Diadem Capital, a Buffalo-based fundraising platform, is making waves in the world of high-growth startups with its promise to expedite funding rounds by a staggering 5 times. Co-founded by Stephanie Rieben and Joe Hammill, both former Wall Street professionals, the company aims to address the challenge of obtaining equity for early-stage businesses.
Key Takeaway
Diadem Capital, led by ex-Wall Street professionals, Stephanie Rieben and Joe Hammill, is revolutionizing the VC funding landscape with its warm introduction network, aiming to streamline the funding process for high-growth startups.
The Birth of Diadem Capital
Stephanie Rieben and Joe Hammill, with a combined background in investment banking, capital markets, and trading, embarked on the journey of creating Diadem Capital after their tenure at Hum Capital, a venture debt funding platform. Their firsthand experience at Hum Capital, where they encountered founders in need of equity but unable to part with a percentage of their business, ignited the spark for their entrepreneurial venture.
The Innovative Platform
Diadem Capital’s unique approach involves a low-code platform where founders submit their capital applications, which are then personally reviewed by Rieben and Hammill. Upon acceptance, the founders are connected with institutional investors. The eligibility criteria include being VC-backed and having a minimum of $1 million in annual recurring revenue, with plans to expand to companies with up to $100 million in ARR in the future. The company also supports bootstrapped companies seeking debt funding.
Empowering Founders and Investors
Founders can track their progress on the platform, viewing their introductions and the status of those relationships. Investors, on the other hand, gain access to deal flow after meeting with Rieben, ensuring a commitment to the introductions. Diadem Capital acts as an intermediary, facilitating genuine feedback from investors to founders, thus enhancing the overall funding experience.
Supporting Underrepresented Founders
Despite the slow progress in funding underrepresented founders, Diadem Capital remains committed to assisting all founders, emphasizing that while they prioritize VC-backed companies, they do not turn down exceptional businesses without VC backing. The platform’s focus lies in enhancing the fundability of startups, rather than providing assistance with pitch decks or the pitching process.
Impressive Milestones and Differentiated Model
With over 100 lenders and 800 venture capitalists on its platform, Diadem Capital has processed applications from more than 1,500 startups, leading to 17 founders raising over $60 million in total. The company’s success-based fee model, coupled with the expertise of licensed bankers Rieben and Hammill, sets it apart from competitors, ensuring a focus on fundability without the burden of upfront costs for early-stage founders.
Shaping the Future of VC Funding
As Diadem Capital continues to disrupt the traditional VC funding landscape, its dedication to expediting funding rounds and fostering genuine connections between founders and investors marks a significant step towards making funding more accessible and efficient for high-growth startups.