Investor Connect Podcast

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

A key part of angel investing is negotiating terms with the startup.

It’s important to take time to negotiate good terms for the investors in your group.

Key areas to focus your negotiations include the following:

Valuation - this is the most important term as it determines equity ownership and is the primary determinant of returns.

Option pools and who pays for them - the options pool is important to the growth of the company as it incentivizes the team.

The investors could pay for a portion of it as part of the overall negotiation.

Board composition - for most companies raising a Series A, the board consists of two investors: two from the company, and one as an independent.

Vesting founders’ shares - requiring a portion of the founders’ shares to vest over time ensures there will be shares available to pay for a replacement if needed.

Liquidation preference - it can compensate for what the investors consider too high a valuation.

Minimum amount of funding required - it’s important for the team to raise enough to achieve a meaningful milestone before the next raise. 

In addition to negotiating good terms, the process should maintain a good relationship with the startup.


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/ 
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Music courtesy of Bensound

Direct download: negotiate_good_terms.mp3
Category:general -- posted at: 6:00am CST

In this episode, Hall welcomes back Sarah Jennings, Director at Beyond Angel Network and Fund.

As a national community for faith-driven investment and entrepreneurship, Beyond provides increased access to faith-aligned capital for founders of faith-based companies as they seek to invest in scalable, for-profit companies. Beyond's investment thesis is to invest in companies with developed products or services and early customer traction that will provide market returns to investors in addition to making a kingdom impact on culture and the marketplace.

Sarah previously served as the Assistant Director for Beyond, focusing on managing investor relationships and scouting for potential deal flow. Prior to joining the network, Sarah worked for JP Morgan Chase as an Internal Auditor.

Sarah gives an update since her last interview and describes some of her experiences with startups. She shares some of her challenges and suggests some good options for investors to pursue.

You can visit Beyond Angel Network and Fund at www.beyondangels.org, and via LinkedIn at www.linkedin.com/showcase/beyondangels.  

You can contact Sarah via email at sgjennings@beyondangels.org, and via LinkedIn at www.linkedin.com/in/sarahgjennings/

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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   

Please subscribe, share, and leave a review.

Music courtesy of Bensound.

Direct download: Sarah_Jennings_of_Beyond_Angel_Network_and_Fund.mp3
Category:general -- posted at: 6:00am CST

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