“Starting a business is like an iceberg—what the world sees is just the tip: large funding rounds, successful product launches, and big wins. But beneath the surface lies the unseen challenges—countless setbacks, financial hurdles, and the mental grind of entrepreneurship,” shared Dr. Saumik Biswas, Co-founder of Tenomix. “It’s always good to remind yourself why you’re doing something,” he adds, highlighting the drive needed to persevere through inevitable challenges.

Recently, we brought together a few seasoned entrepreneurs from our ecosystem to host a panel discussion called ‘Founders Unplugged’. They shared their hard-earned wisdom with the participants of Founders Fast Track program.

Founders Fast Track is a unique and intensive 6-week training program offered by Innovation Factory, specifically designed to provide start-ups with the necessary tools, resources, and skills for a successful fundraising journey.

Panelists Ben Su, Co-founder of Capita, Saumik Biswas, Co-founder of Tenomix, and Sam Hattin, Founder of PottyMop, represented their individual sectors and answered some important questions about securing funding and how to navigate the challenges that come with becoming an entrepreneur.  

The Founders Unplugged panel session was hosted in partnership with Deloitte. From SR&ED tax credits and grants to strategic advisory, tax, and financial services, Deloitte supports businesses at every stage of growth. As an Innovation Factory innovator, you can access these connections and resources offered by Deloitte to help grow your start-up.  

Guided by experts from Deloitte, this discussion provided invaluable insights designed to empower emerging start-ups with the knowledge and strategies needed for success.

Navigating early financial challenges

The innovators shared diverse strategies for securing early funding, which is often a major hurdle in an entrepreneur’s journey. Su shared that he leveraged his professional network and industry knowledge to engage with venture capitalists effectively, turning initial discussions into strategic funding opportunities. Su shared, “It’s important to view each interaction as a stepping stone–If you’re playing ‘not to lose’, you’ll never win.”

Hattin illustrated the significance of grassroots funding strategies. He went on to add, “By leveraging local academic institutions like Mohawk College and McMaster University, and innovation centers like Innovation Factory, as well as securing grants, I managed to bootstrap the initial product development without diluting equity early on.” Hattin’s journey underscores the importance of utilizing every available resource, reminding us that “good cash in the bank” starts with strategic, incremental funding steps.

Building and sustaining a strong team

Building the right team is one of the most critical aspects of a start-up’s success. Hattin shared his ongoing challenge with handling almost all business aspects alone, reflecting on the isolation that can come with entrepreneurship. “Find a co-founder who can share the workload and bring skills to the table that you may lack.”

Biswas provided a blueprint for building a team that is not just skilled but also fully invested in the company’s vision. He detailed how aligning team members around a shared, forward-looking vision can create a cohesive force driving the company forward. 

“You have to be able to trust these individuals,” he noted, pointing out that trust and complementary skills are foundational to overcoming the complexities of growing a start-up. He emphasized the importance of each team member, highlighting how the mechatronics expertise of CTO Michael Lavdas, the structured leadership of COO Dr. Eveline Pasman, and the financial acumen of CBO Dr. Sherif Abdou collectively drove the company’s success.

Biswas also covered the timing and strategy behind expanding the team post-funding, explaining that programs like the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) can be leveraged to subsidize some positions immediately after funding to ensure full-time commitment. 

Su stressed the legal and relational frameworks necessary to prevent co-founder conflicts. “Co-founder disputes are the number one leading cause for start-up failures which make it important to have clear legal agreements to mitigate such risks.”

Overcoming rejection

Handling rejection is not easy. The founders shared their experiences with facing and overcoming rejections from investors.

Biswas recounted pitching to over 200 investors during his first pre-seed round in 2023 and early 2024, ultimately securing an oversubscribed round at an 8% conversion rate, a testament to the resilience needed in the fundraising arena. He advised, “View each interaction with potential investors as an opportunity to build relationships and learn, regardless of the outcome.”

Building a compelling narrative for investors, focusing on founder-market fit, and showcasing market potential through early achievements can significantly influence investment outcomes. Transparency and fostering trust with potential investors are pivotal during negotiation phases.

The entrepreneurial journey comes with its challenges, but with the right mindset, financial strategies, team dynamics, and network leverage, these challenges can be transformed into pillars for success.

For more insights and support on your entrepreneurial journey, connect with us today!