In this episode, Hall welcomes Greg Baker of Alumni Ventures Group. Alumni Ventures Group (AVG) is a different type of venture capital firm. Designed for individual investors, AVG makes this key asset class available to millions of individuals who previously haven’t had access to a high-quality, diversified venture portfolio.

Greg started his career with an MBA as a mechanical engineer and then moved into corporate strategy, corporate development and a startup before eventually moving into venture capital.

In this episode, Greg shares his thoughts on what excites him most right now. He points to the acceleration of developments in healthcare, biotech, and everything in between. He also shares his advice to first-time investors. Greg says flexibility matters most since, in the end, many startups don't end up where they planned. For startups, he advises entrepreneurs to "get your product out there and find out what the customers really are looking for." In other words, it's vital to know and learn from your customers. Greg talks about the evolution of growth funding, as well as some of the biggest challenges startups typically encounter. Finally, Greg highlights the biotech sector as an area with good opportunities.

One common misconception about fundraising is that you must know an investor before you can approach for funding. 

It’s best to have some validation from your own group before approaching those outside of your core. Start with your current network and work out from there.  

Identify the right type of investor for your deal based on risk and return.  Angels wants three to five times their investment. Venture Capital wants 10x their investment. Family Offices want five times their investment but are often more patient for the return.

Choose the right investor for your raise and then find those investors and initiate a conversation. Later follow up and build a relationship.

Another misconception is that once an investor has said ‘yes’, then it’s a ‘done deal.’

In most cases this is not so. The ‘yes’ marks the start of the diligence phase which in most cases lasts 4 to 8 weeks.
 
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!