Welcome back to Investor Connect for the second show in our new series Investor Perspectives. This month we will be discussing with investors in our network the following topic: The Impact of the COVID-19 Economy on Startup Funding.

 In this installment, we ask the following investors to give us their views: 

Christian Kameir of Sustany Capital 

Peter Adams of Rockies Venture Club/Rockies Venture Fund

Jake Rosenfeld of Bonsai

Phil Nadel of Forefront Venture Partners

Steve Shapiro of eHealth Ventures

We hope you enjoy listening to this very insightful interview.

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

In calculating returns the timing of the return is a key factor.

There are two metrics for measuring return. ROI is return on investment without respect to time, and IRR which is Internal Rate of Return, is ROI WITH respect to time. 

If I invest $50K and receive $150K back in three years, then my ROI is 3X. If I receive it back in five years the ROI is still 3X.

For IRR the timing makes a difference on the calculated result. 

If I invest $50K and receive $150K back in three years, then my IRR is 44%. If I receive it back in five years the ROI is 25%.  

The sooner the return comes back the higher the IRR.  

That’s why most angels and VCs quote IRR on their investment results rather than ROI.

Angels and VCs look for a 20%-30% IRR on their investments.


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

Let’s go startup something today.
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Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In angel investing the two basic approaches are generalist and specialist. 

The generalist funds across all sectors but with certain criteria focused on growth rates, team composition, or monetization models such as recurring revenue.

The second is a specialist who narrows the focus to a specific industry vertical or application.

The generalist has many deals to choose from while the specialist has a limited supply.

The generalist must deal with more markets and segments and often focuses on providing value through the business model rather than industry knowledge.

The specialist brings domain knowledge and can provide more value through contacts in the industry and application-specific advice.

The trend in the industry is to move to either a generalist approach in which one places a large number of investments to find a hit, or to move into a specialist role and provide more value to a smaller number of deals.

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

Let’s go startup something today.
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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.

You’ll need to gather your basic company documents for investors to review.

In preparing a due diligence box also called a dataroom, there are basic documents to include:

Income Statement and Balance Sheet

Three to five year financial forecast

Cap Table including shares outstanding

Entity filings (LLC or C-Corp, etc) including Articles of Incorporation

Intellectual Property filings including patents, trademarks, etc.

C-level team resumes

Most early-stage companies don’t have lawsuits, years of tax returns, and other baggage that comes with time. 

There may be other documents you may need to add based on your situation.


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

Let’s go startup something today.
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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