Investor Connect Podcast

Investment Returns on a VC Fund

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

In a VC fund, limited partners look for greater returns.

The risks are higher, and the hold times are much longer, so LPs look for better returns than the stock market.

In general, they look for a 10-20% IRR better than the market index.

Historically, top VC funds have a Distributed Paid-In ratio of 3X while the Total Value to Paid-In ratio is 1.5X, not counting the dot-com era.

The manager of the VC fund can improve the performance of the fund in several ways:

Remember, IRR is higher the sooner the funds are returned to the LP.

A VC fund manager can increase the IRR by taking funds in a series of capital calls rather than all upfront.

Most funds ask for ⅓ of the invested capital up front and then two more capital calls in the following years.

In pledge funds, the LPs provide the funding for each deal as it arises.

Another option is to shift some of the management fees into the carry.  This will increase the return to the LPs.

Seventy-five percent of VC funds do not return anything to the limited partner after the fees are accounted for, and most limited partners know this.


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.

_______________________________________________________

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

On this episode of Investor Connect, Hall welcomes Luigi Amati, Chairman at META.

META is an international advisory and investment firm dedicated to the creation of knowledge-intensive companies. The group’s main activities are research results exploitation, support for startup creation and scale-up, and early-stage equity investment.

Through dedicated and independent business units (academy, investment, advisory), META coaches researchers and knowledge-intensive startups, invests from proof of concept to scale up and advises European, national, regional, and local governments on innovation and entrepreneurship policy.

Luigi started out as a researcher, developing computational mechanics software for a spin-off of Imperial College London before founding META in 1993. He is an experienced researcher, entrepreneur, ecosystem-builder, and investor, and this gives him the possibility to navigate all stages of the “knowledge to market” journey and entrepreneurial life-cycle.

As an angel investor, in 2007, he was one of the nine founding members of “Italian Angels for Growth,” today the largest angel group in Italy, and he now serves as the Chairman of Business Angels Europe.

Luigi graduated Summa cum Laude in Engineering from the University of Rome and holds a Master of Science and a Diploma from Imperial College London.

Luigi advises startups and investors, and discusses his investment thesis and the state of angel investing.

Visit META at www.meta-group.com, on LinkedIn at www.linkedin.com/company/meta-group_2/, and on Twitter at www.twitter.com/meta_group

Visit Business Angels Europe at www.businessangelseurope.com

Visit Italian Angels at www.italianangels.net

Reach out to Luigi at luigi.amati@meta-group.com, on LinkedIn at www.linkedin.com/in/luigiamati/, and on Twitter at www.twitter.com/luigiamati2

______________________________________________________

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

Compensation

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

In setting up a VC fund, you’ll need to determine compensation for the partners and team members.

Most funds use the 2% management fee with a 20% carry model.

This means 2% of the funds raised will be used for salaries, along with 20% of any of the profits.

In a $100M fund, $20M would be available to pay salaries each year over the ten-year life of the fund or $2M.

Some funds pay the management fee more heavily in the first five years and less in the later years of the fund.

For funds under $25M, a 2.5% fee is more common.

The carry is the profit from the investments.  

In most funds, the limited partners must receive their committed capital back before carry is paid out to the general partners.

New funds sometimes offer a lower management fee to those limited partners who help raise additional funds.

Some funds forego the management fee and take their total compensation in carry.


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.

_______________________________________________________

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

How Many Partners?

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

In setting up a VC fund, it’s important to select the right number of general partners for the fund.

Most funds have at least two partners to provide the necessary skills.

Some funds have one founding partner and then several venture partners to help.

Funds under $50M can afford only one partner with some administrative support since not all functions need to be done by a partner. 

For each $50M under management, you’ll need either a partner or a non-administrative team member.  

Funds over $50M can bring on analysts who do the industry research, screen the deals, and work on fund reporting.

For fund management, most funds outsource to fractional providers.

For marketing, most funds hire social media and branding agencies to help get the word out on the firm.

For advising the startups, most funds lean on the experience of the partners and their network.


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.

_______________________________________________________

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/  

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

On this episode of Investor Connect, Hall welcomes Guy Remond, Co-founder and Partner at EHE Capital.

Headquartered in Altrincham, England, EHE Capital Limited is a highly efficient tech-led private equity organisation with a genuine focus on supporting entrepreneurs through their companies’ high growth stage through to a successful conclusion. They also provide qualified, high-quality deal flow for investors, private equity, and venture capital organisations. 

Guy’s working career began in retail, where he enjoyed an eleven-year stint in various managerial positions. Following this, he followed his passion for anything technical and branched out on his own into the technical world. In 2001 he was a founding member and CEO of Cake Solutions Limited, and over the next 16 years, he directly oversaw the development of the business from a small start-up to that of an international, multi-million-pound company respected as being at the cutting edge of engineering and process in the open-source software development world. 

After being recognised in the Deloitte UK Technology Fast 50 and being viewed as one of the most unique, forward-thinking, and fast-growth companies in the industry, Cake Solutions Limited was acquired by a multinational corporation, and the business was subsequently rebranded as Disney Streaming Services, which is a wholly-owned subsidiary of a company owned by The Walt Disney Corporation.

As a creative and widely experienced individual with a keen focus on personal development, company culture, and process improvement, Guy has invested in a number of companies and is actively working with these companies in a non-executive director or chairman role, helping them to fulfill the leadership's drive to a successful outcome. 

Guy is building two new organisations with his business partners Gary Fletcher and Dave Zumpano. 

In addition to his working commitments, Guy dedicates time to charitable activities. For well over a decade, he has worked with Variety - the Children's Charity in a number of voluntary roles, currently acting as the Chairman for the North West region in the UK and more recently as a Trustee for the organisation.

Guy shares his background and gives insight into starting a business in the area of private equity. He describes some of the opportunities and challenges and how he differs from his competitors.

Visit EHE Capital at www.ehe.capital, on LinkedIn at www.linkedin.com/company/ehe-capital/, and on Twitter at www.twitter.com/EHECapital.

Reach out to Guy at jguyremond@gmail.com and gremond@guidr.legal, and on LinkedIn at www.linkedin.com/in/guyremond/

_______________________________________________________

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

Fund Managing Skills

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

In choosing a manager for a VC fund, look for the following skills:

Ability to raise funding from Limited Partners

This means the manager has a network of potential investors and knows how to pitch.

Access to quality deal flow and the ability to vet potential investments.

This means the manager knows where to find deals and how to analyze them.

Ability to run due diligence on candidate investments.

Can determine valuation and negotiate terms with the company.

Knows how to find follow-on investors for the fund’s investment in the startups.

Ability to help funded companies be successful.

This involves coaching on how to staff the startup and what to focus on at each stage.

Ability to join the startup’s board and provide expertise, networking, and guidance.


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.

_______________________________________________________

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/  

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

Conflicts of Interest

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

In setting up a VC fund, beware of conflicts of interest.

Funds associated with other groups such as universities, accelerators, or incubators may find a conflict with other funding activities in that group.

These groups are often focused on helping the startup launch.

This leads to funding startups that may not qualify for funding.

Make sure the fund is independent from the group and makes decisions based on the investors' best interest.

Set up the fund separate from the group with different leadership.

The fund could have first rights for any deals related to the group but is not obligated to invest.

Define the relationship between the group in the fund's documents, so it’s clear to the group, the fund managers, and the Limited Partners.

Also, review the fund manager's other commitments and relationships to make sure they are free and clear of other incentives.

If the fund manager runs other businesses, vet those businesses for any conflicts of interest as well. 

 

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.

_______________________________________________________

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/  

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

Communicating With LPs

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

In launching a VC fund, you’ll need to set up ongoing communication with the Limited Partners called LPs.

It starts with setting expectations for the returns on the fund.  

In many cases, it’s 20% to 30% per year, with most funds returning capital in years 7 to 10.

For ongoing communications about the fund, set up a template to show the following:

  1. List of the portfolio companies with name, weblink, and main product.
  2. Include the funding date, valuation at the time of funding, and current valuation.
  3. Show exited companies with capital returned to investors.
  4. Show standard fund metrics such as IRR for the fund, Distributed to Paid-In capital (DPI), and Total Value to Paid-in capital (TVPI).
  5. Add a short summary of the portfolio companies and how they are doing. 
  6. Distribute the report each quarter and a more detailed version annually.
  7. Consider holding an annual meeting in which the LPs can meet the CEOs and discuss directly about their company.

It’s important to be transparent at every step of the way as all information is ultimately made known to the LPs.

 

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.

_______________________________________________________

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/  

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

On this episode of Investor Connect, Hall welcomes Wen Zhang, Fundraising and Startup Advisor, Pitch Expert, Professional Speaker, Founder and CEO of INNW Institute, and Host of “If Not Now, Wen, Podcast.” 

Headquartered in Austin, Texas, the INNW Institute helps individuals, from first-time founders to seasoned executives, polish their pitch, develop the strategy and execute a vision.

Making a perfect pitch is like making a peanut butter jelly sandwich. It requires the perfect amount of peanut butter on one slide, which is all the business fundamentals, such as your business model, pricing strategy; on the other hand, you need the right amount of strawberry jelly, which is your passion, your why, the way how you tell the story. We need the right amount of both on the bread to make a perfect bite.​

Dreaming of venturing into the world while growing up in an isolated mountain town in rural China, Wen completely transformed her life by teaching herself English using a cassette machine. Despite countless challenges, she pushed forward to become the only person who ever left her hometown and achieves her dream of seeing the world four years later.

Wen succeeded (and failed) in both the startup and corporate world and has experience in software, hardware, and service-based business models. She also has experience in launching a new business, expanding the market internationally, and scaling and managing global enterprise business. In a Fortune 500 company, she is leading a $320M yearly product portfolio while managing 400 sales teams across the North American region. She is passionate about supporting founders to grow and scale their ventures, working through their business model as well as the pitching process to connect and resonate with investors and customers via pitch deck.

On her podcast, you will meet different entrepreneurs who have accomplished unimaginable feats to share their dreams, the ups, the downs, and everything in between, while giving you a peek behind the curtains of how they make it possible!

Wen holds a Master's Degree in Marketing and Advertising from the University of Illinois, Urbana-Champaign, and a Master of Business Administration (MBA) from Duke University.

Visit the INNW Institute at www.ifnotnowwen.com, and on LinkedIn at www.linkedin.com/company/innw-institute.

Listen to the If Not Now, Wen, Podcast at www.ifnotnowwen.com/podcast

Reach out to Wen at wen@ifnotnowwen.com, and on LinkedIn at www.linkedin.com/in/wenzhangdukemba/.

_______________________________________________________

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/  

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

Sourcing Deal Flow for the Fund

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

In running a VC fund, you’ll need to set up deal flow sources and run screening processes.

First, set up three to five quality deal flow sources that provide a consistent flow of startups to review.

Maintain those relationships and provide feedback to the deal flow source about what you are seeing and what you are looking for.

It takes more than telling people what you look for, it takes reminding too.

There are a large number of deals seeking funding.

You’ll need to set up a process for selecting deals to review in depth.

Start with basic deal flow criteria around revenue, sector, and stage.

Spend a minute or two on each deal to determine if it fits your criteria.

If it does, then spend a few more minutes reviewing the deal for showstoppers.

For deals that pass the initial screen, set up a call to discuss.

Design an efficient process for meeting startups -- conference calls, local coffeeshop, your office, etc.

If the meeting goes well, ask for a standard set of documents such as a pitch deck and recent financial statements.

Meet with the team to discuss the deal and invite for a pitch to the rest of the team.

Allocate 15 hours a week to deal-flow sourcing, including screening, calling, and meeting new deals.

As soon as you reach a ‘no’ decision, tell the startup so they are not kept waiting.

 

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.
____________________________

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/  

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

Team Skills Required

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

In setting up your VC fund, you’ll need to build a team that can make it successful.

Here are the critical skills required:

  1. Business expertise and knowledge of the industry.
  2. Basic finance related to startup investing.
  3. Sales and marketing as it relates to startups. 
  4. Knowledge of the current technology in the sector.
  5. Ability to work with people and evaluate people, including CEOs.
  6. Convincing investors to invest in your fund.
  7. Ability to work with partners and deal-flow sources.
  8. Experience with startups in general.
  9. Ability to handle high-growth sales and marketing.
  10. Knowledge about where to spend and where not to spend in a startup's growth.
  11. Ability to size up and handle competition.
  12. Ability to manage the startup through difficult times.
  13. Finally, access to a network and a brand for sourcing deal flow and working with other investor groups.

 

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.

_______________________________________________________

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 follow, share, and leave a review.

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

On this episode of Investor Connect, Hall welcomes Jay Cormier, Founder and CEO of Eyedaptic.

Headquartered in Orange County, California, Eyedaptic offers a comfortable wearable device that uses proprietary vision-enhancing software that effectively simulates a person’s natural vision. Designed in conjunction with leading ophthalmology retinal specialists, low vision optometrists, and occupational therapists, AdaptiVu is completely non-invasive and worn like glasses. As a battery-powered optical vision aid, this device is considered FDA exempt.

The Eyedaptic team is a combination of seasoned technology executives with multiple successful exits along with key opinion leaders in Ophthalmology, Optometry, and low vision, and together have developed and validated the product with a clinical study and hundreds of hours of beta usage. The peer-reviewed clinical study established a five times improvement in tasks of daily living and, on average, over a doubling of visual acuity. Eyedaptic is currently running a pilot program and working on its next product for expansion in the United States and then worldwide. In addition, their partnership with the world leader in low vision aids leads to an efficient and effective path to scaling user engagement, as well as possible early exit scenarios.

Jay is an experienced technology executive and entrepreneur with a strong track record of founding, growing, and turning around businesses. Jay has led marketing, sales, engineering, operations, strategic partnerships, business development, new product strategy, and execution, and achieved results using his expertise in building high-performance, multi-disciplinary teams. Jay earned his BS in Electrical Engineering from Worcester Polytechnic Institute and an MBA from Northeastern University, and is active in Tech Coast Angels, Orange County Chapter, as well as mentoring at the University of California, Irvine Merage Business School.

Jay discusses how he sees the AI medical device industry evolving, the growth rate of the sector, how Eyedaptic fits into the landscape, online sources he finds useful, and more.

Visit Eyedaptic at www.eyedaptic.com, on LinkedIn at www.linkedin.com/company/eyedaptic/, and on Twitter at www.twitter.com/eyedaptic?lang=en.  

Reach out to Jay at jay.cormier@eyedaptic.com, and on LinkedIn at www.linkedin.com/in/jay-cormier-8615474/.

_______________________________________________________

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

Designing the Fund

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

In setting up your VC Fund, you’ll need to consider the structure and philosophy behind it.

Here are some key points to determine:

  1. The fee structure and how it relates to the current market rates.
  2. The size of the fund and the general partners’ investment amount.
  3. The number of companies the fund will invest in.
  4. The initial investment amount and follow-on investment amount.
  5. Deal sourcing through the partners or outside firms.
  6. Stage of the company to invest in -- Seed, Series A, or later.
  7. Fund investment thesis -- by industry, market, or technology.
  8. Investment criteria and standards.
  9. Expected performance of the fund.

 

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.

_______________________________________________________

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/  

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

Fund Reporting

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

In setting up your VC Fund, you’ll need legal and accounting support.

Look for providers who have done the work before and bring experience to the project.

You don’t want to pay people to learn on the job.

You’ll need legal support to set up the fund documents.

You’ll also need legal in shutting down the fund at the end of the term.

For accounting, you need to find a firm that has done partnershipS and passed through taxation work before.

Here are some key points with regards to reporting:

  1. Track the portfolio valuation and the performance of the fund, including Distributed Paid In and Total Value to Paid In metrics.
  2. Track expenses for tax reporting purposes.
  3. Create templates for the reports to the limited partners, including spreadsheets for calculating metrics and distribution lists of investors.
  4. Maintain a list of updates from the portfolio companies with their results.

 

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.

_______________________________________________________

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/  

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

Accounting and Governance

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

There are specific rules for the governance of a VC Fund.

The limited partners must be accredited investors.

There can be no more than 99 investors in the fund.

There can be no “bad actors” in the fund. 

Venture funds are different from companies in that they are partnerships.

For accounting, fund managers need to keep accurate records and track the ownership of each Limited Partner.

The funds are illiquid with long holding periods.

Management fees need to be calculated and drawn from the fund at the appropriate time.

The fund manager must calculate the carry and make clear what has been paid.

The manager should seek tax efficiency by matching the taxes to the income.

Finally, the manager should provide financial reports quarterly and annually.


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.

_______________________________________________________

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   

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Category:general -- posted at: 6:00am CST

How to Track and Report Results

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

In running an angel group, it’s important to capture and report the investment results to the members.

Here are some key points to consider:

  1. Capture the investments made into a portfolio management system, so everything is in one place.
  2. Keep the system up to date with all new and follow-on investments.
  3. Each quarter, send out a report showing the number of investments made and the number of deals funded.
  4. Note any major transactions such as recent fundings, exits, and other news.
  5. Capture the latest valuations to include in the portfolio to generate an intermediate estimate of value.
  6. Make sure the members understand this is not a guarantee but only an estimate.
  7. For exits, capture the amount distributed to the investors and maintain a running investment returns number for the group, including IRR.
  8. For major fundings, consider publishing a press release about the funding to the community.

This generates deal flow and investor signups.


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.

_______________________________________________________

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/ 
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Category:general -- posted at: 6:00am CST

On this episode of Investor Connect, Hall welcomes Drew Glover, Managing Director at FiatGrowth.

FiatGrowth is a $15 million venture capital fund specializing in early-stage funding for fintech companies that are striving to provide social good for their customers. Since 2021, Drew and the team at Fiat Ventures have supported over 100 entrepreneurs, with 67% of them being from communities that are underrepresented in the tech space. 

FiatGrowth’s vision is to scale products and services that are accessible to all, and they are breaking down barriers and aligning the most impactful companies to collaborate and empower the global consumer, regardless of socioeconomic status.

As Managing Director, Drew oversees Business Development & Strategic Partnerships. Previously Drew held VP of Marketplace positions at Steady where he helped them grow their user-base to 1.5M+ users and built their job and benefit marketplace. Before Steady, Drew held Director positions at HRtech giant Namely and design consultancy Fjord, which was acquired by Accenture NYSE: ACN, as well as digital media and branding agency Portal A. He has helped companies like Adidas, Nike, JP Morgan Chase, Home Depot, and Best Buy bring award-winning services to market. Drew loves cooking and traveling with his wife Michelle. 

Drew shares what excites him now and how he sees the fintech sector evolving. He advises startups and investors, discusses what he thinks is going to have the biggest impact in the next five years, his financial thesis, and more.

Visit FiatGrowth at www.fiatgrowth.com, on LinkedIn at www.linkedin.com/company/fiatgrowth/, and on Twitter at www.twitter.com/fiatgrowthllc.  

Reach out to Drew at drew@fiatgrowth.com, on LinkedIn at www.linkedin.com/in/drewbailerglover/, and on Twitter at www.twitter.com/DrewBailer.  

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

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

How to Manage the Diligence Teams

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

In running an angel group, managing the diligence process is key to successfully funding deals. 

Here are some points to consider in managing the diligence process:

Write out the diligence process for others to use and include templates and key questions to answer.

Setup a standard diligence process schedule with a number of hours for each step.

The more team members you recruit, the fewer hours each team member must commit.

Set expectations for the level of work to be done.

Put the diligence documents online along with a diligence report so everyone on the team can access it. 

Review the diligence report every few days to check progress.

Include a previous diligence report to give the diligence team an example to review for the format, depth, and analysis.

Hold weekly conference calls to check the status with the team and what challenges may arise.

Set up a communication channel with the startup as most diligence processes require more information than was initially submitted.

Give feedback on the report to show where the team should spend time -- in short, where the investors have concerns.


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.

______________________________________________________

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/ 
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Category:general -- posted at: 6:00am CST

VC Fund Core Documents

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

In raising a fund, you’ll need to set up the legal documents that define how and when the limited partners provide the funds, what the fund manager will do with those funds, and how they will return the funds back to the limited partners. 

Here are some key details to include in a fund document:

  1. Show who will manage the fund and what duties they have.
  2. Discuss the fees and expenses for the fund managers.
  3. Define profits and losses and how they are calculated.
  4. Consider tax implications for the investors and maximize for tax efficiency.
  5. Describe circumstances in which the limited partners must make a decision, such as adding new investors or extending the fund.
  6. Show compliance with the laws around tax, transfers, and liability of the members.
  7. Include indemnifications by the fund for the general partners in the case of damages. 
  8. List the redemption rights, if any, by limited partners. 
  9. Finally, discuss the distribution of profits, losses, assets, and the dissolution of the fund.


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.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
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Category:general -- posted at: 6:00am CST

On this episode of Investor Connect, Hall welcomes Dr. Ipshita Mandal-Johnson, Co-founder and CEO, and Giorgio Reggiani, Co-founder and CFO at Global Bio Fund.

GBF is a value-capital fund with a gender smart lens investing in bio sectors, including digital health. They invest and scale women-led bio ventures at early and growth stages, especially those based in the US, UK, Australasia, and selected high-growth emerging markets.

GBF has also created GBX, a network that consists of a diverse and experienced group of investors, entrepreneurs, scientists, experts, and organizations that support women-led bio ventures that are growth and impact-oriented.

Ipshita currently serves on the advisory boards of Proximie, Chiasma NZ, and Global Engineering Futures. She is a Judge on Mass Challenge and Women in Bio and a member of Global Women and UNAIDS HIEx Investors Council. She is a Visiting Lecturer at the Harvard School of Public Health and the University of Cambridge Chemical Engineering & Biotech.

Ipshita has worked with academia, corporates, and ministries in biotechnology, health, deep technology, and financial services. She has led strategy, policy, and implementation projects in policy development, capacity building, business development, fundraising, and transformation. She started her career in New Zealand and has since worked in the US, UK, and India, amongst others.

For her full bio, click here.

Giorgio is passionate about working with teams that want to make a difference by helping them to create and realise optimum value. Co-founder of a leading European venture capitalist firm, a software configuration company, an antibiotics discovery company (sold to Summit in 2017), and a rare diseases therapies biotech (sold to Astellas Pharma) in 2020 and spun companies out of British Telecom & Toshiba and managed listed companies in London and Sydney.

For his full bio, click here.

Visit Global Bio Fund at www.globalbiofund.org, on LinkedIn at www.linkedin.com/company/global-bio-fund/, and on Twitter at www.twitter.com/GlobalBioFund.  

Reach out to Ipshita at ipshita.mandal.johnson@globalbiofund.org, and on LinkedIn at www.linkedin.com/in/ipshitamj/.

Reach out to Giorgio at giorgio.reggiani@globalbiofund.org, and on LinkedIn at www.linkedin.com/in/giorgioreggiani/

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

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Direct download: Ipshita_Mandal_Johnson_and_Giorgio_Reggiani_of_Global_Bio_Fund_2.mp3
Category:general -- posted at: 6:00am CST

Startup Boards -- Investing in Startups

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

There’s an old angel saying, “Angels like to have a little fun, do a little good, and make a little money.”

Investing is more than just about money. I’ve found my successful investments covered all three of the elements of the old angel saying. It was fun. The people were great to work with. It had an element of making the world a better place, albeit on a small scale. Finally, it provided a positive return on investment so I could continue funding startups.

Have a little fun

Pursue deals you like. If you don’t like the deal, then nothing else will matter. Ask yourself, “Do I want to work with these people?” “Do I value the work they are doing?” If you can answer “yes” to these questions, then you are well on the path to finding a deal that  lets you ‘have a little fun.’  

Do a little good

Once you have a deal you like, then ask, “Does the company align with my interests?” Invest in startups that further that in which you believe. You may want to support your local entrepreneur ecosystem or a technology that can solve problems that benefit the general public.  

Make a little money

Get agreement on the terms of the investment with a defined exit. 

If you can help the company, then consider setting up an advisory position with them. 

One of the biggest sources of burnout is uncompensated work. There’s an almost unlimited amount of work that needs to be done, and the startup will load you up. 

Remember, successful investments let you make some money, have some fun, and do some good.


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.
____________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
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Direct download: Investing_in_Startups.mp3
Category:general -- posted at: 6:00am CST

Startup Boards -- 3X in 3 Terms Sheets

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

The biggest challenge in investing in startups is finding the exit.  

Time value of money is important and should be part of your return metrics.

Startup investors look for a 44% IRR.  

IRR is Internal Rate of Return and represents the return on investment with respect to time, unlike ROI, which is return on investment without respect to time.  

Startup investors occupy a unique place in the startup funding ecosystem.  

Startup investor funding is the first money in after family and friends funding.  

The longer you stay in the deal, the greater your risk for dilution by follow-on investors.  

The key to a successful exit is a deal structure that gives some control after making the investment.

Equity-only term sheets give investors little say in the future of the company or how to exit.  

To achieve an exit, you must define it yourself, as the vast majority of startups will not do so. 

You must have it in writing before you invest.

Trying to come to an agreement with the startup after investing is almost impossible as the gap between the startup and the investor is too great to close. 

One way to define the exit is to add redemption rights into the agreement.

An example of this is the 3X in 3 terms sheet.

The deal structure is a Convertible Note with a redemption right for 3X your investment to be returned at year 3 of the investment at ‘Investor Sole Discretion.’   

At the third anniversary of signing the note, the investor has the option to convert the original investment to a three times return ($100K in is $300K out) or to go on the cap table as an equity investor.

In reality, there are many choices. In most cases, the startup is motivated to keep your funds in the deal and will negotiate terms to achieve it.


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.
____________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

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Direct download: 3X_in_3_Terms_Sheets.mp3
Category:general -- posted at: 6:00am CST

On this episode of Investor Connect, Hall welcomes Mike Jarmuz, General Partner at Lightning Ventures.

Headquartered in NYC, NYC, Lightning Ventures is an exclusively Bitcoin-focused network of investors, operators, and developers, dedicated to supporting lightning network adoption worldwide.

Mike Jarmuz… or Muzz…is a General Partner at Lightning Ventures and is focused on investing in Bitcoin companies. His goal is to evangelize and demystify early-stage investing to plebs and whales alike. Mike is also passionate about educating founders and operators on strategies to fund their projects. Muzz believes everyone should invest in technology companies (not just the suits) and that investing in Bitcoin companies is the best thing a pleb can do to compliment their HODL position. What else? Mike also co-organizes the Unconfiscatable Conference, and is an advisor to Azteco. He has a serious angel investing addiction and has invested in over 1500 companies. Some of his Bitcoin investments are Fold, Swan, The Bitcoin Company, Impervious, Start9, Breez, Scarce City, and more. 

Mike speaks about investing in Bitcoin, how he sees the industry evolving, and some of the challenges investors and startups face.

Visit Lightning Ventures at www.ltng.ventures, on LinkedIn at www.linkedin.com/company/lightning, and on Twitter at www.twitter.com/ltngventures.

Reach out to Muzz at mike@ltng.ventures, on LinkedIn at www.linkedin.com/in/mike-jarmuz-573b5658/, and on Twitter at www.twitter.com/MikeJarmuz.   

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

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

Startup Boards -- Foundation for Startup Investing

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

Startup investing is a risky business. Not all the investments will work out.  

Know your risk tolerance and how much risk you want to take.  

Most investors allocate 3 to 10 percent of their investments into startup investing. Allocate a specific amount of funding for your investments.

You need to invest across ten deals to gain diversification, so take your funds allocation and set an amount or range for each investment. 

Follow-on funding is also a factor, so be prepared to invest again in many of those companies.  Consider taking your allocation per deal and dividing it into two -- one for the upfront investment and the other for a follow-on funding.

Consider what is important to you and invest in companies that align with your goals and vision.

You may want to support your community or industry. You may want to foster diversity or create jobs.  Or you may want to mentor entrepreneurs or keep your skills up to date. 

In the end, it’s the “Why” you invested that will matter the most. 


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.
___________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
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Category:general -- posted at: 6:00am CST

Startup Boards -- Becoming an Angel Investor

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

For those who want to become an angel investor to fund startups, here are some key steps:

Meet accredited investor requirements. You must meet the SEC criteria for accredited investors. You can see the specifics on the SEC website. In short, you must have a $1M net worth, not counting the house you live in.

Startup investing is risky -- angel investing is high reward with high risk. Be prepared to lose money as it’s a part of the process.

Learn from other angel investors -- read, discuss, join. Read up on the subject. Discuss with existing angel investors, and join an angel network in person or online to learn more about it.

Listen to podcasts -- one of the best ways I learned about angel investing was through podcasts showcasing investors talking about how they invested.

Develop your investment thesis -- determine what you want to invest in and why it should work.  

Meet with startups and start learning about deal flow -- review the documents and term sheets to become familiar with the process. 


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.
___________________________________

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

On this episode of Investor Connect, Hall welcomes Gordon Henry, Host of Winning on Main Street Podcast and Chief Strategy Officer at Thryv.

Winning on Main Street Podcast is geared towards helping small businesses with tips and knowledge to run their business in today’s evolving landscape. 

Thryv is a secure, easy-to-use small business management platform that automates tasks and puts your customers at the center of your business. They’ve been around in one form or another for more than 125 years, always with one goal in mind — helping small businesses compete and win.

Thryv provides the technology, software, and local business automation tools small business owners need to manage their time better, communicate with clients, and get paid, so they can take control of their business and be more successful.

Gordon is passionate about helping small businesses grow, modernize, and thrive in today’s evolving environment. Gordon has spent decades helping small businesses with client acquisition strategies and marketing. He is also a leader in enhancing a company’s image through public relations, brand management, and advertising. Gordon received his Bachelor of Arts from Yale University and an MBA from the Wharton School at the University of Pennsylvania.

Gordon speaks about automation in the startup world, CRMs, what he attributes the success of his podcast to, and more.

Listen to Winning on Main Street Podcast at www.winningonmainstreet.com.

Visit Thryv at www.thryv.com, on LinkedIn at www.linkedin.com/company/thryvinc/, and on Twitter at www.twitter.com/Thryv.

Reach out to Gordon at gordon.henry@thryv.com, on LinkedIn at www.linkedin.com/in/gordonhenry/, and on Twitter at www.twitter.com/gordonmhenry.  

_______________________________________________________

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

Where Does the Angel Play?

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

So, what startups do angel investors pursue?

Angel investors invest in high-growth startups, most often tech-enabled.

Restaurants, retail, and service businesses are not necessarily a fit for angel investors.

Angels seek a return on investment in the range of 44% IRR.

While some angels are looking for home runs, most angels invest in deals that are singles and doubles for returns as they don’t have the deep pockets to fund a startup all the way.

Angels look for capital-efficient deals and have the opportunity to scale.

Those startups with recurring revenue are preferred. 

Angels invest in businesses that, for the most part, have an initial product and are going into the market.

They look for companies that, for the most part, can run themselves.  

Unlike the VC, which earns a paycheck through their management fee, the angel has no management fee, so all costs come out of pocket, and all time comes from the angel investor’s own time.


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.
___________________________________

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

Startup Boards -- Startup Investor Skills -- Managing the Portfolio

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

Startup investors need to hone their skills in order to succeed over the long run.

Key skills include: 

  1. Evaluating teams.
  2. Assessing products and markets.
  3. Accessing financial capital not only for the current round of funding but for later stages.
  4. Managing a portfolio of startup investments, including supporting the startup and generating exits.

In managing a portfolio, you need to provide support to the startup at some level.

It’s best to invest in businesses that you can help, so this should be part of your investing criteria.

You need to track the companies in your portfolio and keep up to date with them at least once a quarter. 

At some point, you may need to help the startup generate an exit by making introductions to companies who could acquire the startup.

A potential buyer will want to see the startup’s organization align with its own structure.  

The investor can help the startup align with the acquirer.  

This process becomes the growth strategy of 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.
___________________________________

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/ 
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Direct download: Startup_Investor_Skills_--_Managing_the_Portfolio.mp3
Category:general -- posted at: 6:00am CST

Startup Boards -- Startup Investor Skills -- Accessing Financial Capital

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

Startup investors need to hone their skills in order to succeed over the long run.

Key skills include:

  1. Evaluating teams.
  2. Assessing products and markets.
  3. Accessing financial capital not only for the current round of funding but for later stages.
  4. Managing a portfolio of startup investments, including supporting the startup and generating exits.

So for accessing financial capital, you need a network of investors both at the stage in which you invest and for the stage after.

For the current round, you may need to help the startup finish its current raise.

Referring them to investors who may be a good fit will help them succeed.

Reserving funds for their next round is also important. Many investors divide their total allocation to the startup in half, investing half in the first round and the other half in a follow-up round.

For their follow-on round, it’s useful to know investors at that stage so you can make introductions there as well.


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.
____________________________________

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

On this episode of Investor Connect, Hall welcomes Joseph O'Bell, Attorney, Founder of Vineyard Sun LLC, and Host of the Moontower Business Podcast.

The Moontower Business Podcast was launched when the pandemic started. The goal was to showcase entrepreneurs and the business community in Austin, Texas. The podcast quickly evolved and began to cover entrepreneurs and business leaders all over the United States. The podcast has featured interviews with entrepreneurs and business leaders in a vast array of industries. Some of the guests include billionaire Peter Rex, Austin Mayor Steve Adler, former Texas Secretary of State Carlos Cascos, Jehudi Castro, Advisor to the President of Colombia, venture capitalist Sean Sheppard, Nik Bhatia author and Professor at USC Business School, and many more. 

Joseph is General Counsel for American Metals Recovery and Recycling Inc. as well as Multiband Global. He has practiced civil litigation and transactional work. Joseph has worked in the Texas Emerging Technology Fund in the Texas Governor’s Office and as General Counsel of a startup company called Votalize Inc. He is also the Founder of Vineyard Sun, LLC, an eCommerce sunglasses company based in Austin.

Joseph discusses the implications of the influx of persons into Austin, Texas, the bitcoin industry there, his podcast, and more.

Listen to the Moontower Business Podcast at www.moontowerbusinesspodcast.com, and on Twitter at https://twitter.com/MoontowerB.  

Visit Vineyard Sun LLC at www.vineyardsun.com.  

Reach out to Joseph at joey.obell@multibandglobal.com, joseph@moontowerbusinesspodcast.com, on LinkedIn at www.linkedin.com/in/joseph-o-bell-2451621b/, and on Twitter at www.twitter.com/NY_TX_Lawyer/

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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 follow, share, and leave a review.

Music courtesy of Bensound.

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

Startup Boards -- Startup Investor Skills -- Evaluating the Product & Markets

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

Startup investors need to hone their skills in order to succeed over the long run.

Key skills include: 

  1. Evaluating teams.
  2. Assessing products and markets.
  3. Accessing financial capital not only for the current round of funding but for later stages.
  4. Managing a portfolio of startup investments, including supporting the startup and generating exits.

So for the product, ask, is it a vitamin or a painkiller?

The vitamin makes you stronger and better, but it’s nice to have for the customer.

The painkiller is more important to the customer and, in some cases, crucial.

It’s better to invest in painkillers than vitamins.

For markets, you look for large markets, not small ones.  

Ask, where in the lifecycle is this market -- early stage, growing, maturing, or declining?

You want a market that is growing or about to start growing because of disruptive technology.

It’s important someone on the team knows the market very well.


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.
___________________________________

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 follow, share, and leave a review.

Music courtesy of Bensound.

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

Startup Boards -- Startup Investor Skills -- Evaluating the Team

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

Startup investors need to hone their skills in order to succeed over the long run.

Key skills include: 

  1. Evaluating teams.
  2. Assessing products and markets.
  3. Accessing financial capital, not only for the current round of funding but for later stages.
  4. Managing a portfolio of startup investments, including supporting the startup and generating exits.

So for the team, the basis of any relationship is integrity.  

The team needs to be in it for the long haul. Startups are the ultimate marathon game.

They need to know their market and their customer -- very well.

Finally, they need to inspire confidence.

The CEO, in particular, needs to recruit others to the company including customers, employees, and partners.

Those who can inspire others to join the cause will do well. 


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.
___________________________________

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 follow, share, and leave a review.

Music courtesy of Bensound.

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

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