Theneo's Startup Journey: From Prototype to $900K in Funding Success
Founder Ana develops innovative API documentation tool, secures funding, and raises $900K for Theneo startup.
In early 2021, our founder Ana was frustrated with the API documentation tools available on the market. Determined to find a solution, she took matters into her own hands and developed a prototype. By July, the prototype had gained popularity among her circle of friends, so she released a public beta in August.
Ana, based in Tbilisi, decided to participate in a local startup competition while working on her tool. The contest offered a grant of 100,000 GEL to the top 20 companies, and we were lucky enough to be among them. This competition proved to be a game changer for us. Thanks to Gita, the organizer of the competition, the top 50 startups received a week-long mentoring and pitching bootcamp with experts from the EU and Silicon Valley. During this experience, we realized the true potential of our startup idea.
After thorough market research to refine our value proposition and develop our business and financial models, we received confirmation of our product's potential. Our pitch to Gita was successful, resulting in a grant and an award, "Most Likely to Be the Next Unicorn" This success boosted our confidence and attracted significant media and investor attention. In Georgia's thriving startup scene, investors are actively looking for promising products to invest in. We intend to share more about the startup ecosystem in Georgia in a future blog post. In the meantime, we would like to express our sincere gratitude to all the startups that supported us in this round of funding.
In the pre-seed phase, investors focus primarily on the team when evaluating potential investments. This is because the MVP or pre-MVP concept presented in pre-seed funding discussions is expected to evolve significantly in the coming months and years. Investors are not looking for a perfect, market-ready product, but for a team with the potential - market knowledge, drive and the right attitude - to build a successful company, regardless of the product itself.
Although this view is common among U.S. investors, Georgian investors place great emphasis on a strong MVP and conduct thorough due diligence. While this is a useful challenge, it is critical for a successful startup to understand that the product will undergo significant changes as it evolves. We believe that Georgian investors will increasingly appreciate this approach in the near future.
After our successful pitch, we had discussions with over 50 investors within a month. Most of them were introduced to us through our network or contacted us directly. However, dealing with numerous prospects at the same time can be overwhelming. A typical day consists of back-to-back meetings, dinners and drinks with various investors. Still, the busy schedule and busy days were well worth it.
We have two key pieces of fundraising advice. First, set a deadline by which you want to make a decision. This gives a sense of urgency and encourages progress. Second, carefully vet investors and assess who can really make the biggest impact on your business and why. In the case of multiple offers, evaluate not only the resources offered, but also the investor's networking capabilities, industry knowledge and potential business relationships that you can leverage. Of course, it is important that you have a clear idea of how much money you need and how you plan to use those resources.
After receiving considerable interest and several promising offers, we set a strict deadline and made a decision based on investors we believed could contribute to Theneo's success beyond funding. Through the Gita Grant, the TBC competition, and our other investments, we were able to raise a total of $900,000. We are very excited about what lies ahead!
In early 2021, our founder Ana was frustrated with the API documentation tools available on the market. Determined to find a solution, she took matters into her own hands and developed a prototype. By July, the prototype had gained popularity among her circle of friends, so she released a public beta in August.
Ana, based in Tbilisi, decided to participate in a local startup competition while working on her tool. The contest offered a grant of 100,000 GEL to the top 20 companies, and we were lucky enough to be among them. This competition proved to be a game changer for us. Thanks to Gita, the organizer of the competition, the top 50 startups received a week-long mentoring and pitching bootcamp with experts from the EU and Silicon Valley. During this experience, we realized the true potential of our startup idea.
After thorough market research to refine our value proposition and develop our business and financial models, we received confirmation of our product's potential. Our pitch to Gita was successful, resulting in a grant and an award, "Most Likely to Be the Next Unicorn" This success boosted our confidence and attracted significant media and investor attention. In Georgia's thriving startup scene, investors are actively looking for promising products to invest in. We intend to share more about the startup ecosystem in Georgia in a future blog post. In the meantime, we would like to express our sincere gratitude to all the startups that supported us in this round of funding.
In the pre-seed phase, investors focus primarily on the team when evaluating potential investments. This is because the MVP or pre-MVP concept presented in pre-seed funding discussions is expected to evolve significantly in the coming months and years. Investors are not looking for a perfect, market-ready product, but for a team with the potential - market knowledge, drive and the right attitude - to build a successful company, regardless of the product itself.
Although this view is common among U.S. investors, Georgian investors place great emphasis on a strong MVP and conduct thorough due diligence. While this is a useful challenge, it is critical for a successful startup to understand that the product will undergo significant changes as it evolves. We believe that Georgian investors will increasingly appreciate this approach in the near future.
After our successful pitch, we had discussions with over 50 investors within a month. Most of them were introduced to us through our network or contacted us directly. However, dealing with numerous prospects at the same time can be overwhelming. A typical day consists of back-to-back meetings, dinners and drinks with various investors. Still, the busy schedule and busy days were well worth it.
We have two key pieces of fundraising advice. First, set a deadline by which you want to make a decision. This gives a sense of urgency and encourages progress. Second, carefully vet investors and assess who can really make the biggest impact on your business and why. In the case of multiple offers, evaluate not only the resources offered, but also the investor's networking capabilities, industry knowledge and potential business relationships that you can leverage. Of course, it is important that you have a clear idea of how much money you need and how you plan to use those resources.
After receiving considerable interest and several promising offers, we set a strict deadline and made a decision based on investors we believed could contribute to Theneo's success beyond funding. Through the Gita Grant, the TBC competition, and our other investments, we were able to raise a total of $900,000. We are very excited about what lies ahead!
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