by Julie Angelos
Amanda Steinberg is a mom of two beautiful kids and the Founder of DailyWorth who lives in Philadelphia.
Her story starts about fifteen years ago when she was working as a programmer and realised she was spending more than she saved.
To get ahead she read as many finance articles as she could but never seemed to get the advice she needed.
She knew that women were quickly approaching men as breadwinners yet somehow the numbers weren’t adding up.
That’s when Ms. Steinberg realized there was a gap between what women actually received and what they needed.
Filling a Market Need
Amanda’s goal was to bring financial management right into women’s inboxes in order to help you understand how to earn more and save more for retirement.
It took her nine months to raise capital for her big launch. The first $850k came from a string of investors. She tells us that the day the money actually arrived in her bank she was literally on the floor running on fumes.
As a programmer she has designed and written over 200 websites with budgets ranging from US $25,000 to US $1,000,000.
During the next ten years she honed in on her sales skills, chased down leads and sought out capital.
The idea behind DailyWorth is so simple, it’s like the pink elephant right in the room.
Can you see it?
In the mean time, if you are an angel investor, Hello! and Welcome!
Could I get you something to drink?
If you are one of my lovely regular readers or new here, can you please enter your email address and I’ll send you updates here. I never spam.
How Amanda Raised Capital
- She realized she needed a mentor.
- She studied the email model.
- She put the pieces together one at a time.
- She learned the language necessary to approach investors.
- She approached investors with confidence.
- She wrote a great cover letter.
One of her mentors, Jen of jenbtv.com told Amanda she’d need least 25,000 subscribers until anyone would notice her.
Her success didn’t come over night. She admits that what happened was serendipitously written in her business plan five years earlier.
One of her mentors told Amanda she needed four things:
1. A Deck. A deck is about 25 Powerpoint slides that can include your core values, mission statement, opportunities, market share you think you will acquire, your customer acquisitions strategy, who your competition is, how you position yourself in the marketplace and your exit strategy.
2. A Financial Model. This is a map of how you find your revenue and your expenses. She says she can really see it grow at percentages. For example a 3% investment might have you spend a bit more upfront but justifies how the capital will accelerate in the long term.
3. An Executive Summary. In this, you need a good cover letter. She advises sending four or five cover letters a day saying what you offer while being concise.
What’s the difference between a Venture Capitalist and an Angel Investor?
A venture capitalist usually manages large funds such over US$10 million. One way venture capitalists invest is by buying shares in your business.
This is known as equity.
An Angel Investor on the other hand is a wealthy individual who can give US$ 25,000 to US$ 100,000.
She got her first big break right in her backyard when her friend asked her to join her at the Summit conference in Washington, DC.
Amanda was sitting at a cafe networking when she met a man named Eric of TomorrowVentures. She introduced herself and pitched her idea. Eric told her great, that’s exactly what they were looking for — a financial services start up.
Her next big break came when she decided to focus right in her back yard with great guys Joe and John from Robin Ventures, instead of the Silicon Valley, NYC and San Francisco.
Amanda got a last minute meeting. She put her suit on, drove to the suburbs and met, pitched and found two more fantastic intestors.
It might seem obvious but DailyWorth fills a huge gap in the market — that is specifically getting good financial information into the hands of women who not only need it — they want it.
Takeaway: What is your best investment advice? Have you ever had a start up company that took off? Have you ever met with an investor? Do you have a deck? What would you tell me to do to attract investors? I appreciate your comments.