How to grow 5x with marketing capital and where to spend funding (with Daniel Rodic from Clearbanc)

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Episode description

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Episode description

“The initial seed capital that you need to go from zero to one is usually something you will have to raise on your own.” @DanielRodic #DTCPOD

“The most important thing is not the dollar amount or the valuation tied to funding, but that every single line in a contract technically has some cost related to it.” @DanielRodic #DTCPOD

“At Clearbanc, we don’t make founders give personal guarantees or make liens on assets. We just charge a flat fee.” @DanielRodic #DTCPOD

“Clearbanc funding is built to fund repeatable forms of growth and investment where you have a pretty predictable rate of return.” @DanielRodic #DTCPOD

“We see a lot of founders leave money on the table by not taking funding when the business economics say they should and the money could help scale.” @DanielRodic #DTCPOD

We Speak About:

[01:10] About Clearbanc

[03:00] When should eCommerce brands consider funding

[04:05] What VCs are looking for if you’re trying to raise equity financing

[04:50] When equity dollars make sense

[06:15] Hidden traps to be aware of when receiving outside investment

[08:50] How Clearbanc’s financing is different from other financing and funding

[09:55] Clearbanc’s investment decision process

[11:50] How Clearbanc helps founders win

[16:10] Daniel dives into matching investor expectations with a business

[18:15] The key growth metrics you should be following

[19:55] Preselling and how Clearbanc accelerates presells for brands

[23:05] What brands should spend Clearbanc funding on

[25:10] What brands should spend equity funding on

[26:45] What to look for when spending and marketing and creating sustainable growth

[30:30] Common mistakes by founders when it comes to funding

Daniel Rodic, Head of Market Development at Clearbanc, joins the POD to talk about growth capital and equity funding for DTC brands.

Clearbanc is the biggest eCommerce investor and has invested over $1 billion in over 3,300 companies!

Daniel is a Forbes 30 under 30 alum and former podcast host himself.

Many fast-growing consumer brands often raise money through equity financing. This is when investors trade money in exchange for equity from the founders.

This is a common way for brands to help fund growth expenses and reach goals faster.

Although equity funding is a common way of scaling a DTC brand, it’s not the only source of funding brands should be looking for.

That’s where Clearbanc comes in.

Clearbanc offers non-dilutive funding for brand founders looking to scale fast. Instead of taking equity, they charge a flat fee to brands.

Clearbanc doesn’t just give capital to brand founders. They also help them to succeed.

Founders can decide to spend the money the way they want. If they are looking for guidance on where to spend though, Clearbanc has tools and people ready to help.

Their data-driven platform can help founders understand where they rank among other brands. Also, they have strong partnerships that provide brands the people and tools they need to execute.

Clearbanc’s goal is to make sure that once you receive capital, you’re able to use it to continue to grow your business.

Stay tuned as Daniel also discusses what key growth metrics you should be looking at, when to get funding, and where to spend the dollars you get.

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