Investor Connect Podcast

In this episode, Hall welcomes Lydia Kinkade, Managing Director at iiM (Innovation in Motion) located in Merriam, Kansas. iiM is an angel investment group that invests in high-growth, early-stage animal health, human health and agribusiness companies. They provide capital, seasoned business expertise and access to their network of industry experts.

Prior to becoming an early-stage investor, Lydia graduated from college with a degree in Secondary Education and joined Teach for America.

She wants to “learn about and be part of the solutions to some of the most pressing challenges that span the globe.”

Lydia speaks about the investment thesis for her fund, what she is excited about, what the challenges are in this space and gives advice to investors and entrepreneurs.


Visit iiM at
www.iimkc.com/

Lydia can be contacted via LinkedIn at www.linkedin.com/in/lkinkade/, on Twitter at www.Twitter.com/LydiaKinkade, or via email at lkinkade@iimkc.com.  

Direct download: Lydia_Kinkade_of_iiM.mp3
Category: -- posted at: 11:21am CST

In this episode, Hall welcomes William Bissett, President and Founder of Portus Wealth Advisors and podcast host at Charlotte Angel Connection. Portus Wealth Advisors is a Private Wealth Management firm based in Charlotte, NC and serves clients across the country.  

William began his career in insurance sales, then moved on to a job at a wealth-management firm. After a number of years, he then moved on to his own business, but soon realized that he wasn't the right person to run it long-term. After an exit there, a colleague suggested to him that 'because he had a lot to offer' he check out the Charlotte Angel fund. As they say, the rest is history.

William speaks about the evolution of the angel-investing world, the challenges faced and what excites him. He also gives advice to investors and entrepreneurs.

Visit Portus Wealth Advisors at www.Portusadvisors.com/index.html, Charlotte Angel Connection at https://williambissett.com/ and the Charlotte Angel Fund at www.cltangelfund.com/

William can be contacted via LinkedIn at www.Linkedin.com/in/williambissett/, on Twitter at www.twitter.com/wbbissett, or via email at william@portusadvisors.com.

Direct download: William_Bissett_of_Portus_Wealth_and_Charlotte_Angel_Connection.mp3
Category: -- posted at: 8:14am CST

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

In developing the pitch deck, there are several mistakes I often see.

One of the most common is trying to explain in great detail how the product or technology works.

Instead, focus on the benefits of the product and what it does for customers.

Save the detailed explanations for later when you are in diligence.

Other mistakes include: 

-- Not identifying the competition or claiming there is none.

-- Making the font so small that no one beyond the first row can read it.

-- Using too many words so that readers get distracted by reading it.

-- Not setting up a flow so the slides follow a logical story form.

-- Using market sizings to distract the audience from the fact that you have no traction.

-- Forgetting to put the investment ask at the end, so investors are left wondering what you want from them.

-- Using cut and paste from Excel for financials, rendering the slide unreadable.

-- Trying to tell the investor everything in one sitting.

The pitch deck should focus on your core product, team, customer and fundraise.

The details can be fleshed out later. 

Finally, the biggest mistake is not asking questions and listening.  

Most startups spend their time talking when they should be listening for objections and concerns. 


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

Direct download: Startup_Funding_Espresso_--_Common_Mistakes_in_developing_a_pitchdeck.mp3
Category: -- posted at: 5:58pm CST

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

In the Coronavirus lockdown we’re seeing trends that will establish the next cycle of startup innovation.

While already underway, there’s an accelerating shift to digital.  

Startups in this area will find investor interest if they can provide the following:

Online businesses where you can work from anywhere.

Evergreen products that are always in demand.

Efficient delivery of products and services both online and offline, such as the internet or delivery to the customer’s doorstep.

Examples of this include:

Local restaurants moving from in-house dining to curbside delivery.

Local businesses move to sell online rather than in the store.

Instruction such as education and physical training delivered online.

Students moving from physical classes to online instruction.

Shopping is moving from the physical store to online.

These trends were underway before but are not accelerating.


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


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

In evaluating a team, there are elements to look for in a CEO for early-stage companies.

The first is character. The CEO must have integrity and demonstrate character.

Over time, the company will adopt the character of the CEO. If the CEO cuts corners, so will the rest of the company.

The second is confidence. The CEO must have enough confidence in their vision, plan and team that they can execute.

Starting up brings challenges that require confidence to succeed.

The third is coachability. This is especially true for first-time CEOs in that they don’t know what it is they don’t know. Experienced CEOs understand this better and recognize their limitations.

CEOs who shun advice or forego coaching will run into problems later.


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

Direct download: EG_Jan_2020_Startup_Funding_Espresso_--_Character_Confidence_and_Coachability.mp3
Category: -- posted at: 1:59pm CST

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

In the Coronavirus lockdown we’re seeing trends that will establish the next cycle of startup innovation.

While physical events for esports have been cancelled and future events may be postponed, in general, esports continue with online activity.

Online competitive gaming will continue to accelerate through platforms such as Twitch.

Online access provides more opportunities to engage the audience and allow for audience communication with each other. 

Startups in this area will find investor interest if they provide the following:

Physical arena sports such as football, basketball and baseball will go on hold with esports taking over as the audience moves to online viewing.

Imposed quarantine has increased consumer play time. 

Software development for games carry on with remote workers.

While already underway, there’s an accelerating shift to online sports. Some sports programs such as Formula One are creating virtual events to showcase their events.

We may see traditional sports teams in football, basketball and baseball launch a virtual version of their team to continue to play in the rapidly-growing esports market. 


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

Direct download: Coronavirus_economy_trends_--_Sports.mp3
Category: -- posted at: 11:32am CST

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

In the Coronavirus lockdown we’re seeing trends that will establish the next cycle of startup innovation.

While physical events for esports have been cancelled and future events may be postponed, in general, esports continue with online activity.

Online competitive gaming will continue to accelerate through platforms such as Twitch.

Online access provides more opportunities to engage the audience and allow for audience communication with each other. 

Startups in this area will find investor interest if they provide the following:

Physical arena sports such as football, basketball and baseball will go on hold with esports taking over as the audience moves to online viewing.

Imposed quarantine has increased consumer play time. 

Software development for games carry on with remote workers.

While already underway, there’s an accelerating shift to online sports. Some sports programs such as Formula One are creating virtual events to showcase their events.

We may see traditional sports teams in football, basketball and baseball launch a virtual version of their team to continue to play in the rapidly-growing esports market. 


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

Direct download: COV_Series_Startup_Funding_Espresso_--_Coronavirus_economy_trends_--_Sports.mp3
Category: -- posted at: 11:23am CST

In this episode, Hall welcomes Yaniv Sneor, founder of Mid Atlantic Bio Angels (MABA). MABA is a life-science angel group focused on therapeutics, devices and diagnostics.

Yaniv started a career in physics and moved to working as a consultant with companies in the life-sciences sector. He noticed that these smaller, early-stage life-science companies were having difficulty raising money, so he decided to invest himself.

He talks about his excitement for the "very-challenging" life-science space, and explains what some of those challenges are.

He gives his advice to investors about what to do before writing that very first check and, on the flip side, gives advice to first-time entrepreneurs.


Visit Innovate Mid Atlantic Bio Angels at
www.bioangels.net

Yaniv can be contacted via email at info@bioangels.net.

Direct download: Yaniv_Sneor_of_Mid_Atlantic_Bio_Angels.mp3
Category: -- posted at: 9:32am CST

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

In your pitch deck, the twelfth slide is the Investment Opportunity slide.

This slide shows the fundraise target and how much is raised so far.

Include interest and committed investors as well as invested funds to date.

Show key terms of the deal.

For convertible notes, show interest rate, discount and cap rate.

For equity deals you can show the pre-money valuation.

I often find stating the valuation in the intro slide draws questions prematurely, so you may save it for a discussion after the presentation.

Also include a pie chart for use of funds to indicate you know what you are going to do with the funds and it makes sense for your stage.

If you’ve raised previous rounds of funding, show what you accomplished with the funds to demonstrate effective use of capital.


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

Direct download: Startup_Funding_Espresso_--_Pitchdeck_-Investment_Opportunity_slide.mp3
Category: -- posted at: 8:19am CST

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

In your pitch deck, the eleventh slide is the Financial slide.

The Financial slide gives the current status of the company with respect to revenue, expenses and profit.

You want  to convey highlights such as growth rate, scale of revenue, and break-even expectations.

Show one or two years of historical financials and then the projections for the next 3 to 5 years.

Use a side-by-side bar-graph chart as investors are looking for the broad strokes, such as cash-flow positive, break even, and growth rates.

Summarize Quarter-over-Quarter or YoY growth rates.

Avoid cutting and pasting excel spreadsheets into the slide as these are nearly impossible to read.

Detailed financials can only be analyzed when the investor has the full spreadsheet in their hands, which will occur in the due diligence phase.


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

Direct download: Startup_Funding_Espresso_--_Pitchdeck_-Financial_slide.mp3
Category: -- posted at: 8:14am CST

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

In your pitch deck, the ninth slide is the team slide.

Show the C-level team include CEO, CTO and CSO.

Include a picture of each team member with their name and title.

Show the names of companies and projects they have worked on that are relevant to your target industry.

Detailed resumes are not necessary.

Include advisory board members if you have them and show what role they will play in the company.

The goal is to show you have a complete team and everyone has 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/
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

Direct download: Startup_Funding_Espresso_--_Pitchdeck_-Team_slide.mp3
Category: -- posted at: 7:45am CST

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

In your pitch deck, the seventh slide is the Competition slide.

The Competition slide often helps highlight the market size and strength by showing who else is playing in that space.

In your slide, highlight three to four competitors.

Use a table format to compare your solution to the competition on features/benefits showing the superiority of your solution.

Use glyphs and icons where you can, as it will help communicate your message.

The competition helps investors understand what market you are targeting and some investors use it to determine if you have a market at all.

Beware of saying you ‘have no competition’, as it demonstrates a lack of understanding of your target market.


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

Direct download: Startup_Funding_Espresso_--_Pitchdeck_-Competition_slide.mp3
Category: -- posted at: 7:35am CST

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

In your pitch deck, the third slide is the Solution slide.

For your solution, show a picture of the core product or technology so the investor gets a sense of it.

Describe how you came up with it and why it’s a great solution.

Leave out ancillary products and other revenue streams and focus on the primary product.

Highlight both features (what it does) and benefits (why we care).

Show the benefits the customers receive from, and their ROI from using 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

Direct download: The_Solution_Slide.mp3
Category: -- posted at: 7:08am CST

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

Vince Lombardi once said, “Winning isn’t everything, it’s the only thing”.

In startup investing, “Team isn’t everything, it’s the only thing”.

All problems will ultimately be solved by the team. If the team can’t solve it, then the business will fail.

In many years of angel investing, almost all failures trace back to the team not being up to the task.  

In some cases, the investors underestimated the task, but in the end, it’s the team that must face it.

In reviewing a deal, the investor often makes the mistake of matching the team to the current problem but not future problems.

In the earliest stages, one looks for a team that can build and sell the product, but will that same team be able to grow the business and later scale it? These are the future problems that must be solved. 

Hopefully, the CEO will change the team to match the needs of the business.


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

Direct download: Team_is_the_Only_Thing.mp3
Category: -- posted at: 1:38am CST

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

In your pitch deck, the eighth slide is the Competitive Advantage slide.

First highlight your core value proposition for the customer.

Show what value the customer receives from your product/service.

A competitive advantage gives you a 30% increase in revenue or decrease in cost. 

Show what competitive advantages you have such as

--recurring revenue

--virality

--network effects

--channel access

--platform-based solution

Using numbers to describe your advantage will make clear the benefit.


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

Direct download: Startup_Funding_Espresso_--_Pitchdeck_-Competitive_Advantage_slide.mp3
Category: -- posted at: 9:15am CST

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

In your pitch deck the second slide is the problem slide.

It’s important to start the pitch with the problem you are solving so the investor has a frame of reference for your startup.

Show how this is an important problem and must be solved, versus a nice-to-have solution.

It must be a big problem to solve. Investors are looking for big revenue and this comes from solving major problems, not minor ones.

Talk about the cost in dollars the problem brings.

As you present the problem, you may want to use a story to describe how you found 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

Direct download: Startup_Funding_Espresso_--_Pitchdeck_-Problem_slide.mp3
Category: -- posted at: 9:04am CST

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

The goal of the pitch deck is to introduce your deal to an investor and find out what is essential to that investor.

The goal is not to tell your full story or explain how your product works. 

From this pitch, you want a follow-up meeting with the investor. 

Good pitch decks show what you are doing and the opportunity to grow more with funding.

Ideal pitches show the proposed outcome is going to happen with or without the investor. In other words, the outcome is inevitable.

Inevitability comes from the team knowing what they are doing. They are committed and well on their way already.

The results are up on there for everyone to see what has been done so far.

The slides serve the presenter, not the other way around. You are the presentation -- not the slides.

Avoid discussing multiple scenarios as investors will find it difficult to keep track.

Focus on the core message -- it’s one product, one team, one market, one fundraise and one outcome. 


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

Direct download: Startup_Funding_Espresso_--_Goal_of_the_pitchdeck.mp3
Category: -- posted at: 7:12am CST

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

After the COVID-19 pandemic of 2020, investors look to see if you have made your business COVID-19-proof.

Here are some steps to COVID-19-proof your startup.

Ensure your startup can continue day-to-day operations by working remotely, even when everyone is in lockdown in their own homes.

Setup remote work tools such as Google Drive, Asana, Trello and other systems.

Update your cybersecurity measures as a remote workforce bring new challenges.

Create backup and redundancy plans to cover for those who fall ill or must step out to take care of others.

Choose partners, suppliers and others who have COVID-19-proof businesses. 

Secure the supply chain for your operations as well as for product/service delivery.

Pursue customers who are also COVID-19-proof and whose operations will continue in the case of a lockdown.

These businesses include:

Those who can run some portion of their business online.

Those who can continue operating using existing workers in remote locations.

Those who don’t require large numbers of people to deliver and support a product/service.

Those who have a flexible workforce and can shift duties from one team member to another seamlessly.


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

Direct download: COV_Series_Startup_Funding_Espresso_--_How_to_Covid-proof_your_business.mp3
Category: -- posted at: 3:47pm CST

In this episode, Hall welcomes Tony Jeff, President and CEO of Innovate Mississippi & Mississippi Angel Network who accelerate startups and drive entrepreneurship throughout the state. They strengthen and grow the culture of innovation in Mississippi.

Tony is a technology evangelist who speaks regularly on emerging trends and strategies in technology and innovation commercialization. Tony has overseen the coaching of more than 1,200 entrepreneurial ventures and he’s consulted with companies that have successfully raised more than $175 million in private-equity financing. 

He is excited by the breadth of the companies that Mississippi is seeing, especially out of young entrepreneurs. He explains where he sees the state of investing in angel-level deals, early-stage companies, how the industry is evolving and the changes he sees coming up.

Tony gives advice to both investors and startups, gives his thoughts on the challenges they face and he speaks about Innovate Mississippi’s investment thesis.

Visit Innovate Mississippi at www.innovate.ms.

Tony can be contacted via LinkedIn at www.linkedin.com/in/tonyjeff/ and via email at tjeff@innovate.ms.

Direct download: Tony_Jeff_of_Innovate_Mississippi__Mississippi_Angel_Network.mp3
Category: -- posted at: 2:31pm CST

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

In your pitch deck, the fourth slide is the market slide.

The market slide shows the size of the opportunity.

Show total available market, which is anyone you can sell to.

Then show the serviceable market, which is your core target market.

Finally, show the beachhead market (who are the first 20 customers you’re going to sell if you are early stage).

For each market, show the growth rate.

The total available market should be at least $1B.


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

Direct download: Startup_Funding_Espresso_--_Pitchdeck_-Market_slide.mp3
Category: -- posted at: 8:27am CST

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

After the pitch comes the investor discussion, in person or by conf call. 

Research the investors in advance by looking them up on LinkedIn and their own company websites.

In setting up a call or meeting, always have new information to share. Give the investor a reason to join the call to learn more.

In the call/meeting, ask these questions in addition to answering their questions:

How much does the investor know about the space?

What is the investor’s typical check size?

Does the investor have specific terms he wants in the deal and so would like to lead it?

What diligence docs does the investor require and does he have a set process?

Have you read the terms sheet and are there any questions?

Keep the updates about the business going with your standard mailers so the investors stay up- to-date.

It’s important to convey a sense of momentum in your deal with news about sales, team, product and the fundraise.


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: Startup_Funding_Espresso_--_Investor_discussion_after_the_pitch.mp3
Category: -- posted at: 6:33am CST

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

In your pitch deck, the sixth slide is the traction slide.

For this slide, show current sales as well as the funnel of upcoming sales opportunities. Include forecast numbers for each opportunity.

Show the pipeline as a repeatable, predictable process and that you are creating a systematic approach to sales.

Show customers and prospective customers with their company logos as they resonate better with investors.

If the company is pre-revenue, then talk about your customer interactions and the rapid progress the team is making in achieving revenue.


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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For Feedback please contact info@tencapital.group

Direct download: Startup_Funding_Espresso_--_Pitchdeck_-_Traction_slide.mp3
Category: -- posted at: 6:24am CST

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

In your pitch deck, the first slide is the title slide.

It’s important as it’s the first slide the investor will see.  

It should convey the style and culture of the company.

On the slide, include your company name, presenter’s name and position.

Also show your tagline as this sets the stage for your presentation. It should start investors thinking about your company.

Make sure you use your company logo and colors on this slide and throughout the slide deck.

You don’t need the current date as you’ll find yourself changing this far too often.

Save your contact details for the end which will include email, phone number, and website.


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: Startup_Funding_Espresso_--_Pitchdeck_--_title_slide.mp3
Category: -- posted at: 6:15am CST

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

Many startups use loans to fund their business. If you are taking a loan from family and friends, here are some points to consider:

The first step is to determine the amount of the loan and how it will be disbursed to the startup.

There’s time-based disbursements. For example, the startup gets $20,000 now, $20,000 in three months, and the final $20,000 three months after that.

Then there’s milestone-based disbursement in which the funds are disbursed when the startup reaches specific milestones or goals such as prototype complete, product complete, customer sold.

The loan should be made to the startup and not the founder. 

You want clear dividing lines between the assets of the startup and the personal assets of its founders. Comingling personal assets with those of the startup is a bad practice.

Avoid no-interest loans and establish an interest rate of at least 3%.

If you set up a no-interest loan, the IRS will assume an “imputed interest rate” and tax the lender on an “assumed” amount of interest on income received.

Determine if a personal guarantee and/or collateral are required.

Most startups don’t have assets aside from the intellectual property (IP) created by its founders and employees, so collateral is usually limited.

A personal guarantee states that the entrepreneur will agree to be liable for repayment of the loan if for some reason the business cannot make the payments.


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: Startup_Funding_Espresso_--_Taking_loans_from_Family_and_Friends.mp3
Category: -- posted at: 6:09am CST

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

Many startups use profit sharing to fund their business. 

It is important that everyone involved has a very clear understanding of how “profit” is calculated.

There are three locations in the startup’s profit and loss to dip in and take out a “share” to pay back an F&F investor. They are as follows: 

  1. Top-line revenue is the most often used.
  2. Gross profit is the revenue minus the cost of goods sold or what it cost to make the product. 
  3. Net profit is the revenue minus the cost of goods sold and expenses.

To know how much profit to share, you must first build a financial model.

Another key issue is when to start payments to the investors.  

You could set a timeframe such as 3 to 6 months out, or upon closing a customer sale 

You could set a specific amount of revenue or profit or whenever you are able to payback.

There needs to be a limit to the amount of profit sharing. It could be a specific dollar amount or a time limit.


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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For Feedback please contact info@tencapital.group

Direct download: Startup_Funding_Espresso_--_Profit_Sharing.mp3
Category: -- posted at: 11:52am CST

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

Many startups raise funding from family and friends on their first round to get the startup going.

Before launching, make sure you do the following: 

Co-founders should agree on the equity split for each one and document the ownership agreement legally.

Intellectual property (IP) needs to be assigned to the startup, including programming code, product designs, product trademarks, and domain names.

If you are hiring employees you need to establish a stock-incentive plan to enhance their compensation package.

You are accepting investment funds so you need a legal entity. You’ll setup either an LLC or a C-Corp. For an LLC, you give membership units for an LLC, and shares for a C-Corp.

You are starting a business so you’ll need a business bank account. For this you’ll need a Federal Tax ID (also called an EIN) to complete the process.


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/
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Direct download: Before_Launching_Your_Business_With_Family__Friends_Funding.mp3
Category: -- posted at: 11:45am CST

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

Many startups use loans to fund their business. Here are a few ways to set up a payment structure and schedule. For payment structure you can use:

Interest-only payments -- in the beginning the startup only pays out the interest and later pays the original loan.

Deferred start of payments -- you may consider starting payments 6 to 12 months after the loan is taken to give the startup time to build product and close customers. 

Pay back when you can -- this is the easiest of all payment options which gives the startup lots of freedom in paying back, by deferring the start to some date in the future.

You will need to determine how much will be paid when the payments start so you can create an amortization schedule.

Once you’ve decided on the loan amount, the interest rate, term, and payment schedule, you can plug those numbers into an amortization calculator to create a schedule of payments needed over the life of the loan.


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: Startup_Funding_Espresso_--_Paying_off_the_Loan.mp3
Category: -- posted at: 11:37am CST

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

Many startups raise funding from family and friends on their first round to get the startup going.

For those considering family-and-friends funding, think about the profile of the type of investor you need.

Clearly, the person has sufficient money and can afford to lose some of it with no impact on his or her lifestyle.

Also, consider how well connected they are.

Can they help make a deal with a key customer?

Do they have industry or domain expertise?

Do they have startup or business experience?

Are they an accredited investor?

Are they an active or passive investor?

These are just some of the questions you’ll need to answer to know if they are a fit for your deal.


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: Startup_Funding_Espresso_--_Family_and_Friends_Funding.mp3
Category: -- posted at: 11:25am CST

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

I’m often asked if you should you take money from family and friends to fund your startup.

Outside investors will look at family-and-friends funding as a sign of support for your business.  

If your family and friends won’t invest, why should the outside investor invest?

Many startups are reluctant to take family-and-friends funding because Thanksgiving turkey tastes different if things don’t work out.

In addition, there’s valuation. I’ve seen some startups give their family a special valuation because well, they’re family.

This becomes a problem later when raising follow-on funding from outside investors. You have to give them the same valuation or higher, or your family loses their equity position.

My recommendation is to take family-and-friends funding as a show of support.

But only as a donation and only in $10K amounts from each person.

Offer to pay them back by supporting their project in the same way when the time comes.


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: Startup_Funding_Espresso_--_Should_you_take_money_from_family_and_friends.mp3
Category: -- posted at: 11:13am CST

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

Targeting investors for your fund and getting buy in is a key step in raising a fund. 

Potential investors include family offices, high net-worth individuals (HNI), and angel investors. 

Larger, institutional investors such as pension funds, are typically not interested in unproven fund managers and rarely go below $50M funds. 

Institutional investors look for a prior track record and have minimum investments that would put their investment above a limit on how much of the fund their investment takes. This is typically around 20%.

You could engage a placement agent whose fee is usually in the range of 2 to 3 percent.

You can also use meetings with investors before the fundraise to see how the market will respond.  

The key to launching the fund is to secure an anchor investor who will allow you to use their name. 

This gives the fundraise momentum as the initial funds are secured.

The most common question will be about past performance. If you have led funds in the past then you have a track record to present. If not, then if you invested as an angel investor in numerous startups then that too could give you a performance record. Be sure to highlight any investments that resulted in a successful exit.

If you were an operator of a company with a successful track record, that could be used 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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Direct download: Startup_Funding_Espresso_--_Targeting_Investors_for_your_Fund.mp3
Category: -- posted at: 11:06am CST

In this episode, Hall welcomes Eric Berman, Co-chair and President of Element 8 (E8) Ventures, an angel, impact-investing group who invest for profit with a purpose.

E8 is an international, Seattle-based community whose mission is to accelerate the transition to a prosperous and cleaner world by investing in and fostering emerging cleantech enterprises. Its flexible, investor-centric platform supports different types of investors and asset classes, including direct angel for-profit investing, pooled investing in expertly managed VC funds such as the E8 Fund and via syndication.

E8 members have invested $39.3 million over 14 years, in over 90 different companies.

Eric worked with Microsoft through most of the 90s and then Expedia, but decided after many years that he wanted to work in the environmental sector where he had a huge passion for the environment and renewable energy.

He speaks about the evolution of angel investing in cleantech specifically and gives advice to both investors and startups.

Visit E8 Angels at www.e8angels.com/ 

Eric can be contacted via LinkedIn at www.linkedin.com/in/erberman/ and via email at ericbe@hothpark.com.

Direct download: Eric_Berman_of_Element_8_Angels.mp3
Category: -- posted at: 9:53am CST

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

So what is growth equity?

Growth equity refers to investing in a company at later rounds such as Series C or D.

These companies typically have $3-5M of revenue and are beginning to start the scale process. 

Growth equity venture firms look for a company that will become a market leader. 

A typical ROI is in the 3-5X range.  

Private equity is not typically in the picture yet as they look for profit, which for startups doesn’t yet exist.

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: Startup_Funding_Espresso_--_What_is_Growth_Equity.mp3
Category: -- posted at: 9:31am CST

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

As a startup, it’s helpful to understand the VC investor you are talking to and how they make money.

In venture capital, there’s two ways to make money.

First, VCs typically take one third of the equity for their investment.

In rough numbers, the VCs take the amount to be raised and double it for a pre-money valuation. The VC receives equity ownership of investment, divided by post-money valuation.

As an example:

Say you are raising $1M. The VC will turn that into a $2M pre-money and then add the $1M investment to reach a $3M post-money valuation. The investor receives Investment divided by the post-money which is 33% of the equity. That’s how much equity the startup gives to the VC for the funding.

Second, the VC charges their investor, called Limited Partners, a fee and carry -- most often 2% fee and a 20% carry.

VCs have limited bandwidth and can only take on a certain number of deals. They look for startups that will agree to these terms as it prioritizes the most profitable deals to pursue.

The better the deals they attract, the more they can charge their LP investors.


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: Startup_Funding_Espresso_--_How_can_VCs_Make_More_Money.mp3
Category: -- posted at: 9:19am CST

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

The Returns on a Fund are based on the power law which means that the Pareto Principle applies: The bulk of returns come from just a few of the companies.

Out of ten investments, one will be a home run, two to three will be small returns, and the rest will be losses. 

Some use the J-curve to show the returns. The returns in the early days are negative because the losses typically happen first. The winners come later. The shape of the returns curve looks like the letter J when plotted on a graph.

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: Startup_Funding_Espresso_--_Returns_of_a_Fund.mp3
Category: -- posted at: 8:31am CST

In this episode, Hall welcomes Peter Adams, Executive Director of Rockies Venture Club.

Rockies Venture Club is “...an angel investing group dedicated to accelerating economic development by educating and connecting investors and entrepreneurs.” Their culture is based on the following three “pillars”: events, education and execution.

Excited by impact investing, Peter explains Rockies Venture Club’s investment thesis and gives examples of startups within the Club.

Peter also gives advice to both investors and entrepreneurs, and speaks at length about the challenges startups face.

Visit Rockies Venture Club at www.rockiesimpactfund.com  

Peter can be contacted via LinkedIn at www.linkedin.com/in/peteradams/ and via email at peter@rockiesventureclub.org 

Direct download: Peter_Adams_of_Rockies_Venture_Club.mp3
Category: -- posted at: 4:01pm CST

In this episode, Hall welcomes Charles Sidman, Managing Partner and Member of ECS Capital Partners.

ECS is a fund that invests in a wide range of enterprises from early-stage Angel start-ups, to later Venture-stage or even public growth companies, focusing completely on investor returns (Internal Rate of Return).

Charles’ career path is vast and includes building computers to becoming a professor and performing scientific research. He is a financially-oriented investor with two filter systems and explains his approach to investing and the four criteria that must be in place in order for him to consider investing.

He is very excited about discovery and application, and investing, participating, supporting and working with companies that are going to change the world and make it a better place.  

Although Charles is an avid traveller and has seen startups all over the world, he sees many similarities amongst them.

He gives advice for both investors and entrepreneurs and speaks about the big changes he sees in the startup industry.


Visit ECS Capital Partners at www.ecs-angels.com 

Charles can be contacted via LinkedIn at www.linkedin.com/in/charles-sidman-0b778620/  and via email at csidman@ecs-partners.com 

Direct download: Charles_Sidman_of_ECS_Capital_Partners.mp3
Category: -- posted at: 2:41pm CST

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

In running a fund it’s important to analyze market segments.

First, evaluate the leading companies in the market.

Are there any leaders that stand out, or are all the companies competing head-to-head with the same approach?

Highlight the supply chain to show who has control of the market -- is it the producer or the consumer that drives the price?

Discuss the introduction of new technology and its impact on the current market equilibrium.  Will it shift control from the producer to the consumer, or vice versa?

Review the number of companies playing in the segment and discuss the resulting fragmentation. 

Highlight the total available market for the companies in the segment. 

Identify companies within the market that stand out for competitive advantages such as network effects, virality, recurring revenue models, etc.

Conclude with a proposal to pursue investment in a company in the market segment.


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: Startup_Funding_Espresso_--_How_to_analyze_a_market.mp3
Category: -- posted at: 2:27pm CST

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

Investors in the startup space have a certain expectation for returns. 

Startups raising funding should keep in mind these expectations and only approach them if you have a deal that is in the game for it. 

Venture investors including angels, venture capitalists, and limited partners, typically look for a 20-30 percent internal rate of return (IRR) over a 5-year time horizon. 

This can also be expressed as a“two and a half to four times” the original money invested.

If it takes longer than five years, then investors will look for a 5-10X ROI to maintain a 20-30 percent IRR.


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: Startup_Funding_Espresso_-_Investor_expectations_of_returns.mp3
Category: -- posted at: 2:16pm CST

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

Fund managers must present their investment ideas to the other general partners. 

Here’s how to analyze a potential company for investment:

Identify a recent event for the target company, such as entering a new market. 

Discuss how the company can disrupt the newly-entered market with their expertise and business model. 

Talk about the positives you see in the company’s financials and market position.

Express caution based on any concerns about the business including product/market fit, management team, or cost structures.

Discuss macroeconomic issues both positive and negative. 

Conclude with a recommendation to pursue an investment based on the positives outweighing the negatives. 


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: Startup_Funding_Espresso_--_How_to_Analyze_a_Startup.mp3
Category: -- posted at: 6:37am CST

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

The fund manager provides a quarterly report to the Limited Partners. 

The reports typically contain the following sections:

  1. Fund Manager Commentary -- the fund manager provides an overview of the current news and trends related to the fund. 
  2. Performance -- this includes the financial performance metrics such as total committed capital, capital called to date, total LP contributions and summary information about the portfolio.
  3. Total Value to Paid-in Capital -- the total market value of all the companies in the portfolio plus total LP distributions, divided by the total amount of money paid into the fund.
  4. Internal Rate of Return -- a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.
  5. Distributions to Paid-in Capital --  a ratio of the total market value remaining in a fund compared to total paid-in capital.
  6. Portfolio Company Updates -- name and description of the company, percent owned, date of initial investment, exit date, total capital invested, current cost, realized proceeds and carrying value.
  7. Financial Statements such as Income Statement, Balance Sheet, Cash Flow Statement.


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: Startup_Funding_Espresso_--_Fund_report_to_LPs.mp3
Category: -- posted at: 4:31pm CST

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

There are 3 key legal documents for your fund. They are

  1. Subscription Agreement -- describes how the limited partners purchase interest in a fund, or rather, subscribe to it. It contains representations and warranties.
  2. Private Placement Memorandum -- provides a high-level overview of what an investor needs to know about your fund. This includes the investment thesis, the risks, and other key terms.
  3. Limited Partner Agreement -- contains information about the mechanics of your fund and how it operates including distributions, capital calls and management fees.

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: Startup_Funding_Espresso_--_Key_Legal_Documents_for_your_Fund.mp3
Category: -- posted at: 3:26pm CST

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

There are three key metrics for tracking the performance of a Fund.

The first is Net Internal Rate of Return (called Net IRR) -- this measures the performance of fund distributions and the change in value of the invested companies over time, after management fees. 

The second is Total Value to Paid in Capital (called TVPI) --this measures the total value of a fund’s holdings plus distributions, as compared to total paid in capital. This takes into account investments that have increased in value but have not been paid out. 

Finally, there is Distributions to Paid in Capital (called DPI) -- this measures total distributions paid to investors compared to total paid in capital. This compares the investors paid in capital to their distributions as measured on a cash-on-cash basis. 

DPI is the metric investors care about 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/
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Direct download: Startup_Funding_Espresso_--_Key_Metrics_for_a_Fund.mp3
Category: -- posted at: 3:02pm CST

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 an executive summary which should include the following:

Fund Objectives, (Legal) Structure, Fund Specifics, Investment Strategy, Investment Criteria, Investment Process Overview, Management Team and Disclaimers.

Fund Objective -- purpose of the fund and how it will be deployed.

Legal Structure -- is it a fund, a syndicate, a pledge fund or some other structure?

Fund Specifics -- most funds are based on a ten-year window.  

Distribution Strategy -- most funds provide a recycle provision that let’s GPs reinvest profits back into the fund.  Other funds require a hurdle rate before GPs can share in the profits. This means the investors get their principal investment back before the GP takes any carry.

Limited Partner Units -- private funds are limited to a maximum of ninety-nine accredited investors in the fund.

Fee Structure -- most funds use the two percent management fee and a twenty percent carry.

Compensation Structure -- this determines when and how the GPs receive their compensation.

Initial Deposit -- funds vary in how much of the funds are required from investors up front. 

Investment Strategy -- outlines the investment thesis.

Management Team -- the resumes of the general partners. 

Finally, there are disclaimers to include. 


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: Startup_Funding_Espresso_--_Creating_an_Executive_Summary_for_a_Fund.mp3
Category: -- posted at: 2:13pm CST

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

For those raising a fund, you must develop an investment thesis for your fund or investing strategy.

An investment thesis is a hypothesis that describes how a particular market is suitable for producing a positive return.

Most funds are formed around a specific vertical in which the general partners have expertise and access to dealflow. 

More than one vertical will require the partners to have expertise across several sectors and the associated dealflow access. 

You must be able to articulate your thesis and demonstrate your expertise to investors.

Use numbers to describe market sizes and growth rates.  

Identify trends and their impact on markets and businesses.

Show how your investment thesis takes advantage of these trends and how you envision the future will result in a positive return for the investors.

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: Startup_Funding_Espresso_--_Develop_and_Investment_Thesis_for_your_Fund.mp3
Category: -- posted at: 11:24am CST

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


One of the key selling points for a startup is their potential market size.

There are several ways to find it for your startup.

You could buy a market research report. These typically run anywhere from $5K to $20K. This is an expensive way to do it and there are other ways to find the market size.

Oftentimes you can find the summary of the market research report on the web which usually gives the market size at a high level.

You can also contact the trade association related to your industry.  

These associations are most often located in Washington D.C., as they provide government advocacy in addition to industry support.

The website of the association typically provides stats on the industry including market size and sector breakdowns. 

These sources are often more reliable than market research reports.


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: Startup_Funding_Espresso_--_How_to_find_Market_Sizing.mp3
Category: -- posted at: 11:19am CST

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


In due diligence, what isn’t being said or shared is as important as what is.

When a startup pitches their idea, you should be skeptical of founders that don’t mention potential risks or discuss their experience in the industry, or their traction.

Here are other key items the investor should look for:

Focus on what needs to be done and what risks exist in the deal.

Understand if the startup is offering a pain killer or a vitamin.

Verify the market size and growth rates actually reflect the market the team is pursuing.

Check the financial projections not so much for predictability of numbers, but rather for the startups’ understanding of their business.

Diligence on the founding team including industry experience, commitment to the startup and no criminal records.


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: Startup_Funding_Espresso_--_What_isnt_being_said_in_Due_Diligence.mp3
Category: -- posted at: 10:51am CST

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

I
n due diligence you may encounter red flags indicating something is wrong.

Here are some that I’ve found:

The founders are not investing any of their own money into the business.  

The cap table is crowded with many small investors. That means the earlier funding was a challenge.

The team is incomplete. Either the solo founder wears too many hats or everyone is a tech developer, which means no one is out selling it.

Lack of awareness of the industry, especially the regulatory side.

There are no KPIs or operational metrics to review. 

Plans are generic and lack specific customer names or revenue amounts.

Loads of debt and previous investors have no further interest in funding or supporting the business.

The business appears to be setup to be the CEO’s lifestyle business. 

Hockey-stick projections with no apparent supporting evidence.

There’s no board of advisors or directors. The team you see is what you will get.

T
he financials use year 1, year 2 naming, rather than actual years.

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: Startup_Funding_Espresso_--_Red_Flags_in_Due_Diligence.mp3
Category: -- posted at: 9:42am CST

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


The prospective investor wants to see traction in your fundraise just as they want to see traction in your core business. 

In raising funding, investors will first express interest and then make a commitment before actually investing.

In a fundraise, you want to capture all three levels in your pitch.

Add up how many investors have expressed interest - which is often called soft-circled interest - and the amount, and present that number as investor interest.

Take all the committed amounts of investment and add that number to your presentation as well. 

Finally, take the amount of funding that has come into your bank account and show that number.

Over the course of the campaign those numbers will change.

It’s  important to show the prospective investor the interest from other investors throughout the campaign.


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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For Feedback please contact info@tencapital.group

Direct download: Fundraise_Show_That_Others_Are_Interested_in_the_Deal.mp3
Category: -- posted at: 6:23am CST

In this episode, Hall welcomes Harlan Mandel, CEO of Media Development Investment Fund (MDIF). Harlan joined the company in 1998 and was appointed CEO in 2011. MDIF is an impact-investment fund which “provides affordable debt and equity financing to independent news and information businesses in countries where access to free and independent media is under threat.”

MDIF funds deals across the world, including the US. Harlan speaks about one portfolio company in India whose business model, he suggests, is a good thing to pursue. He also speaks about a company in Indonesia founded by three of the leading investigative journalists in business news in the country.

Harlan goes on to talk about expertise in digital media and digital operations, and developments in the news field. He gives examples of challenges startups face in the media world and the skill sets needed to found a company.

On the investor side, Harlan suggests that the startup should be focused on bringing in revenue from day one and he goes into detail about how to accomplish this.


Visit Media Development Investment Fund (MDIF) at www.mdif.org 

Harlan can be contacted via LinkedIn at https://www.linkedin.com/in/harlan-mandel-8817673/ on www.Twitter.com @HarlanMandel and via email at harlan.mandel@mdif.org

Direct download: Harlan_Mandel_of_Media_Development_Investment_Fund.mp3
Category: -- posted at: 4:31pm CST

In this episode, Hall is joined by Vikram Lakhwara, Co-founder and Managing Director of Green Cow Venture Capital (GCVC) which is a sector-agnostic, early-stage, micro venture capital fund “backing dynamic founding teams solving global market problems around inefficiency and scarcity using greenfield technologies.” They invest at the Seed+ and Series A stages and their average seed deal check size is $450K.

Vik has been in the venture capital world for many years. Prior to co-founding GCVC, he worked at Wilson Sonsini, a globally-renowned law firm in the technology and life sciences sector where he was the Manager of Start-Ups & Venture Capital.

Vikram speaks about the challenges faced when co-founding GCVC and although difficult, what made it exciting and worthwhile. 


Visit Green Cow Venture Capital at www.greencow.vc/ 

Vikram can be contacted via LinkedIn at www.linkedin.com/in/viklakhwara/ on www.Twitter.com  @vlakhwara and via email at vik@greencow.vc 

Direct download: Vikram_Lakhwara_of_Green_Cow_Venture_Capital.mp3
Category: -- posted at: 3:45pm CST

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


The Coronavirus pandemic impacts what venture capital funds.

We’ll see changes in the following ways:

Goods and services deemed ‘essential’ will receive funding such as cannabis, CBD, and hemp.  Alcohol will see increased funding as well. 

In the wellness category, smoking cessation, nutritional supplements, and other products that strengthen the immune system will be attractive to investors.

In fintech, digital payments and for Insurtech, online vehicle inspections attract investors as it eliminates physical cash and moves the transaction online. 

In biotech, vaccines and virus detection will see increased funding. 

Remote-work software and online-engagement tools for gyms, educational institutions, and others will see strong interest. 

In healthcare, equipment in critical demand will receive funding such as medical supplies, medical equipment, diagnostics and tele-health systems.

Supply chain services and logistics such as automated ordering, AI-based systems, and delivery to the home will receive funding. Supply chain visibility startups will see strong interest as well. 

In general, online content and engagement such as telehealth, tele-physical training, and tele education will receive funding. 

Finally, automation in warehouses, data centers, and robotics will see investor interest.

Robotics and AI were once perceived as destroying jobs but will increasingly be viewed as a necessity.


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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For Feedback please contact info@tencapital.group

Direct download: Startup_Funding_Espresso_--_the_Coronavirus_impact_on_whats_getting_funded.mp3
Category: -- posted at: 10:35am CST

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

The Coronavirus pandemic impacts many parts of the economy including manufacturing and automation.

We’ll see changes in the following ways:

Manufacturing will shift back to the US to secure the supply chain for critical needs.

Companies will accelerate plans to automate functions to replace workers who may be in quarantine.

New technologies such as 3D printing, robotics and automation systems will see increased usage to provide basic infrastructure.

Flexible systems will be set up to build necessary products based on the current need.

Robotics will be used throughout the manufacturing process and not just final assembly.

Automation and robotics will be set up to provide healthcare supplies such as ventilators, personal protective equipment, and vaccines.

There will be an explosion in startups to supply this new manufacturing demand.


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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For eGuides check out: https://tencapital.group/education/
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For Feedback please contact info@tencapital.group

Direct download: the_Coronavirus_impact_on_Manufacturing_and_Automation.mp3
Category: -- posted at: 10:18am CST

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

The Coronavirus pandemic impacts many parts of the economy including IT and cybersecurity.

We’ll see changes in the following ways:

With the shift to distributed employees and remote work, there will be more people logging in from remote locations. This opens the door for more cybersecurity attacks.

Remote users with their own devices will take more time to monitor and repair when attacked.

Remote devices will need login and access to databases and other resources. These devices with access to critical data will need to be secured. 

It’s important to monitor data wherever it is stored, even if it’s at a remote location. 

Data can spread, making it harder to define and protect that data. 

Collaboration tools open up risks for cyber attack. Ease-of-use software means easy to attack.  Encryption tools need to be applied to collaboration and messaging tools. 

Security breach plans need to account for the new remote workforce. 

Remote workers have been in use for some time, but with the entire company on remote work format brings a new challenge to cybersecurity.


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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For Feedback please contact info@tencapital.group

Direct download: Startup_Funding_Espresso_--_the_Coronavirus_impact_on_IT_and_Cybersecurity.mp3
Category: -- posted at: 6:05pm CST

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

The Coronavirus pandemic impacts many parts of the economy including logistics and supply chain.

We’ll see changes in the following ways:

The need for flexible manufacturing come to the forefront in the Coronavirus pandemic in the form of ventilators, COVID-19 tests, and medical supplies.

Traditional manufacturing will be replaced by faster, more flexible systems with an emphasis on technology, rather than low-cost labor. 

Technologies such as 3D printing, robotics, automation, and advanced manufacturing will take precedence in the event labor goes under lock down.

Amazon is an example of an advanced manufacturer relying on ecommerce, cloud-based computing and sophisticated supply chain logistics. 

The post-Coronavirus world will want the ability to run standalone. Robotics, AI, and automation will be seen as a positive force for achieving that.

Logistics are shifting to serve the customer all the way to their home rather than through intermediate distribution points such as grocery stores and C-stores.  

As with most trends in the Coronavirus economy, these were already underway.  It now accelerates. 


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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For Feedback please contact info@tencapital.group

Direct download: Startup_Funding_Espresso_--_the_Coronavirus_impact_on_logistics.mp3
Category: -- posted at: 5:43pm CST

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

The Coronavirus pandemic impacts many parts of the economy including education.

We’ll see changes in the following ways:

Education has been moving online for the last twenty years. With online courseware, virtual classroom tools and more, the coronavirus will accelerate the move online.

Virtualized education will let instructors customize to individual needs.

The flipped classroom will become the new norm as videos, digital courseware and multimedia provide the lecture component.

There will be an increased usage of crowdsourced education. Virtualized education opens the door to bring additional teachers into the classroom. Imagine having an engineer provide a session on thermal dynamics and its practical use on the job.

A key component of the current education system is the ‘daycare’ component that allows parents to work a day job without having to pay for it.

Startups should examine these trends and consider extending your product to take advantage 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.
-----
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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For Feedback please contact info@tencapital.group

Direct download: Startup_Funding_Espresso_--_The_Coronavirus_impact_on_Education.mp3
Category: -- posted at: 5:08pm CST

In this episode, Hall is joined by Thomas Cali of Polaris Advisory.

Thomas, a long-time investor in some large and well-known companies, has years of experience in the technology, telecom and healthcare spaces. He stresses the importance of teamwork to run a successful company and gives advice on how executive burnout can be avoided and why it’s important to delegate. 

Polaris Advisory represents about four family offices who scale companies from private to public. 

Thomas can be contacted via email at thomascali531@gmail.com

Direct download: Thomas_Cali_of_Polaris_Advisory.mp3
Category: -- posted at: 12:58pm CST

In this episode, Hall is joined by Christopher Hugman, CEO of System Surveyor, established in 2017 in Austin, Texas.

System Surveyor is an award-winning, cloud-based platform Software as a Service (SaaS) which helps system-integration contractors and technology professionals in the electronic physical security industry, as well as other markets. 

He gives his three top pieces of advice for what he believes is the key to making a good investment with founder-market fit being even more important than product-market fit. Chris gives examples of use cases and how System Surveyor is helping companies in the sector.

Delivering value to clients is the main focus of their business.

Visit System Surveyor at www.systemsurveyor.com

Chris can be contacted via LinkedIn at www.linkedin.com/in/christopher-hugman-p-e-3963aa1/ and via email at chugman@systemsurveyor.com

Direct download: Christopher_Hugman_of_System_Surveyor.mp3
Category: -- posted at: 10:55am CST

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


The Coronavirus pandemic impacts many parts of the economy including work.

We’ll see changes in the following ways:

Increased usage of remote-work software tools. Video conferencing, shared drives, Slack, and other tools make virtual work efficient and will grow in adoption.

Remote work will become the norm rather than the exception. No one will miss the commute to work. 

Increasing use of virtual workers. With work moving online and companies moving to distributed models, the pool of available workers will expand.

Employers will look for new tools to manage online employee productivity.

With employees working remotely, new opportunities will arise for supporting workers with the delivery of physical goods.

Workers will need to retrofit their home office to accommodate the new workspace with the associated teleconferencing calls.

Corporate offices will be repurposed for new uses. For example, office buildings could be reconfigured to host company employees once a quarter for all hands-on employee meetings and shared among several companies.

As a startup, you may want to take note of these trends and plan your business strategy 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.
-----
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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For Feedback please contact info@tencapital.group

Direct download: Startup_Funding_Espresso_--_the_Coronavirus_impact_on_work.mp3
Category: -- posted at: 5:49pm CST

In this episode, Hall welcomes back Eric Smith, Founder and CEO of AppBrilliance. Established in 2015 and located in Austin, Texas, AppBrilliance has created a platform which “unlocks the future of money by removing the barriers between technology companies and the financial institutions.”

Eric speaks about the “whirlwind” of the past few months with the launching of a new product. He provides insight into credit and debit card payments and the fraud associated with them, which is very prevalent in the banking industry. He gives entrepreneurs advice on how to raise funding and goes into detail about what the future holds for AppBrilliance.


Visit AppBrilliance at www.appbrilliance.com

Eric can be contacted via LinkedIn at www.linkedin.com/in/cericsmith/ and via email at eric@appbrilliance.com

Direct download: Eric_Smith_of_AppBrilliance_-_FOLLOW_UP.mp3
Category: -- posted at: 9:30am CST

In this episode, Hall welcomes Matt Gallant, Founder and CEO of tribeOS which is “a real-time, full-featured, and decentralized advertising marketplace [which] can be constructed with the prudent use of blockchain technology combined with an independent peer-to-peer network.”

Matt has always been passionate about advertising and speaks at length about detecting and fighting the “invisible crime”, ad fraud. The team at tribeOS firmly believe that they know what most of the issues are and they are determined to solve them. Data protection and privacy, display advertising and their conversion engine are just a few of the things they are working on and Matt goes into detail about what this all entails.

Visit tribeOS at https://www.tribeos.io/

Matt can be contacted via LinkedIn at www.linkedin.com/in/matt-gallant-61535b8/
and via email at matt@tribeos.io

Direct download: Matt_Gallant_of_tribeOS_Fixed.mp3
Category: -- posted at: 10:49am CST

In this episode, Hall is joined by Xavier Segura, Managing Partner of Tessera Venture Partners, headquartered in New York. Tessera Venture Partners is an early-stage venture fund investing in transformative companies with exceptional founders “having at least one major exit in an area related to their current business”.

Xavier is not new to the world of investing in startups as prior to Tessera, he had operated, exited and grown many technology companies. He gives his advice to both investors and entrepreneurs and speaks about the various regulatory challenges in the space. Xavier also shares details on two of the five companies which are currently in Tessera’s portfolio. One is a cloud-based platform that enables merchants to sell everywhere using mobile devices as well as digital insurance claim processing and payment, and the other is a financial technology company leveraging blockchain, AI and analytics to deliver home equity lending, reverse mortgages  and other financial products.

Xavier is very excited about blockchain and the gig economy and welcomes any questions or comments.

Visit Tessera Venture Partners at  www.tesseravp.com 
Xavier can be contacted via LinkedIn at www.linkedin.com/in/xsegura/
and via email at xavier@tesseravp.com

Direct download: Xavier_Segura_of_Tessera_Venture_Partners.mp3
Category: -- posted at: 12:29pm CST

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


I’m often asked what venture capital looks for. 

VCs look for emerging tech markets with strong growth projections.

These sectors include blockchain, AI, Data Analytics, and other strong growth areas.

They do this partly because there’s usually strong deal flow and it’s easy to explain to limited partners.

VCs also look for platform-based businesses, rather than solo products.

They look for recurring revenue

Virality factors

Network effect components

Very large markets 

Strong teams and 

A scalable business model

Also, traction in your business and exits of other companies in the sector drive interest as well.


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

Let’s go start up 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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For Feedback please contact info@tencapital.group

Direct download: Startup_Funding_Espresso_--_What_Do_VCs_Invest_In.mp3
Category: -- posted at: 5:51am CST

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


The Coronavirus pandemic impacts many parts of the economy including healthcare.

For healthcare startups, we’ll see changes in the following ways:

Increased use of telemedicine.  The pandemic highlights the challenge of centralizing all healthcare functions in one place.   There are many apps on the market today and after several years of mobile phone usage, the population is familiar with conversing with others through their mobile device.

A
I will find increased application.  It will be used to sort through the massive amounts of data for controlling the pandemic, as well as running clinical trials.

We’ll see greater access to medical records for research.  It will be interesting to see how privacy issues are regarded during pandemic outbreaks.

Personal-monitoring devices will continue to take over basic monitoring functions by providing alerts when things go outside the norm.

These tools are well in place and growing in use. The COVID-19 pandemic will accelerate their adoption and use.

As a startup, you may want to take note of these trends and plan your business strategy 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.

-----

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

Direct download: Startup_Funding_Espresso_--_the_Coronavirus_impact_on_healthcare.mp3
Category: -- posted at: 4:22pm CST

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

Today’s question is from Markeyla

Markeyla asked: 
I would love some direction about creating relationships in the VC world. Although I have been accepted into an accelerator, I don't have many connections in the VC world.

Response:
Markeyla,

It’s a good idea to build a relationship with investors before you need to raise funding.  A strong relationship with the investor is the foundation of a successful fundraise campaign.  That’s why family and friends funding is so easy and raising from everyone else is so much harder.

Make a list of investors you want to know. To get an introduction, find three people who know you and the investor and have them send an email introducing you and talking about the great things you are doing in your startup.

Once you have contact with the investor, bring new information to the discussion whether it be in person, or over the phone, or in an email.

Showcase interesting market research you’ve done.  Provide information on sectors the investor works in. 

Bring to their attention up and coming startups that should be on their radar and offer to make an introduction.

Finally, if your product/service can help the investor’s portfolio companies, then offer to provide that service at no cost. 

In other words, provide information and support to the investor as your starting point.

Most companies start by asking for information and support from the investor. 

If you can help them, you will truly stand out from the crowd.

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

Direct download: Startup_Funding_Espresso_--_QA_Session_--_Markeyla_Henton.mp3
Category: -- posted at: 7:45am CST

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


Many people want to work for a VC especially those straight out of college.

Most are not aware of the challenging dynamics that come with the VC life.  Here are a few:

Raising funding -- just like startups, the VC has to raise funds too.  LPs tend to be rear-view-mirror oriented and not focused on the cutting edge of new technologies and markets.

Working with partners -- you rarely make the decisions alone, but rather with the other partners.  Ego and other agendas are often at play.

Getting deals done -- you have to convince others you have a winner on deck and sell it all the way through the process.

Managing the dealflow -- untold numbers of startups want to talk with you and only a small fraction are even meeting your funds criteria.

Dealing with Co-investors -- it’s rare for a fund to take the entire round. There’s usually other investors in the deal.  Who gets how much of the deal and what board seats, are often an issue.

The rollercoaster ride that is the startup life -- things often don’t go well at the portfolio companies and this weighs heavily on the VCs who invested in them.


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

Le
t’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

Direct download: Startup_Funding_Espresso_--_What_are_the_challenges_of_being_a_VC.mp3
Category: -- posted at: 6:38pm CST

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


In pitching your business plan, consider using the story format.

Start with the problem you faced.

Show how you couldn’t find a solution so you created your own.

And now others are coming to you for that solution.

Along the way you can talk about how you built the team and chose a go-to-market strategy.

Highlight the challenges you had to overcome.

Show the current status of the business and the upcoming plans.

Each element of the story should highlight one aspect of the business plan.

The story form keeps the audience engaged throughout the pitch because it flows smoothly.


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

L
et’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

Direct download: Startup_Funding_Espresso_--_Tell_a_Story.mp3
Category: -- posted at: 6:19pm CST

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


Today, we’ll talk about how to achieve an exit in a startup investment.

It’s easy to get into a startup investment, but difficult to get out -- especially with a positive return.

Most startup exits come when they sell the business to another company or go public on the stock exchange.

It takes seven to ten years to achieve an exit in most cases.

Most investors let the startup define the exit.  If they do, that’s great.

If they don’t, then you define an exit for your investment.  

I recommend using a convertible note that has a 3X in 3 year redemption right at investor sole discretion.  This provides you the option of exiting at the 3-year mark, or staying in for the long haul.

By year 3 it becomes clear where the startup is headed.  They are either on the venture path to larger returns, or they have left the venture path and moved into payroll mode.  

The problem with leaving the venture path is that most terms sheets give the investor an equity stake.  If the company leaves the venture path and turns into a lifestyle business, then the equity is going to be worth, at most, a small return typically around the 10-year mark. 

Define the exit you want and make an offer.  Not all startups will take it, but many will.


Thank you for joining us for the Startup 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

Direct download: 267_--_Startup_Espresso_--_how_to_achieve_an_exit_for_investors.mp3
Category: -- posted at: 6:03pm CST

In this episode, Hall is joined by John Osborne, Executive Administrator of Charleston Angel Partners.

Charleston Angel Partners is headquartered in North Carolina, and was started in 2001 as “the area’s longest-tenured and most established angel investment group.”  The group of angel investors believes that “meaningful economic impact happens when great people support great ideas.”

John is also the Managing Partner at Good Growth Capital, an early-stage venture capital firm known for its “exceptional expertise in finding, cultivating and assessing complex science and technology start-ups, Director and Co-Founder of The Harbor Entrepreneur Center, and the Founder of Charleston Angel Conference.

He spent over 10 years in the banking industry before he began investing in early-stage companies. He is excited about the energy in the startup scene in Charleston and elsewhere in the Southeast. John shares with Hall his experience in the deep-tech sector and gives advice to those both investing in startups and running their own.

Visit Charleston Angel Partners at  www.chapsc.com 

Visit Good Growth Capital at www.goodgrowthvc.com

John can be contacted via LinkedIn at www.linkedin.com/in/john-osborne-57b42035/ 
and via email at john@fundingcharleston.com 

Direct download: John_Osborne_of_CHAPS__GGC.mp3
Category: -- posted at: 3:18pm CST

In this episode, Hall welcomes Pierre Rogers of Yahyn powered by Puro Trader, the platform that brings together retailers, vineyards, and sinners with a focus on Amazon-like convenience to purchasing as well as providing the first true price and inventory discovery mechanism for these regulated industries. It is the first of its kind online aggregator for wine with a user base that is currently growing 38% month over month.

Unbeknownst to many, in the USA, most wine stores and vineyards are predominantly owned and run by immigrants. 

Pierre goes into detail about the huge addressable market that Yahyn now offers to hundreds of thousands of consumers. Currently there are 1,700 sellers and Pierre sees that number increasing by at least 5X if his predictions are correct. 


Visit Yahyn at Yahyn.com 

Visit Puro Trader on Twitter at Twitter.com/PuroTrader

Pierre can be contacted via LinkedIn at www.linkedin.com/in/pierre-rogers-265120148/
and via email at pierre@yahyn.com

Direct download: Pierre_Rogers_of_Yahyn_Puro_Trader_-_Follow_up.mp3
Category: -- posted at: 10:46am CST

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


The Coronavirus pandemic impacts many parts of the economy including consumer product goods.

F
or the consumer-product-goods space, we’ll see changes in the following ways:

Many CPG companies will see greater demand for their product as the shutdown of restaurants shifts consumers to grocery stores.

Those who provide disinfectants, protective clothing and other tools to fight the virus, are under heavy demand.

Shelf-stable products will be more important than perishable goods.

Due to outages of a customer’s preferred brands, customers will try new products because they are available, and in some cases, the only item left on the shelf to be purchased.

Wellness products including nutritional supplements, will see strong growth as consumers weather the pandemic.

Supply chains in general, are under pressure as the population moves from restaurants to the grocery store as their primary source of food.

Retailers are delaying category reviews and store-shelf resets as they have their hands full just keeping current products on the shelf.  This will delay new product introductions.

In general, consumers are moving to home delivery and to direct-to-consumer products, where possible. 

CPG companies should consider shifting into the direct-to-consumer and eCommerce distribution channels.


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

Direct download: Startup_Funding_Espresso_--_The_Coronavirus_impact_on_CPG.mp3
Category: -- posted at: 8:43am CST

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