10 Lessons Learned from Raising Firedome's Series A
Moti Shkolnik, Firedome’s Co-founder and CEO, shares his thoughts after the successful funding round
Raising money as a startup is a unique experience, to say the least. It requires a lot of focus, hard work, and faith. Here at Firedome, we were recently thrilled to announce the successful completion of a Series A funding round, led by Two Sigma Ventures along with World Trade Ventures, Silvertech Ventures, and leading consumer electronics distributors that were also the company’s seed investors.
During this fascinating process, we’ve learned quite a bit, and I am happy to share 10 crucial (and positive) lessons we’ve learned.
- Funding = focus: When startups begin to consider their next funding raise, they often make the mistake of dreaming about the wrong benefits. Instead of fancy offices, over-the-top parties and a hefty travel budget, start fantasizing about the focus you’ll win by securing funds. The ability to concentrate your efforts on growing your business and polishing your product is worth more than any of these costly distractions.
- Choose partners who understand your business: We were very fortunate to join hands with investors such as Two Sigma Ventures, who bring a deep understanding of the fields we are interested in. Their expertise in AI and understanding of IoT and cybersecurity will not only help us grow but will also enable us to move much faster and close the funding round earlier than expected. They just get it.
- You secure much more than funding: Speaking of which, we know that by partnering with such strong investors we gain much more than just secure funding. We see our investors as partners and value their expertise, guidance, and even hospitality. As soon as the deal was signed, we moved into Two Sigma Ventures’ offices, and that says it all.
- When you know, you know: The funding round was completed faster than expected. Only 9 months ago, we secured our seed round, and the negotiation process was rapid and straightforward. A few factors listed here helped move things forward, but another important thing to remember is that great partnerships and mutually beneficial deals help with speeding the schedule.
- You still must do your due diligence: Just because we moved fast doesn’t mean we skipped any of the steps needed to make sure this move was done just right. The close examination of our partners only made us more confident in the step we were taking, as we learned about previous successful investments they’ve made in and outside our field and the long-term relationships they formed with portfolio companies.
- Longtime partners are important: We were extremely proud to have our original seed investors participate in this round as well. Their continuous faith in Firedome is the ultimate proof that we’re headed in the right direction. The fact that they know every inch of the IoT arena boosts our confidence and gives us yet another reason to live up to our potential as a growing company.
- Communication is key: The open and straightforward communication from all parties involved in this funding round helped a lot. Right from the start, we could clearly see the positive atmosphere of collaboration in the room and were encouraged by the congenial approach each party had demonstrated throughout the negotiation process.
- Know yourself and communicate your value: Communication continues to be important even when it’s time to list your advantages and sell your product. Knowing our strength and value surely helped in securing this round and winning the faith of our investors. Two Sigma Ventures, World Trade Ventures, and Silvertech Ventures appreciated our broad approach to every IoT vertical, our advanced AI-based threat hunting and cyber analysis solutions, and more. By taking the time to learn about ourselves, we were able to collaborate with others more easily.
- It’s a two-way street: As a startup founder, you might forget that it’s not just you who should convince investors of how worthy the deal is; they too have the responsibility to convince you that partnering with them is a smart step. We realized that we were in good hands right from the start, but it’s a helpful perspective to embrace when approaching any business transaction.
- It takes a village: This successful funding round was made possible thanks to many factors, companies and the people surrounding Firedome. Each one of us is fully aware of how fortunate we are to have not only the right investors, but also the support of our management team, our loyal and talented employees, and loving families and friends. We couldn’t and wouldn’t have wanted to do this without them.
This is only the beginning. With the added value our investors bring in and the wind in our sails, Firedome will continue to grow as a company and offer innovative security solutions to the IoT world, while expanding our real-time IoT endpoint security and covering even more IoT verticals. Stay tuned!
We invite you to read the story of this special partnership from the perspective of our investors: