ExitStack Unfiltered is ExitStack's ongoing webinar series, where we host candid conversations with investors, operators, and ecosystem leaders shaping the startup landscape. Held on a weekly or bi-weekly basis, these sessions are designed to bring real-world insights and tactical advice exclusively to members of the ExitStack Founders Community. The goal is simple: cut through the noise and surface honest, experience-driven perspectives that help early-stage founders navigate the most critical phases of building a company.

Our guest for this session was Robin Butler, Partner at Sturgeon Capital, a venture capital firm focused on investing in early-stage technology companies in frontier and emerging markets. Robin brings a unique perspective shaped by years of experience in private equity and venture investing across dynamic ecosystems. At Sturgeon, he plays a key role in sourcing, evaluating, and supporting portfolio companies that are solving foundational challenges in markets often overlooked by mainstream capital. His insights into frontier market dynamics, founder-investor alignment, and capital deployment strategy made this a particularly compelling session.

Read through the insightful conversation we had with Robin below:

ExitStack: Robin, at the heart of it all, why do founders put themselves through the grind of building a startup? How does that link back to valuation and fundraising?

Robin Butler: Founders build because they want to create something significant — and, yes, to generate wealth for themselves and their teams. But to reach that end point, you need to be intentional about how much capital you’ll need to raise to get there. Success isn't just about ambition; it's about making sure it's a win for you, your investors, and the company itself. Fundraising strategy has to be grounded in that reality from the start.

ExitStack: When it comes to fundraising, what should founders be prioritizing?

Robin Butler: The top priority is raising enough money to achieve your planned runway — non-negotiable. Second, you have to choose the right investors: people you're willing and excited to work with for the next five to ten years. Investors who add value beyond capital. It's a marriage of sorts — you need partners who will stick with you through the ups and downs.

ExitStack: For founders in Bangladesh — where capital can be scarce — how do you suggest approaching valuation when growth feels constrained?

Robin Butler: First, if you can, find ways to grow without relying heavily on outside capital. Adapt your business model to operate with the resources you have. If you can't tell a story that's big and exciting enough for international investors, especially at pre-seed or seed, then you have to manage the reality of your market. Build leaner. Move faster with less. That resilience, ironically, makes you more attractive over time.

ExitStack: When it comes to the exit slide in a pitch deck — especially at pre-seed — should founders even include one?

Robin Butler: At pre-seed, strict exit strategies often don’t make sense. A lot of things will go better than you expect; a lot will go worse. What matters more is showing a credible path to becoming a significant, dominant player. If you can articulate how you're building strong distribution, loyal customers, and defensible margins — that's the real magnet for eventual acquisition or IPO interest. Talk about the scale of opportunity you’re aiming for, not a pre-baked M&A event.

ExitStack: If a founder says they’re raising $1 million at a $5 million valuation, and you ask them why — what would you want to hear in response?

Robin Butler: I want to hear a story that connects today's raise to tomorrow’s milestones. Something like: "I'm raising $1M now to grow revenue from X to 20x, to reach $1–2M ARR. That progress will let me raise $3M at a $15M valuation next year." And even more importantly: what assumptions are you proving along the way? What questions are you answering that derisk the journey? It's about mapping the steps to the next round, not just selling a dream ten years out.

ExitStack: So it’s really about anticipating how future investors will view the company?

Robin Butler: Exactly. Founders need to think not just about today's raise, but who they’ll need onboard later — and what kind of company they'll need to be to attract those investors. Every step should be setting up the next step.

ExitStack: Should seed-stage founders spend time learning things like DCF models and private capital valuation methodologies?

Robin Butler: Honestly? No. At this stage, VCs aren't pricing off DCFs. We're asking: How big could you get? How much am I paying today? How much of the company do I own? How good is the founder? How credible is the market? It’s judgment, pattern recognition, and vision — not spreadsheets.

ExitStack: So initially, valuation is based mostly on macro factors and founder quality?

Robin Butler: Yes, and momentum. It's about believing that this founder can spot problems, prioritize, solve, and keep building relentlessly. That's not something you can model in Excel.

ExitStack: Say a startup isn’t raising right now, but investors still want to talk about valuation. How should a founder handle that?

Robin Butler: Be upfront. Say, "We raised X at Y valuation six months ago. We’re not raising today — we’re focused on building." Shift the conversation away from price and toward problems you're solving and opportunities you’re chasing. Build the relationship first. That way, when you are raising, you can show real progress — and the valuation conversation will be a lot easier.

ExitStack: For founders raising from angels now and planning to raise from VCs later — how should they defend their valuation?

Robin Butler: Angel investors often invest emotionally — they believe in you. That said, don’t give away too much. Diluting 5–10% at this stage is reasonable. Think about what an angel can offer beyond cash — strategic help, networks, credibility. Price differently based on what they bring to the table. And be careful: a messy cap table early on can haunt you later when institutional money comes in.

ExitStack: Sometimes investors want others to come in first before they commit. How should founders manage that?

Robin Butler: Part of your due diligence should be figuring out who’s willing to lead. Many investors prefer to co-invest rather than lead because leading means more work — negotiating terms and setting valuations. Focus your efforts on securing a lead. Once you have a lead, the others will often fall into place.

ExitStack: As a company grows, when does valuation shift from “dilution math” to “multiples and market comps”?

Robin Butler: Series A is the transition point. Before that, dilution drives a lot of thinking. By Series A, you’re judged more on multiples — revenue growth, and profitability, compared against public comps. By Series B, it’s almost purely multiples-based. Typically that transition starts happening around $1–5 million ARR.

ExitStack: What are the most common mistakes you see founders make when setting valuation?

Robin Butler: Over-optimizing for a high valuation early on. If you raise at too high a price and can’t grow into it, you risk a down round — which hurts you and your early investors. It's better to raise slightly lower, bring on great investors, and set yourself up for strong follow-on rounds. Diluting an extra 2% today could save you enormous pain later.

ExitStack: How should founders handle valuation pushback during negotiation?

Robin Butler: If you and the investor are close — say you're proposing $15M and they’re at $10M — it’s a negotiation. Make your case: team strength, traction, market opportunity. But if you're miles apart — say you're at $50M and they’re at $10M — it's probably not a fit. Also, know that VCs are thinking about ownership and fund returns at the back end — not just this deal in isolation.

ExitStack: Beyond financials, how important are team and vision in valuation discussions?

Robin Butler: Hugely important. At pre-seed, seed, even Series A — the founder matters more than anything. If I believe you’re one of the best entrepreneurs in the country, I’ll lean harder, pay more, and advocate for you inside my firm.

ExitStack: Finally, when setting fundraising milestones — what kinds of goals should founders aim for?

Robin Butler: It’s not just revenue growth. It’s also operational milestones: expanding to new cities, launching new products, improving margins, and locking down distribution partnerships. In our investment memos, we always map expected progress across multiple dimensions. Founders should think the same way: "What mix of growth, expansion, and proof points will make me undeniable at the next raise?"

ExitStack: Robin, this was incredibly insightful. Thanks for bringing so much real-world clarity to what can otherwise feel like a black box.

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