8 Quotes That Reveal How Your Startup Can Raise Its Next Million

Several gems of actionable advice and timely fundraising strategies emerged from this year’s SXSW festival.

EXPERT OPINION BY ELISA MILLER-OUT, MANAGING PARTNER, CHLOE CAPITAL

Illustration: Getty Images

Each March, South by Southwest becomes more than a festival — it becomes a proving ground for the next generation of entrepreneurs. Amid the keynote speeches, product launches, and parties, early-stage founders arrive with one practical goal: find the capital that turns ideas into scalable companies. SXSW may be packed with creativity and culture, but the real value for founders often lies in the conversations and connections that happen outside the main stages.

Events tailored to fundraising have become must-attend stops on the SXSW agenda — whether curated panels on raising capital or brunches connecting founders and investors over breakfast tacos. Ayana Rising: Women of the New Frontier at the Own.App headquarters was one such event that brought together top tier investors, exited entrepreneurs and rising founders focused on networking and driving capital access. Several gems of actionable advice and timely fundraising strategies emerged from the conversations over refreshing cocktail tastings from 1925 Tequila. Here are some of the top takeaways:

Test and validate your model.

“Before raising capital, founders should focus on three core things: defining their target market, refining their go-to-market strategy, and validating their business model,” said Rajul Kadakia, co-founder and chairwoman of Ayana. “Test these relentlessly and as cost-efficiently as possible. Too many founders feel pressure to raise before the fundamentals are clear. Capital should scale what’s already working, not be used to discover whether it works.”

“Early-stage founders get too focused on valuation instead of validation. Investors care far more about real signals—velocity in the market, repeat customers, and a story that clearly shows why the product matters,” said Allison Ellsworth, co-founder of Poppi. “Before raising capital, prove there’s a real problem, show thoughtful thinking on the size of the opportunity, and earn at least one credible customer who believes in what you’re building.”

Winning in the Attention Economy

“Capital doesn’t create momentum. Momentum attracts capital. Don’t start fundraising until you can show undeniable traction — even if it’s small,” said Jaclyn Johnson, co-founder, Cherub.

“Know your cap table intimately. In the early stages, many founders leave cap table management entirely to their lawyers. That’s a mistake. When you’re in the room with investors, your lawyer usually isn’t. If you can’t clearly explain who owns what, how prior commitments were structured, or where dilution sits, you lose credibility and leverage. Imprecise language or undocumented ‘handshake’ deals may seem harmless early on, but they surface during diligence and can delay your round—or worse, reduce your valuation. Treat your cap table like a strategic asset, not just a legal document,” said Meg Charles, co-founder and partner, Basswood Counsel.

Build the right network.

“My advice to founders is to fully utilize your network—capital comes in so many forms. By educating new investors through our events and focusing on building partnerships, we proudly built a cap table that’s 90 percent female funded and partnerships that helped us scale all the way to space!” said Shalini Vadhera, CEO, Ready Set Jet.

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