Fundraising In A Challenging Environment — 1

Part 1 of 3

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Introduction

Welcome to the first installment of our three-part blog series on fundraising.  In a Q and A format Anthony Di Paola, our CFO, shares his perspective on what it took to raise $99 million in our recent Series C round.  From market dynamics to strategic investor engagement, we explore the intricacies of navigating the fundraising landscape and share keys to success and what comes next for Seurat. We hope it will help you in your fundraising efforts.

In this segment, we'll explore the challenges and roadblocks of the current environment. 

For Part 2 of our Fundraising Series, click here. 

For Part 3 of our Fundraising Series, click here. 

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Market Dynamics and Roadblocks

Q: How would you describe the overall market conditions as Seurat entered its series C funding round? 

A: This last round was quite challenging due to market dynamics.  Many investors have re-trenched and are not making new investments as they are preserving capital to support their existing portfolio, which has created quite a logjam for companies that need additional capital to continue on their roadmap.  We managed to secure nearly a hundred million dollars, but we observed a scarcity of deals at this level over the past year. Despite the difficulty, investors were drawn to our story, technology, and business model.

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Q: What were some of the roadblocks encountered during this funding round? 

A: While investors appreciated our story and technology, the lack of revenue posed a challenge for some. Additionally, many investors were focused on supporting existing portfolio companies rather than making new investments. This limited their capacity to participate in our round. We found that quite a bit. Lots of folks love the story but just didn't have room in their current fund.

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Q: How did industry challenges impact conversations with investors? 

A: Lots of public companies in the additive space have had their falling out over the last 18 months. Investors read those stories and understand that there's a bit of Chaos in the industry. But we truly believe that we are not competing with other additive manufacturing companies. We believe that we are competing with traditional manufacturing. So it is telling a story and making sure investors understand that distinction was critical for us to complete the funding because inevitably everybody brings it up.

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Q: Why do you think Seurat was successful given the difficult environment? 

A: I still firmly believe, just as I did when I first joined the company, that this is a game-changing opportunity. We're not aiming to be just another mid-level player – we can create something extraordinary here. Every startup talks about changing the world and becoming a unicorn, but I truly believe we have what it takes to make that a reality. It's not just talk; we have groundbreaking technology safeguarded by IP, capable of making a global impact and benefiting the environment. With a market potential in the trillions. And what's more, we're assembling a team of visionary leaders who share this belief and are committed to making our vision a reality. 

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For Part 2 of our Fundraising Series, click here. 

For Part 3 of our Fundraising Series, click here. 

For more information please contact us at info@Seurat.com