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

After funding, you need to keep your family and friends investors informed on the status of the startup.

Consider the following:

Be transparent about the results and share both bad news as well as good news.

Stick to facts about the current state of the business and not just forecasts and plans.

Provide an update in writing on the following:

Lead off with short status updates about major initiatives, milestones missed or hit, and major customers or partnership opportunities.

Share the status of product development including test results, beta tests, and setbacks or breakthroughs.

Cover the key financial metrics, including actual versus forecasted revenues, cash on hand, current burn rate, and monthly and year-to-date revenues.

If additional fundraising rounds are underway, provide the status of fundraising goals.

Share details about new employees, finding a great co-founder, or securing an experienced advisor. 

Detail key customers landed, important opportunities, and major marketing initiatives.

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 raising funds from family and friends, you could take it in the form of a gift.  

Most family and friends want to help you out rather than make a return.  

A gift is an ideal way of taking the funds without going through valuations, loans, and other funding mechanics.

The tax laws allow anyone to gift up to $15,000 per year, without triggering the gift tax which can be as much as 40%.

While the IRS has established the $15,000 basic limit per person, wealthy gift givers can choose to exceed the annual limits and gift even more money to anyone up to a total of $5.3 million.

It’s not a good idea to gift the funds directly to the startup. The IRS expects that in exchange for the money, the gift donor would normally receive stock in the corporation.

You may want to return the favor someday to those who provide the funds as a gift. 

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