Fri, 30 October 2020
In this episode, Hall welcomes Nish Krishna, CEO of Lend-Grow. Headquartered in Reston, Virginia, Lend-Grow is a complete digital growth platform for local lenders. Lend-Grow aims to connect consumers with 1000+ local lenders that are often harder-to-find online and usually have better deals on loans. Lend-Grow was founded by executives that successfully built multi-billion dollar portfolios at both big banks and credit unions. Lend-Grow's platform consists of (i) RateBunni, a rate aggregator that has information on rate competitiveness and trends from 300+ local lenders, (ii) Lend-Grow marketplace to pre-qualify and route borrowers to local lenders in real-time, and (iii) Ask Lend-Grow recommendation engine to help local lenders take smart, data-driven decisions. Nish has spent the past decade at both large banks (Capital One, E*Trade) and mid-sized ones (M&T Bank, PenFed Credit Union). At Capital One, Nish managed growth for a $600 million co-brand card business and $2.5 billion small business lending. Before starting Lend-Grow, Nish set up the Consumer Loans business at PenFed and grew this business to $1.2 billion in loans over two years. Nish is an MBA graduate from Darden Business School and an IIT alum. Nish discusses investing in FinTech, broad trends in lending, challenges and opportunities for FinTech startups, and the thesis for Lend-Grow. He advises investors and entrepreneurs and shares resources for anyone interested in the fintech sector. You can visit Lend-Grow at www.lendgrow.com. Nish can be contacted via LinkedIn at www.linkedin.com/in/nishithkrishna/ and via email at nkrishna@lendgrow.com. |
Fri, 30 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. One of the key roles of a board member is coaching the CEO. Here are some key points to consider:
There are many choices here and the CEO needs support to sort it out. For strategy, make sure the company has figured out their North Star metric - the one metric that drives the company in the right direction. In the early days, the CEO will be working in the company as do employees, but over time you can help them move into a coaching position which better enables them to run the business. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Startup_Funding_Espresso_--_Coaching_the_CEO.mp3
Category:general -- posted at: 5:50am CST |
Thu, 29 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The board can help the company with building the team. Here are some key points to consider in helping with recruiting:
In the event the CEO’s performance is not satisfactory, you can either work with the CEO to improve performance, or replace the CEO. If you replace the CEO, then you’ll need to identify an interim CEO who can run the company for the short term. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Startup_Funding_Espresso_--_Building_the_Team.mp3
Category:general -- posted at: 7:00am CST |
Wed, 28 October 2020
In this episode, Hall welcomes Monica Brady, Co-Founder of VUniverse. VUniverse is a female and minority-founded company headquartered in New York and is a Delaware corporation. VU by VUniverse provides programming recommendations based on individuality as well as engaging, fun, and insightful features that connect users with every corner of the streaming universe. As a subscription app, VU protects user privacy and security, unlike free navigation apps that trade on personal data. VU saves users time and frustration with a convenient platform for discovering and surfacing the best streaming programming available. Monica has over 21 years of movie marketing expertise as the Executive Producer and Co-Founder of Trailer Central and The Golden Trailer Awards, which annually recognizes the best in motion picture marketing since 1999. The Golden Trailer Awards is known globally as the “Oscar’s for motion picture marketing” and was nicknamed by the Wall Street Journal as the “Academy Awards for the short attention span”. She has been interviewed by most every major media publication from the Wall Street Journal, to Vice, to The NY Times, CNN, the BBC, CBS, NBC, ABC, for her keen insights into entertainment marketing. Monica studied at Oxford University in England and earned a dual Film and Business degree from NYU’s Tisch School of Film and Television Production. Monica also wrote, directed, and produced her feature film Above All Things, and was recognized as a ‘Director to Watch’ in the Annual New Directors Showcase by SHOOT Magazine in 2017. Driven by her own needs to organize her streaming services, she Co-founded VUniverse in 2019 with Evelyn Watters and Ryan McManus to simplify the streaming experience. Her goal is to save people time and money with VUniverse so viewers know what they have to watch and where they have to watch it all in one easy to navigate app! Monica shares her thoughts on the growth rate of the sector and how she sees it evolving. She also mentions some of the challenges she has faced and how VUniverse fits into the landscape. You can visit VUniverse at www.vuniverse.com and on Twitter at www.twitter.com/VUniverseApp. Monica can be contacted via email at monica@vuniverse.com and via telephone at 917-994-1245. |
Wed, 28 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In setting up the board for a startup, it’s important to set the compensation policy for the directors. While some candidates will join the board for no monetary compensation, most people will require some compensation. Here are some key points to consider when setting the policy:
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/
Direct download: Startup_Funding_Espresso_--_Compensation_of_the_Director.mp3
Category:general -- posted at: 6:13am CST |
Tue, 27 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Board members have a fiduciary duty which means they must exercise good business judgment, put the company’s interest first, and act in good faith. Board members work in the following areas:
If the company becomes insolvent then they must act on behalf of the creditors. Board members are responsible for making sure taxes and employees are paid and may be held personally liable if they don’t. Board members work under the protection of the business judgment rule. This means the board member is not liable unless they act in haste, are found to abuse their discretion, or breach their financial duty. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Startup_Funding_Espresso_--_Board_Fiduciaries.mp3
Category:general -- posted at: 7:00am CST |
Mon, 26 October 2020
In this episode, you'll hear about a new company in the oil and gas sector called Flowtex Energy. Our host today is Ashley Matthysse. Our featured guests are Investor Brent Mathie and President of Flowtex Energy Beau Flowers. Flowtex Energy is an independent oil & gas producer based in Austin, TX and a leading exploration company specializing in the acquisition and development of domestic oil and natural gas wells across Southeast Texas and Central Texas. Maximizing the unique tax benefits and tremendous cash-on-cash returns available through private oil & gas production, Flowtex Energy has built a track record of success that their investing partners appreciate and participate in over and over again. Utilizing today’s science and technology, along with their conservative, environmentally responsible approach, Flowtex Energy provides significant return potential with quantified downside risk for their participating partners. I hope you enjoy this episode. ________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Why_I_Invested_FlowTex_Webinar_THEN_to_IP_EDITED.mp3
Category: -- posted at: 1:02pm CST |
Mon, 26 October 2020
This is Investor Perspectives. I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. In today’s show, you’ll hear investor perspectives on COVID-19’s impact on education and on startups. COVID-19 has changed the landscape for startups giving us a new normal. During the pandemic, it became clear the need for changes in our education system. We have joining us, Jon Broscious, an investor in the education space accelerating/investing in early-stage startups at Mucker Capital. Prior to joining Mucker, Jon spent 3.5 years at Social Starts and Joyance Partners focusing on software broadly, alternative education, consumer brands, and healthcare software and new models of distribution across patients, insurers, and providers. Jon was a Director with the Advisory Board Company (acquired by Optum) and Education Advisory Board (acquired by Vista) in its internal Strategy and Operations team focusing on revenue maximization across new sales and renewals. He holds a BSE in Operations Research and Financial Engineering from Princeton University and an MBA from McCombs at the University of Texas at Austin. You can visit Mucker Capital at www.mucker.com. Jon can be contacted via LinkedIn at www.linkedin.com/in/jonbroscious/, via Twitter at https://twitter.com/jonbroscious?lang=en, and via email at jon@muckercapital.com. I hope you enjoy this episode. ________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: IP_Education_-_Jon_Broscious_of_Mucker_Capital_EDITED.mp3
Category:general -- posted at: 12:39pm CST |
Mon, 26 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Board work brings potential liability for the director. Directors & Officers Insurance protects the board members. Most policies offer $1M to $2M of coverage. Here are some key points to consider in choosing a policy:
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Startup_Funding_Espresso_--_DO_Insurance.mp3
Category:general -- posted at: 7:00am CST |
Fri, 23 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funding, the startup will meet with many investors to answer their questions. So, how should the startup answer the investor’s questions? First, listen to the question and answer it directly and to the point. If the question requires a number, then give that number. For example, if the investor asks how much revenue do you have, then answer with, “We have $200K of revenue so far this year”, or “We have $10K of monthly recurring revenue”. Be careful with answering every question with a story, as this takes time and often misses the key information. If the investor wants to hear the back story for a particular question they will ask. For example, “That sounds interesting. Tell me how you arrived at that model”. The investor often has a list of questions to go through and a limited amount of time. Not responding with direct and to-the-point answers lengthens the process. Also, some investors may interpret the long and winding response as avoiding the answer which raises a red flag. It’s best to be straight up.
Direct download: Startup_Funding_Espresso_--_How_to_answer_the_investors_questions.mp3
Category:general -- posted at: 7:00am CST |
Thu, 22 October 2020
In this episode, Hall welcomes James (Jim) Mulford, President & CEO of acQyr eXchange. Located in Denver, Colorado, acQyr eXchange (QX) is the first digital asset marketplace that allows gamers to manage, trade, and sell in-game rewards across multiple games for cash. QX helps mobile and online gaming publishers to increase gameplay and grow revenue by providing a more effective model for issuing and exchanging digital assets. Gamers can exchange and redeem their acquired in-game rewards for local currency. acQyr eXchange is the first common rewards redemption platform that works across multiple games and publishers. Gamers have an easy-to-use mobile app that allows them to manage all their digital assets from participating games in real-time. Jim is a business executive and experienced entrepreneur, with a focus on the integration and application of information technology to deliver business solutions. He has successfully led, managed, and exited multiple ventures. He has over 45 years of technology, executive leadership, and business management experience. Previously, Jim started, led, and successfully exited several other technology-enabled businesses, including a complex systems integration company with over 300 employees. He also served as a private-sector Commissioner for the State of Colorado Information Management Commission. He graduated from the United States Air Force Academy with a B.S. in Computer Science and received a M.S. in Computer Science from UCLA. Jim spent eight years in the Air Force supporting the design, development, implementation, and operations of Air Force mission-essential technology. Jim shares his thoughts on the rise, the primary trend, and what makes for a successful company in this segment. You can visit acQyr eXchange at www.acqyrexchange.com. Jim can be contacted via LinkedIn at www.linkedin.com/in/jim-mulford-b1a0614, and via email at jomulford@acqyrexchange.com. |
Thu, 22 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. A common mistake made by startups is launching a company in an industry in which the founders know little or nothing about. I find this happens often in the healthcare and financial industries. The size and growth of those markets make it attractive to pursue but without a deep knowledge of how those industries work, is a recipe for disaster. The first issue is regulatory. Both industries are highly regulated and impacts greatly what you can and cannot do. The second issue is the current company landscape - a basic understanding of who does what in the industry is important. The third issue is your contacts working in the space. Who do you know that can help you as a customer, advisor, or employee? This becomes particularly important when you go to sell your product. Before launching in a new industry, make sure you know the regulatory landscape and how it impacts your startup. Build a network in the industry of partners and other contacts who can help you. Finally, build a core group of people who can help you build or advise your startup.
Direct download: EG_June_2020_Startup_Funding_Espresso_--_Know_Your_Industry.mp3
Category:general -- posted at: 7:00am CST |
Wed, 21 October 2020
In today’s show, you’ll hear investor perspectives on the growing HR tech sector. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. HR Tech continues to grow and advance based on new technologies. In today’s show, you’ll hear about a new company in the sector called Upskill. Our featured guests are: Jenny Ervine, Lead Investor I hope you enjoy this episode. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group |
Wed, 21 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In pitching investors, you must have a competitive advantage and be able to demonstrate it. It’s not enough to say your product is better or your team will execute faster. You must identify your core competitive advantage and show how it gives you at least a 30% cost reduction or a 30% revenue increase over the traditional methods. This could be through network effects, virality, channel access, or monetization. If you are concerned about protecting your business idea, then focus on the benefits of your competitive advantage such as, “our software reduces cost by 30% through better algorithms than the competition.” You don’t have to go into the details. In due diligence, investors can sign NDAs to see the detailed workings.
Direct download: Demonstrate_Your_Competitive_Advantage.mp3
Category:general -- posted at: 7:00am CST |
Tue, 20 October 2020
In this episode, Hall welcomes John Quinn, Co-Founder and Chief Operating Officer of EXOS Aerospace Systems & Technologies. Located in Greenville, Texas, EXOS Aerospace Systems & Technologies is a small Defense Department Trade Commission (DDTC) registered privately-owned space hardware and operations company. The EXOS team has developed hundreds of rocket engines, over a dozen reusable flying vehicles (a few for NASA), and has even developed manned propulsion systems used on Rocket Racers. Post-COVID 19 EXOS pivoted to Hypersonic Reusable Launch Vehicle Development as the USAF and MDA supported (and funded) the Phase I Small Business Innovation Research Project. At 18 years old, John enlisted in the US Navy serving in the Silent-Service on fast-attack and Trident submarines for a total of 14.5 years (including his reserve duty). In 1992 he started his civilian career as a power plant instrument technician and operator. In 2002 he completed his degree getting a Bachelor of Science in Electrical Engineering with a Controls Specialty. John continued his career in the power industry for 21 years working in Engineering and Management, and finally specializing in cybersecurity and power plant controls. After seeing 72% of his retirement disappear in the stock market crashes in 2000 and 2008, he started to look into how he could educate himself so that would not ever happen again. On January 21, 2011, (after significant research of the competition) John attended a NeUventure on Wall Street Seminar 1 with his wife, where they first met David Mitchell. They signed up as a “Top Gun”, hit the books and committed to taking control of their financial future to be able to again plan to retire and fulfill the wisdom of Proverbs 13:22. Two and a half years later, John “Fired his Boss” to engage in stock trading and entrepreneurial endeavors. John now actively trades and teaches stock trading as well as managing several other corporations he has formed. This newly found time freedom (being his own boss) afforded him time to develop his own submarine invention for the U.S. Navy under one of his Corporations, Martin Systems and Technologies. John and his wife Teresa manage Martin Systems & Technologies, INC. (MST) because they Love America, and continue to have a commitment to "serve and protect against threats foreign and domestic". MST believes that there is no such thing as "X-Military" and as long as we have ideas and technology that can help keep our soldiers "further from harms way" we have a job to do. John’s love of business drove him to develop the opportunity he recognized while working on an MST Project (with the brilliant Scientists at Blink Design and Manufacturing) in what we now officially call EXOS Aerospace Systems & Technologies, INC. (E.A.S.T.) In Feb of 2015, John became was promoted to Chief Operating Officer for E.A.S.T., and is driven to help make this company a guaranteed winner in the private commercial space race. E.A.S.T. is uniquely positioned to bridge the gap that exists between needed zero-G space testing and a somewhat “imperfect” ISS test that requires years of planning and severe monetary penalties for unforeseen test failures. John shares with Hall how EXOS came into being. He advises investors and describes how he sees the space industry evolving. He also details some of the challenges the space sector faces. You can visit EXOS Aerospace Systems & Technologies at www.exosaero.com, and on their Twitter page at https://twitter.com/exosaerosystech. John can be contacted via email at support@exosaero.com.
Direct download: John_Quinn_of_Exos_Aerospace_Systems__Technologies_Inc.mp3
Category:general -- posted at: 7:00am CST |
Tue, 20 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Startups are usually shy about discussing their current revenue when they are early in the process as the revenue is not large. I tell the startup the investor doesn’t care about the size of revenue, but rather the predictability of it. Investors look for systems in startups regardless of the size. Do you have a process for finding customers, introducing them to your product, and then closing? If you have a sales funnel you are using, it’s helpful to share that with the investors so they see the traction you have in your sales prospecting process. Use the funnel in multiple investor updates to show how prospects are moving through it. After a few months, capture the metrics of that flow including the average number of leads turning into sales, and the average time from lead generation to client closing. You want to show a system that is up and running albeit with small numbers but emphasizing the predictability of the numbers. In talking with investors, mention your process with phrases such as, “For every 10 leads, we generate 1 customer worth $5000 in revenue.” This is the magic investors are looking for - a system with repeatable and predictable outcomes.
Direct download: EG_Oct_2020_Startup_Funding_Espresso_--_What_Investors_Look_For_-_Not_Big_Revenue_Predictable_Revenue.mp3
Category:general -- posted at: 6:30am CST |
Mon, 19 October 2020
In today’s show, you’ll hear investor perspectives on the growing construction tech space. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. Construction tech continues to grow in a number of technologies and startups working in it. In today’s show, you’ll hear about a new company in the sector called Qnect. Our featured guests are: Neil Passero, Investor & Advisor I hope you enjoy this episode. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Why_I_Invested_Qnect_Why_I_Invested_Webinar_to_IP.mp3
Category: -- posted at: 9:32am CST |
Mon, 19 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. If you are pre-revenue, you can show traction with your startup. We’ll define traction as activity with customers, albeit without revenue. Show customer engagement at all phases, even before you have a product. You should have customers coaching you on what product to build. First, when communicating with investors, always include customers in your discussions. Never engage an investor meeting, email, or conference call without new info about your customer and always mention it. If you are pre-revenue, you can still talk about the prospective customers you are working with to build your product and what they are saying. The customer problem is the most important thing because it shows you are close to the source of revenue and you are working towards obtaining it. Be able to name the customers, both the company and your contact. Never talk about the customers as a general group with vague and fuzzy references. Talk specifically about the problem they want to solve and how much it is costing them. Next, show how you're building your product to solve the customer's problem. Discuss pilots, beta tests, MVP usage, and how the customers are engaging. Once you have a few customers closed, you have enough information to start building the Unit Economics story. Show the cost of acquiring those customers, qualifying them, and then closing them and how it’s a profitable business. Next, place those customers in a sales funnel to show prospects moving through the funnel. Place upcoming prospects at the top of the funnel to show more are on their way. You now have a repeatable, predictable process. The secret here is that most investors don't look for big revenue, they look for repeatable revenue. In your investor updates, show additional customers coming into the funnel and moving through it. Highlight that the cost and timeframes are the same, emphasizing it’s a repeatable process and you’re just “turning the crank.” If you've decided you're not going to talk with customers until the product is complete, then you may want to rethink that strategy. Involve customers from the start and get their help on it and ALWAYS be talking about those interactions with your investors.
Direct download: Startup_Funding_Espresso_--_How_to_Show_Traction_When_Youre_Pre-Revenue.mp3
Category:general -- posted at: 7:00am CST |
Fri, 16 October 2020
In today’s show, you’ll hear investor perspectives on the growing consumer product goods space. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. Consumer Product brands continue to grow, in particular those products with functional benefits. In today’s show, you’ll hear about a new company in the CPG sector called 2XL Swagger Brands. Our featured guests are: David Cadis, Lead Investor I hope you enjoy this episode. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Why_I_Invested__Robert_Tushinsky_of_2XL_Swagger_Brands_-_WEBINAR_to_IP.mp3
Category: -- posted at: 12:51pm CST |
Thu, 15 October 2020
In this episode, Hall welcomes Edward Dugger III, Founding Partner and President of Reinventure Capital. Located in Boston, Massachusetts, Reinventure Capital is a high-impact, high-return venture practice proven to deliver nonconcessionary financial returns along with intentional, measurable, and meaningful racial/social justice impact. Reinventure Capital consists of a diverse team who invests in U.S.-based companies led and controlled by BIPOC — Black, Indigenous, and other people of color - founders, and/or womxn founders of all identities, companies that are at breakeven or so commercializing solutions to real problems, in fragmented industries, at the forefront of one or more shifts, and poised to grow profitably. Edward was an early pioneer in impact investing, but also had careers as a real estate developer, business strategy consultant, and interim CFO. He has over 30 years of deep business development and venture capital experience, and a track record of notable achievements. At age 27 he became CEO of one of the larger venture capital firms in the nation, backed and mentored by such board directors as the CEO of Morgan Stanley and the Chairman of the Executive Committee of JP Morgan. As one of the earliest impact VC funds, they invested in growth industries to consciously expand business opportunities for entrepreneurs of color achieving an IRR of 32% during its last decade. Edward also helped launch some of the most successful African American controlled companies, both private and public, and assisted them in attracting over $2 billion in conventional capital, while achieving 30% diversity among managers and employees and generating over 7,000 family-supporting jobs. Although his investment practice was national, he leveraged his successes as a VC to build bridges among disparate local business communities as an early advocate for, and practitioner of diversity, equity, and inclusion (DEI). As a director of the Federal Reserve Bank of Boston, I co-convened with the Bank several business leadership forums advocating more inclusive business practices. Expanding the effort after harvesting the venture funds, I partnered with the CEO of State Street Corporation to form The Business Collaborative (TBC), a unique business community initiative that dramatically increased the B2B sales volume among major corporations and businesses of color in Massachusetts. Most recently he has responded to our nation's current challenges, stemming from persistent social and economic inequities, by forming Reinventure Capital. Once again he is targeting the vast, untapped reservoir of innovative, entrepreneurial talent, comprised of those of color and women consistently overlooked by the mainstream investment community. In so doing, he is pursuing a contrarian investment playbook as before, ensuring an impact-rich return on capital AND inclusion. Edward is a graduate of Harvard College and Princeton University (MPA-UP, School of Public and International Affairs). Edward explains the role of social impact in Reinventure Capital’s investment thesis and shares with Hall his reasons for investing in diverse teams. You can visit Reinventure Capital at www.reinventurecapital.com, via their LinkedIn page at www.linkedin.com/company/reinventurecap, and via their Twitter page at https://twitter.com/ReinventureCap. Edward can be contacted via LinkedIn at www.linkedin.com/in/edwardduggeriii/, and via email at ed@reinventurecapital.com.
Direct download: Edward_Dugger_III_of_Reinventure_Capital.mp3
Category:general -- posted at: 1:22pm CST |
Thu, 15 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In the deal process, there are always issues that give the investor cause to rethink pursuing the investment. Here is a short list of dealbreakers that indicate it’s time to break off the deal process.
Direct download: EG_Sep_2020_Startup_Funding_Espresso_--_Dealbreakers.mp3
Category:general -- posted at: 6:00am CST |
Wed, 14 October 2020
In this episode, Hall welcomes back Joy Schoffler, Partner at Ascendant Industries. Ascendant Industries is a New York-based investment management company that focuses on opportunities where they can support senior management to drive rapid growth and profit improvement through capital infusion, technology, innovation, and organizational expertise. They invest across a number of key verticals, including industrials, defense, cyber, digital enterprise, and special advisory. Led by a team of seasoned finance, operations, marketing and holding company executives, backed by extensive capital resources, Ascendant Industries plays an active role enhancing value. More than just a capital partner, they bring vast knowledge in acquisitions and financing and offer informed guidance and market intelligence. Their strong networks enable them to place powerful board members and advisors. Ascendant Industries brings impactful consulting resources and technology partners to quickly scale operations and build powerful teams. Their holding company structure enables them to execute and support mid to long-term growth strategies, affording the opportunity to resolve business hurdles with an eye towards maximizing value and revenue growth. Ascendant Industries is dedicated to helping exceptional entrepreneurs accelerate growth and achieve dramatic results. Joy is a Partner at Ascendant Industries where she sits on the investment committee and works with holding company leadership helping accelerate growth through strategy, systems and team development. Her investment portfolio spans across real estate, cyber security, blockchain, accounting technology, online investing technology, energy and biotech – with multiple exits along the way. Previously Joy served as Chief Strategy Officer for CRE investment firm Casoro Capital. There she raised capital for direct investments ranging in value from $18-$80 million. She additionally served on the buy side, as Director of Acquisitions for The PPA Group, acquiring $250m in real estate, helping grow the firm from 4 to 75 employees and making the “Inc. 5000” list, twice. Outside of the real estate sector, Joy started and sold FinTech focused, brand strategy firm, Leverage PR. At Leverage, Joy represented brands like SXSW, The Economic Ministries of Japan and Brazil, and developed a specialty FinTech practice. Joy additionally ran media and events at the White House, US Capitol, UN, and a Shark Tank casting call among others. A sought-after speaker and media contributor, Joy has won numerous awards including Women Communicators “Outstanding Communicator”, CEO Magazine “Entrepreneur of the Year” and Austin Under 40 award. Joy served as an officer in the Army Reserves & Texas State Guard and has a B.A in Economics from Pacific Lutheran University. Joy shares her thoughts on COVID-19's impact on the sector, where Ascendant Industries is currently focusing its efforts, some challenges the cyber sector experiences, and some new applications within the cyber and defense industries. You can visit Ascendant Industries at www.ascendant-industries.com, via their LinkedIn page at www.linkedin.com/company/ascendant-industries/ and via their Twitter page at https://twitter.com/Ascendant_Ind. Joy can be contacted via LinkedIn at www.linkedin.com/in/joyschoffler/, and via email at joy@ascendant-industries.com. |
Wed, 14 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are over 125 terms in the NVCA glossary for terms sheets. So which terms should the investor focus on? Here are six terms that are key to consider for your startup investment:
There are many other terms that could be included, but specifically, consider these for your next investment.
Direct download: EG_Sep_2020_Startup_Funding_Espresso_--_Key_Terms_to_Focus_On.mp3
Category:general -- posted at: 6:00am CST |
Tue, 13 October 2020
In today’s show, you’ll hear investor perspectives on the growing software development sector. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. Software continues to ‘eat the world’ as Marc Andreessen once said. In today’s show, you’ll hear about a new company in the software development sector called KiwiTech. Our featured guests are: Rakesh Gupta, CEO I hope you enjoy this episode. ____________________________________________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org |
Tue, 13 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are pros and cons to using convertible notes. Startups use them primarily for seed rounds and bridge rounds. They are lower in cost, as the documents are simpler than equity terms sheets. They avoid setting a price, so they are easier to negotiate. It keeps the cap table simple as they start in debt form and convert to equity later. The downside is that they have few protective provisions found in equity terms sheets, such as board seats. Valuation is not fixed. A later-priced round will set it and there’s little control the investor has over it. There are no tax benefits for a Qualified Small Business 1202, which applies only to equity investments. In summary, convertible notes are useful for launching a seed fundraise or even a Series A, as it lets the startup capture interest into the deal while searching for the lead investor. An equity round should be done to set the valuation and provide tax benefits and protective provisions for the investor.
Direct download: EG_Sep_2020_Startup_Funding_Espresso_--_Convertible_Notes_Pros_and_Cons.mp3
Category:general -- posted at: 6:00am CST |
Mon, 12 October 2020
In this episode, Hall welcomes Garin Toren, CEO & Founder of ping. Headquartered in New York, ping is a four-time-patented messaging platform that automatically reads your texts, emails, and all other message types out loud when touching your phone is unsafe, illegal, or inconvenient. Deployment is currently through Android and iPhone apps with Alexa already live and Google Home coming in November. Garin is a highly-accomplished global entrepreneur and technology professional within B2B, B2C, enterprise IT, VOIP software, e-commerce, large-scale retail, and mobile applications. At ping, he oversees all aspects of business development, while also working closely with the development team to refine this patented and lifesaving technology platform. Between 2004 and 2014, Garin built out the U.S. division of the global Information Technology and Services company, Striata Inc. As Chief Operations Officer and Executive Vice President, Garin opened the U.S. market and led a period of rapid growth that took the regional subsidiary from nothing to a multi-million-dollar operation doing business across the United States, Canada, Central, and South America. The U.S. division is now one of the biggest contributors to the global business, and this success led to Garin ultimately selling and successfully exiting the company. Garin began his executive career in 1997 as the Co-Founder and Marketing Director of Digital Mall (now The Digital Solutions Group) in South Africa. In addition to his executive career, Garin has been an active Board Member. He currently holds a seat on the Board of ping (2014-Present) and the New York Chamber Players (2015-Present). He is a member of the Entrepreneurs Organization (EO), and in 2018 served as a Mentor and Coach for the organization’s Accelerator Program. He graduated from the Nexus Leadership Program from The Gordon Institute of Business Science at the University of Pretoria in South Africa in 2003, and he received his BBA in Business and Marketing from Pace University. Garin is a functional SAP Consultant in CRM, CIC, and Internet Sales and speaks fluent Afrikaans and English. Garin shares with Hall how ping came into being, how he sees the industry evolving, some of the challenges he faces, and exactly how ping fits into the space. You can visit ping at www.pingloud.com, and via their LinkedIn page at www.linkedin.com/company/pingloud/. Garin can be contacted via LinkedIn at www.linkedin.com/in/garintoren/, via Twitter at https://twitter.com/pingloud, and via email at garin@pingloud.com. |
Mon, 12 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are many terms used in terms sheets but there are only a few that have a significant impact. Here are the key ones:
These are key terms to look for in a terms sheet. |
Fri, 9 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are many terms in a standard terms sheet for investing in a startup. Six terms have a direct impact on the return the investor receives. They are as follows:
Direct download: EG_Sep_2020_Startup_Funding_Espresso_--_Terms_Affecting_the_Returns.mp3
Category:general -- posted at: 7:00am CST |
Thu, 8 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In negotiating the terms of a startup investment, the investor should develop a standard terms sheet and modify it for each deal. In going into due diligence, send the terms sheet to the startup for their review. In some cases, they may be unfamiliar with terms sheets and need time to study it. The key elements to consider in negotiating terms are as follows: Valuation -- this is the most critical term to negotiate as it has the biggest impact on returns. Vesting founders shares -- it’s important to unvest founders shares and have them revest over the next few years. If the founder leaves early, there are shares to compensate for the replacement. Option pool -- set up to offer options to the employees. If you don’t have an option pool, then you have to provide all compensation out of cash which is a hard way to run a business. Board of directors -- set up a board with proper governance. Liquidation preference -- consider including a liquidation preference to set a floor on your return. Growth strategy -- gain consensus with the team and the investors on the growth strategy. Are we hitting the gas and going for the moon, or are we growing it carefully? This is often a sticking point that comes up after the investment is made.
Direct download: EG_Sep_2020_Startup_Funding_Espresso_--_Negotiating_the_terms.mp3
Category:general -- posted at: 7:00am CST |
Wed, 7 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In setting the valuation for a startup, there are financial calculations, and then there are non-financial factors. I call the non-financial factors the “soft side of valuations”. These include the following: Current market conditions -- as the market heats, up certain sectors turn ‘hot’ and therefore command a higher valuation than the numbers indicate. Predictability - companies with recurring revenue streams and long-term contracts command a higher valuation because their revenue is much more predictable. Customer concentration -- startups with a broader list of customers will survive longer. If a customer accounts for over half of the business, then this should be reflected in the valuation. Pre-profitability -- for early-stage companies, those with profitability should command a higher valuation. Pre-revenue -- for even earlier-stage businesses without revenue, intellectual property and customer forecasts come into play. Start with the financial calculation and then refine the valuation from there based on these issues.
Direct download: EG_Sep_2020_Startup_Funding_Espresso_--_the_soft_side_of_valuations.mp3
Category:general -- posted at: 12:10pm CST |
Wed, 7 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The terms sheet glossary contains over 125 terms that can be used. For every risk in the startup, there is a term to place in the terms sheet to mitigate that risk. If you feel the valuation is too high, you can add a liquidation preference. If you think the team needs oversight, you can add board seats and fill it with advisors who can help. For maintaining an investor’s position in the deal, there are anti-dilution clauses, right to participate, and right-of-first-refusal terms. For maintaining oversight over the operations, there are information right terms, board seats, and founder-vesting terms. For achieving an exit, there are drag-along rights, redemption rights, and registration rights. For the risks in the deal, engage the terms to mitigate those risks.
Direct download: EG_Sep_2020_Startup_Funding_Espresso_--_Using_Terms_Sheets_to_Mitigate_the_Risk.mp3
Category:general -- posted at: 7:00am CST |
Tue, 6 October 2020
Investor Perspectives on EXOS, featuring lead investors Scott & Paula Robinson, and John Quinn, Co-Founder & COO of EXOS
In today’s show, you’ll hear investor perspectives on the growing space sector. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. Commercial exploration of space continues to advance in technology by SpaceX and other companies. In today’s show, you’ll hear about a new company in the space sector called EXOS. Our featured guests are: Scott Robinson, Lead Investor - https://in/scott-robinson-133588bb I hope you enjoy this episode. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org For Feedback please contact info@tencapital.group |
Tue, 6 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. For a startup to raise funding it must have a legal structure. The two choices are LLCs, which is a Limited Liability Company, or a C-corp. Most startups launch with an LLC and convert to a C-corp later due to the cost. It’s very easy to move from an LLC to a C-corp, but it’s very hard to go back the other way. C-corps are taxed at the corporate level, while LLCs are a pass-through structure allowing losses and profits to flow to the members. A Delaware C-corps is the venture capital standard. Most VCs have their terms sheets set up for Delaware C-corps and they won’t be changing it. To accept their funding you must have a Delaware C-corp entity. If you have a C-corp, your ownership will be stated in shares. If you have an LLC, your ownership will be stated in units. Upon exit, LLCs can be preferable to the owners as you can build up losses from the early days to reduce the tax burden upon selling the business. LLCs cannot take advantage of tax laws such as 1202, 1045, or 1244 which provide tax incentives to startups but only if it’s in a C-corp structure. Setting up boards and providing stock options are more difficult for LLCs than C-corps. Start with an LLC and convert to C-corp when you raise institutional funding.
Direct download: EG_Sep_2020_Startup_Funding_Espresso_--_LLC_vs_Corps.mp3
Category:general -- posted at: 7:00am CST |
Mon, 5 October 2020
I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. Therapeutics continues to advance across the board. In today’s show, you’ll hear about a new company in the pharma space called BiorganicPharma who develop and make nutritional supplements in liquid form using natural ingredients. Our show host today is Ashley Matthysse. Our featured guests are: Jackie Kapur, Strategic CFO - https://in/jacqueline-kapur-49b1b81/ Dr. Simon Mills, Chief Investment Officer - https://in/drmills/ Through her 15-year corporate finance career, Jackie has a proven track record of formulating and executing strategies & budgets for both start-ups and established businesses. She is a thoughtful and experienced leader in finance, business development, operation, marketing, and HR across industries including information technology, news, research, data, financial services, and consumer products. Excellent communication and people skills with significant experience navigating C-level management through major strategic changes. Simon is a skilled and successful entrepreneur with over thirty years of business experience. Born in Perth Western Australia in 1967 Dr. Mills studied at the Conservatorium of Music in New South Wales and went on to become a piano tuner/restorer, tour with many successful rock bands, and to host a radio program that became nationally syndicated. Mills founded London Music Group (LMG) with business partner Wazza Bray in 1990 and grew that company to the number one commercial music house in the country winning award after award and culminating in the world’s best jingle award. In 2006, with several successful startups completed, Simon moved from Australia to New York City with his wife and three children. Simon grew LMG Digital Media in the US to attract customers as significant as Hyatt, AIG, BBDO, CBS, Starbucks, Pepsi, The Economist and many more. I hope you enjoy this episode. Check out our other podcasts here: https://investorconnect.org/
Direct download: Intro_to_BiorganicPharma_WEBINAR_to_IC_Sector_Review_FINAL.mp3
Category: -- posted at: 9:57am CST |
Mon, 5 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In launching your fundraise, you should always be in a position to take funding. There are many investors who want to join the deal but won’t take on a lead investor role in setting the terms. A convertible note works well for this stage of the raise. It’s a debt instrument that converts to equity later, so there’s no valuation to negotiate. Startups can accept investors into the deal with relative ease, given most notes have simple terms, rights, and conditions. The note is on a rolling close. So the investor signs the check, the startup signs the note, and the funding goes into the business the next day. One can use the note over several smaller fundraises to gather investor funds. When setting up a convertible note, consider what will happen upon conversion to the cap table. Startups should take care not to raise too much funding off convertible notes. In later stages, such as raising a Series A, investors are going to want a certain amount of ownership in the deal. If there is too much convertible debt, then it will be difficult to give the investor the ownership they want.
Direct download: Startup_Funding_Espresso_--_Using_Convertible_notes_wisely.mp3
Category:general -- posted at: 6:34am CST |
Fri, 2 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. After diligence, investors who want to move forward will sign the investment documents. For a convertible note raise, the investor and CEO will sign the note. It’s a rolling close, so the funds go into the business the next day. For an equity raise, there are several documents in addition to the terms sheet. Some Series A raises can contain up to 9 separate documents including a subscription agreement, an option pool agreement, investor accreditation status, and more. It’s best to have an attorney help with these documents. If the investors requested a minimum amount of funding before closing, then the investor funds will go into an escrow account until the minimum threshold is reached. Some companies have the investors sign the documents before due diligence, in which case the funding is contingent on passing that due diligence. This screens out those who just want to see what you have without having to commit any funds.
Direct download: Startup_Funding_Espresso_--_how_to_paper_the_fundraise.mp3
Category:general -- posted at: 7:00am CST |
Fri, 2 October 2020
In this episode, Hall welcomes Albert Meyer, Founder & Chief Investment Officer at Bastiat Capital. Headquartered in Plano, Texas, and established in 2006, Bastiat Capital is an asset management firm directing a concentrated and conservative large-cap equity portfolio. They apply unparalleled forensic accounting expertise, human insight and rich company-specific research as they seek to outperform the S&P 500 Total Return while mitigating downside risk. Albert is a veteran investment manager and forensic accountant who received global attention for uncovering one of the largest Ponzi schemes in U.S. history, the “Foundation for New Era Philanthropy”. He published the research report on Tyco that ultimately led to the prosecution and imprisonment of Dennis Kozlowski. He has also uncovered noteworthy accounting irregularities at Enron, Lucent and Coca-Cola. His work on Coca-Cola and eBay became the basis of several Harvard Business School case studies. Albert launched his career in corporate accounting with Deloitte & Touche, then dedicated 15 years to teaching accounting in academia. In 1996, he began applying his forensic accounting expertise to investment management on a professional basis, first at Martin Capital Management, and later with David Tice & Associates, and with Clark Hunt (current CEO of the Kansas City Chiefs) and the Hunt family office in Dallas, Texas. In 2002, Albert established an investment research business school named 2nd Opinion Research and in 2005, he received the American Accounting Association’s highest honor, the Accounting Exemplar Award (previously awarded to former SEC commissioner Arthur Levitt), in recognition of his many contributions to the field of accounting. Albert is a Chartered Accountant (the British Commonwealth equivalent of a CPA) and a Certified Public Accountant. He is a regular contributor to national financial media on investing and accounting topics. He and his wife Melenie reside in Plano, Texas near their three sons and their spouses, as well as six grandchildren. Albert shares with Hall what excites him right now in the industry, some of the challenges he sees investors facing in today's economy, and his company's thesis. He suggests some immediate opportunities for investors to pursue and those to avoid. Albert concludes the interview with his very detailed opinion on the benefits of the S&P 500 vs. Social Security. You can visit Bastiat Capital at www.bastiatfunds.com, and via LinkedIn at www.linkedin.com/company/bastiat-capital-llc/. Albert can be contacted via email at ameyer@bastiatfunds.com. |
Thu, 1 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Startup fundraising requires investment documents. Of course, you should seek counsel with your startup-friendly attorney before committing to an equity fundraise, but here are several sources of terms sheets on the web. Ycombinator provides a set of terms sheets for SAFE documents used in seed raises. The NVCA (National Venture Capital Association) provides a set of model legal documents that include terms sheets. Cooley provides the "Series Seed" set of documents on its website. There are many online sources for convertible notes. Just Google it and you’ll find a wide range. You can find the links on the Investor Connect Resources page. The link to the Investor Connect Resources page is below:
Direct download: Startup_Funding_Espresso_--_Sources_of_Terms_Sheets.mp3
Category:general -- posted at: 6:15am CST |