Investor Connect Podcast

VC Fund Core Documents

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In raising a fund, you’ll need to set up the legal documents that define how and when the limited partners provide the funds, what the fund manager will do with those funds, and how they will return the funds back to the limited partners. 

Here are some key details to include in a fund document:

  1. Show who will manage the fund and what duties they have.
  2. Discuss the fees and expenses for the fund managers.
  3. Define profits and losses and how they are calculated.
  4. Consider tax implications for the investors and maximize for tax efficiency.
  5. Describe circumstances in which the limited partners must make a decision, such as adding new investors or extending the fund.
  6. Show compliance with the laws around tax, transfers, and liability of the members.
  7. Include indemnifications by the fund for the general partners in the case of damages. 
  8. List the redemption rights, if any, by limited partners. 
  9. Finally, discuss the distribution of profits, losses, assets, and the dissolution of the fund.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: VC_Fund_Core_Documents.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Dr. Ipshita Mandal-Johnson, Co-founder and CEO, and Giorgio Reggiani, Co-founder and CFO at Global Bio Fund.

GBF is a value-capital fund with a gender smart lens investing in bio sectors, including digital health. They invest and scale women-led bio ventures at early and growth stages, especially those based in the US, UK, Australasia, and selected high-growth emerging markets.

GBF has also created GBX, a network that consists of a diverse and experienced group of investors, entrepreneurs, scientists, experts, and organizations that support women-led bio ventures that are growth and impact-oriented.

Ipshita currently serves on the advisory boards of Proximie, Chiasma NZ, and Global Engineering Futures. She is a Judge on Mass Challenge and Women in Bio and a member of Global Women and UNAIDS HIEx Investors Council. She is a Visiting Lecturer at the Harvard School of Public Health and the University of Cambridge Chemical Engineering & Biotech.

Ipshita has worked with academia, corporates, and ministries in biotechnology, health, deep technology, and financial services. She has led strategy, policy, and implementation projects in policy development, capacity building, business development, fundraising, and transformation. She started her career in New Zealand and has since worked in the US, UK, and India, amongst others.

For her full bio, click here.

Giorgio is passionate about working with teams that want to make a difference by helping them to create and realise optimum value. Co-founder of a leading European venture capitalist firm, a software configuration company, an antibiotics discovery company (sold to Summit in 2017), and a rare diseases therapies biotech (sold to Astellas Pharma) in 2020 and spun companies out of British Telecom & Toshiba and managed listed companies in London and Sydney.

For his full bio, click here.

Visit Global Bio Fund at www.globalbiofund.org, on LinkedIn at www.linkedin.com/company/global-bio-fund/, and on Twitter at www.twitter.com/GlobalBioFund.  

Reach out to Ipshita at ipshita.mandal.johnson@globalbiofund.org, and on LinkedIn at www.linkedin.com/in/ipshitamj/.

Reach out to Giorgio at giorgio.reggiani@globalbiofund.org, and on LinkedIn at www.linkedin.com/in/giorgioreggiani/

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
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Direct download: Ipshita_Mandal_Johnson_and_Giorgio_Reggiani_of_Global_Bio_Fund_2.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Investing in Startups

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

There’s an old angel saying, “Angels like to have a little fun, do a little good, and make a little money.”

Investing is more than just about money. I’ve found my successful investments covered all three of the elements of the old angel saying. It was fun. The people were great to work with. It had an element of making the world a better place, albeit on a small scale. Finally, it provided a positive return on investment so I could continue funding startups.

Have a little fun

Pursue deals you like. If you don’t like the deal, then nothing else will matter. Ask yourself, “Do I want to work with these people?” “Do I value the work they are doing?” If you can answer “yes” to these questions, then you are well on the path to finding a deal that  lets you ‘have a little fun.’  

Do a little good

Once you have a deal you like, then ask, “Does the company align with my interests?” Invest in startups that further that in which you believe. You may want to support your local entrepreneur ecosystem or a technology that can solve problems that benefit the general public.  

Make a little money

Get agreement on the terms of the investment with a defined exit. 

If you can help the company, then consider setting up an advisory position with them. 

One of the biggest sources of burnout is uncompensated work. There’s an almost unlimited amount of work that needs to be done, and the startup will load you up. 

Remember, successful investments let you make some money, have some fun, and do some good.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
____________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: Investing_in_Startups.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- 3X in 3 Terms Sheets

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

The biggest challenge in investing in startups is finding the exit.  

Time value of money is important and should be part of your return metrics.

Startup investors look for a 44% IRR.  

IRR is Internal Rate of Return and represents the return on investment with respect to time, unlike ROI, which is return on investment without respect to time.  

Startup investors occupy a unique place in the startup funding ecosystem.  

Startup investor funding is the first money in after family and friends funding.  

The longer you stay in the deal, the greater your risk for dilution by follow-on investors.  

The key to a successful exit is a deal structure that gives some control after making the investment.

Equity-only term sheets give investors little say in the future of the company or how to exit.  

To achieve an exit, you must define it yourself, as the vast majority of startups will not do so. 

You must have it in writing before you invest.

Trying to come to an agreement with the startup after investing is almost impossible as the gap between the startup and the investor is too great to close. 

One way to define the exit is to add redemption rights into the agreement.

An example of this is the 3X in 3 terms sheet.

The deal structure is a Convertible Note with a redemption right for 3X your investment to be returned at year 3 of the investment at ‘Investor Sole Discretion.’   

At the third anniversary of signing the note, the investor has the option to convert the original investment to a three times return ($100K in is $300K out) or to go on the cap table as an equity investor.

In reality, there are many choices. In most cases, the startup is motivated to keep your funds in the deal and will negotiate terms to achieve it.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
____________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 3X_in_3_Terms_Sheets.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Foundation for Startup Investing

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Startup investing is a risky business. Not all the investments will work out.  

Know your risk tolerance and how much risk you want to take.  

Most investors allocate 3 to 10 percent of their investments into startup investing. Allocate a specific amount of funding for your investments.

You need to invest across ten deals to gain diversification, so take your funds allocation and set an amount or range for each investment. 

Follow-on funding is also a factor, so be prepared to invest again in many of those companies.  Consider taking your allocation per deal and dividing it into two -- one for the upfront investment and the other for a follow-on funding.

Consider what is important to you and invest in companies that align with your goals and vision.

You may want to support your community or industry. You may want to foster diversity or create jobs.  Or you may want to mentor entrepreneurs or keep your skills up to date. 

In the end, it’s the “Why” you invested that will matter the most. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: Foundation_for_Startup_Investing.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Mike Jarmuz, General Partner at Lightning Ventures.

Headquartered in NYC, NYC, Lightning Ventures is an exclusively Bitcoin-focused network of investors, operators, and developers, dedicated to supporting lightning network adoption worldwide.

Mike Jarmuz… or Muzz…is a General Partner at Lightning Ventures and is focused on investing in Bitcoin companies. His goal is to evangelize and demystify early-stage investing to plebs and whales alike. Mike is also passionate about educating founders and operators on strategies to fund their projects. Muzz believes everyone should invest in technology companies (not just the suits) and that investing in Bitcoin companies is the best thing a pleb can do to compliment their HODL position. What else? Mike also co-organizes the Unconfiscatable Conference, and is an advisor to Azteco. He has a serious angel investing addiction and has invested in over 1500 companies. Some of his Bitcoin investments are Fold, Swan, The Bitcoin Company, Impervious, Start9, Breez, Scarce City, and more. 

Mike speaks about investing in Bitcoin, how he sees the industry evolving, and some of the challenges investors and startups face.

Visit Lightning Ventures at www.ltng.ventures, on LinkedIn at www.linkedin.com/company/lightning, and on Twitter at www.twitter.com/ltngventures.

Reach out to Muzz at mike@ltng.ventures, on LinkedIn at www.linkedin.com/in/mike-jarmuz-573b5658/, and on Twitter at www.twitter.com/MikeJarmuz.   

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: Mike_Jarmuz_of_Lightning_Ventures.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Becoming an Angel Investor

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

For those who want to become an angel investor to fund startups, here are some key steps:

Meet accredited investor requirements. You must meet the SEC criteria for accredited investors. You can see the specifics on the SEC website. In short, you must have a $1M net worth, not counting the house you live in.

Startup investing is risky -- angel investing is high reward with high risk. Be prepared to lose money as it’s a part of the process.

Learn from other angel investors -- read, discuss, join. Read up on the subject. Discuss with existing angel investors, and join an angel network in person or online to learn more about it.

Listen to podcasts -- one of the best ways I learned about angel investing was through podcasts showcasing investors talking about how they invested.

Develop your investment thesis -- determine what you want to invest in and why it should work.  

Meet with startups and start learning about deal flow -- review the documents and term sheets to become familiar with the process. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: Becoming_an_Angel_Investor.mp3
Category:general -- posted at: 6:00am CDT

Where Does the Angel Play?

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

So, what startups do angel investors pursue?

Angel investors invest in high-growth startups, most often tech-enabled.

Restaurants, retail, and service businesses are not necessarily a fit for angel investors.

Angels seek a return on investment in the range of 44% IRR.

While some angels are looking for home runs, most angels invest in deals that are singles and doubles for returns as they don’t have the deep pockets to fund a startup all the way.

Angels look for capital-efficient deals and have the opportunity to scale.

Those startups with recurring revenue are preferred. 

Angels invest in businesses that, for the most part, have an initial product and are going into the market.

They look for companies that, for the most part, can run themselves.  

Unlike the VC, which earns a paycheck through their management fee, the angel has no management fee, so all costs come out of pocket, and all time comes from the angel investor’s own time.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: Where_does_the__Angel_Play.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Gordon Henry, Host of Winning on Main Street Podcast and Chief Strategy Officer at Thryv.

Winning on Main Street Podcast is geared towards helping small businesses with tips and knowledge to run their business in today’s evolving landscape. 

Thryv is a secure, easy-to-use small business management platform that automates tasks and puts your customers at the center of your business. They’ve been around in one form or another for more than 125 years, always with one goal in mind — helping small businesses compete and win.

Thryv provides the technology, software, and local business automation tools small business owners need to manage their time better, communicate with clients, and get paid, so they can take control of their business and be more successful.

Gordon is passionate about helping small businesses grow, modernize, and thrive in today’s evolving environment. Gordon has spent decades helping small businesses with client acquisition strategies and marketing. He is also a leader in enhancing a company’s image through public relations, brand management, and advertising. Gordon received his Bachelor of Arts from Yale University and an MBA from the Wharton School at the University of Pennsylvania.

Gordon speaks about automation in the startup world, CRMs, what he attributes the success of his podcast to, and more.

Listen to Winning on Main Street Podcast at www.winningonmainstreet.com.

Visit Thryv at www.thryv.com, on LinkedIn at www.linkedin.com/company/thryvinc/, and on Twitter at www.twitter.com/Thryv.

Reach out to Gordon at gordon.henry@thryv.com, on LinkedIn at www.linkedin.com/in/gordonhenry/, and on Twitter at www.twitter.com/gordonmhenry.  

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: Gordon_Henry_of_Winning_on_Main_Street_Podcast_and_Thryv.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Startup Investor Skills -- Managing the Portfolio

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Startup investors need to hone their skills in order to succeed over the long run.

Key skills include: 

  1. Evaluating teams.
  2. Assessing products and markets.
  3. Accessing financial capital not only for the current round of funding but for later stages.
  4. Managing a portfolio of startup investments, including supporting the startup and generating exits.

In managing a portfolio, you need to provide support to the startup at some level.

It’s best to invest in businesses that you can help, so this should be part of your investing criteria.

You need to track the companies in your portfolio and keep up to date with them at least once a quarter. 

At some point, you may need to help the startup generate an exit by making introductions to companies who could acquire the startup.

A potential buyer will want to see the startup’s organization align with its own structure.  

The investor can help the startup align with the acquirer.  

This process becomes the growth strategy of the startup.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: Startup_Investor_Skills_--_Managing_the_Portfolio.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Startup Investor Skills -- Accessing Financial Capital

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Startup investors need to hone their skills in order to succeed over the long run.

Key skills include:

  1. Evaluating teams.
  2. Assessing products and markets.
  3. Accessing financial capital not only for the current round of funding but for later stages.
  4. Managing a portfolio of startup investments, including supporting the startup and generating exits.

So for accessing financial capital, you need a network of investors both at the stage in which you invest and for the stage after.

For the current round, you may need to help the startup finish its current raise.

Referring them to investors who may be a good fit will help them succeed.

Reserving funds for their next round is also important. Many investors divide their total allocation to the startup in half, investing half in the first round and the other half in a follow-up round.

For their follow-on round, it’s useful to know investors at that stage so you can make introductions there as well.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
____________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: Startup_Investor_Skills_--_Accessing_financial_capital.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Startup Investor Skills -- Evaluating the Product & Markets

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Startup investors need to hone their skills in order to succeed over the long run.

Key skills include: 

  1. Evaluating teams.
  2. Assessing products and markets.
  3. Accessing financial capital not only for the current round of funding but for later stages.
  4. Managing a portfolio of startup investments, including supporting the startup and generating exits.

So for the product, ask, is it a vitamin or a painkiller?

The vitamin makes you stronger and better, but it’s nice to have for the customer.

The painkiller is more important to the customer and, in some cases, crucial.

It’s better to invest in painkillers than vitamins.

For markets, you look for large markets, not small ones.  

Ask, where in the lifecycle is this market -- early stage, growing, maturing, or declining?

You want a market that is growing or about to start growing because of disruptive technology.

It’s important someone on the team knows the market very well.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: Startup_Investor_Skills_--_Evaluating_the_product_and_market.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Joseph O'Bell, Attorney, Founder of Vineyard Sun LLC, and Host of the Moontower Business Podcast.

The Moontower Business Podcast was launched when the pandemic started. The goal was to showcase entrepreneurs and the business community in Austin, Texas. The podcast quickly evolved and began to cover entrepreneurs and business leaders all over the United States. The podcast has featured interviews with entrepreneurs and business leaders in a vast array of industries. Some of the guests include billionaire Peter Rex, Austin Mayor Steve Adler, former Texas Secretary of State Carlos Cascos, Jehudi Castro, Advisor to the President of Colombia, venture capitalist Sean Sheppard, Nik Bhatia author and Professor at USC Business School, and many more. 

Joseph is General Counsel for American Metals Recovery and Recycling Inc. as well as Multiband Global. He has practiced civil litigation and transactional work. Joseph has worked in the Texas Emerging Technology Fund in the Texas Governor’s Office and as General Counsel of a startup company called Votalize Inc. He is also the Founder of Vineyard Sun, LLC, an eCommerce sunglasses company based in Austin.

Joseph discusses the implications of the influx of persons into Austin, Texas, the bitcoin industry there, his podcast, and more.

Listen to the Moontower Business Podcast at www.moontowerbusinesspodcast.com, and on Twitter at https://twitter.com/MoontowerB.  

Visit Vineyard Sun LLC at www.vineyardsun.com.  

Reach out to Joseph at joey.obell@multibandglobal.com, joseph@moontowerbusinesspodcast.com, on LinkedIn at www.linkedin.com/in/joseph-o-bell-2451621b/, and on Twitter at www.twitter.com/NY_TX_Lawyer/

_____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: Joseph_OBell_of_Moontower_Business_Podcast.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Startup Investor Skills -- Evaluating the Team

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Startup investors need to hone their skills in order to succeed over the long run.

Key skills include: 

  1. Evaluating teams.
  2. Assessing products and markets.
  3. Accessing financial capital, not only for the current round of funding but for later stages.
  4. Managing a portfolio of startup investments, including supporting the startup and generating exits.

So for the team, the basis of any relationship is integrity.  

The team needs to be in it for the long haul. Startups are the ultimate marathon game.

They need to know their market and their customer -- very well.

Finally, they need to inspire confidence.

The CEO, in particular, needs to recruit others to the company including customers, employees, and partners.

Those who can inspire others to join the cause will do well. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: Startup_Investor_Skills_--_Evaluating_the_Team.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- 3X in 3 Term Sheet Walkthrough

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

The TEN Capital Early Exit term sheet includes a 3X redemption right, giving the investor the sole discretion over their right to 3X their investment at the three-year mark from the date of the investment. 

A redemption right gives the investor or startup a right to redeem an ownership stake in the company. 

The term ‘Investor Sole Discretion’ means the investor has the sole decision on taking the redemption right.

The company typically pays back in a lump sum or a series of monthly payments spread over 6 to 12 months. Since it can be a rather large cash outlay, some companies start escrowing money a year in advance.

If the company cannot pay, then a workout plan is negotiated. The terms of the redemption right give investors consent rights over the company’s cash expenditures.  

There’s an interest rate set in the note for ongoing accumulation while the funds are kept in debt form.  

The interest is not paid out but rather rolled into the equity amount should the investor give up the redemption right and go onto the company’s cap table.

In the event of an early exit, the interest payment continues till the debt is paid off. 

The returns are treated as long-term capital gains.

Startups using this structure include tech, healthcare, and consumer product goods with at least $500K of annual revenue.  

If the revenue is lower than that, the company is at risk of startup failure. If it’s above $500K, then it will most likely remain an ongoing business. 

If the company declares bankruptcy, then depending on the outstanding debt the company is holding, the investor could lay claim to the assets, which in most cases include the patents.  

There is also an opportunity to take over the business.  

Finally, it’s a tax return write-off.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: 3X_in_3_Terms_Sheet_Walkthrough.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Ian A. Brown, Attorney, Appraiser, Florida Real Estate Broker, and Founder of Yield Coach.

Located in Jacksonville, Florida, Yield Coach is a real estate thought-leadership platform with both educational and investment concentrations.

Ian is an experienced and dynamic real estate professional. Prior to founding Brown Brothers Realty, Ian was a senior consultant at a commercial real estate firm specializing in valuation and real estate analytics. In addition to being a licensed real estate broker, Ian is also a licensed appraiser and earned his J.D. from the Florida Coastal School of Law. His responsibilities include investment sales, debt restructuring, tax appeal, buyer and seller representation, property valuation, highest and best use analysis, and tenant and landlord representation. Through his diverse and well-rounded experience, Ian is able to apply creative approaches to assist clients in reaching their investment goals, as well as navigating their real estate challenges.

Ian’s background and exposure are fundamental to the Yield Coach platform and will allow students to look at deal structures differently and close larger deals (at better returns) than most new investors would have achieved.

Visit Yield Coach at www.yield-coach.com and on LinkedIn at www.linkedin.com/in/yieldcoach/.

Reach out to Ian at ian@yield-coach.com and on LinkedIn at www.linkedin.com/in/ian-a-brown-esq-64a4236a

_____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: Ian_Brown_of_Yield_Coach.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- How to Perform Diligence in a Group

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In performing due diligence in a group of investors, it helps to assign roles and responsibilities.

There are three phases to diligence:

  1. Documentation diligence
  2. Team diligence
  3. Domain diligence

The lead investor should take the three steps and assign each of these to one person or group.

Assign the first team to review the key documents and write a short report on what the company has and if there are any discrepancies with the submitted documents.

Assign the second group to review the startup team. Meet with the team, assess their skills, and write a short report.  In most cases, you’ve heard the CEO pitch, but it’s important to understand the CEO’s skills set, including what is there and what is not.  

Assign the third group to research the competition. The group should check the positioning of the company in the marketplace.

Identify the value proposition and how well it resonates with customers. 

Look at their pricing compared to the competition.

Check the industry to see the conditions in which it will grow or decline.

Remember to write down in one document the findings to share with others.

The lead brings the group together to review the results and check any red flags. 

Shared documents and folders make this step easier.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: How_to_Perform_Diligence_in_a_Group.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Know Your Why

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

For startup investing, it’s important to know why you are investing beyond the monetary gain. 

There’s an old saying among angel investors:

“Angel investors want to make a little money, do a little good, and have a little fun.”  

Successful investors, I know, not only want to make a little money and have some fun, but they also want to do a little good. 

Their “Why” goes beyond making money.

Some examples include supporting the local entrepreneur ecosystem, furthering a technology that can solve problems that benefit the general public, helping build new companies, and creating jobs. 

Support new entrants to the startup world, such as those in the diversity category.

I’ve worked with many angel networks and have found those who have a clear “Why” have much lower turnover rates and a greater engagement by the members.

In startup investing, it’s important to know your “Why.”


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
____________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: Know_your_Why.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Building Your Entrepreneur Ecosystem

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

I have found a number of investors want to build their entrepreneur community as part of their investment thesis.  

The most common lament from a startup investor is, ‘I invested my available funds and must wait ‘til I see something return before investing more.’

This makes it difficult to build an ecosystem as the funds are tied up for a long period of time. 

One solution is the Early Exit term sheet; this gives the investor the option to take back their investment at year 3.

To provide funds to more startups, you could take the gains from one startup investment to invest in other startups. 

For example, in a 3X in 3 years redemption right, a $50K investment would yield $150K in 3 years. 

You could divide the $150K as follows:

$50K -- leave in the startup as equity or debt

$50K – take from the first startup to fund a second startup 

$50K -- return to investor funds

This creates an evergreen fund for investing in more startups. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
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Direct download: Building_your_Entrepreneur_Ecosystem.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Phil Blows, Founder and CEO at AQRU, and author of “The Money Triangle.”

Headquartered in London, England, AQRU is a business that specializes in helping institutional and retail customers earn high-interest rates on their cryptocurrency. AQRU just surpassed the 10,000 client count since its founding and is one of the only publicly-traded companies in this industry.

AQRU offers yields ranging from 7-12% pa on your investments, with all rewards paid in real-time. 

Phil has more than 15 years of leadership experience in the Fintech and asset management sectors, having spearheaded the scaling-up of online trading platforms at several leading companies.

As an expert in financial planning and wealth management, Phil spent four years, during his time at UK robo-adviser Wealth Wizards, speaking with over 10,000 retail investors about how they manage their money and then designed a simple online tool to help give advice and guidance to help everyday people improve their financial health. Phil also works as a senior foreign exchange adviser at Continental Capital Markets S.A where he built a global client base of investment banks and advised on derivative investment strategies. 

He holds several internationally recognised financial certifications and qualifications, including an Investment Management Certificate from the CFA Institute, and has been certified as a blockchain expert by the Blockchain Council. Phil is passionate about improving the financial health of all those he meets and is the author of a personal finance book, “The Money Triangle,” proceeds of which support various financial education charities.

Visit AQRU at https://aqru.io/, LinkedIn at www.linkedin.com/company/get-aqru, and on Twitter at www.twitter.com/AQRU_Official

Reach out to Phil at phil@aqru.io and on LinkedIn at www.linkedin.com/in/philipblows.

_____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
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For Startups check out: https://tencapital.group/company-landing/ 
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Direct download: Phil_Blows_of_AQRU.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Early Exit FAQ

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

It’s easy to get into a startup investment, but it can be hard to get out. 

An Early Exit deal structure gives the investor a way out. The TEN structure uses redemption rights.

What is a Redemption Right, and how does it work?

A Redemption Right gives the investor or startup a right to redeem an ownership stake in the company. 

What are the terms?

The TEN Capital Early Exit term sheet includes a 3X redemption right, giving the investor the sole discretion over their right to 3X their investment at the three-year mark from the date of the investment.  

Investor Sole Discretion means each investor makes their own decision.  

Near the three-year mark, the investor will have 30 days to decide if they are going to take the redemption or refuse it.  

If the investor takes the redemption, the payback will commence at the three-year mark.  

If the investor refuses the right, then the convertible note will mature, and the investment will convert to equity.  

In that case, the investor will then receive a return when the business reaches a liquidity event which is primarily by an acquisition of the company.

Investors who take the redemption right will work out a payback plan with the startup.


T
hank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: Early_Exit_FAQ.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Why Use an Early Exit Deal Structure

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In startup funding, 65% of the investments after three years are still in business but are no longer on the venture track. 

In most cases, they are growing businesses but are not going to be bought out for a significant return to the investor.

The market conditions changed, competition took over, or the founder was no longer interested in keeping pace to achieve a venture exit.

The best-case scenario was the entrepreneur would sell the business for 2 to 3X after 10 years, in which case the investor would get a minimal return.

In my investing experience, three years into the investment, it becomes clear if the company will continue on the venture path or not.  

This was due to competition in the market, a difficult fundraising environment, or just plain poor performance by the company.

The entrepreneur signals their departure from the venture path by taking above-market rate salaries. 

I call this taking the “payroll exit,” in which case they no longer needed an “equity exit.”  

This leaves the investor stranded on the equity plan with no way out.

It’s very difficult to negotiate a buyout from the startup for the investor's shares since there’s no market for setting the value.

An Early Exit deal structure gives the investor a way out of this situation which is far too common in the startup funding world.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
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Direct download: Why_Use_an_Early_Exit_Deal_Structure.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Tim Cooley, Executive Director at Park City Angels and author of the #1 best-selling book on raising capital, “The Pitch Deck Book.”

The Park City Angels are a group of 50+ accredited investors located in Park City, Utah. They look to invest in promising opportunities that can produce significant shareholder returns. The active lifestyle of Park City has attracted many dynamic and successful business leaders that have deep experience in building world-class businesses. Park City Angels facilitate unique, high-caliber networking and development forums for angel investors and mentors involved in early-stage investment. 

Park City Angels are most interested in companies that have valuations from $4M to $6M, have a reasonable likelihood of reaching $30M in sales within five years, and can get to cash flow break-even within the next year or two. Geographically their focus is primarily on companies in the state of Utah and adjacent areas, but they will also consider out-of-state deals if there is a connection to a member of the group or are referred to them by well-respected current investors.

Tim has worked with 100s of early-stage companies in marketing, sales, product development, and fundraising. The companies he has worked with have raised more than $200M in Seed and Series A funding. 

Tim discusses the types of deals the group looks for, some of the challenges startups and investors face, the future of angel investing, the inspiration behind writing his book, and more.

Visit Park City Angels at www.parkcityangels.com and at LinkedIn at www.linkedin.com/company/park-city-angel-network

Reach out to Tim at timlcooley@gmail.com and on LinkedIn at www.linkedin.com/in/timlcooley/

Purchase "The Pitch Deck Book" at Amazon and other major retailers.

_____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: Tim_Cooley_of_Park_City_Angels_and_Author.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Early Exit Deal Structure

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Investing in startups is risky. One way to reduce the risk is to define the exit. 

TEN Capital’s Early Exit term sheet is a convertible note with a 3X in 3-year redemption right at ‘investor sole discretion’ to provide the investor an option for an early exit. 

The investor receives 3 times their investment 3 years from the date of investment.  

So, $100K in yields $300K out.

A 3X return in year three from the initial investment yields an IRR of 44%.   

‘Investor sole discretion’ means each investor makes their own choice about continuing in the investment or not at year 3.

If the investor takes the early exit, then a payment plan is worked out.

There are several benefits, such as:

  • Let's you define the exit for your investment since most startups raising equity funding cannot 
  • Provides the option of short-term exit or long-term equity investment
  • Gives the startup the opportunity to prove itself, and then the investor chooses between holding a short or long-term investment.
  • Easier to implement than revenue-based funding

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
____________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: Early_Exit_Deal_Structure.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Diligence Process - Team

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Before investing in a startup, it’s important to review the diligence documents, so you understand the business. 

There are three phases to diligence:

  1. Documentation diligence
  2. Team diligence
  3. Domain diligence

Domain diligence is an important part. 

Check the industry to see the conditions in which it will grow or decline.

Check the positioning of the company within the industry.

Assess the company’s strategy within the industry - is it standard or disruptive?

Research the competition to determine the company’s position in the marketplace.

Identify the value proposition and how well it resonates with customers. 

Find out the leaders in the industry and how much they will control pricing, distribution, and other factors.

Look at the company’s pricing compared to the competition.

Assess how much the company has the edge over competitors and if it will last. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
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Direct download: Diligence_Process_--_Domain.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Diligence Process - Team

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Before investing in a startup, it’s important to review the diligence documents, so you understand the business. 

There are three phases to diligence:

  1. Documentation diligence
  2. Team diligence
  3. Domain diligence

Team diligence is the most critical part.  

Gather references for the CEO and call them up to hear what they have to say about the founder, including management style, how they work, and their team dynamics.

In most cases, you’ve heard the CEO pitch, but it’s important to understand the CEO’s skills set, including what is there and what is not.  

Meet with the team and assess their skills.  

It helps to meet the team at their office, so you understand their environment.

The team needs to bring the necessary skills to succeed.

Key questions to ask include:

  • What skills are required to be successful?
  • What skills are currently in the team?
  • What skills are not currently in the team?
  • For missing skills, how do we plan to obtain them?
  • How long have the team members worked together?
  • What projects have they done before?
  • How close is the current project to their previous work?
  • What other obligations do the team members have for family, social, and other businesses?

In almost every startup failure, the investor can trace it back to the team not being up to the task. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
____________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: Diligence_Process_--_Team.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Corey Kupfer, Founder at DealQuest, Host of the DealQuest podcast, Founder and Managing Principal at Kupfer & Associates, and Author of “Authentic Negotiating.”

Corey founded DealQuest to provide courses, retreats, masterminds, and other valuable content designed to support entrepreneurs, high-level executives, and business leaders in achieving their visions and goals through deal-driven growth.

The DealQuest podcast takes you behind the scenes with some of the world’s most fascinating deal-savvy business leaders. This is the one place where they can openly share the secret to deals they have done (or failed to do) and the issues, opportunities, benefits, pitfalls, and lessons learned.

Kupfer & Associates’ focus is on providing the legal insight and counseling needed to advance each client’s business interests.

A successful entrepreneur from the age of 15, Corey is a passionate advocate and leader in the entrepreneurial world; he’s also a renowned strategist on deal-driven growth strategies. Corey has represented, trained, and mentored thousands of companies and entrepreneurs to create leaps in their business growth.

As a member of the New York Chapter of Entrepreneurs’ Organization since 2008, a Board Member since 2010, and Chapter President from July 2014 - June 2016, Corey has been a passionate advocate and leader in the entrepreneurial space.

Corey is a frequent speaker at entrepreneurial, business, and securities industry conferences and events on many topics, including authentic negotiating, deal-making and structuring, entity and platform design, mergers and acquisitions, entrepreneurship, visioning and planning, employee attraction and retention vehicles, authentic conversation about race and building authentic business relationships.

Visit DealQuest at www.coreykupfer.com, and listen to the podcast at www.coreykupfer.com/podcasts/dealquest-podcast-with-corey-kupfer.

Visit Kupfer & Associates at https://kupferlaw.com/ and on LinkedIn at www.linkedin.com/company/kupfer-&-associates-pllc.

Reach out to Corey at corey@coreykupfer.com, on LinkedIn at www.linkedin.com/in/coreykupfer/, and on Twitter at www.twitter.com/coreykupfer.  

_____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
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Direct download: Kupfer_of_DealQuest_DealQuest_podcast__Kupfer__Associates_PLLC.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Diligence Process - Documentation

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Before investing in a startup, it’s important to review the diligence documents, so you understand the business. 

There are three phases to diligence:

  1. Documentation diligence
  2. Team diligence
  3. Domain diligence

For Documentation diligence, ask the startup for a list of key documents. 

If it’s not in one folder, ask them to put it into a Google Drive or Box account.  

It’s common for startups to continually add to their diligence box, so keeping it in one place helps.

The key documents include: 

  • Entity filings and articles of incorporation
  • Patent filings
  • Income statement
  • Balance sheet statement
  • 3-5 year financial projections
  • Cap table

These are the documents you will review. 

Other documents related to the business, such as lawsuits, by-product breakdowns, and by-customer breakdowns, should be requested if appropriate. 

Read each document and check to see if it matches what you understood about the deal.  

Note any differences and ask for clarification.

You may need to sign a Non Disclosure Agreement (NDA) for sensitive information.  

It’s standard practice to do so in due diligence as the information should be kept confidential even without an NDA in place.   


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
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Direct download: Diligence_Process_-_Documentation.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Diligence Process

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

For startup investing, it’s important to have a diligence process.

In most cases, you’ll sign a term sheet with funding contingent on passing due diligence.

It helps to tell the company about your diligence process, such as what documents are required, what steps you perform, and how long it typically takes.

This helps eliminate the “how is it going?” calls. 

The process may vary from deal to deal based on the risks associated with each deal. 

Write out a list of your concerns and look for answers both in the documents and through discussions with the CEO.

  1. High-level questions to ask include the following:
  2. Product validation -- does the product work?
  3. Market validation -- will someone pay for it?
  4. Team validation -- is the team sufficient for the job?
  5. Funding validation -- how much funding will be needed to reach the exit?
  6. Exit validation -- will someone buy the company being built?

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
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Direct download: Diligence_Process.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Mark Hayward, business mentor and accredited leadership coach, creator, host of the Absolute Business Mindset podcast, and an experienced real estate investor.

After 14 years in the corporate world, Mark left and started a podcast agency, where he teaches people the importance of the story, refining ideas, how to plan and publish episodes, and how to move from an idea to monetising a podcast. On his podcast, Mark interviews entrepreneurs, business owners, authors, and industry leaders who share their stories of success. He enjoys delving deep into their area of specialism and asks unique questions. Mark helps his clients turn an idea into a successful and sustainable business. He also assists them through the early stages of a startup, showing them the building blocks of a business. 

Mark has a portfolio of properties in London, and he sources deals for other property investors. 

Mark shares his background, discusses his podcast show and agency, challenges he has faced, common myths about podcasts, advantages of having a podcast, and more. 

Reach out to Mark at mark.j.hayward@outlook.com, on LinkedIn at www.linkedin.com/in/mark-hayward-163721a0, and on Twitter at www./twitter.com/markhayward169.  

Listen to the Absolute Business Mindset podcast at https://absolutebusinessmindset.com/
_________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

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Direct download: Mark_Hayward_of_Absolute_Business_Mindset_podcast.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Allocate Funds

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In preparing for Startup investing, you should determine up front how much you are going to invest. 

In general, it’s best to keep your startup investing to 3-5% of your discretionary investment funds.  

These are funds you can lose and not impact your lifestyle or other investments.  

Determine in advance how much you plan to invest. Use a five-year window.

Set up to access those funds for when you need them. 

If the funds are separated from the rest of your investments, it will be easier to manage the process.

The amount you invest per deal will determine what platforms you will use.

If you invest $5K, then you will most likely be on an online funding platform.

If you invest $25K, then you can join a group and invest with angel investors.

If you invest $50K, then you can join a syndicate.

If you invest $100K or more, then you can invest through investment banks.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: Allocate_Funds.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Deal Flow Sources

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

For finding startups to invest in, set up a number of sources that fit your investment thesis.

Track each deal that fits your requirements.  

In general, you should spend some time networking with startups and investors to stay connected.

Use your network of contacts to find deals.

Join an angel network or syndicate.

Canvas the accelerators and incubators in your area for more startups.

There are numerous online platforms you can join as well.

It’s helpful to network with lead investors and build relationships with investors in general, so you can share information about deals and provide and receive referrals. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
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Direct download: Dealflow_Sources.mp3
Category:general -- posted at: 6:00am CDT

Startup Boards -- Investment Thesis

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In startup investing, you should have an investment thesis, which is what you invest in and why it will be successful.

Here’s how you build your investment thesis if you haven’t done so already:

Step one

Look at 50 deals and write down what you like and don’t about each one. This is not as hard as it sounds, given how many deals there are.

Step two 

Follow up one to three months later to see how it is working out. This will inform your investment thesis as you will see some deals progressing forward, some stall out, and others pivoting to something else.

Step three

Write out your investment thesis, which includes:

  • Your observation about a macro trend in an area you care about
  • Position of the company in the trend
  • Characterization of the company that gives it a competitive advantage
  • Conditions for investing based on price, revenue, and other factors

Example investment theses include:

  • Healthcare is moving to the home
  • Companies providing technology-enabled services will succeed
  • Companies with recurring revenue and a CAC:LTV ratio of 1:8 are preferred
  • Companies with revenue above $500K and a pre-money valuation below $5M are preferred. 

It’s important to write out your investment thesis as you’ll return to it often.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
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Direct download: Impact_investment_thesis_rev.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Debbie Saviano, Founder of Debbie Saviano LLC.

Debbie represents those who wish to transition into another career, as she has done it three times. After a successful career in education as principal of five different campuses with students in pre-K to high school, she transitioned into the sphere of social media. Debbie recognized the need to maximize digital space and she worked with clients internationally in building and re-designing their LinkedIn profiles. As a result of Debbie’s mature “age,”  she was a highly sought-after speaker on social media.

The second transition was when Debbie co-founded Women’s Leadership LIVE (WLL) with her two partners, Linda McMahon and Stacey Schieffelin. This was the perfect segway in that she was able to continue with her passion for education and lifelong learning as WLL was a guiding force and proponent of women entrepreneurs and small business owners, which offered a unique platform in how it educates and inspires women to launch and expand their businesses.

The third transition occurred at the beginning of 2022 when Debbie returned to her roots in education and social media. Digital space is non-negotiable! It is a must, and through courses and consulting, Debbie guides professionals and entrepreneurs on how to maximize their ROI – Return on INFLUENCE as it is the new benchmark for professionals and having the ability to embrace it can be a determining factor for success.

Debbie is an advocate for guiding others on how best to utilize social media. In today’s market, it is all about being seen and heard on the various digital platforms that everyone carries around on their mobile devices and it enables us to create and maintain quality relationships that we all seek with those we provide solutions for.

Debbie speaks about using LinkedIn to find investors, its weaknesses and strengths, how a startup should use LinkedIn to raise funding, and more.

Reach out to Debbie at debbie@debbiesaviano.com and debbie@womensleadershiplive.com, on LinkedIn at www.linkedin.com/in/debbiesaviano and www.linkedin.com/company/debbie-saviano, and on Twitter at www.twitter.com/DebbieSaviano

_____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
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Direct download: Debbie_Saviano_of_Debbie_Saviano_LLC.mp3
Category:general -- posted at: 6:00am CDT

How to Find Deal Flow

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In running an angel group, you’ll need to set up deal-flow sources to provide quality deals to the members.

Here are some sources to consider:

Ping the members of the group regularly for deals they recommend.

Avoid the ones in which they say, “I’m not interested, but perhaps others are.”

Look for the deals that members want to invest in.

Identify investors outside the group who fund quality deals in the same sector and stage as your group and set up a relationship to share deal flow.

Follow up with your portfolio companies about deals they recommend.

Consider other angel networks in the geographic area or sector area to provide deal flow.

Talk with service providers such as attorneys and accountants about deals they see needing capital.

Join community groups that foster the sectors your group is interested in and have the members attend those group meetings.

Review online portals for deals raising funding.  

Finally, establish a reputation for providing mentorship, feedback, and support to position the group as the go-to resource for startups.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
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Direct download: How_to_Find_Dealflow.mp3
Category:general -- posted at: 6:00am CDT

How to Recruit Members

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In running an angel group, it’s important to recruit new members.

The first step is to showcase the deals you have to prospective investors to see if they find them interesting.

You can send them recently-funded deals so the prospective investor can see the types of deals your group offers.

You can give them access to all deals for a period of time and then see if they want to join.

The best way to find new investors for your group is to network through the current investors.  

Have the current members bring friends and colleagues to the presentation meetings and invite them to invest in deals the members are funding.

Provide the returns for the group to show the track record.

It helps to have a fund that investors can join for those who don’t have the time to review specific deals.

For every four investors who want to participate, three will join the fund, and one will join the group.

Set up a syndicate that takes care of the diligence and makes it easy for investors to join the deals.

Make clear the goal and mission of the group to the prospective investors as the why is stronger than the return in gaining new members.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
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Direct download: How_to_Recruit_Members.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Thom Singer, Executive Search Consultant, Author of twelve books, featured Speaker at over 1,000 business events, and Host of Making Waves at C-Level Podcast.

As the host of the popular podcast, Thom interviews business leaders, entrepreneurs, solopreneurs, and others who possess an extra dose of the entrepreneurial spirit. The information compiled from these compelling interviews is shared with his clients, as he challenges people to be more engaged and enthusiastic in all their actions.

Thom is dedicated to the idea that all opportunities come from people. He has studied thousands of successful people to discover that nobody is really “self-made.”  When you build relationships based on trust and accountability, you have more success.  Thom has had an eclectic career in sales and marketing for Fortune 500 companies, law firms, and small companies, and when he was 21 years old he was a five-day returning champion on the $25,000 Pyramid game show.

Thom shares a wealth of information about building relationships between the founder and the investor. He gives podcasting tips and speaks about how entrepreneurs can improve their presentation skills.

Reach out to Thom at thom@thomsinger.com, on LinkedIn at www.linkedin.com/in/thomsinger, and on Twitter at www.twitter.com/thomsinger

Visit Thom’s website where you can listen to his podcast and purchase his books at www.thomsinger.com.

_________________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
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Direct download: Thom_Singer_of_Cool_Things_Entrepreneurs.mp3
Category:general -- posted at: 6:00am CDT

Branding for Your Group

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In running an angel network, it’s important to establish a brand for the group and promote it.

A brand makes your group look bigger.  

There are many funding sources in the market, and a brand helps your group stand out from the crowd.

A brand helps build trust.  

It is the promise you are making to the investors and startups you serve.

A brand helps people remember your group.

It’s difficult to grow your network if no one can remember your name.

A brand helps attract investors.

Investors want to belong to a group that stands for something.

Finally, a brand helps attract startups.

Startups need to recognize your group as a viable source of funding for their company. 

A brand consists of a unique name, a logo, a mission statement, and a mantra.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: Branding_for_your_Group.mp3
Category:general -- posted at: 6:00am CDT

Portfolio Analysis

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In running an angel network, it’s important to provide ongoing portfolio analysis for the members.

Investors want to know how their current investments are doing.

They also need to keep track of their current investments by sector and stage to allocate the remaining funds appropriately.

In selecting the type of companies you can take, there are two paths.

There’s the narrow approach in which you invest in a sector you know well.

This gives you the opportunity to add value to the startup since you know that sector.

Or you can take a broad-based approach and invest in deals that spread the investments across a range of sectors.

This gives you maximum exposure to the market. 

A typical angel investor portfolio consists of 10 investments at $25K each.

Angel investments should take no more than 15% of an individual’s portfolio.

So for a $250k investment into startups, the investor should have a net worth of $1.6M or more.

Investors should also reserve an equal portion of their investment for follow-on fundings. So for a $500K investment into startups, the investor should have a net worth of $3M or more.

There are several tools for tracking startup investments and calculating returns, hold times, and more. 

By creating processes and programs, you can better manage the startups, investors, and diligence work that must be done.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: Portfolio_Analysis.mp3
Category:general -- posted at: 6:00am CDT

Best Practices for Running an Angel Network

For running an angel group, here are some best practices to consider:

1. Build processes and programs. The second time you say something put it into an email template, a procedure document, or a website and make it a part of your program.
2. Create an ideal investor profile and incorporate the content into your website, emails, and documents. 
3. Create an ideal startup profile and use it in your deal flow process.
4. Set up the calendar of events and meetings at the beginning of the year and let everyone know the dates and times.
5. Establish deadlines for startup applications, investor diligence reports, and more so you can manage the progress.
6. Create a set of template emails for managing the deal flow process from start to finish.
7. Create an onboarding program for new investor members.
8. Create an angel investing introduction program that is self-paced to provide the basics of startup investing to new investors.
9. Build three solid deal flow sources that you can go to find quality deals.
10. Establish a standard term sheet to use with startups that have no lead investor.
11. Establish an advisory program to help startups that need more than just funding.  
12. Set up a portfolio system for tracking investments made so you can report aggregate results both internally and externally.
13. Establish a brand with a logo, mission, and mantra and use it consistently in all communications.

By creating processes and programs, you can better manage the startups, investors, and diligence work that must be done.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
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Direct download: Best_Practices_for_Running_an_Angel_Network.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Peter Lazaroff, Chief Investment Officer at Plancorp, host of The Long Term Investor Podcast, and author of Making Money Simple.

Headquartered in St. Louis, MO, Plancorp is a financial services firm and registered investment advisor founded in 1983. Since then, they’ve worked tirelessly with individuals, families, and businesses with financial complexity to meet their goals more effectively and feel confident in their financial future.

Over their 38 years in business, they’ve committed themselves to absolute transparency.

Plancorp manages over $6 billion for individuals and families across 44 states. As a comprehensive wealth management firm, they specialize in advanced tax planning and equity compensation planning for executives and business owners. 

Peter is the author of “Making Money Simple” and a regular contributor to The Wall Street Journal and Forbes. In each of the past four years, Investopedia has named Peter one of the Top 100 Most Influential Advisors, and in 2021 he was ranked #10 overall.

Peter advises startups and investors and discusses his new book. He shares with Hall the inspiration behind it, the primary audience, the most important takeaway, and more.

You can visit Plancorp at www.plancorp.com/, and on LinkedIn at www.linkedin.com/company/plancorp-llc/.

Listen to Peter’s podcast, The Long Term Investor, at https://peterlazaroff.com/podcast/.  

Purchase “Making Money Simple: The Complete Guide to Getting Your Financial House in Order and Keeping It That Way Forever”, at www.amazon.com.

Reach out to Peter at peter@plancorp.com, on his website www.peterlazaroff.com, on LinkedIn at www.linkedin.com/in/peterlazaroff/, and on Twitter at www.twitter.com/PeterLazaroff.  

_____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: Peter_Lazaroff_of_Plancorp.mp3
Category:general -- posted at: 6:00am CDT

Fundraising Challenge for a Benefit Corp 

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

There are many challenges in fundraising for a benefit corp.

Here is a list of challenges:

Because your company must demonstrate a public benefit, you must first set up a business that provides the benefit and can show the measured result.

Many social impact sectors provide tight margins to their suppliers making it more difficult to cash flow a business.

Investors expect the social benefit will continue as promised, so the business model needs to be well structured and in place.

Benefit corps will need to negotiate the terms with the investor which will most likely differ from the founder's original expectations.

The company must align with the investor's social impact interests which vary from one investor to the next.

In addition to reporting on your financial results, you must also report on your social benefits impact as well.

It takes a network to raise funding, so you’ll need to build a group of investors who align with your mission.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
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Direct download: Fundraising_challenge_for_Benefit_Corps.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Pankaj Jain, Managing Partner at Saka Ventures.

Saka Ventures is a seed-stage fund based in New York City investing in startups that are targeting large global markets and have a balanced team of founders who can build products that customers can't live without. 

Pankaj has 25+ years of international experience with a unique background that integrates technology, finance, entrepreneurship, venture capital, and blockchain. This experience gives him the ability to view business models and startups through a cross-cultural lens coupled with a keen understanding of global markets. Pankaj has been an active angel investor as well as an advisor to venture capital funds, startups, governments, and foundations on topics ranging from building technology startup ecosystems, to early-stage deal structuring, as well as, blockchain and cryptocurrencies.

To read more about Pankaj, please visit https://saka.vc/team/pankaj-jain.html

Pankaj speaks about the state of startup investing and how he sees the industry evolving, his investment thesis, Indian startups in the USA, challenges startups face, and more.

You can visit Saka Ventures at www.saka.vc, and on Twitter at www.twitter.com/SakaVentures.  

Reach out to Pankaj at pankaj@saka.vc, on LinkedIn at www.linkedin.com/in/pankajjain/, and on Twitter at www.twitter.com/pjain

_____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: Pankaj_Jain_of_Saka_Ventures.mp3
Category:general -- posted at: 6:00am CDT

How Angel Investors Engage Impact Investing

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Angel investors fill the gap between family-and-friends funding and institutional funding.

They engage with impact startups in several ways:

They fund startups with early-stage capital to launch the business. 

They provide mentorship to the startup founders to help the company.

Some angels work as advisors providing services such as accounting or financial work.

Some angels form groups to invest in impact startups.

Each group focuses on an impact sector or geographic area.

Some groups provide funding through individual investments while others form funds.

Angel groups help share the deal flow and the due diligence.

Before investing, an angel investor will look at the team to check their experience.

They will perform diligence on the company for the business model, the competition, sales and marketing, and intellectual property.

Finally, they will look at the impact the startup makes. 

It’s important to measure the impact your startup will have as investors will decide to invest based on it. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
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Direct download: How_angel_investors_engage_impact_investing.mp3
Category:general -- posted at: 6:00am CDT

What Is a Benefits Corporation?

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

A Benefits Corporation is a legal entity that is set up to provide a public benefit.

The company using this entity must commit to producing a public benefit.

The board of directors must consider the consequences of its decisions on the community.

The company must provide a report on its social and environmental performance.

The standard is the Delaware Public Benefits Corporation or PBC.

A B-corp is similar but distinct from a Benefits Corporation.

A B-corp is certified by B Labs for meeting social and environmental standards for performance, accountability, and transparency.

The company’s impact is measured with an assessment tool by B Labs.

The intention is to encourage the directors of a company to consider the interests of the broader community.

Those pursuing a B-corp must amend their operating agreement.

There’s an annual fee based on revenue for the company to maintain a certification.

Startups providing a social or environmental impact may want to adopt a Benefits entity or B-Corp designation.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

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Category:general -- posted at: 6:00am CDT

Impact Investment Thesis

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

An investment thesis states what you will invest in, why it will be successful, and what outcome you anticipate. 

It’s important to determine your investment thesis for impact investing.

Here are some guidelines:

Impact investing proposes to invest in innovative companies that seek to change the world.

This change takes place in social and environmental areas such as those specified in the United Nations Sustainable Development goals. 

Impact investing looks to make a measurable change, so the investment must show a metric result on specific criteria.

Impact investing often focuses on companies in healthcare, education, food, and cleantech.

The investment thesis specifies the revenue, sector, and stage of the companies that meet its criteria so you can focus your deal flow efforts.

Impact investing - as in all investment theses - seeks a positive return on investment at the upper range of market returns.

Impact investing can be applied at all levels of investment.  

At the angel level, it fills a gap in the market by focusing on early-stage innovation. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes William Glass, CEO and Co-founder at Ostrich, and Host of The Silicon Alley Podcast.

Headquartered in New York, New York, Ostrich has built a financial fitness app for low and middle-income families who need a simple way to start improving their finances in order to live happy and fulfilling lives. What makes the Ostrich app unique is the experience addresses the psychological hurdles that prevent people from taking action to improve finances; using social accountability and gamification to encourage actions. It's a similar approach to Strava and Noom in the fitness and weight-loss space.

Ostrich sells annual subscriptions on a per-user basis to companies who provide the app as a benefit to their employees or communities. Ostrich graduated from AARP's accelerator program at the end of 2021 where AARP is now a strategic investor and partner. To date, 80% of their early adopters are on track to achieve their financial goals, 1,000 pre-launch sign-ups, and they have 3 pilot partners going live in Q2 of 2022.

Currently, Ostrich has raised or committed $186k on a SAFE led by AARP with the founders bootstrapping the company up until January of 2022. In March of 2022, Ostrich won first prize at the Rollins Venture Plan competition which included a $50k grant.

In the Silicon Alley podcast, you’ll hear from a variety of entrepreneurs, venture capitalists, and top performers about their journeys and personal finances. From seasoned entrepreneurs who have sold companies for $330 Million to Silicon Valley Venture Capitalists returning billions of dollars to 21-year-old YouTubers earning 6 figures, the Silicon Alley Podcast is a must-listen. You’ll come away both inspired and with actionable advice you can apply to your own business and life.

William witnessed his parents get divorced because of money. They couldn’t agree on basic financial goals or communicate, and the stress was too much. 15 years later, both are still picking up the pieces. William’s background is in software sales leading sales teams at Gartner and opening up a new vertical for an AI startup, Remesh.

Prior to founding Ostrich, Will was recruited by Remesh, a former client, to build out their consulting vertical and worked with firms such as McKinsey, Booz Allen, BCG, and PwC. While at Gartner, Will led sales teams that sold to c-suite executives of tech startups from pre-revenue to $250M in revenue. He was a top performer achieving Winner’s Circle every year at Gartner.

In 2014, Will was awarded a Fulbright scholarship through the U.S State Department where he taught English in rural Thailand for 14 months. He has his B.A. in International Relations from Rollins College in Winter Park, FL. Will is originally from Alabama and now resides in Queens, New York.

Visit Ostrich at https://getostrich.com/, on LinkedIn at www.linkedin.com/company/theostrichapp, and on Twitter at www.twitter.com/theostrichapp

Listen to The Silicon Alley Podcast at www.siliconalleypodcast.com

Reach out to Will at william@theostrichapp.com, on LinkedIn at www.linkedin.com/in/williampglass3/, and on Twitter at www.twitter.com/williampglass3/.  

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Category:general -- posted at: 6:00am CDT

What Is Esg?

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

ESG stands for environmental, social, and governance, and represents the area of focus for socially responsible investors. 

This is often referred to as sustainable investing.

ESG investing incorporates environmental, social, and governance factors as it relates to the mission of the business. 

It’s a set of standards for company operations that come into play in hiring leadership, compensation, shareholder rights, and more.

Environmental centers around renewable energy, waste management, water pollution, and deforestation.

Social centers around fair pay, workplace inclusion, and prevention of sexual harassment.

Governance centers around executive compensation, financial transparency, and board diversity.

Many investors focus primarily on executive compensation.

Limited partners increasingly look for ESG-related investments and will not participate in those without it.

Impact investing is different from ESG investing. 

Impact investing seeks to fund startups that provide a measurable impact on a social cause.

Startups applying ESG to their business look for how ESG drives decision-making across all operations including the impact of the product or service, the operations, and that of their employees. 

ESG investors look for their investment to make a meaningful contribution to the cause.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Category:general -- posted at: 6:00am CDT

17 Sustainable Development Goals

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Impact investing focuses on social and environmental causes.

The United Nations provides 17 sustainable development goals which serve as the basis for impact investing as follows:

  1. No poverty
  2. Zero hunger
  3. Good health and well-being
  4. Quality education
  5. Gender equality
  6. Clean water and sanitation
  7. Affordable and clean energy
  8. Decent work and economic growth
  9. Industry, innovation, and infrastructure
  10. Reduced inequalities
  11. Sustainable cities and communities
  12. Responsible consumption and production
  13. Climate action
  14. Life below water
  15. Life on land
  16. Peace, justice, and strong institutions
  17. Partnerships for the goals

There are many approaches to each of these goals.

Impact investing supports all of them.

Investors look for your impact to fall into one of them.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Jeffrey Kamys, Chief Investment Strategist and Portfolio Manager at Inherent Wealth Fund.

Headquartered in San Francisco, California, Inherent Wealth Fund is a registered investment adviser focused on thematic and sector-specific investing and are the investment advisors to the iBET Sports Betting & Gaming ETF, the only actively managed sports betting and gaming ETF. The iBET ETF is a basket of stocks that represents the sports betting, casinos, and gambling sector, including but not limited to: DraftKings, Penn National Gaming, Caesars, MGM, and Wynn. They implement innovative strategies and wealth management solutions for institutions. 

Inherent Wealth Fund fully understands how technological advances impact the market and they strive to be ahead of the curve with their approach.

Jeffrey has decades of experience working in the technology industry as well as the analytics field. 

Jeffrey discusses the latest in sports betting and legalization in California and New York, common myths about sports betting, the online information source he finds most helpful, and more.

Visit Inherent Wealth Fund at www.inherentwealthfund.com, on LinkedIn at www.linkedin.com/company/inherent-wealthfund/, and on Twitter at www.twitter.com/InherentWealth

Reach out to Jeffrey at jeffrey.kamys@inherentwealthfund.com, on LinkedIn at www.linkedin.com/in/jeffrey-kamys-19159174/, and on Twitter at www.twitter.com/jeffreykamys.  

_____________________________________________________________________

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Category:general -- posted at: 6:00am CDT

Investor Motivations for Impact Investing

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Investors fund impact startups.

Here’s a list of the primary reasons:

The startup furthers social and environmental causes that align with the investor.

Investors want to see their investment do more than just generate a return.

The startup shows strong growth potential and targets a large market.

Investors want to solve large problems.

The startup has a strong social mission and can create real change at scale.

Investors want to see the impact scale up.

The startup meets the individual investor's philanthropic mission.

Investors have impact objectives they want to achieve.

The startup needs mentorship.

Investors want to share their experience with startups.

The startup diversifies the investor's portfolio.

Investors want to broaden their portfolios for investment reasons. 

There’s an old saying:

Angel investors want to make a little money, have a little fun, and do a little good.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Category:general -- posted at: 6:00am CDT

Indicators of a Successful Impact Investment

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Impact investing seeks to fund startups with social or environmental benefits.

Those running impact companies must do so with the intention of providing a social or environmental impact with a measured result.

The investment must provide a benefit that is more than what would have occurred otherwise.   

This is called additionality.

The indicators of a successful impact investment are as follows:

The company can show a measured impact and, based on its business model, forecast that impact over time.

The company should bring innovation that provides the impact.

The company must be able to show a sustainable business model over time in order to deliver the result.

The company must show entrepreneurial skills and capabilities. 

If you have these elements, then you have a true impact investment that is making a difference.


T
hank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Category:general -- posted at: 6:00am CDT

How to Measure Impact

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Impact startups provide not only a product or service but also a social or environmental impact.

Impact startups need to know how to measure their impact in addition to their financial return.

Here are some ways to measure it:

The startup could measure the impact for each unit sold.

This works well when the impact is the same for each customer.

An example would be a bottle-less solution for water distribution.

The startup could measure the impact based on a sample and then extrapolate across the entire business.

This works well when the impact is not exactly the same for each customer.

An example would be the graduation rate of a student through an education program.

The startup could look at comparable solutions with a stated impact and adopt those metrics.

An example would be the reduction in carbon emissions based on reduced fuel usage. 

The startup could apply that metric to their own user base.

Impact investors will look for impact metrics from the startup, so it’s important to measure and track it.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

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Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Gary Acosta, Managing Partner and President at L’ATTITUDE Ventures (LAT VC), and Co-founder and CEO at the National Association of Hispanic Real Estate Professionals (NAHREP).

Headquartered in San Diego, California, LAT VC is a purpose-led venture fund that invests in early-stage US Latino-led and owned businesses.

NAHREP - also headquartered in San Diego, California - is a purpose-driven organization that is propelled by a passionate combination of entrepreneurial spirit, cultural heritage, and the advocacy of its members. Its mission is to advance sustainable Hispanic homeownership.

NAHREP is one of the nation’s largest real estate trade associations with over 30,000 members and 80 local chapters.

Gary has founded several successful mortgage, real estate, and technology companies, including Prado Mortgage, New Vista Asset Management, CounselorMax, and RealEstateEspanol.com. 

Gary advises startups and investors and discusses the status of the real estate industry and how he sees it evolving. He also shares his investment thesis and speaks about some of the challenges Hispanic startups face.

Visit L’ATTITUDE Ventures at https://lat.vc/, on LinkedIn at www.linkedin.com/company/latvc/, and on Twitter at www.twitter.com/LAttitudeVC

Visit NAHREP at https://nahrep.org/, on LinkedIn at www.linkedin.com/company/nahrep/, and on Twitter at www.twitter.com/nahrep

Reach out to Gary at gacosta@nahrep.org, on LinkedIn at www.linkedin.com/in/gary-acosta, and on Twitter at www.twitter.com/garynahrep

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Category:general -- posted at: 6:00am CDT

How to Find Impact Investors

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Impact investing continues to expand in scope.

It covers many industries, including clean energy, food, education, healthcare, housing, clean water, and more.

For startups looking for impact investors, here are some key steps:

Determine your area of impact.

This is important as many investors focus on specific industries and it will help narrow your search.

Research impact businesses like yours to find out their source of funding.

Determine the type of investor you need, such as angel investors, family offices, impact funds, or grants.

Use online database search tools such as the Global Impact Investing Network (GIIN) to find investors in your industry and type.

Investors want to see how their investment will achieve the target impact.

So, measure your startup’s impact, both historical and projected.

Reach out to the investor to find alignment on the impact you are providing.

Then, build a relationship with the investor or fund so they become familiar with you and your work.

Later bring up the terms of your investment offering to the investor.

Finally, close the investor by following their diligence process and funding cycle.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Category:general -- posted at: 6:00am CDT

Startup Boards -- Using Donor-Advised Funds for Impact Investing

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Donor-Advised Funds (DAF) are funds you set up with your brokerage firm to make tax-deductible contributions to foundations and non-profit organizations you want to support.  

You receive the tax deduction when you transfer money into your Donor-Advised Fund. 

The funds continue to grow through investments you choose until you decide to deploy those funds.

This investment opportunity lets you donate a larger amount of money to your cause. 

From there, you can contribute to any cause you like as long as it’s a qualified 501(c)(3) non-profit.

A Donor-Advised Fund structure is much lower in cost than a foundation which is expensive to set up and requires a donation of 5% of funds every year. 

Consider setting up a DAF for your impact investing.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Candy Messer, President at Affordable Bookkeeping and Payroll, and Host of the Biz Help For You radio show.

Affordable Bookkeeping and Payroll is different than other payroll services. They offer options to best suit the client's needs as well as schedule tax payments based on the tax filing schedule - according to the IRS’ requirements - rather than debiting taxes when payroll is processed, giving clients access to their cash for longer. Affordable Bookkeeping and Payroll also bundles all typical tasks in the monthly fee, so clients always know what they will pay without any nickel and dime charges added in. And with bookkeeping and payroll services handled in one place, it’s easy for entrepreneurs to have everything managed by one company, and all financial information can be provided to the business tax preparers each year.

Affordable Bookkeeping and Payroll Services has built a strong reputation as one of Southern California’s most trusted bookkeeping and payroll companies. Hard work, attention to detail, mutual respect for others, solid business practice, and high ethical standards have helped their company grow year over year.

Biz Help for You is an education-based podcast that gives information to entrepreneurs offering tips for success in various areas including marketing, website design, budgeting, understanding information on financial reports, and more. 

Candy is a profitability and growth advisor working with entrepreneurs in service-based industries to help them have successful businesses. With experience in the bookkeeping industry since 1998, Candy understands the stresses business owners face and offers customized services to meet their varying needs.

Candy was named Woman of the Year for 2009-2010 by the Peninsula Chapter of the American Business Women’s Association, and 2011 Entrepreneur Mom of the Year by Today’s Innovative Woman magazine. In 2012, the El Camino College Foundation honored her as a Distinguished Alumni of the Year. Affordable Bookkeeping and Payroll was named 2016 Small Business of the Year by the Torrance Chamber and Intuit’s (creator of QuickBooks software) 2016 Firm of the Future.

Candy has been married since 1992 to her husband Garth and they have a son, daughter, son-in-law, and two grandsons. When not running her company, Candy enjoys reading, crocheting, logic puzzles, and spending time with friends and family.

Visit Affordable Bookkeeping and Payroll at www.abandp.com, and on Twitter at www.twitter.com/AffordableBP.  

Listen to the Biz Help For You radio show at https://affordablebookkeepingandpayroll.com/biz-help-for-you-with-candy-messer/

Reach out to Candy at contact@abandp.com, and on LinkedIn at www.linkedin.com/in/candymesser.
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Startup Boards -- Impact Measurements

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Impact is in the eye of the beholder. 

What impact you see, may not be shared with the investor or company you are working with.

You must measure your impact. There are several systems you can use, such as:

GIIRS -- stands for Global Impact Investing Rating System. It rates companies based on social and impact performance metrics and is considered one of the primary standards.  

IRIS -- stands for Impact Reporting and Investment Standards and provides metrics for social, environmental, and financial performance of a company. 

B Analytics -- developed by B Lab, it provides a tool to assess, compare, and improve impact.

SASB Standards -- stands for Sustainable Accounting Standards Board and provides sustainability standards for over 70 industries.

GRI Standards -- one of the first to provide standards for sustainability reporting.

International Integrated Reporting Council -- provides reporting to bring cohesion and efficiency to the reporting process. 

Within the world of impact investing, there are many sectors. Comparing metrics between sectors can be difficult.

These tools can help.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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Category:general -- posted at: 6:00am CDT

Startup Boards --  Primary vs. Secondary Impact Investing

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In impact investing, there is primary impact and secondary impact.

Primary impact comes from the company pursuing its mission.  

You measure it based on the effect the business has on the cause it supports.

For example, how many students improved their scores.

Secondary impact measures how the company carries out its mission.

Certified “B” Corporations are an example of this. For a company to qualify as a “B” Corporation, it must achieve metrics in green practices, diversity, pay, and more.

These companies often use secondary impact data to show their performance in environmental activities or community activities.

It is often manipulated data that hides the true mission of the company.

Focus on the primary impact and check the metrics for companies you want to fund for their impact on the cause.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

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Category:general -- posted at: 6:00am CDT

The Challenge of Impact Investing

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Impact investing seeks to make the world a better place through its investments.

As with all investing, it comes with its own challenges.

Most impact investments underperform the market. 

The focus on providing social or environmental benefits degrades the financial return.

Some researchers claim that impact investing receiving market returns is not having an impact, and those delivering an impact end up with below-market returns.

The challenge is finding an impact investment opportunity that provides enough of an impact to offset the lower return.

It’s important to measure the impact the company provides and follow it over time to know that it is making a real difference.

In many impact startups, the social or environmental impact is not clearly defined. 

The impact investor must identify a company actually providing the stated impact, then the investment must actually increase the company’s measured impact.

Impact investing encourages companies to provide a social impact, but there must be a measured result to determine how effective it is.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

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Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Justin Breen, Founder, and CEO of BrEpic Communications LLC and BrEpic Network, and author of the No. 1 International Best-Selling Book, “Epic Business”.

Headquartered in Northbrook, Illinois, and founded in 2017, BrEpic Communications LLC will run your social media sites, write clicky stories that highlight you or your business, and find the right pitch for multiple media outlets. 

BrEpic Network is an invitation-only, premium connecting platform for the who’s who in business, philanthropy, and global leadership. BrEpic Network will bring simple yet powerful technology to this network of visionary leaders and connectors. Leaders want instant, credible, vetted access to other leaders, and they want results in a deliverable fashion. BrEpic Network will allow that to happen at an exponential rate.

Justin is an extremely active member of Strategic Coach 10x, Abundance 360, and Entrepreneurs' Organization, and he has an incredible global network of visionaries and exceptional businesses.

Justin reviews his book by telling us the inspiration behind it, the primary audience, the most important takeaway he found, and more.

Visit BrEpic Communications LLC and BrEpic Network at www.BrEpicLLC.com and www.BrEpicNetwork.com, on LinkedIn at www.linkedin.com/company/brepiccommunicationsllc/, and on Twitter at www.twitter.com/BrEpicComm

Reach out to Justin at justin@brepicllc.com, on LinkedIn at www.linkedin.com/in/justinbreen1, and on Twitter at www.twitter.com/BrEpicBreen
____________________________________________________________________

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Category:general -- posted at: 6:00am CDT

Startup Boards -- Impact Metrics

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In raising funding, you need to show your metrics.  

Startups in the impact space should also show their impact metrics, as investors will look for your results there. 

A common mistake by impact companies is to focus on the size of the market to be served and the needs in those markets.  

Instead, you should measure the actual impact results of your business on the market you are serving and show those results.

For example, how many students graduated, how many bottles of plastics were removed from the waste stream, how many students improved their test scores? 

Focus on the primary impact which is on the customer, rather than the secondary impact which is on the employee of the business.

There are several metric systems, including GIIN’s IRIS+ metrics (https://iris.thegiin.org/metrics/), the IRIS Thematic Taxonomy (https://iris.thegiin.org/document/iris-thematic-taxonomy/), and the Impact Management Project (https://impactmanagementproject.com/impact-management/impact-management-norms/).

In short, no one system covers all impact sectors.  

Check out the Sustainable Development Goals site (https://sustainabledevelopment.un.org/?menu=1300) for the categories of impact metrics to see where your deal fits. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

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Category:general -- posted at: 6:00am CDT

Key Terms in Impact Investing

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

There are key terms used in the impact investing world.  

Here is a list of the ones to know:

  1. Below market rate -- an impact investment made with the expectation that the financial return will be less than the market rate of a startup’s investment.
  2. Charitable purpose -- the investment’s purpose has a charitable contribution that aligns with the foundation's purpose.
  3. Mission-related investments -- an investment for social or environmental reasons with a financial return.
  4. Program-related investments -- a specific type of investment made by the foundation that aligns with its mission.
  5. Divest/invest movement -- investors using their investments to achieve social goals.
  6. Due diligence -- an in-depth evaluation of an investment.
  7. Environmental, social, and governance -- incorporates environmental, social, and corporate governance criteria into an investment analysis.
  8. Market rate -- the standard financial return an investor expects.
  9. Socially responsible investing -- an investment strategy that seeks investments that are considered socially responsible based on the business.

It’s important to know the difference between impact investing and non-impact investing. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

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Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Robert Samuelsen, President and CEO at SmallStart Ventures. 

SmallStart Ventures identifies high-potential entrepreneurs and provides a structured launchpad for their small business dreams. SmallStart Ventures expects to add $315.9M to GDP and 5,500 jobs to the economy.

A study published in the International Journal of Humanities & Social Studies claims the failure rate of a traditional incubator is 90%. According to www.corporatefinanceinstitute.com, the success rate for a VC-backed startup is only 8%.

SmallStart’s one-on-one guidance (Success Coaching) is a 3-year journey and the goal is an 80% success rate. SmallStart’s model is superior to traditional VC startups because they know from the start, the following:

The buyer – the General Manager/Entrepreneur

The time frame – At the end of three years

The selling price – The appraised price

SmallStart offers opportunities for a diversity of individuals who may find it complicated to start a business or who may feel at a disadvantage by societal situations. Their Success Coaches specialize in assisting immigrants, all races, women, single parents, ex-cons, and other demographic groups.

Robert has held positions as the CEO, CFO, and COO for more than 20 years. He has worked for three Fortune 500 Corporations including NCR Corporation, AT&T, and Roper Industries, and was the Founder of Square Knot Ventures, eVine, AvaLAN Wireless, Navibase, and SEE Consultants.  Robert has executed three business turnarounds and has raised approximately $450 million.

Robert discusses his background, starting a business in the area of financial services, potential rewards, how SmallStart Ventures differs from his competitors, and more.

Visit SmallStart Ventures at www.smallstartventures.com

Reach out to Robert at rsamuelsen@smallstartventures.com, on LinkedIn at www.linkedin.com/in/robert-rob-samuelsen-7605051, and via telephone at (520)820-8006.
________________________________________________________________

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Category:general -- posted at: 6:00am CDT

What Is Impact Investing?

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Impact investing is an investment in startups that can generate a social or environmental impact in addition to a financial return.  

It can be done anywhere and at any stage of business.

Impact investing includes not only angel investors, but also family offices, pension funds, wealth managers, foundations, and religious institutions. 

Impact investments provide market-rate returns or sometimes less than the market.

It seeks to solve challenges in areas such as renewable energy, microfinance, climate change, housing, education, and more.

Impact investors look for their investment to make a measurable difference.

Impact startups need to show their performance goals related to the industry standards.

Monitor the performance against the targets and report the results to the investors.

Startups should have not only financial metrics but also impact metrics.

Impact metrics show the social or environmental results.

Many impact startups appear to be non-profits showing a social cause but no investment return.

Impact startups need to show both.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

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Direct download: What_is_Impact_Investing.mp3
Category:general -- posted at: 6:00am CDT

Venture Fund Defaults 

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In a market recession, it’s often the case that limited partners - called LPs - are unable to fulfill their capital commitments to venture funds. 

For venture funds encountering this issue, the first step is to open a dialog with the LPs about the capital needs and the LP’s ability to provide the funds.

Explore potential options such as lines of credit both for the fund and the LP.

Fund managers should discuss with the LPs about the strategy tradeoffs between investing in new startups and supporting existing investments.

Fund managers should reconsider the valuation methods as the market environment has changed. 

Fund managers could also approach the LPs about extending the fund timelines given the new market situation. 

For those still raising funds, consider updating existing offering documents to adjust the financial projections and risks. 

Fund managers should also consider the pace of new investments in light of committed follow-on investments. 

Finally, fund managers should review any potential clawback situations and adjust accordingly.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

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Category:general -- posted at: 6:00am CDT

Payback Period for the Product

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Investors look for strong margins on a startup's product as it’s a positive indicator of customer interest and a profitable business. 

One way to metric this is the payback period for your product. 

It’s the amount of time it takes for a customer to repay the cost of customer acquisition. 

To calculate, use the marginal gross profit and the sales and marketing expenses.

If you take the quarterly or annual numbers, you should be able to smooth out the minor variations that come from discounts.

Many companies start with a low price and, over time, raise the price. This forces the company to create an efficient go-to-market strategy from the get-go.

As you grow your business, you can raise your prices, so the revenue flows to the bottom line. 

Calculate your payback period and use the metric with investors.

This demonstrates you know your numbers and are improving margins and efficiency over time. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

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Category:general -- posted at: 6:00am CDT

This is the Investor Connect KiwiTech 2022 podcast series. In this series, we discuss trends and topics in the startup world. I hope you enjoy this episode.

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Thank you for joining us for the Investor Connect KiwiTech 2022 podcast series. 

For more episodes, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
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How to Improve Your Valuation

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Valuation is a negotiation and not just a formula.

Here are some key points to improve your valuation:

Highlight the team and their contributions to the business.

The team is often no more than one slide in the deck and rarely does their value come across to investors aside from that of the CEO.

Discuss what each team member is doing to make the business successful.

Show previous business successes. 

Demonstrate past accomplishments of the team, in particular exits.

Highlight milestones accomplished so far in the business.

Most fundraises kick off with a successfully completed milestone such as launching the product.

Focus on milestones that show value to the business such as new hires for the team, closing a key customer, or finding a lead investor.

Reduce your burn rate.  

This shows you can sustain longer with less funding. 

In fact, if you can move the business to profitability then your company will be more attractive as it can survive market downturns.

Let the investors propose the valuation and consider the one which gives you the best deal.

Valuation is a negotiation which means everything counts.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
____________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Direct download: How_to_improve_your_valuation.mp3
Category:general -- posted at: 6:00am CDT

Using Metrics in Your Valuation

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Metrics can help drive the valuation for your startup fundraise.

Here is a list of key metrics to include:

Number of visitors to your website and their conversion to paying customers. The higher the conversion rate, the lower the cost of sales and the greater the valuation.

Average revenue per customer. The higher the average revenue, the easier it will be to achieve scale.

Monthly or annual recurring revenue. This is the key driver for calculating forward multiples of a valuation.

Revenue run rate. If your revenue is still ramping up, consider taking the current monthly revenue and multiplying it by 12 to give you an annualized revenue run rate.  

This will make your annualized revenue bigger than a look-back method.

Contribution margin. If you have high gross margins, include this in your valuation calculation as this will translate into more dollars going back into the business.

Customer acquisition vs. lifetime value. This ratio should be at least 1:3, but if it’s 1:5 or better, it can improve your valuation.

Churn rate. This is the rate at which customers stop using your product or service. The lower the rate, the better the valuation.

Viral coefficient. This measures how fast your product moves from one customer to the next through referrals. A highly viral product will garner a much higher valuation.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

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Direct download: Using_metrics_in_your_valuation.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Henry Lopez, Managing Partner at Levante Business Group, and Host of the How of Business podcast.

Levante Business Group provides business consulting and services and is the producer of the How of Business podcast.

The How of Business is a weekly show for aspiring entrepreneurs and existing small business owners. If you are looking for actionable advice, tips, and techniques on how to start, run and grow your small business, this is the podcast for you! In each episode, they either discuss a business topic or interview an existing business owner or business service provider. 

The podcast reaches an engaged audience of aspiring entrepreneurs and existing small business owners worldwide. Their popular and top-rated business podcast averages over 72,000 unique monthly downloads, 774,000 unique downloads in 2020, and over 2,200,000 all-time downloads.

Henry is a serial entrepreneur, small business coach, and consultant. He has over 35 years of diverse business experience, including successful careers in the information technology industry, sales, sales training, and business ownership. 

Henry has been involved in 12 different businesses since buying his first business in 1991. Henry has bought and sold businesses and has also developed his own new businesses, including franchises. His businesses span various industries including restaurants, real estate investments, salon suites, software, travel, shared office space and coworking, car washing, and small business coaching and consulting. Henry currently resides in Jensen Beach, Florida with his wife Pam.

Henry speaks about the great resignation, remote work, online sources of information that he finds useful, tips for a successful podcast, what business he would start tomorrow, and much more.

Visit Levante Business Group at www.linkedin.com/company/levante-business-group and listen to the How of Business podcast at www.thehowofbusiness.com/how-of-business-podcast/

Reach out to Henry at henry@levantebg.com, on LinkedIn at www.linkedin.com/in/henry-lopez-9758524/, and on Twitter at www.twitter.com/HenryLuvsBiz

_____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

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Direct download: Henry_Lopez_of_Levante_Business_GroupThe_How_of_Business_podcast.mp3
Category:general -- posted at: 6:00am CDT

Maximizing Your Valuation

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Valuation is a negotiation and not a formula.

While there are formulas and rules of thumb to help determine valuation, it comes down to positioning and negotiating.

Here are some key points to maximize your valuation:

Emphasize the team and show what they are doing to help your business.

The investors see the CEO often and rarely see the team and so may undervalue them.

Highlight the repeatable, predictable nature of your revenue rather than the absolute value of it.

Investors look for predictability in the revenue, so focus on the factors that generate revenue and show how they are repeatable.

Most fundraises kick-off after achieving a milestone such as a product launch, revenue traction achieved, or a patent filed.

Emphasize your most recent milestones showing customer demand and past market success.

Calculate your valuation with various models to find the one that puts your deal in the best light with the highest valuation.

Consider the market in timing your fundraise. The hotter the stock market, the higher the valuation you can demand.

Connect your startup to a technology trend. Investors will pay more for a hot, new technology, so associate your deal with it.

Positioning your deal properly will earn you a higher valuation.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
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Direct download: Maximizing_your_valuation.mp3
Category:general -- posted at: 6:00am CDT

Justifying a Startup Valuation

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Startup valuations differ from standard valuations in that they don’t solely rely on expected cash flows, book value, or other tangible aspects of the business.

Intangibles such as quality of the team, intellectual property, product status, and customers are the driving factors.

Most angel investors want 25% of the equity for an initial round of investment.

In addition, they want to have a say in the business through a board of directors or advisory role.

To justify your startup value, focus on articulating the values that are already in the business as follows:

Highlight the team you have built so far and their experience.

Show what the team is doing to make the company successful.

Show the current product development and highlight what has been done so far.

Outline the intellectual property you have, including provisional patents. 

Make sure you file your provisional patents in advance of launching a fundraise so you can point to having patent-pending technology.

Always note customers even if they are not yet paying for your product.  

If you do have some revenue use it to prove market validation showing customers will pay for it. 

Customer involvement will generate a higher valuation. 

If you cannot sell the proposed valuation for the raise, consider cutting the fundraise target in half.  

While the valuation will be the same, the risk will appear lower.



Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
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Direct download: Justifying_a_startup_valuation.mp3
Category:general -- posted at: 6:00am CDT

Calculating Forward Multiples

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Valuations for software companies with recurring revenue are calculated using forward revenue multiples.

While revenue is the primary factor in calculating the multiple, some companies can increase it by demonstrating excellence in other areas.

Use these definitions to calculate it:

Revenue growth – revenue this year over last year in a percentage. 

Sales efficiency -- take your increase in gross profit and divide by last year's sales and marketing expenses.

Cash flow margins -- divide your cash flow by revenues.

Net income margin -- divide net income by revenue.

Gross margin -- divide gross margin by revenue.

To calculate forward multiples for companies going public, use the following formula:

Forward Multiple = 6.3 + 38 x Revenue_Growth + 2 x Sales Efficiency.

Revenue growth and sales efficiency provide the most impact.  

If you have additional value through your margins, you can add them in as well. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
____________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Alejandra Slatapolsky, Co-founder at Scalto and host of The Biz of Wealth podcast.

Founded in 2020 and headquartered in Miami, Florida, Scalto knows how hard it is for service-based businesses to attain real scalability; exponentially increasing revenues without incurring significant costs. They are here to help Hispanic and Latin American B2B service businesses design truly scalable business models to grow over time.

Scalto focuses on enabling firms to jump ahead of the competition by designing all aspects of a truly scalable business: the offering, the client experience, the brand, and the communications and lead-generation process. It all starts with their xAlto Program, where they help you gain clarity on the problem you solve for your target audience and design scalable business solutions, from a branding and communications perspective.

The Biz of Wealth podcast talks to veterans, newcomers, innovators, and everyone in between about the evolution, future, and struggles of the wealth industry.

Alejandra is a communications and marketing leader with over 20 years of experience in B2B financial services, fintech, and technology. She has helped dozens of companies expand their businesses and create awareness through thought leadership strategies. She has designed and implemented successful communication strategies drawing from a background in marketing, strategic event planning, journalism, public relations, digital strategies, and education. 

Alejandra speaks about the startup scene in Miami, scaling your startup and the challenges faced, common mistakes people make, and more.

Visit Scalto at www.scalto.com, and on LinkedIn at www.linkedin.com/company/scaltoconsultancy

Listen to The Biz of Wealth podcast at https://thebizofwealth.com/.   

Reach out to Alejandra at alejandras@scalto.com, and on LinkedIn at www.linkedin.com/in/alejandraslatapolsky
__________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

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Direct download: Alejandra_Slatapolsky_of_Scalto.mp3
Category:general -- posted at: 6:00am CDT

5X Rule of Post Money-Valuation

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

As an investor reviewing deals, you’ll hear a wide range of startups with various fundraises and pre-money valuations.  

So, how can you screen the deals to find those who have ‘reasonable’ valuations?

Try the 5X rule.

The 5X rule says to take the post-money valuation and multiply times 5. If the company sells for that price, then the investors will do well.  

If you don’t think the company will be able to sell for that price, then the company is overvalued and will most likely not provide a return to the investor.

Entrepreneurs usually quote their fundraise target and their pre-money valuation. 

To find the post-money valuation, add the fundraise amount to the pre-money valuation.

Here’s a recent example. The company is raising $2M on a pre-money valuation of $10M yielding a $12M post-money.  

By multiplying 5*12, we see a target exit value of $60M. Most companies in the space were exiting at $25M to $30M, so this one was overvalued.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

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Direct download: 5X_rule_of_Post_Valuation.mp3
Category:general -- posted at: 6:00am CDT

How to Make Your Data Valuable

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Startups can make their business more valuable if they collect data and turn it into a revenue-generating product.

Many startups providing a service can collect data about the process, the customer, the market, and more.

Raw data is not of value. It must be refined and there needs to be a market for it.

In your startup, look at the process you are running to see what data can be mined.

For example, if you provide microloans to businesses, what is the credit rating of those who pay back consistently?

Others will pay for this information.

Here are some key points to consider for mining data from your business:

Aggregating customer data can prove to be valuable information.

Look for applications where you can capture data automatically.

Network effects can increase the value of the data too.

The more unique your data set the more valuable it will be.

Having a large data set can be used to market your product or service as it increases the perceived value to the customer.

Data sets can provide a competitive advantage for your business.

Finally, you can glean insights from the data to create AI algorithms.

In fundraising, communicate your data strategy and show it as a competitive advantage and a potential revenue stream.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Category:general -- posted at: 6:00am CDT

Startup Valuation Roadmaps

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Investors setting a valuation should review the cap table to understand how future rounds will cause dilution.

A cap table tracks each shareholder and the amount of equity they own including the pre and post-money valuations.

Key factors to consider are the following:

Option pools -- what has been set up or will be set up.

Liquidation preferences -- does any other investor have a right to a liquidation preference that gives them a portion of the proceeds before other investors?

Future rounds of funding -- how many more rounds of funding will be required?

Most startups will need additional funding so some dilution is to be expected.

Map out the proposed follow-on rounds of funding to see the effects of dilution on the investors' equity position.

Consider the impact of venture capital on the cap table which can have a major impact on earlier investors.

It’s often the case the startup must raise additional capital beyond the plan, due to unforeseen circumstances so any proposal shows the best-case scenario.

By mapping the cap table from the current investment to the exit, the investor can understand their position at an exit and what return to expect.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
____________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Khalil Shalabi, Founder and Chief Executive Officer at Wyth. 

Headquartered in Lemont, Illinois, and founded in 2018, Wyth is a new carpool and rideshare app and service exclusively for university students. It is a closed-loop system, whereby drivers and riders are from the university community (i.e.. students, faculty, or staff) making it a safer option than current services.

Wyth is a mobility solution for rides around college campuses (rideshare services for housing, campus, athletic events, and business district) and long-distance solutions during holidays and breaks (carpool services for students going home, school, or other places). Product-market fit is resounding with twenty-one (21) major universities interested. The market analysis of usage of “rides around campus” from 2 universities is UCLA  with 11,000 rides/week and the University of Alabama with 40,000 rides/week. Wyth is a safer alternative to Uber/Lyft due to its closed-loop system whereby all users are vetted as part of the university community. The market potential for rideshare is $9B and carpool $4B. The university community is fully vested in saving the environment and their carpool solution can save the planet 5-10 billion pounds of CO2 emissions.

Khalil is an entrepreneur of over 40 years in multiple business sectors. He has started over 10 businesses and graduated from the University of Illinois at Chicago with a degree in BioChemistry. Khalil has 4 daughters who graduated from major universities and like millions of parents had to pick them up and drop them at their universities hence why he started Wyth.   

He is interested in civic engagement and socially responsible corporate practices.

Khalil discusses his background, his main reason for starting Wyth, challenges faced in this industry, potential rewards, and how Wyth differs from competitors.

Visit Wyth at www.Gowyth.com, on LinkedIn at www.linkedin.com/company/seatus-technologies-llc/, and on Twitter at www.twitter.com/Gowyth

Reach out to Khalil at khalil.shalabi@gowyth.com, and on LinkedIn at www.linkedin.com/in/khalil-shalabi-ba7149149.  

_____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

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Category:general -- posted at: 6:00am CDT

How to Negotiate Valuation With a Startup

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

The key to negotiating the valuation for a startup is to find and examine each value that is already in the business, as well as each value that must be built to achieve a successful exit.

Start with the team and check to see how many of the necessary skills are already onboarded, versus the skills that need to be recruited.

Second, look at the product to see what has been built and what must be done to bring the product to the market.

Third, look at the leads and revenue and how much has been done to build a pipeline of customers and turn on a repeatable, predictable revenue stream.

Fourth, look at the status of the intellectual property. Ask what has been filed and when?

It takes three years for patents to be awarded, so in most cases, the startup will have filed provisional patents or has filed a utility patent and must now wait for official actions.

Investors look for working systems in the business for lead generation, closing customers, fulfilling the service, or providing the product.  

Estimate the work done so far and what is left to be done to meet the proposed forecast.

Add to the valuation any other factors that enhance the business and subtract factors that must be overcome to arrive at a valuation.

The key is to set today’s valuation based on what is in the business today -- not tomorrow.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Direct download: How_to_Negotiate_Valuation_with_a_Startup.mp3
Category:general -- posted at: 6:00am CDT

Minimum Information an Investor Should Receive

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

After closing an investment round, the startup should set up a monthly report to the investors.

Here’s a list of information to send an investor:

Customer wins -- list out key sales successes. Celebrate every win.

Key metrics -- show the core 1-3 metrics that drive your business.

Cash on hand -- show the cash balance and runway based on current burn.

Employee status -- show changes and open positions you are trying to fill.

Challenges -- include a short list of challenges you currently face and what help you need.

Set up a template so you maintain the format and make the report easy to build each time.

Set expectations with the investors about the frequency -- monthly, quarterly, or other.

Include a set of financials showing the detailed picture so investors can find answers to detailed questions about the numbers. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Direct download: Minimum_information_an_investor_should_receive.mp3
Category:general -- posted at: 6:00am CDT

Investor, Advisor, Mentor, Board

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

There are four ways someone can help a startup outside of becoming an employee.

You can be an investor, an advisor, a mentor, or a board member. 

As an investor, you can fund the startup.

As an advisor, you can guide the founder on strategy and make introductions.

As a mentor, you can coach the startup on various aspects of running the business such as hiring, planning, selling, and more.

As a board member, you can provide governance and oversight over the company.

Each role takes a certain amount of time.

The investor role can take little time with just monthly or quarterly check-ins.

The advisor role could take more time with two to four calls per month.

The mentor role could be two lunches a month or more.

The board member role could take ten hours a month or more.

Consider your time availability before committing to a startup.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Direct download: Investor_Advisor_Mentor_Board.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Daran Herrman, CEO at Goboto and the Host of Establishing Your Empire Podcast.

Headquartered in Austin, Texas, and founded in 2018, Goboto is a full-service marketing company with 100+ clients all over the world including China, Australia, UK, Indonesia, Singapore, and Kansas. Clients range from nonprofits that provide life- saving heart surgery (heartgift.org), to a company with a $3 Billion investment fund to acquire businesses.

Establishing Your Empire is a filmed podcast that inspires entrepreneurs, creatives and future business owners to pursue their passions, grow their organizations and build their empire. Guests are interesting people doing interesting things and range from founders, to musicians, to film directors.

At the ripe age of 13 years old, Daran’s professional career started by washing dishes and getting paid $3 per hour… cash. While in high school, his resumé was already filling up with everything from selling shoes to IT support. Before his 21st birthday, he co-founded his first company, and within a year, his team orchestrated a merger with a complementary retail business and exited before receiving his college diploma.

Daran is creatively best known for his photography, but business wise, his claim to fame is growing a company from $15K per month in online sales to breaking the one million dollar a month barrier. 

Daran speaks about current happenings in his startup world, driving trends, the ecosystem in Austin, the online information source he finds most helpful and much more.

Visit Goboto at www.goboto.com and on LinkedIn at www.linkedin.com/company/goboto/

Reach out to Daran at daran@goboto.com, on LinkedIn at www.linkedin.com/in/daranherrman, and on Twitter at www.twitter.com/daran.  

Listen to Establishing Your Empire Podcast at https://establishingyourempire.com/

______________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

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Direct download: Daran_Herrman_of_Goboto.com__Establishing_Your_Empire_Podcast.mp3
Category:general -- posted at: 6:00am CDT

What You Should Do After You Sign the Check

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

An investor does a great deal of work before the investment is made and must also do work afterward.

Here are some key points to consider:

As an investor, you need to maintain contact with the startup.

Make sure there’s control over the compensation of the CEO.  

Their compensation is the exit and not the payroll.

Make sure the company has sufficient cash runway.

Losing too much runway can throw the company into a fundraise with ‘fire sale’ terms.

Monitor your list of what must be done from the diligence report to see how the company is progressing.

Keep those items on the top of the CEO list. 

Make sure the board remains focused on their duties and sees that they spend their time well.   

I’ve found many startup boards become co-complicit with the CEO and fail to maintain accountability for results.

Talk with other investors in the deal and share information as the startup may not keep everyone up to date consistently.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Direct download: What_you_should_do_after_you_sign_the_check.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Dan Gonzales, Executive Producer and Host of Startup Mindsets Podcast.

Headquartered in San Francisco, California, and founded in 2020,
Startup Mindsets has interviewed more than 50 entrepreneurs, venture capitalists, and innovation leaders since April 2020 and has inspired people to take entrepreneurial action across the world. Week in and week out they will dive into how founders across technology and innovation leaders think about running their business and why innovation now is more important than ever.

Dan was born and raised in San Francisco, California he completed his undergrad at UC Riverside and worked at various startups and corporations including Flux Technology and Google. 

He’s worked as a venture capital analyst at VU Venture Partners, a $100M fund in San Francisco, and led investments in the frontier tech space. Some deals he’s been a part of are Akash Systems, Fan Controlled Football, Contraline, and CreditStacks. 

Dan discusses the “great resignation”, the long-term implications of remote work, producing and hosting a podcast, and more.

You can reach out to Dan at startupmindsets@gmail.com and on LinkedIn at www.linkedin.com/in/dangonzales1.

Listen to Startup Mindsets Podcast at www.startupmindsets.com/, visit their LinkedIn page at www.linkedin.com/company/startupmindsets/, and contact them on Twitter at www.twitter.com/startupmindsets

______________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

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Direct download: Dan_Gonzales_of_Startup_Mindsets.mp3
Category:general -- posted at: 6:00am CDT

Nine Types of Angel Investors

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

There are many types of angel investors.

Here are nine types commonly seen in the startup community:

  1. Networkers -- they know a great number of people and can make introductions to them. They are helpful in finding more investors as well as team members for the startup.
  2. Product-oriented -- they worked in a company managing a product line and can provide feedback on the product you are building.
  3. Finance oriented -- they have a finance background and get involved in the details of revenue recognition, forecasts, and other aspects of the accounts.
  4. Domain knowledge -- these people work in the startup’s industry and provide guidance on the current trends, and can make introductions to key people. 
  5. Marketing oriented -- they have a marketing background and can provide feedback on the branding, positioning, and marketing of the startup. 
  6. Big names -- these are people who have a big name in town but don’t necessarily know much about the business you may be running. They can help attract additional investors to your business.
  7. Operators -- these are people who run businesses and can advise on who to hire, how to implement projects and negotiate contracts.
  8. Challenger -- these people challenge you in board meetings and put questions to you to consider.  This can be helpful in making sure you’re thinking about everything that needs to be done.
  9. The rest -- these are investors who helped fill out the round but don’t have any relevant skills to bring to your startup. It’s okay that they joined the team, just don’t demand too much of them.



Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.


Let’s go startup something today.
___________________________________

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Direct download: NIne_types_of_angel_investors.mp3
Category:general -- posted at: 6:00am CDT

Angel Investing Best Practices Continued

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Angel investing is fun but difficult especially if you want to make a return on your investment.

Here are more best practices to keep in mind:

Take ownership of your due diligence and don’t rely solely on others.

Work with angel investors both within your group and from other groups.

Look carefully at the go-to-market strategy and not just the idea.

For the final investment decision, look carefully at the founder.

Make sure you do your research on the market and competitors.

Save funds for the winners so you can increase your investment with those.

When they are asking for advice, they actually want your money.

Invest in companies you can help.

Build your own investment thesis and stick with it.

Look hard at the exit strategy.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Direct download: Angel_Investing_Best_Practices_Continued.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Scott (Shalom) Klein, Host of the Get Down to Business radio show and podcast. 

Dr. Scott (Shalom) Klein is a well-regarded community activist and entrepreneur. Shalom is a published author who hosts the popular "Get Down to Business" radio show in Chicago and serves as an Officer in the US Army Reserves (Military Police) as well as the Chairman of the Village of Skokie Economic Development Commission.

Shalom holds a doctorate in educational leadership and a master's degree in Jewish Professional Studies with a concentration in non-profit management. He is on the executive committee and active leader for the Employer Support of the Guard and Reserve (ESGR).

An avid networker and dedicated entrepreneur, Scott will share the advice you need, the strategies that work, and the stories of success to help you with both business and jobs.

Scott discusses the impact and service industries, globalization, remote work, and more.

Visit Scott’s website at www.shalomklein.com, or reach out to him on LinkedIn at www.linkedin.com/company/jewish-business-news/ and www.linkedin.com/in/shalomklein, Twitter at www.twitter.com/shalomklein, and via email at sk@shalomklein.com.  

_____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

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Direct download: Scott_Shalom_Klein_of_Get_Down_to_Business.mp3
Category:general -- posted at: 6:00am CDT

Angel Investing Best Practices

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Angel investing is fun but difficult, especially if you want to make a return on your investment.

Here are some best practices to keep in mind:

Treat entrepreneurs well because word travels fast in the startup community.

No matter how hard you study, the real learning is in the doing. 

You can lose all your money in a deal at any time so it’s best to consider the money gone once you write the check.

The best learning comes from other angel investors.

Valuation is a negotiation, not a formula.

You need a large number of deals to review to be successful as an angel investor.

It’s best to diversify your investments and have enough to hit a winner. 

Just as in running a startup, it’s all about the startup team -- so in angel investing, it’s all about the investment team. 

Just as startups need expertise, so angel investors need expertise, whether it be a network, mentorship, experience, or other.

Finally, invest in what you know.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
____________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
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Direct download: Angel_Investing_Best_Practices.mp3
Category:general -- posted at: 6:00am CDT

Know Your Why

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In funding startups, it’s important to know your why.

This goes beyond making money, saving for retirement, and financial goals. 

What is your mission or cause that you are passionate about?

Start with your passion and what drives you.

Consider what impact your investment will have on the community, the technology sector, or in general.

You could focus on your local startup ecosystem.

By investing locally you can build it up through your time and funds.

You could focus on a technology sector you believe will further its progress, or you could focus on social impact in which case you find a specific cause that benefits the larger community you want to support.

Whatever it is, consider focusing on that cause and make it a part of your investment thesis.

A focused effort will bring a greater result.

Those with a Why will find the work of finding startups, diligencing them, and investing to be a much more rewarding experience.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Jaime Moreno de Los Rios, Chief Operating Officer at Secfi.

Headquartered in San Francisco, California, and founded in 2017, Secfi is trusted by thousands of startup employees for equity planning and financing. Secfi is the first to provide a proprietary suite of equity planning tools, 1:1 guidance with licensed equity strategists, and a set of financing products that enable employees to own a stake in the company they helped build. They also provide company-wide education for startups at all stages to help their team make the best decision for their own situation. Currently, they have worked with employees from more than 80% of all U.S. unicorns.

Jaime’s career spans across investment banking and five years of building startups. Prior to Secfi, he was VP of Corporate Development & Investor Relations at Flexport, where he was also Head of Flexport Capital, the lending business.

In the past, he spent ten years in investment banking at J.P. Morgan in San Francisco, London, and Hong Kong, where he advised tech startups on more than $20bn worth of capital raisings, M&A, debt offerings, and IPOs. Jaime also spent two years working for the German venture builder Rocket Internet as Country Manager for Spain and Nigeria.

Jaime holds a double major in Law and Business Administration from the University of ICADE in Madrid.

Jaime discusses the most important lesson he’s learned in helping companies and employees get the maximum value out of their equity, what online information source he finds most helpful in his work, and if he were to start a new business what it would be.

You can visit Secfi at www.secfi.com, on LinkedIn at www.linkedin.com/company/secfiinc/, and on Twitter at www.twitter.com/AskSecfi

Jaime can be contacted at jaime@secfi.com, and on LinkedIn at www.linkedin.com/in/jaimemorenodelosrios. _____________________________________________________________________

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Direct download: Jaime_Moreno_de_Los_Rios_of_Secfi.mp3
Category:general -- posted at: 6:00am CDT

Powerball vs. Moneyball

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

There are two approaches to venture investing: Powerball and Moneyball.

Powerball looks for startups that will be unicorns and pay outsized returns upon an exit.

These are called home runs.

Moneyball looks for startups that will return a decent amount to the investor but not outsized returns.

These are called singles and doubles.

Powerball takes outsized risks for outsized returns.  

Startups in this category must be working in a large market that is growing fast and under disruption.

The startup must have a compelling technology, recurring revenue, and a platform-based business.

This category is ‘winner takes all.’

Moneyball takes smaller risks for smaller returns that are more obtainable.

Startups in this category should also be working in a large market that has some growth and is undergoing transition.

The startup must have a strong team, healthy margins, and a clear path to an exit.

This category has multiple winners.

Know which type of startup you are building as it greatly impacts the amount and timing of funding you will need. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

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Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes John Livesay, aka “The Pitch Whisperer”, best-selling author, host of The Successful Pitch podcast, and sales keynote speaker. 

The Successful Pitch is heard in over 60 countries, and interviews successful thought leaders and entrepreneurs who share their stories so you can have a road map to success. John provides insights on how to make your pitch compelling, clear, and concise.

John shows companies’ sales teams how to turn mundane case studies into compelling case stories so they win more new business. From his award-winning career at Conde Nast, he shares the lessons he learned that turn sales teams into revenue rock stars. His TEDx talk, “Be The Lifeguard of Your Own Life”, has over 1,000,000 views.

Clients love working with John because of his ongoing support after his talk which includes implementing the storytelling skills from his best-selling book and online course “Better Selling Through Storytelling.”

John is a guest lecturer on how to leverage the power of storytelling in sales at multiple universities including the University of Texas at Austin, Pepperdine Graziadio Business school, and the University of Chicago Booth School of Business and his book is now required reading for the UTLA (the University of Texas in LA) course on Entertainment and Media studies.

John speaks about his latest book and the inspiration behind it. He explains the 5, 5, 5 method, great suggestions for pitching to investors, and much more.

You can visit John’s website at https://johnlivesay.com/, contact him on LinkedIn at www.linkedin.com/in/jlivesay, on Twitter at www.twitter.com/John_Livesay/, or email him at john@johnlivesay.com.

You can listen to his podcast at https://johnlivesay.com/john-livesay-podcast/.

John’s latest book "The Sale is in the Tale: 5 Storytelling Secrets to Keep From Drowning in a Sea of Sameness" can be purchased from Amazon and other major booksellers.

Text the word “PITCH” to 66866, and John will send you a free chapter of his book!

_____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

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Direct download: John_Livesay_author_and_podcaster_The_Successful_Pitch_Podcast.mp3
Category:general -- posted at: 6:00am CDT

Evaluating the Startup’s Metrics

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In reviewing a startup, ask the founder or CEO for the metrics they use to guide the business.

Check for these points in their metrics:

  1. Do they have a key set of metrics? Many startups aren’t tracking anything.
  2. Is the metric appropriate for their type and stage of business?  
  3. Do they have too many metrics? If there are too many, then it will be hard to gain traction on any one of them.
  4. Is the metric specific or general? The metrics should be specific.
  5. Are the metrics actionable? One should be able to make decisions on them.
  6. Are the metrics realistic? You should be able to implement programs and activities based on them.
  7. Do the metrics cover a specific timeframe? Metrics without a timeframe are meaningless.
  8. Do the metrics compare with industry standards or the competition? Performance will vary based on the sector and stage you are at.

Use the startup’s metrics as part of your investment decision.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: Evaluating_the_Startups_Metrics.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Devin Miller, Founder of Miller IP Law and Host of The Inventive Journey Podcast.

Headquartered in Mountain Green, Utah, and founded in 2019, Miller IP Law is a law firm that assists startups and small businesses with patents and trademarks across the US and worldwide. Miller IP Law is changing the law firm model to make patents and trademarks approachable, affordable, and understandable by providing transparent flat-fee pricing, easy-to-reach attorneys, and easy processes.

Headquartered in Morgan, Utah, guests on The Inventive Journey Podcast share the journey that led up to the founding/co-founding of the startup or small business. The show focuses on the journey rather than a pitch for the services/products the startup/small business may offer. 

In addition to his law firm, Devin also founded his first startup while earning his Law & MBA degrees (for a total of 4 degrees). Since then, he has founded several 7 & 8-figure startups in wearables, product development, website design, and religious products.

Devin speaks about the role of intellectual property in the startup world, the driving trend in this space, and if he could start a company today, what it would be.

You can visit Miller IP Law at www.lawwithmiller.com, on LinkedIn at www.linkedin.com/company/miller-ip-law, and set up a meeting with an attorney at www.strategicmeeting.com

You can listen to The Inventive Journey Podcast at https://milleripl.com/blogs/inventive-journey, and visit its LinkedIn page at www.linkedin.com/company/the-inventive-journey

You can contact Devin at devin@milleripl.com and on LinkedIn at www.linkedin.com/in/millerip. _____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

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Direct download: Devin_Miller_of_Miller_IP_Law_The_Inventive_Journey_Podcast.mp3
Category:general -- posted at: 6:00am CDT

This is the Investor Connect KiwiTech 2022 podcast series. In this series, we discuss trends and topics in the startup world.

I hope you enjoy this episode.
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Thank you for joining us for the Investor Connect KiwiTech 2022 podcast series.

For more episodes, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
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Direct download: 2022-04-13_KiwiTech_AIP_Investment_Opportunities_in_Foodtech.mp3
Category:general -- posted at: 6:00am CDT

Beyond the Growth Story

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In raising funding it’s important to demonstrate the growth story -- sales, team, product, and fundraise are in motion.

These are the core four things investors look for to judge the startup’s traction and momentum.

Here are additional proof points to highlight to the investor:

  1. Market size – show a market that is big and growing fast.
  2. Novel approach to the problem – show how your approach is unique and different.
  3. Execution capability – show how your team can execute beyond the standard.
  4. Customer demand – show a list of customers who are ready to buy your product.
  5. Strong unit economics – show how your business is profitable on a unit economic basis.
  6. Scalable – show how you have scalability built into the business.
  7. Current investors – showcase your current investor list.
  8. Stickiness – show how your product is sticky and yields a high lifetime value
  9. Network effects – show how you’ve built network effects into your business and will continue to generate value as you grow.
  10. Fast growth – show a high growth rate of 100% YoY or better.

If you have any of these points then bring them up in your fundraise to help make your case. 


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
____________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: Beyond_the_Growth_Story.mp3
Category:general -- posted at: 6:00am CDT

Competitive Advantages

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In the pitch, investors look for the startup’s competitive advantage.

"Me too" companies are more difficult to fund because they have few if any competitive advantages.

A true competitive advantage increases your revenue by 30% or reduces your cost by the same amount.

Here’s a short list of potential competitive advantages you can build into your startup:

  • Unique and compelling technology. This gives your product or service additional features and capabilities.
  • Intellectual property including patents, trade secrets, and trademarks. This provides legal protection for your product.
  • Network effects. This can come from a platform approach, data collection, or marketplace creation which both reduces costs and increases awareness.
  • Strong brand. This provides better name recognition resulting in a lower cost of customer acquisition.
  • Virality. This increases sales without an equivalent increase in costs.
  • Exclusive channel access. Access to customers that competitors do not have is also a competitive advantage.

Consider how you can incorporate one of these into your startup.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
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Direct download: Competitive_Advantages.mp3
Category:general -- posted at: 6:00am CDT

Drawbacks to Convertible Notes

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Convertible notes are often used by startups in the early stages of fundraising as they are fairly simple to use and need little legal work compared to equity agreements.

There are drawbacks one should know. 

Here’s a short list to consider:

Convertible notes are not equity agreements and do not qualify for tax deductions such as Section 1202.

Most investors prefer equity over convertible notes and will be more willing to sign up for an equity deal structure.

The note is a form of debt that could be used to reclaim the funds in case of default.

The interest that accumulates from the note should be reported on the investor's tax return and taxes paid, even though the interest was never paid out.

Convertible notes without valuation caps can be a problem for investors down the road as the conversion will be set by the follow-on equity funding.

Finally, most convertible notes don’t define all the terms as a standard equity agreement which includes board seats, voting rights, and more. 

Convertible notes are often used as a placeholder for fundraising ‘til the lead investor is secured, at which point the convertible note for investors convert to equity.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
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Direct download: Drawbacks_to_Convertible_Notes.mp3
Category:general -- posted at: 6:00am CDT

On this episode of Investor Connect, Hall welcomes Matt DeCoursey, Co-founder and CEO of Full Scale, the Host of the Startup Hustle podcast, top-selling author of "Million Dollar Bedroom" and "Balance Me", as well as the co-author of "The Realist’s Guide to a Successful Music Career".

Headquartered in Kansas City, Kansas, and founded in 2018, Full Scale is a tech services company that helps businesses build teams of software engineers. Their goal is to make finding and retaining highly experienced software engineers fast, easy and affordable.

With over 2.8 million downloads and counting, Startup Hustle is a podcast for entrepreneurs, by entrepreneurs. With the mission of telling the real story of startups and entrepreneurs, topics range from funding to failure and beyond. 

Matt discusses the “Great Resignation” and how it’s playing out in the startup world, common myths about his field of expertise, what online information source he finds most helpful, and what he attributes to the success of his podcast.

You can visit Full Scale at www.fullscale.io, on LinkedIn at www.linkedin.com/company/fullscale-io, and on Twitter at www.twitter.com/fullscalekc.  

You can listen to the Startup Hustle podcast at www.startuphustle.xyz, visit its LinkedIn page at www.linkedin.com/company/startup-hustle-podcast, and on Twitter at www.twitter.com/startupsxyz

Matt’s books "Million Dollar Bedroom", "Balance Me: A Realist's Guide to a Successful Life", and "The Realist’s Guide to a Successful Music Career" are available on www.Amazon.com and other major bookstores.

Matt can be contacted at deco@fullscale.io, on LinkedIn at www.linkedin.com/in/matt-decoursey/, and on Twitter at www.twitter.com/decourseymatt.  

_____________________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

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Direct download: Matt_DeCoursey_of_Full_Scale-Startup_Hustle_podcast.mp3
Category:general -- posted at: 6:00am CDT