Sessions — about community building and fundraising success

Radu Negulescu saw an opportunity when the work landscape pivoted to remote and hybrid models during the pandemic. In 2020, he founded Sessions, a platform designed to address the shortcomings of virtual meetings. Sessions goes beyond simple video conferencing. It integrates with popular productivity tools, allowing teams to access documents, brainstorm on whiteboards, and share content directly within the platform. The platform's unified workspace empowers teams to structure meetings, find information quickly, and collaborate efficiently on various tasks, from sales pitches to user research.

And… there’s more. Here’s Radu’s view on the “End of work” empowered by AI - meet AR2R.

Today, we are meeting with Radu to discuss Sessions' fundraising journey following their successful crowdfunding round on SeedBlink earlier this year.

Key takeaways:

• Building a community should be at the core of any business and viewed as the "governing body" that provides valuable feedback.
• Crafting a compelling narrative is more important for fundraising than metrics alone. Continuous refinement of the story is key.
• Intentional fundraising preparation and alignment with suitable investors are important.

Early fundraising decisions

Radu realized that fully capitalizing on the newly identified market opportunity would require substantial financial resources. His previous founding experiences in the industry helped Radu ground his new company into reality and have a clear understanding of the costs associated with scaling a tech company.

Rather than bootstrapping, which could have constrained the company’s growth and delayed critical product developments, Sessions opted to seek venture capital from its early days.

“When I saw this market opportunity and realized that there was a super interesting angle to be approached in the market, I also understood that it would be expensive to deploy or attack that angle. So, we embedded the idea of being VC-backed. I think your success is also a matter of how you design your company or your “intentionality” from day one.”

Community-driven fundraising

For Sessions, embracing community-driven funding was a natural extension of its core philosophy. The company prioritized building a strong community, viewing it as a market for its product and a crucial stakeholder in their journey.

“We knew that Sessions would be a community-driven company. Community is part of our essence. We do not use the community just to win Product Hunt or raise money. Our community is our governing body. Our community is where we find or learn that we are going in the right direction. Community is part of the building process.

We currently have more than 3000 people in our community, but by the end of the year, we will be near 10,000. We have the same level of engagement with companies with millions of users, and this is because people are discussing and engaging. After all, they find value there.”

If we speak about communities, we can’t continue without mentioning the recent shift towards community rounds as an alternative to traditional venture capital. This movement is driven by a growing recognition of the value a dedicated and engaged community can bring to a company beyond financial investment.

“I'm a big believer in community rounds, and I think that’s the model of the future. I believe tomorrow's startups will be way more inclined to build founding rounds from communities than investors. That community is not there because they want to invest in you. They love your narrative. They are already hooked. They are there because they love your product. They want to be part of the journey. ”

Community investors are more passionate and loyal because they believe in the product and the company’s mission. Emotional investment can translate into higher levels of engagement and advocacy, turning investors into brand ambassadors who actively promote the company within their networks.

Moreover, having a broad base of community investors can provide a more stable and resilient funding source, as it is less likely to be influenced by the volatile swings of venture capital markets.

“A company that manages to raise money from its community has way more chances to survive than a company that raises from venture capital. Here is why I think this. It's easier to raise from VCs than it is to raise from your community.

Communities are regular people with regular lives; they have their priorities and things going on. However, it's a strong signal when your community decides to invest and share resources with you. I think in 10 years from now, community rounds will be more relevant than VCs.”

Top three fundraising lessons

1. Craft a compelling narrative

One of the most important fundraising lessons from Sessions’ journey is crafting a compelling narrative. In the early stages of a company, the story you tell about your vision, mission, and the problem you're solving can be more influential than the numbers alone.

Investors are often drawn to a vision they can believe in and be excited about. For Sessions, articulating a clear, inspiring vision was essential in capturing investor interest and trust. The founders learned that while strong financials are crucial, the narrative truly resonates with investors and convinces them to support the company's journey.

“A great story will raise a great round. If you have numbers to sustain the story, that is even better, but the story is fundamental, so words can count “harder” than numbers.”

To leave you with actionable advice, we asked Radu how to build a compelling story. Here are his thoughts:

“You build a story by talking to people. I once spoke with somebody from the stand-up industry who told me something very insightful. His tactic was to test phrases randomly with the public and see how they reacted. His most successful shows are a series of continuous experiments that he tested in different contexts.

This is how you build a pitch and a narrative. You constantly improve through feedback. As founders, we tend to use complex ideas and complex words, and people don’t get it. If they don’t get it, they don’t buy it. They don’t invest. Nobody will invest. So, this is why I think words have a bigger impact than numbers.”

2. Be intentional and prepared in the fundraising process.

Another key lesson is the strategic approach to selecting investors. Sessions’ founders realized successful fundraising is not just about meeting as many potential investors as possible. Sessions adopted a different strategy. Instead of casting a wide net, the team focused on identifying investors who brought more than just capital to the table.

Radu and his team aspired to find those who could offer strategic advice, industry connections, and a deep market understanding. They also meticulously prepared the pitch and refined the product and business model to appeal to the right investors.

This selective approach paid off, allowing Sessions to develop partnerships with investors aligned with their vision and could provide substantial value beyond financial investment. The focus was on quality over quantity, ensuring each investor could contribute meaningfully to the company’s journey.

“I think founders should be more intentional in how they approach fundraising.

Put a lot of effort into refining your story and positioning, and start looking very narrowly at investors. Find those who understand your niche, understand you as a founder, and your context.”

3. Build your business thoroughly, and success will follow.

The third lesson is about the ultimate goal of a startup.

“I think people should prepare things, not for the sake of fundraising, but for the sake of clarity. If you are doing things just for the sake of fundraising, you’ll most probably fail. Founders should focus 90% on building a compelling business and narrative. That will in turn bring you money and success.”

• To learn more about Sessions, visit their website.
• Connect with Radu Negulescu on Linkedin.

To learn more about Session's fundraising journey and to ask Radu questions directly, watch this webinar on effective strategies for fundraising from your community:

Do you need help with getting ready for a funding round?

SeedBlink can assist with pitch deck and fundraising materials review, introductions to angel investors and VCs, and deal structuring and development guidance.

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