The Nashville Entrepreneur Center (NEC) kicked off its new Capital Event Series with Capital 101, a jam-packed primer on the funding landscape for early-stage founders. Led by Haley “Zap” Zapolski, our Capital Expert-in-Residence, the session gave entrepreneurs a candid, clear-eyed look at what it really takes to raise money—and whether they should raise at all.
Here are the biggest takeaways.
Capital Isn’t One-Size-Fits-All
Zap broke down the four main types of capital available to founders:
- Angels: Individual investors betting on you, often early and informal. Hard to find, but flexible.
- Venture Capital: For high-growth, high-scale companies only. VCs expect a shot at 100x returns and often require founders to give up control.
- Crowdfunding: Great if you have a strong audience. Platforms like Wefunder allow anyone to invest, not just accredited investors.
- Debt: Loans, lines of credit, revenue-based financing. Often cheaper and less risky than equity—but you’ll need revenue or personal collateral.
The point? Not all capital is created equal. And depending on your business model, stage, and goals, the best option might not be venture capital at all.
Before You Ask “Can I Raise?”, Ask “Should I?”
A major theme of the session: just because you can raise capital doesn’t mean you should.
Raising money often means giving up equity, control, and peace of mind. Zap urged founders to think hard about what kind of business they want to build. Do you really want the pressure of hypergrowth? Can you stomach running at a loss? Would your business be better served by steady, bootstrapped growth?
Zap made it clear that raising capital isn’t a requirement for building a great company. “You can build an amazing business without ever raising money,” she said.
And when it comes to venture, she didn’t sugarcoat it: “Venture capital is all about who is going to buy us as quickly as possible for as much money as possible.”
Understand What Investors Are Looking For
If you are thinking about raising capital, you need to know the game investors are playing. Here’s a glimpse into their checklist:
- Market size: Can this business realistically reach $100M+ in revenue?
- Business model: VCs favor B2B software. Service-based and consumer brands face higher hurdles.
- Founder fit: Do you have experience in this space? Why you?
- Traction: Revenue is best. Letters of intent, waitlists, or pilot results help.
- Risk tolerance: Have you invested your own money? Quit your day job?
Zap shared a sample VC scorecard with strict criteria—many founders might not even realize how high the bar is.
Get Your House in Order First
Before reaching out to investors, you need:
- Simple, clear pitch deck
- One-liner that describes your business
- Basic financial model showing how $1 turns into $2
- 90-day use-of-funds plan
- Working demo or product preview
And remember: raising is a full-time job. It can stall your momentum if you’re not ready.
The Capital Series Is Just Getting Started
Capital 101 is just the beginning. Future sessions will dig deeper into topics like valuation, financial instruments (SAFEs, convertible notes), and building a board.
Workshops following each session will offer hands-on help with investor readiness—from refining your model to practicing your pitch. EC members get in free; non-members can attend for $49 per session.
Want to stay in the loop? Sign up for our EC 4-1-1 newsletter or check out the event calendar at ec.co/events.
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