In the dynamic world of startups, securing the right type of funding at the right time can often be a make-or-break moment. For Unplex, the decision to opt for an angel round was a strategic choice. In this article, we delve into Unplex's journey and explore its decision to use a founder-led SPV to leverage its network and efficiently raise capital from over 20 angel investors. 

First, some background on the company: Unplex is pioneering a financial revolution that envisions a planet where money knows no borders. With a mission to simplify and democratize global transactions, Unplex is redefining the way we send money, making international money transfers as effortless as sending a text message. Say goodbye to cumbersome bank account numbers and the hassle of navigating multiple apps. 

Why Choose an Angel Round?

In February 2023, six months after launching their company, the Unplex team set out to raise an angel round to extend their runway. It became clear that an angel round was the right fit for the company when they considered the community they were building their solution for. During their research phase, they noticed a significant level of interest among potential investors. What's more, they recognized the added value that angel investors could bring, particularly those with relevant contacts or experience, who could also serve as advisors with a vested interest in the company's success. With this information in their back pocket, the founders of Unplex kicked off their own fundraise using a founder-led SPV on Sydecar. 

Kick off the Fundraise

The Unplex team kicked off their angel round by gauging interest and determining an appropriate valuation for the company. To gauge interest, they reached out to their network of friends and acquaintances. The response was overwhelmingly positive, further fueling their confidence in pursuing angel funding.

Valuation, a crucial aspect of any funding round, was established through meticulous research. The team studied similar companies and funding rounds on platforms like Crunchbase and engaged in discussions with a select group of advisors. This comprehensive approach helped them arrive at a valuation that was both fair and competitive.

Leveraging the Power of Network

For Unplex, the network the founders had built played a pivotal role in the success of their angel round. The three co-founders harnessed the power of their individual networks, reaching out to friends and connections. They organized a single product demo and angel investment day, where they presented their pitch, provided a product demonstration, and fielded questions from potential investors. This strategic move not only streamlined the investor outreach process but also generated a sense of FOMO that allowed them to close the round within an impressive three-week timeframe.

Demo days were instrumental in Unplex's fundraising strategy to share information with potential investors. By presenting their pitch and product in a structured format, which included a presentation, demo, and detailed Q&A session, they were able to address questions and reservations on a broader scale. To ensure that investors came prepared, Unplex shared a pre-read memo in advance. This approach boosted investor confidence significantly.

Efficiency through Processes

Closing an angel round is not just about generating interest; it's also about efficient execution. Unplex adopted several practices and processes to expedite the deal closure. Demo days were a cornerstone in creating FOMO, but they didn't stop there. The team maintained diligent follow-ups at each stage of the process. They used Sydecar's founder-SPV product to onboard investors seamlessly, track incoming wires in real time, and follow up with lagging investors. The real-time visibility into each investor's status allowed them to follow up appropriately and keep the fundraising momentum going.

The success of Unplex's fundraise can be attributed to their proactive approach to investor engagement and the FOMO generated through their demo days. Prior to the demo day, they kept potential angels informed about their startup through phone calls and regular social media updates, ensuring that there was already a foundation of interest. Additionally, they recognized the importance of a credible lead investor, which further instilled confidence in the deal and minimized drop-offs.

Unplex's journey to secure angel investment offers valuable insights for startups looking to navigate the complexities of fundraising. Through strategic decision-making, leveraging their network, and adopting efficient processes, they successfully closed their angel round and took a significant step towards realizing their vision of a world where money truly knows no borders.