also advises entrepreneurs to openly share their ideas to build a network of support and to choose their team and investors wisely, learning from her own experience of selecting the wrong investor early on 1.

Every good startup story has a napkin or a paper towel. You know, you've sat down and you've written down on that in very, like, you know, you've thought about it in a way that you can condense it to five points, maybe, of who you want to be.

--- Cindy Eckert

This approach ensures alignment and avoids potential conflicts that can arise from mismatched philosophies.

   

Ownership

Maintaining ownership and understanding obligations are crucial for founders, as highlighted by Cindy Eckert and Danielle Canty. They stress the importance of holding onto as much of your company as possible and recognizing that taking investment is a form of debt that must be repaid 2. Cindy underscores the need for a clear vision of the company's future, whether aiming for a billion-dollar exit or a sustainable long-term business 3.

You want to hold on to as much as your company as possible. Because I think people forget that and they're like, oh, yeah. Like, it's fine. Just, you know, I'll give all these shares or I'll do this.

--- Danielle Canty

This clarity helps in making informed decisions about the type of investment to seek.

   

Breaking Barriers

Cindy Eckert's initiative, 'The Pink Ceiling,' aims to break barriers for women in business by providing support and resources. She shares her passion for helping women-led companies, especially those in healthcare and wellness, that might be overlooked by traditional investors 4. Cindy highlights innovative projects like Leah Diagnostics' flushable pregnancy test and a preventative program for Alzheimer's, emphasizing the importance of supporting disruptive ideas 5.

It's my money, where my mouth is. It's reaching my hand back and getting other women to the outcomes I've gotten to faster than I got there myself.

--- Cindy Eckert

Her approach involves active involvement in these companies, ensuring they have the tools needed to succeed.

   

Instincts

Trusting one's instincts is vital in business decisions, as Cindy Eckert shares from her personal experiences. She recounts a time when she rushed into a partnership due to urgency, only to find that their philosophies clashed, particularly regarding employee treatment 6. Cindy advises entrepreneurs to listen to their gut feelings and not to rush decisions, as this can lead to conflicts that hinder business growth.

My mistake was moving too fast. I felt so desperate.

--- Cindy Eckert

This lesson underscores the importance of patience and careful consideration in business partnerships.