Catching Up with Scott Love from StoreToDoor

Hello friends! Looking back over 2021, in putting together our Annual Report, we realized—holy shit—we’ve met and funded a lot of really cool companies! 

So we wanted to take a second and go back and talk to some of our Summit winners. 

I got the chance to catch up with Scott Love (SL) , CEO and founder of StoreToDoor, winner of our first ever Saskatchewan Summit and who just closed $1.25 million!

TNT: Hey Scott! So, big things are happening at StoreToDoor… tell us all about it! 

SL: Yeah, it’s a super exciting time. We just announced it, we closed a $1.25 million seed raise! The investors include Inverted Ventures (Calgary, AB), LEX Capital Corp. (Regina SK), Golden Opportunities Fund (Saskatoon, SK), Startup TNT of course, and numerous angel investors from across Western Canada

TNT: CONGRATS! That’s huge. So proud of you guys! And now that you’ve gone through the gauntlet of fundraising a few times now… what’s the biggest tip you have for founders looking to raise capital?

SL: Hands down, it’s dilute or die. I don’t think enough founders understand this and get way too attached to the percentage that they own of their startup. In this ecosystem, you HAVE to dilute to be able to proceed. You need to be able to go big, to move quickly, to get fast capital. Investors want big and fast returns - they don’t want your 20 year plan. They want to know “How am I going to get my money back? And what time frame do you see that happening in?”

And another tip to remember is that many angel investors are uneducated in your specific space, or are dabbling in it. You’re the expert, you’re the founder, and you need to take the time to educate them. As an angel investor myself, I feel like I’m a more savvy investor now that I’ve done the process from the other side, as a founder. 

TNT: And what do you think is the biggest mistake(s) that companies/founders make when they’re trying to raise capital? 

SL: I think that the biggest mistake that founders/startups make is not knowing who your ideal investor profile is. I’ve seen this happen time and time again in the startup community. The reality is you need to be just as focused on your ideal investor as you are on your ideal customer.  You can’t just hope that you’re going to find someone who is interested in what you’re building and then they’ll throw some cash at you. 

Do your research. Find out which investors are in your field. Do you check their boxes, do they check yours? Doing this research will make the whole process smoother. 

If you don’t, you’re going to waste so much time. You’ll be spinning your tires, trying to raise capital with the wrong investors, and you won’t actually be growing your business.

TNT: 100%. You can’t just accept money from anyone… it’ll leave you with such a headache! And so once you’ve got the funds, what are some things startups should consider when working with angel investors?

SL: Founders need to remember that they are not working with institutional investors. They are working with angel investors, who are putting in personal cash, and thus, are making personal decisions vs the mathematical and data-driven decisions from an institution. Angel investors will be more emotional. 

In the beginning, as I mentioned above, angel investors will need more attention and more education. Newer angel investors don’t know what they don’t know, so you will spend more time soothing worries. As the ecosystem grows, you’re going to see angel investors mature and make more decisions based on data, versus their emotions. 

Also, a big thing for founders to remember is that you have to be very careful who you take money from. Just because an investor has money doesn’t mean that they’re a good investor for you. 

For example, If you’re within the 5 key touchpoints of my network (friends, family, etc), you won’t have an opportunity to invest in me/my startup, unless I’m at a point where I’m confident that you will pull a return. I believe that you have to set boundaries so that your worlds don’t get muddled. 

TNT: Great point. Boundaries are a must. Ok, last question. What are the biggest lessons you learned in your first year(s) as a startup? 

SL: Firstly, you need to swing for the fences. If you’re coming in to bunt, startup life or tech life is not the place for you. You need to move quickly, otherwise you’ll be left behind. 

And secondly, make sure that you clearly define milestones, and push hard for them. 

TNT: Love it. Focus on the future and hustle for those goals. Thanks so much for your time, Scott, and congrats again on closing $1.25 million! 

Scott: Thanks!