Michael Lucarelli is the chief executive of Sherman Oaks-based RentSpree, an online rental application services company he co-founded with Paul Sirisuphang in 2016. Here, Lucarelli discusses a mistake he made early in his career of looking for outside capital too early.

“When I founded RentSpree in 2016 in Los Angeles, I was driven by a clear vision: to revolutionize the rental process and empower real estate professionals with seamless tenant screening. Like any startup founder, I knew the road ahead would be filled with challenges. What I didn’t anticipate, however, was how easy it would be to get distracted from what truly mattered.

“In the early days of RentSpree, we were laser-focused on building a great product and getting it into the hands of real users. We hustled, attending industry events, pitching to real estate agents and refining our solution based on their feedback. But along the way, I made what I now recognize as my biggest mistake: I let the allure of venture capital distract me from the company’s core mission.

“At the time, raising institutional funding seemed like the natural next step. I started taking meeting after meeting with potential investors, hoping to secure capital that would allow us to scale faster. Dozens of conversations led to countless promises – none of which materialized. We were simply too early. RentSpree hadn’t yet achieved the traction or metrics that institutional investors required. The reality was, I was spending valuable time on something that wasn’t moving the business forward.”

Wasting time ‘chasing capital’

“Looking back, those months spent chasing capital were a massive waste. Instead of focusing on customers, I was caught up in pitch decks and endless negotiations. The frustration of dead-end investor conversations took a toll, but more importantly, it pulled attention away from what truly mattered: growth.

“It wasn’t until I made a conscious decision to refocus on the fundamentals that things began to change.

“Rather than waiting for outside capital, I poured my energy back into building the business from the ground up. I traveled across Los Angeles, presenting our platform to real estate professionals, securing partnerships and refining our product to meet real market needs. By doing so, we gained traction, built a loyal user base, and ultimately proved that RentSpree could stand on its own.

“Eighteen months later, when the time was right, raising capital became significantly easier. We had product-market fit, tangible growth and a clear path forward – elements that made us far more attractive to investors. More importantly, we had built a sustainable foundation that wasn’t dependent on outside funding.”