Common Tide

🚀 Emily's Journey of Realization: A Lesson in Financial Diversification and Peer Support 🚀 As the founder of Common Tide, I've had the privilege of meeting numerous founders who echo my early experiences. One story that deeply resonates with me is that of Emily, a dynamic and confident entrepreneur who recently raised $2 million for her startup, aimed at revolutionizing healthcare diagnostics with AI technology. Riding high on her initial success, Emily was certain her venture would soon achieve unicorn status. When Common Tide approached Emily, inviting her to invest a small percentage of her common stock into our fund, she confidently declined. "Thanks, but no thanks," she said. "I believe in my vision and my team. We'll achieve our goals on our own." At first, Emily's confidence seemed justified. Her company quickly gained traction, and feedback from pilot programs was overwhelmingly positive. But as months passed, the harsh realities of startup life set in. Regulatory hurdles, team turnover, and increasing competition posed significant challenges. The company's burn rate escalated, and securing further funding became a daunting task. One evening, as Emily reviewed her company's precarious financials, the weight of entrepreneurial stress hit her hard. "What if I can't turn this around?" she wondered. It was then she thought of Common Tide. Reflecting on her situation, Emily admitted, "I was so sure I’d succeed on my own, but now, I'm struggling. I really wish I’d invested with Common Tide. It would have provided a safety net and a supportive community of founders." Emily's realization underscored the critical need for financial diversification and peer support—lessons I deeply understand from my journey as a venture capitalist-backed founder. 💡 Takeaway: Investing in a supportive network and diversifying financial strategies can provide invaluable security and guidance during the unpredictable journey of entrepreneurship. Don’t navigate it alone. 💡 #Entrepreneurship #Startups #VentureCapital #SupportNetwork #FinancialPlanning #Leadership #CommonTide #Innovation

Starting a business? One of the most critical decisions you'll face is whether to go solo or bring on a co-founder. Going Solo When you start a business alone, you have complete control over the vision and direction. This means you can pivot quickly, implement your strategies without compromise, and create a brand that truly reflects your values. (But let's be real, it's a heavy load to carry.) - Unparalleled Control: As a solo founder, your decisions shape the company. - Swift Action: No need to wait for consensus—move fast and break things. - Full Rewards: Reap the financial and reputational benefits all by yourself. However, the isolation and overwhelming workload can be daunting. Every task, from product development to finance, falls on your shoulders. Starting with a Co-Founder On the flip side, having a co-founder means shared responsibilities and complementary skills. - Combined Expertise: Fill in each other’s gaps. One handles tech, the other marketing? Perfect. - Shared Burden: Less risk of burnout with someone to share the load. - Enhanced Credibility: Investors often prefer balanced teams. But beware of conflicts. Different visions and decision-making styles can lead to friction and slower processes. Key Takeaway: There's no one-size-fits-all answer. Weigh the pros and cons based on your personal strengths, weaknesses, and the nature of your business. 💡 Curious to hear from fellow entrepreneurs: Did you start alone or with a co-founder? What’s been your biggest challenge? P.S. Repost this for others navigating this crucial decision ♻️ #Entrepreneurship #Startups #BusinessAdvice #CoFounders #Leadership

To Raise or Not to Raise? In the entrepreneurial world, a pivotal decision is whether to seek venture capital (VC) funding or bootstrap your business. This choice shapes your startup’s trajectory, impacting growth potential and operational control. VC Funding: Provides a substantial financial boost, enabling rapid scaling and access to strategic guidance and industry connections. However, it comes with trade-offs like loss of ownership and control, and a demanding process. Bootstrapping: Offers full control and organic growth, aligning with long-term stability. Yet, it can slow down growth and limit resources, increasing financial stress. Decide based on your business goals, risk tolerance, and personal values. Both paths have unique benefits and challenges. For more insights and support, visit Common Tide. #Entrepreneurship #Startups #VentureCapital #Bootstrapping #BusinessGrowth #Leadership

When Your Startup Becomes Your Identity: Balancing Personal and Professional Roles As founders, it's easy to let our startups become our entire identity. We pour our hearts and souls into our ventures, often blurring the lines between personal and professional lives. While this passion drives innovation and success, it can also lead to challenges when our self-worth becomes tied to our business outcomes. The Challenge: When your startup is thriving, you feel on top of the world. But when it struggles, it can feel like a personal failure. This intense identification with your business can lead to burnout, stress, and an unhealthy work-life balance. Finding Balance: 👉Separate Personal and Professional: Create boundaries to ensure your personal life remains fulfilling and distinct from your professional role. Engage in hobbies, spend time with loved ones, and nurture interests outside of your startup. 👉Prioritize Self-Care: Regularly invest in your mental and physical well-being. Exercise, meditate, and seek support from friends, family, or a therapist. 👉Celebrate Small Wins: Acknowledge and celebrate the small victories along the way, not just the major milestones. This helps maintain perspective and motivation. 👉Build a Support Network: Connect with other founders who understand the unique challenges you face. Sharing experiences and advice can provide invaluable support and reduce feelings of isolation. Balancing personal identity with professional roles is crucial for long-term success and well-being. By setting boundaries, prioritizing self-care, and maintaining a support network, you can ensure that your startup journey enhances, rather than consumes, your identity. 🔑 Ready to find balance in your entrepreneurial journey? Contact us today to learn how Common Tide can support you in achieving both personal and professional fulfillment. #Entrepreneurship #WorkLifeBalance #MentalHealth #Leadership #BusinessGrowth #CommonTide

Balancing Optimism with Realism: The Startup Founder's Dilemma 🚀 Picture this: You're a startup founder with unwavering optimism, aiming to be the next unicorn. But for over 99% of us, this prediction is wildly untrue. Startups have high failure rates, with nearly 67% of those that raise seed funding failing to exit or secure follow-on investments. How do we reconcile our optimism with this harsh reality? The Founder's Dilemma: All Eggs in One Basket Venture capitalists mitigate risk by diversifying investments, accepting that only a few will become unicorns. As founders, our entire future hinges on one venture. Our optimism often blinds us to the real risks until reality hits. Risk Mitigation for Founders Educate Yourself: Learn from the successes and failures of others. Mental Health Matters: Prioritize your well-being to navigate the entrepreneurial rollercoaster. Financial Diversification: Don’t rely solely on your startup for financial security. Balancing Optimism with Realism: Founders must balance optimism with realism. Acknowledge the odds and mitigate risks through education, mental resilience, and financial planning. Starting a business is tough, but a proactive approach can increase your chances of success. 🔑 Ready to navigate the startup journey with a balanced perspective? Contact us today to learn how Common Tide can support your entrepreneurial journey. #Entrepreneurship #StartupLife #RiskMitigation #Leadership #BusinessGrowth #CommonTide

The Rollercoaster of Startups: Lessons from Amper Music 🎢 Amper Music, the company I co-founded and led as CEO from 2014 through acquisition in 2020, nearly died numerous times. We faced financial crises, unexpected team departures, fierce competition, and skepticism around AI-generated music. Startups are a rollercoaster of highs and lows, and Amper was no exception. Facing the Highs and Lows: During the lows, the thought of losing everything haunted me. All my eggs were in the Amper basket. While my VC investors had diversified portfolios to mitigate risks, I had no such safety net. Trading some equity for a risk hedge would have been a mental, financial, and emotional boost, reducing the toll of the startup journey. Building a Support Network: Having a trusted group of founders in my vertical, at my stage, or simply fellow startup founders, was critical. The most valuable advisors were those who had walked the startup path themselves. Despite having some support, I yearned for a wider network for advice, mentorship, and friendship. Common Tide: The Solution I Wish I Had: Common Tide is the solution I needed in 2015 when we raised our first VC-led financing, in 2017 when I craved peer mentorship, and in 2020 during my first M&A process. Its financial downside protection and peer community of founders would have been life-changing. This is why Common Tide was created, and why I hope founders everywhere will join us. 🔑 Ready to join a community that provides financial protection and peer support for startup founders? Contact us today to learn how Common Tide can support your entrepreneurial journey. #Entrepreneurship #StartupLife #FounderSupport #VCFunding #Leadership #CommonTide #Mentorship #BusinessGrowth

What Are You Going to Achieve After Your Fundraise, and Why? 💡 When we ask founders about their goals post-fundraise, the answers typically fall into two categories: The Finger in the Air: Goals that feel reasonable and aggressive. Past Performance Predicts Future Results: Goals based on extrapolated data. While both approaches inform what's possible, they lack a focus on what's necessary to achieve. Here’s why: Customer Discovery: Founders understand the importance of Customer Discovery—deriving insights from customers to shape what the company should build. However, many neglect a crucial step: Investor Discovery. Investor Discovery: Before fundraising, founders should meet with potential investors, asking: "In six months, what performance would make you refuse to let me leave without a term sheet?" This helps triangulate investor expectations, guiding strategic planning based on market realities. Strategic Planning: Understand what’s needed to secure future funding. Knowing the investor expectations helps set realistic and compelling milestones, ensuring your company meets the necessary benchmarks for additional capital. Investor Discovery is a critical yet often overlooked step. Knowing what investors expect allows founders to plan effectively, making the fundraising journey more strategic and successful. 🔑 Ready to optimize your fundraising strategy and achieve your goals? Contact us at Common Tide to learn how we can support your entrepreneurial journey. #Entrepreneurship #StartupFunding #InvestorRelations #BusinessStrategy #Leadership #CommonTide

Embracing the Grind: The Realities of Startup Fundraising 💼 Nearly every founder loathes the fundraising process. While we welcome the cash that fuels our dreams, the grind of startup fundraising is draining and distracting. Navigating the Challenges: Finding warm intros to VCs, dealing with rejections, and maintaining sanity amid constant market feedback is tough. When founders get together, we often half-joke, half-commiserate about it. But maybe it's by design. The Reality Beyond Fundraising: Fundraising is just the beginning. The real challenges include selling to customers, managing a team, and staying motivated for the long journey ahead. These are the true tests of a founder's resilience. The Investor's Perspective: Investors might prefer the process to be challenging to filter out founders who can't overcome inherent obstacles. If a founder can't raise a round, why would an investor trust them to handle tougher challenges later? Rationalizing the Process: Just like rigorous training for Navy SEALs or medical residencies, the fundraising gauntlet tests our mettle. It doesn't guarantee success but increases the odds for those who make it through. Embracing the Challenge: Yes, fundraising sucks. But if we see it as a chance to show our resolve and creativity, the pain becomes a step toward our amazing goals. 🔑 Ready to take control of your financial future and join a community of like-minded founders? Contact us today to learn how Common Tide can help de-risk your entrepreneurial journey. #Entrepreneurship #StartupFunding #InvestorRelations #Leadership #BusinessGrowth #CommonTide

Excited to finally announce that Christopher Deutsch has joined Common Tide as a Venture Partner! With over 25 years of experience in startups, Chris brings a wealth of knowledge and a deep commitment to supporting founders. As the founder of Lofty Ventures he has backed 160+ founders across 90+ companies, with a focus on underrepresented founders in Chicago. His track record includes notable investments like Tovala, Cubii, and Popular Pays. Chris's passion for mentoring has also led him to engage with institutions like Kellogg and Techstars. Welcome to the team, Chris!

The "Hell Yes!!!" Principle: Gauging Investor Commitment Early On Determining an investor's commitment is usually clear after the initial meeting. If an investor isn’t enthusiastic from the start, they're unlikely to come around. To secure funding, your company must stand out as an investing partner's TOP opportunity in a given time period -- and think about how many other opportunities that they see. If there's a "there" there, you’ll sense this elevated status early. If not, don't count on earning an investment from this person or fund. Said differently, the "Hell Yes!!!" principle suggests if the initial response isn’t highly wildly enthusiastic, it likely indicates a less favorable funding outcome. 🔑 Contact Common Tide to learn how we can support your entrepreneurial journey. #Entrepreneurship #VentureCapital #StartupFunding #BusinessGrowth #CommonTide