Tue, 31 October 2023
The Letter of Intent in M&A Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In an M&A transaction, the letter of intent or LOI defines the general terms of the deal. Here are the key components of an LOI: Key players -- define the buyer and seller in the deal. This makes clear who is buying whom. High-level overview -- defines the structure and key numbers for the transaction including earnouts and timelines. This also includes cash versus stock offers and general terms of the deal. Diligence -- this gives a general indication of diligence to be done. These tend to be standard boilerplate descriptions of the diligence process. Exclusivity -- a timeframe for the buyer to perform diligence. The seller cannot entertain other offers during the exclusivity period which typically lasts 90 days. The LOI indicates the buyer is serious and may soon initiate diligence. It’s a key milestone in the M&A process.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Mon, 30 October 2023
Understanding the Buyer’s Strategic Roadmap Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In selling your business, it’s important to understand the buyer's strategic roadmap. Here are some reasons why you should know it well: You can position your business for acquisition more effectively if you know how your business fits into the buyers’ roadmap. You can communicate the value proposition of your business better. You can adjust the risk-reward characteristics of the acquisition to fit the roadmap. You can show your business has a competitive advantage over competitors. You can better show how your business is synergistic with the buyer’s business. You can provide multiple scenarios for how to merge your business into the buyer’s business. You can provide a better integration path by knowing the buyer’s business. Research the buyer’s strategic roadmap with these points in mind.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound.
Direct download: Understanding_the_buyers_strategic_roadmap.mp3
Category:general -- posted at: 5:00am CDT |
Fri, 27 October 2023
On this episode of Investor Connect, Hall welcomes Jean Anne Booth, CEO of UnaliWear, headquartered in Austin, TX, USA. Jean Anne Booth, a serial entrepreneur, brings over 30 years of high-tech experience and has raised over $100M in venture capital for her startups. UnaliWear's Kanega watch, the only 24/7 medical alert with fall detection, features a patented quick-swap battery system. Jean Anne Booth was the founder of Luminary Micro, creators of the Stellaris® microcontroller platform, which was acquired by Texas Instruments in 2009, and Intrinsity, sold to Apple in 2010. UnaliWear’s Kanega watch is the ONLY 24/7 medical alert with fall detection, featuring a patented quick-swap battery system. The company’s patented RealFall(TM) technology is revolutionizing fall detection and response. Visit UnaliWear at www.unaliwear.com, and connect on LinkedIn: Jean Anne Booth and UnaliWear. Follow them on Twitter: @JeanAnneBooth and @UnaliWear. Reach out to Jean Anne Booth at jeananne.booth@unaliwear.com _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Fri, 27 October 2023
Ideal Buyer Characteristics Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In selling a buyer on acquiring your business, you’ll want to create an ideal buyer profile. Here’s a list of characteristics to consider when building it: Financial vs strategic -- Are you looking for a buyer looking for a financial-only deal or one who wants a strategic fit? Type of company -- Are you looking for a startup or a large company to buy your business? Culture fit -- What type of company culture would best fit your business? Capability -- Does the buyer have the capability to take over your business? Affordability -- Does the buyer have the ability to pay for your business? Motivation -- Does the buyer have a motivation to buy your business beyond the immediate financial gains? Values -- Does the buyer share the same values as you? Check these conditions for each potential buyer to see if they are a fit for your target buyers list.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Thu, 26 October 2023
Why Build a Target List of Buyers Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In preparing to sell your business you’ll need to build a target list of buyers. Here’s a list of reasons for why it’s important: Focus -- the list focuses your efforts on those who are the best fit for your business so you know who to work with. Time -- the list saves you time by not wasting efforts on those who are not a fit. Price -- the list helps you maximize your selling price by focusing on the buyer’s key care. Terms -- the list helps you negotiate the best terms for your deal. Efficiency -- the list puts efficiency into the process by eliminating sub-optimal buyers. Mission -- helps you achieve the company’s mission and goals by finding the right buyer. Ideal -- helps you identify the ideal buyer providing the best outcome for the team. Unlike fundraising in which you talk with any potential investor, selling your business requires a focus upfront on the ideal buyer list.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Wed, 25 October 2023
Valuation Methods for an M&A Deal Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are several methods for calculating the valuation of a company for an M&A deal. Here are some key methods to consider: Multiples of revenue or earnings -- each industry segment has a commonly used multiple based on revenue or earnings for valuing the company. To calculate, take several recent exits of businesses in the same industry and calculate the multiple. Comps -- this stands for comparables and uses exits from similar companies to calculate the valuation. To calculate, identify five companies that have the same revenue, growth rate, and monetization model and calculate the exit valuation. Cost to replace -- this calculates what it would cost to replace the business you are selling. To calculate, and identify the cost of development, marketing, and sales to build a company to the size you have. Discounted cash flows -- this uses the future cash flows from the business and discounting back to today. To calculate, make a ten-year financial projection of revenues based on the current growth rate and apply a discount rate to set the valuation. Calculate your valuation using all of these methods to determine which one puts your business in the best light.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Tue, 24 October 2023
Factors Impacting Valuation Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Valuation is a major issue in selling your business. Here are some key factors impacting the price: The size of the company buying your business -- the bigger the company, the higher the potential price. Demand for your company -- the more buyers in the mix, the higher the valuation. Form of payment -- taking stock will typically generate a higher selling price. Earnouts -- the use of earnouts can increase the valuation. Competitive advantages -- the more advantages your business has, the higher the price. Current economy -- the stronger the current economy and market, the higher the price. Target use of the company -- the higher the value of the combined company, the higher the buying price. Past valuations -- the higher the valuation from previous funding rounds often results in a higher buying price. Relationships -- the stronger the relationship with the buying team, the higher the price in some cases. Consider these factors in preparing your business to sell.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Mon, 23 October 2023
Financial Projections for M&A Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In selling your business, the prospective buyer will want to see financial projections showing how you expect the company to perform. There are three financial statements to complete: Income statement, Balance Sheet and cash flow statement. It’s important to develop a realistic projection. The projections should take into account the buyer and their plans for the company. The goal is to show how acquiring your business will help them. The buyer may want to reduce cost, or increase sales, or maintain the status quo. The buyer will review the financials for any outstanding obligations such as debt or accounts payables. They will want to understand the assumptions used to build the numbers. They want to know how much you believe in the forecasted numbers and may ask you to take ownership of achieving the forecast. It’s important to understand why the buyer wants to acquire your company before building your financial projections. The goal is to show how your company can help solve the buying company’s problems.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Fri, 20 October 2023
On this episode of Investor Connect, Hall welcomes Ivan Maltsev, General Partner at 3x Capital. 3x Capital is an investment and advisory firm focused on seed-stage web3 startups. Visit 3x Capital at www.3xcapital.fund. Holding an MS in Business Law and being a PhD candidate in International Economy, Ivan transitioned into crypto investments in 2016, focusing primarily on BTC and ETH. Since 2017, he’s been actively managing his own crypto portfolio and investing in early-stage tokens. Ivan shares the importance of education for both investors and founders in the blockchain space. Ivan highlights the challenges of talent acquisition and stresses the need for more experienced founders in the industry. That is why 3x Capital decided to launch 3x Education in order to help investors and founders to overcome challenges. Visit the website of the program: www.3xcapital.fund/education _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Fri, 20 October 2023
Financials and Key Metrics for M&A Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In selling your business, the buyer will look for key financial metrics. Here are some key metrics to include in your pitch: Total revenue -- revenue before discounts, returns, and adjustments. This shows top-line sales for the company. Sales in units -- the number of units sold over a period of time. This helps the buyer in estimating forecasts. Cost of customer acquisition -- the cost to acquire new customers. This shows how much is required to gain a new account. Gross margin -- revenues minus cost of goods sold yields gross profit. Gross margin is the gross profit divided by revenues and shows how much revenue is left over for sales and marketing expenses. Growth rate -- percent increase in sales month over month, or year over year. This shows how fast your startup is growing Burn rate -- the amount of cash spent over and above the incoming revenue. This shows how much cash is required to maintain the current business level. Fixed costs -- the costs that are fixed regardless of the amount of units sold. This shows the overhead required to run the business. EBITDA -- the revenue minus the cost of goods sold and sales and marketing costs. This shows the amount of revenue available to reinvest in the business. Acquirers will want to see these numbers to consider buying your company.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Thu, 19 October 2023
Painting the Vision of the Value Proposition Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In preparing to sell your business it’s important to paint the vision of the value proposition. The value proposition is the reason a company wants to buy you. To gain the best price you must show how your company combined with the acquirer provides a better future for the buyer. If the buyer only sees a price based on the multiple of your revenue or assets, then the negotiation will revolve around the price for that revenue or asset. Move the negotiation away from the revenue and assets to the vision of the combined companies. This focuses the discussion around potential gains the buyer can achieve. This includes resolving current problems the buyer has or taking the buyer’s company to a new level. Show the proposed outcome of a combined company with new capabilities and prospects. Align the vision around the buyer’s goals and aspirations and not yours. Articulate the branding opportunities as well as the growth prospects. Focus the negotiation on the opportunities the combined company will bring.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound.
Direct download: Painting_the_vision_of_the_value_proposition.mp3
Category:general -- posted at: 5:00am CDT |
Wed, 18 October 2023
Positioning Your Business To Sell Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In selling your business it’s important to articulate all the values in the business a buyer may desire. Here’s a list of sources of value to consider: The products or services generate revenue. This includes current and future revenue potential. The intellectual property that protects those products. This includes trademarks, copyrights, and trade secrets. The customer list you have. This includes prospects and previous customers as well. The team you have. This includes the partner relationships you have built. The datasets you have. This includes any data that can be mined to improve sales or processes. The process and programs you have built. This includes all business functions such as sales, marketing, finance, and administration. Make a list of all of the values in the business before launching your campaign to sell.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Tue, 17 October 2023
Advantages of a Self-Running Business Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In preparing to sell your business, make sure you are setting up a business that can run by itself at some level. Here are some key points to consider: Make sure the company doesn’t have the founder's name on it. Build a great team that can carry on without the founder. For every function in the business that requires the founder, the price will drop by some amount. Run the business as a leader that can pass the reigns to someone else. Setup processes and procedures so the business can continue without you. Buyers put a price premium on self-running businesses. Businesses that require hand holding by the founding team are priced lower. Businesses that require the founding team to run it will require the founders to remain with the business even after the purchase.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound.
Direct download: Advantages_of_a_self_running_business.mp3
Category:general -- posted at: 5:00am CDT |
Mon, 16 October 2023
Reasons To Sell Your Business Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are many reasons to sell your business. Here are some to consider: You may want to scale up to reach more customers. By selling you can move into a business with more reach and greater resources. You may want to see greater operational efficiency. By selling you can join your company with partner firms to provide a more efficient operation. You may find hyper-growth has peaked. By selling the business you can find a place for it with another company. You may have a once-in-a-lifetime offer. By selling the business you can lock in a phenomenal gain. You may find that the market has changed and fundraising in your sector is no longer viable or easy. By selling the business you find an exit for your investors. You may want a career path for your team. By selling the business you create an opportunity for your workers. You may find yourself at the end of the road with the current business. By selling it you can focus on other things.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Fri, 13 October 2023
When it comes to fundraising, do you think it's better to aim for a big round or break it down into smaller tranches? Have you experienced the power of in-person interactions in the business world? Stick around to find out which strategy might work best for your startup. It's advised to present the product, team, and fundraising goals succinctly, rather than overwhelming the audience with exhaustive details. We also talk about structuring a fundraising round with a three-tranche approach. Take action, stay focused, and keep pushing forward. Until next time, keep innovating and chasing your dreams! _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Fri, 13 October 2023
Value of an Investment Banker Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In selling your business you may want to use an investment banker. Here are some reasons to consider: Investment bankers know how to prepare the dataroom and what documents will be needed for the transaction. Most founders are new to the sell-side process. They know how to present your business so it matches the needs of the acquirer. Each acquirer will have a unique set of care about. They know how to set proposed valuations for the candidate acquirer. The valuation will change from one buyer to the next. They understand the transaction process and what it takes to complete it. The process for selling a business is more involved than a standard fundraise. They have a network of potential buyers to pursue. You want as big a network as possible to sell your business. They have access to investors who can fund the deal to complete the transaction. It’s often the case you will need to raise funding to put your business into the best possible position for a sale. Consider using an investment banker to sell your business.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Thu, 12 October 2023
Why Acquisitions Fail? Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Not all acquisitions succeed. Here’s a list of why some fail: The buyer wants to eliminate a competitor by taking them off the market. The acquisition was simply a means to an end and there was no intention of continuing the acquired business. The investment thesis did not play out. The proposed synergies of combining the two businesses never materialize. The two companies don’t integrate well. The proposed merger plan didn’t take into account culture differences, mission variances, and other factors that make combining the companies sub-optimal. The company managers are not skilled at integration and make false assumptions about the prospects of a combined company. The market conditions often change eliminating the initial thesis for merging the two companies. Make sure you have a clear understanding of what the combined company will look like.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Wed, 11 October 2023
Why Companies Acquire Other Companies? Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Companies acquire other companies for many reasons. Here’s a list of potential reasons to consider: Companies seek to acquire a customer list. They want to grow their business by adding more customers. Companies seek to acquire intellectual property. They want the IP so they can expand their technology base. Companies seek to acquire talent. They want to build out their team. Companies seek to acquire new products and services. They want to build out their product line. Companies seek to acquire a cash-generating asset. They want to make a financial gain. Companies seek to achieve a dominant position in the market. They want to increase their market share. Companies seek to acquire competitors. They want to eliminate competition.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound.
Direct download: Why_companies_acquire_other_companies.mp3
Category:general -- posted at: 5:00am CDT |
Tue, 10 October 2023
Acquirer Expectations Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In selling your business it’s important to understand the expectations of the acquirer. Acquirers will look for your accounting to be clean and well-organized. Make sure your contracts, loans, and intellectual property documents are in order. Acquirers will invest substantial time and expect you to do the same. This could be several hundreds of hours over the next six to twelve months. Acquirers are taking on risk and expect you to share in that risk. A one-sided deal where one side takes all the risk usually doesn’t get done. Acquirers expect you to focus your attention on the transaction and keep the business up and running. Make sure your day-to-day operations are covered while you work on the transaction. Avoid putting the acquirers in a place that makes them look bad. Make sure you are setting up the deal so the acquiring team looks good in their reports.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Mon, 9 October 2023
The Founder's Exit Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The cap table shows the ownership of the business. It’s often the case in venture-funded startups that the founder ends up with less than double-digit ownership. There’s the issue of liquidation preferences and other terms that pay investors before the founder. In fundraising, make sure the founder’s position is covered and has a path to an exit. In negotiating the sale, beware of earn-outs in which case the company must meet certain goals to achieve the stated buyout. A typical earnout is ten to twenty percent of the buyout paid over the course of three years based on achieving sales targets. The funds used to pay the earn-out are held in a holdback account under escrow. The control conditions must also be negotiated as it determine who has control over the business and how much control during the earnout. It’s important to understand earnouts as they impact the founder's exit. Without a founder’s exit, there’s no motivation to carry the business forward.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Fri, 6 October 2023
Are you curious about the future of high-end dining? You're in for a treat! They are also the Exclusive franchisee in Canada for Fogo de Chāo, the renowned Brazilian restaurant brand with plans to roll out 10 locations in Canada’s major cities, starting with Toronto and Vancouver in Q2 2024. This year, Debut is also working on the 5-star Grand Hyatt Resort in the Cayman Islands and a 5-star Lifestyle Resort in Tulum, Mexico. Jim Bowen is a Business development professional with 30 years of experience launching and managing international businesses, primarily in the real estate development and commercial design industries. His involvement in commercial real estate developments internationally has given him a unique perspective on fresh concepts for mixed-use retail developments. Jim discusses their exclusive franchise with Fogo de Chão in Canada and their plans to open 10 locations. He emphasizes the importance of creating a unique dining experience, especially in the competitive restaurant industry. Jim also highlights the profitability of Fogo de Chão restaurants and their focus on accommodating various dietary preferences. He addresses challenges in the restaurant industry, including fluctuating ingredient costs. Visit Debut Development Group at www.debutrends.com/, or www.linkedin.com/company/debutrends/?originalSubdomain=ky. Reach out to Jim at jim@debutrends.com, https://www.linkedin.com/in/jimbowenasia, jbowen@fogodechaoca. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Fri, 6 October 2023
Make a List of Target Acquirers Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. It takes twelve months to sell a business. The first six months will be spent finding the buyer. The second six months will go to completing the transaction. To find the buyer consider the following: Start with a list of 250 companies and the names of their CEO and VP of Corporate Development as potential buyers. If you have a list of companies that have enquired about buying the business before, then include them as well. Choose companies with a strategic interest and consider it broadly. Reach out to the CEOs by email stating your interest in selling the business. This should generate forty to fifty calls and meetings. Half of these contacts will want to learn more so prepare an Acquisition Memorandum which gives the status of the company with a marked date. If after the acquisition, the company conditions change materially, then the acquirer has legal recourse based on this document. Two to four of the contacts will send a letter of interest (LOI) with proposed terms and conditions for buying the company. From there the process goes into due diligence by examining the prepared data room which contains financial, legal, and other information about the company. Start with a wide range of companies in searching for an acquirer.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Thu, 5 October 2023
Mistakes in Emailing an Investor Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In emailing an investor avoid these mistakes: Skip the research and just treat the investor as you would anyone else. Try and tell them everything in the hopes that something will stick. Skip the attachments and make them ask for a deck. Ask for funding in the first email. Make the investor fit into your schedule rather than fitting into your schedule. Skip the follow-up by making the email a one-and-done. Email the investor even if your deal doesn’t fit their stated criteria. Email the investor when you are still trying to figure out what you want the startup to be. Skipping the ask and letting the investor guess what the next step is. Including several projects in one email to see which one the investor may go for. Asking a great deal from the investor without making clear why they should do so. Avoid these mistakes in emailing an investor.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
Wed, 4 October 2023
Adding Social Proof to Your Investor Email Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Social proof makes your email more compelling to the investor. Here’s how to add social proof to your investor email: Highlight key advisors you have brought on board. This demonstrates your startup has enough momentum to engage others. Showcase the customers you have engaged with. This demonstrates the product’s value proposition has merit. Include media mentions. This demonstrates your technology is newsworthy. List key investors in the deal. This demonstrates your business proposition can attract funding. Highlight key team members you have recruited to join. This demonstrates your business prospects can attract talent. Use social proof in your investor email to showcase the strength of your deal.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound.
Direct download: Adding_social_proof_to_your_investor_email.mp3
Category:general -- posted at: 5:00am CDT |
Tue, 3 October 2023
Best Practices for Emailing an Investor Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Here are some best practices for emailing an investor: Put the name of your company in the subject line. Use social media for making contact but not for pitching. Spellcheck the email to eliminate any typos. Refine the email to exclude filler words and phrases to make it as tight as possible. Don’t use a docsend as it can come across as invasive. Keep the email to less than 150 words. Include three key metrics to show traction and performance. Attach a pitch deck or one-page teaser with additional information. Include a call to action. Create a sense of urgency by mentioning some upcoming target dates. Use the email to update the investor and build a relationship. Finally, keep it friendly.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound.
Direct download: Best_practices_for_emailing_an_investor.mp3
Category:general -- posted at: 5:00am CDT |
Mon, 2 October 2023
Investor Email Essentials Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In emailing an investor consider these essential todos. Avoid sales-like verbiage as investors have their guard up against sales pitches. Focus on what value you can provide the investor. Keep the email short and concise. Remember, long rambling stories will not get read. Use numbers to make your case as it provides specificity and demonstrates your knowledge of the subject matter. Don’t forget to tell the investor what you want them to do. Without a call to action, the investor simply goes to the next email. Finally, include these key points in your email: The problem you solve. The solution you offer. Current traction. Fundraise status Call to action.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please follow, share, and leave a review. Music courtesy of Bensound. |
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