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 CDT
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.
Albert can be contacted via email at firstname.lastname@example.org.