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

In setting the exit, most investors look to maximize the exit value.

It’s important to remember that the metric investors use, IRR or Internal Rate of Return has a time component to it.

The faster the exit, the higher the IRR.

As an investor, consider pursuing the highest IRR and not just the biggest dollar exit as bigger exits take longer.

While the news highlights the biggest exits, the vast majority of exits are under $20M.

Selling a business for under $20M is not that hard.

Growing a business and selling it over $100M is very hard.

Most acquirers don’t need the business to be large, they just need to know the business model is defined and is profitable.

Staying in the deal longer opens up the investor for dilution and other events that reduce the return on investment.

A startup should be proving their business model and turning it into a repeatable, predictable process.

With funding and time, it will scale.

As an angel investor, you should look for early exits and structure your investments 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.
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Music courtesy of Bensound.

In this episode, Hall welcomes David J. Neff of Neon Syndicate.

Neon Syndicate is a privately held real estate and investment company run by Chelle and David J. Neff in Austin, TX, with investments in Veritas Beauty, Peace Love and Betty as well as real estate holdings. 

David has 20 years of creating experiences that impact people's lives, from his work in eCommerce, marketing, and digital strategy with the American Cancer Society, to his work with consulting companies like Southwest Airlines, Pepsi, Lululemon, Dell, Office Depot, Build.com, Wolverine Worldwide, Discover Card, Jack-in-the-Box, Kingfisher, Tesco, Gatehouse Media, and tech companies like Hulu. He is also supporting/leading another recent startup acquisition as a go-to-market lead inside of Accenture for Creative Drive.

David currently works as the VP of the data-driven consulting practice at Clearhead (acquired by Accenture Interactive), and also works with Fortune 500 brands on their eCommerce, organizational strategy, and building culture. He is the author of three books, and in 2014 he was named the top person in Austin by the Austin Under 40 Awards for the Community Service and Nonprofit category.

A much-in-demand speaker and trainer, he has spoken at places like TEDx, SXSW (6x), The University of Texas, St. Edward's University, Texas State University, Social Media Club, Social Media Breakfast, The Association of Fundraising Professionals, Planned Practical Giving Conference and NTEN's national technology conference.

Outside of work you can find him gardening, advising, investing in startups, planning an amazing Halloween party, and experimenting with single-board computers and computer vision. 

David shares with Hall how he sees the industry evolving and discusses some of the challenges startups face. 

David can be contacted via email at dneff22@gmail.com, via LinkedIn at www.linkedin.com/in/david-j-neff/, and via Twitter at www.twitter.com/daveiam?lang=en. 

Music courtesy of Bensound.