How Ian Swanson Started 3 Successful Venture-Backed Companies
I talk to a lot of amazing founders on my podcast Funded, all sharing the story behind how they raised millions of dollars for their companies. The conversation I'm going to be sharing today is with Ian Swanson, 3x venture-backed founder and current CEO of Protect AI.
Ian has raised over $82M in venture capital throughout his career with not one, but two successful exits. In our conversation, we got to touch on all three of Ian's companies, sharing the ups, the downs, and the lessons learned when fundraising and running a venture-backed company.
Before you go listen to the full episode, here are my top three takeaways from our conversation:
- Credibility Matters
"I remember going in to meet with investors who had just written a million-dollar check to the company. They told me, 'We heard about you from four other people before you even stepped into this room.' I realized that all those meetups and efforts I put into building my network had really paid off, giving me credibility when I didn’t have any in those early days."
This is a great call out for first-time founders, especially those who are saying they would like to build a company that needs investment before they can get to revenue. If you are in your mid-twenties / early-thirties and don’t have a lot of experience, the best thing you can do is meet people and give them a good sense of who you are. It sounds superficial, but it goes way further than people expect.
This is also a great reminder that just because Ian raised multiple rounds of capital doesn't mean he skipped doing the same things first-time founders have to do for their first rounds of capital. If no one knows you, how are they supposed to trust you enough to take a huge risk investing in you?
When you’re starting out and don’t have a proven track record, your network is everything. As an introvert myself, I know how annoying this can be to hear, but you’ve got to get out there and meet people, build relationships, and get people who can vouch for you. For Ian, having those few people vouch for him was the thing that allowed him to close his first million-dollar check. I'd say it was worth it.
This isn’t just about being a good founder; it’s about being a good person that people can trust. Alright, onto the next...
- More $$ Comes With Its Own Challenges
“Having money sitting in your account can sometimes make you move too fast. It releases some of that tension that I think is good tension. We moved a little bit too fast on go-to-market, and it came with some challenges.”
I hadn't thought a lot about the idea of having too much money in your account before this conversation, mainly because it's not a problem most founders have, but I think Ian brings up a solid point on the benefits of having that tension, so I wanted to touch on it quick.
When you have a lot of money on hand... it's easier to execute on things at great speed because of the resources at hand, but because that tension of needing money is no longer there, it can also make you sloppy. You might move too fast on things you maybe should have spent more time on. In Ian's case, they moved too fast on their go-to-market, which led to their own struggles and lessons learned.
When you do have that tension—that slight stress and hunger to execute on your next milestone—there's arguably more motivation there because you have to make it happen and you have to kill it because your next raise and your next step to scaling your business depends on it.
I wish for all of you hard-working founders out there to get to a place where you don't have to worry about capital, but for now, try and make the most of where you are. You might even end up missing this time period of your company when you get there...
- Board Members Can Be a Blessing
"A lot of people get really concerned about oversight, fearing that a board will dictate their actions. I've always seen it as a huge value add. I view board members as mentors and people I want to learn from. If you approach the relationship this way, it can be a wonderful two-way street."
Board members can get a bad rep. I even remember when I was running my last company, I told myself I wanted to do everything on my own. I didn't want advice from the board; I didn't want to utilize their talents partially because of this fear I think a lot of founders have because of the horror stories we've heard in the past.
But looking back at it- I would've taken more advantage of the people on my cap table and board. I would've sought out more feedback and built better relations.
I don't want to tell you what to do… but just be open to it. Okay, that's all my takeaways for now. If you want to hear:
- Ian's insights from starting 3 venture-backed companies
- The story behind Protect AI's most recent $60M Series B
... and more. I'll leave the links below for you to check out.
Listen here:
Ian Swanson
Protect AI
Funded
Jason Yeh (host)
Sponsors
Be chased,
Jason
