In this episode, Frank Licea talks about his employee-to-entrepreneur journey and the unexpected fundraising success of Howdy.com as a service-oriented company that raised $18 million in funding. He also shares his perspective as a Chief Technical officer and how bootstrapping has helped them create an upper hand during fundraising pitches and negotiations.

Timestamps
00:00- Intro
05:59 - The early days: Bootstrapping and growth
11:10 - Y Combinator and strategy shifts
25:01 - Getting seed money and managing investors
31:01 - Life after Y Combinator and revenue talk
40:18 - Frank's advice for new founders
46:40- Outro

Frank Licea, CTO of Howdy, a hiring platform focused on connecting Latin American software developers with US companies, joined Jason Kirby on the podcast. Here are the key takeaways:

How Howdy started:

- Frank faced talent shortages while working as an engineering leader in Austin due to high competition and rising salaries.
- He saw existing solutions like freelancer platforms and big outsourcing firms weren't ideal for building long-term, quality teams.
- Howdy was born to provide a platform where US companies could hire, manage, and retain Latin-American software developers as if they were local employees.

Bootstrapping vs. Y Combinator:

- Howdy began bootstrapped as they didn't see initial investor interest for their service-oriented business model.
- They achieved profitability early on, making their growth self-sustainable.
- Joining Y Combinator provided access to mentors, investors, and the potential for faster scaling.

Masterclass in Finding a Technical Co-founder:

- Frank shared his experience finding Jacqueline, his co-founder and CEO.
- Shared values and alignment on long-term goals were crucial for building a strong partnership.
- Offering equity splits that reflect the contributions and risks each co-founder takes is essential.

Fundraising Experience:

- Howdy raised $3 million in seed funding after Y Combinator
- They waited until near demo day to maximize leverage and attract bigger checks.
- They used a video instead of a standard pitch deck to stand out and communicate their story effectively.
- They ended up raising a total of $18M from YC and Greycroft.

This episode is sponsored by Thunder.VC, an investment bank for founders by founders.

Raising capital? Get a list of vetted VCs for FREE here: https://web.thunder.vc/list-of-invest...

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Get the latest fundraising insights, news, and tips - https://join.thunder.vc

ABOUT FRANK

Frank is the Chief Technical Officer of Howdy.com who took on Austin's tech talent shortage head-on with a platform in Latin America for recruiting devs and customer support staff.
If you're interested in the bootstrapping process or have other startup queries, feel free to reach out to Frank on these platforms:

Website: https://Howdy.com
Email: [email protected]
Linkedin:   / franklicea  

ABOUT FUNDRAISING DEMYSTIFIED

Our goal is simple: to equip you with the knowledge, inspiration, and guidance to navigate the labyrinthine world of fundraising. Whether you're a budding entrepreneur seeking seed funding or an established founder looking to scale your business, this podcast will provide you with the tools you need to conquer the fundraising landscape.

Thank you for being a loyal subscriber to Fundraising Demystified. We appreciate your support and are excited to continue bringing you more inspiring stories from successful founders.

ABOUT JASON

Jason Kirby is the co-founder of Thunder.VC. He is a serial entrepreneur with 4 exits and decades of experience in fundraising and business building. In his career, he has coached hundreds of entrepreneurs on fundraising, investing, capital strategy, and business development.

You can reach out to Jason through:

Email: [email protected]
LinkedIn:   / jasonrkirby