What’s it like to run a company that can raise $17M in a flash? We recently asked P2Binvestor’s Krista Morgan just that after they closed a huge round in a combination of equity and debt.
“It’s just another day,” she said. However, you might find her in a different state on a day she lands a meeting with a major potential partner. “I oddly celebrate my victories when they start instead of when they close,” she told us. We sat down with Krista to learn a little bit about her journey with one of the Rocky Mountain Ecosystem’s favorite startups.
You’ve dodged going to a traditional VC almost altogether. Round after round you’ve found a hot opportunity with Angel groups and individual investors. What inspired you to take this unique investment approach?
We were informed this path to raising capital wasn’t intentional at all. Like many female entrepreneurs, Krista tried to raise a traditional Series A round, but was repeatedly turned away. Now with 8 rounds of funding totaling over $33M, the lending platform has brought in numerous private investors, plus New Resource Bank and Amalgamated Bank as financing partners, to mobilize swaths of capital into flexible lines of credit for growing companies. So far, the return to Angel investors for debt or equity financing has proven to be the right move in Krista’s eyes. While the raises have been fairly modest, Krista has proven the capabilities of intelligent capital strategy.
In light of your own difficulties, how do you feel about the statistics that shows female founders receive almost no venture dollars, yet have proven to be a 12x better investment than all-male teams?
“Are they, though?” she retorted. “I would argue that statistic is flawed. The only women who get venture funding are the best connected, and probably the best entrepreneurs. If we only fund the best, of course the results are going to be better on average.”
Krista believes that, in funding parity and equality of opportunity, we will likely see equality of outcome. Some female founders will go on to run tomorrow’s innovative giants, but many will fail and learn important lessons. As an investor in the Women’s Investor Network, Krista is aligned with WIN in pursuing a future of more experienced female entrepreneurs who can be investors in good faith.
“I’d love to be able to raise a ton of capital and just flood the market,” she told us. “A lot of the people who moved into our space moved too fast or broke too many things.” Krista notes that, as a founder, she has a lot more reason to stick around than many other CEOs. Careful capital raising means her stake in the company’s success is still substantial. Unlike some of the second movers, P2Bi’s lights are still on and shining bright. This can be an important lesson for those looking to follow the Facebook motto “move fast and break things”.
P2Binvestor is going into its seventh year. What’s next for loans, for P2Bi, and for you, Krista?
“What’s next for P2Bi is what’s next for me,” she told us. “I’ve got to hit my goal on number of bank partners for the year while continuing to grow our client base.” One could argue Krista is as driven as ever in her pursuit to make P2Binvestor a household name in the lending space. We asked her about who she is now compared to when she started the company. “Krista in 2012 was tequila, dogs, and searching,” she said. “Krista in 2018 is tequila, dogs, and P2Bi.” Today might just be “another day” according to P2Binvestor’s CEO and co-founder, but her drive and determination is gradually moving the company towards bigger things in the future of fintech.
P2Binvestor has worked with RVC since 2014. RVC has participated in 5 of P2Bi’s raises and have been glad to watch them grow in an industry that helps mobilize capital. P2Bi helps pre-banking companies secure asset backed loans to help them reach their goals by working with banks and accredited investors. P2Bi has grown to $32.5M in valuation since their Seed round in 2014.