You Said It! Q & A with QB Community Member Kimberly Caccavo
What’s on your mind right now? We know folks who work for themselves have plenty to say about the business of doing business. That’s why we want to share your insights, ideas and best practices. Today, we’re spending a few minutes with Kimberly Caccavo. Kimberly and Kate Nowlan are cofounders of GRACEDBYGRIT, a multimillion dollar company selling premium athletic wear for women. GRACEDBYGRIT has more than 50,000 loyal customers and a rock-solid reputation for giving back to local charities and national organizations, so it’s hard to believe Kimberly and Kate once had to rely on sheer grit -- along with an unwavering belief in their business -- to even get the company off the ground.
Here, Kimberly recalls those tough early days of pitching the business to a room of mostly male investors, all with very little interest in doling out dollars to a company led by women.
Kimberly, tell us your early experiences with fundraising for GRACEDBYGRIT.
Every entrepreneur is familiar with those gritty moments at the beginning of building a business. We experienced it when we were trying to raise money. We did our first fundraising presentation in front of a San Diego sports-investment group primarily made up of men.
Kate and I gave our presentation. We shared our financials and passed around some samples. Then we had to sit back. We weren't allowed to speak while they gave us their feedback.
It was rough. The investors wondered who needed our apparel, figuring women could pick up something similar at Target. They told us our company name, which we were so proud of, wouldn’t resonate with women.
Additionally, they suggested Kate make all her presentations in front of the podium to show off her great legs. They said I had a great smile, and that I should smile more.
How did you respond to the feedback?
At that point, we stepped back and asked ourselves if we believed in our business. And we did.
We knew our products were made from luxurious Italian fabric that was the best out there. We believed our brand name would resonate with women. We knew every woman has had a “gritty” moment that has become her grace. We knew that experience is something to be celebrated.
We did agree that Kate has great legs. Now she presents in front of the podium, and we try to put her in shorts as much as possible.
There’s happy ending to the story. One of the investors who was not interested in taking a chance on us called as soon as we opened our store and asked to meet for coffee.
When we met, he congratulated us and apologized. He said, "I should have seen it coming, because you have what it takes to run a business. I'm sorry I misjudged you." He and his entire organization are now huge supporters of ours.
How would you describe today’s opportunities for female entrepreneurs looking for funding?
Women business owners just don’t get a high percentage of the investment dollars out there. At one point we thought, “Let’s go after women investors. That will be great.” Then a male investor told us we were barking up the wrong tree because “investors invest, and women don't invest."
My hope is that my daughter's generation will see women like Kate and me going out and building companies. I encourage every young girl I know to learn about investing, engineering and starting a business so they’ll have the confidence to go out there themselves. Their peers will become investors who, in turn, will back their businesses.
What kept you going despite facing business challenges?
More than once we’ve stepped back, looked at our business and asked ourselves a number of questions.
First, do we think we have a great product? Absolutely. Is there a large market? Huge. Do we have the team to make it happen? Yes.
Every time we’ve paused, we’ve decided to keep moving forward. But even today, raising money is still our gritty moment.
Before you go
QB Community members, what fundraising horror stories do you have to share? Or how about posting your favorite financing experiences?
More and more entrepreneurs are turning to crowdfunding to raise money for their business. Want to learn more? Follow these links: