Investor Connect Podcast

What it takes to turn a travel startup from zero income to a staggering $100,000 in just one year?

In this episode of How to Raise Funding, Hall T. Martin, the host of Investor Connect, engages in a detailed discussion with a travel startup founder.

They discuss the origin of the travel venture, the struggles against pandemic-induced challenges, the revenues so far in 2021 and 2022, and the plans to raise funds for the startup.

The travel startup has recovered from zero income in 2021 to 100,000 USD in 2022 and above 100,000 in 2023, while still in the pilot stage. They also discuss issues with traditional funding methods and aim to raise 250,000 USD in funding, primarily for product development. 

Hall advises the company to get a convertible note or safe note, primarily from friends, family, or angel investors and accentuates the importance of always having a new piece of info available from a customer that can be shared with investors. Their strategy aims at providing solutions to customers while continually developing new features of their product.

 

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: How_to_Raise_Funding_10.mp3
Category:general -- posted at: 9:12am CST

Best Practices for Equity

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

Equity is a key component of startup compensation for founders and employees.

While cash may be king in the short term, equity will be worth more in the long run.

Here are some best practices for founders to follow:

Treat equity as the scarce commodity it is and deploy it strategically and carefully.

Avoid using equity for short-term goals such as upgrading websites or purchasing inventory.

Consider alternative forms of funding for anything related to cash flow and inventory.

Set aside equity to compensate the team and take on potential investors.

While it dilutes the founder, it gives the company the capability to grow larger.

A smaller percentage of a big number is better than 100% of a very small number.

Align your compensation with the employee's needs. 

Know who on the team values equity and will work for it and who prefers cash.

If equity is not worth it to them, then reduce their equity share and give it to others who find it motivating.

Map out your equity ownership through subsequent rounds of funding.

It’s important to know how much equity you are giving away on each round. 

By running a fully diluted cap table on each terms sheet you plan to use, you’ll know how much that raise will cost you.

Consider these points in managing equity for your 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/ 
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: Best_Practices_for_Equity.mp3
Category:general -- posted at: 8:08am CST

Equity Vesting

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

Vesting is conveying the ownership of equity to the holder.

Vesting schedules show the rate at which equity is vested over time.

It is used to ensure founders and employees stay with the company till the proposed milestones are achieved.

Investors will look for standard vesting schedules on all equity given to founders, co-founders, and employees.  

The standard vesting schedule for early-stage companies is a four-year vesting schedule with a one-year cliff for founders and employees.

The one-year cliff means the vesting starts after one year but conveys equity each month thereafter.

At the end of the first year, the holder receives one-quarter of the equity.

Fully vested means that all ownership has been conveyed to the holder. 

For founders and cofounders, the vesting schedules should be the same even if the equity percentages are different.

The standard vesting for advisors and directors is 2 years with a 3-month cliff.

In some cases, the founders can get double trigger acceleration.

This accelerates the vesting if two events happen at the same time such as the founder leaves and the company undergoes an acquisition.

Vesting is a key concept in equity that founders should understand.

 

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: Equity_Vesting.mp3
Category:general -- posted at: 7:47am CST

Equity Dilution

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

In the early days of the startup, the founders should raise only the amount of funding necessary to achieve the next milestone.

The valuation of the company is low but will rise when adding products, revenue, and team members.

Raising too much early on will cause the founders to suffer dilution.

Pursue the bigger funding in later rounds when the valuation of the company is higher.

It’s important to define very specifically what you are trying to achieve and know what this will cost.

Here are some other ways to reduce equity dilution:

Keep the discount rates on convertible notes and safe notes to a minimum.

Set up an option pool for employees but keep it in bounds.

Look out for pro rata terms that give some investors an outsized position.

Test your proposed terms sheets by inputting them into your cap table and displaying it as a fully diluted version.

In the early stages think minimum -- minimum fundraise, minimum viable product, minimum team.

This will reduce the amount of equity you are giving away.

 

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: Equity_Dilution.mp3
Category:general -- posted at: 7:08am CST

Equity Distribution Over Funding Rounds

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

As the startup raises funding the founder's and employees' ownership stake will fall and the investor's stake will rise. 

This is due to the fact that more investors are added to the cap table over each round of funding.

Both founders and employees undergo dilution throughout this process.

After a seed round the founders typically own 65% of the company, employees own 15%, and investors own 20%.

After a Series A round the founders typically own 45%, employees own 12%, and investors own 43%.

After a Series B round the founders typically own 35%, employees own 10% and investors own 55%.

After a Series C round the founders typically own 30%, employees own 5% and investors own 65%.

After a Series D round the founders typically own 20%, employees own 3% and investors own 77%.

In startups with more rounds of funding, it’s not uncommon for founders and employees to own single-digit percentages of the company.

Consider the impact of additional rounds of funding on both founder and employee ownership.

 

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: Equity_distribution_over_funding_rounds.mp3
Category:general -- posted at: 5:00am CST

In this episode, we dive into the world of fundraising, exploring different strategies for securing funds. We also talk about Ten Capital, a specialized firm in investor relations, and introductions, with a notable track record in life science and tech investments.

We unravel the nuances of 10 Capital's flat fee structure and extensive investor network, particularly in healthcare and women's and children's health.

Now, here's a question for you: How can blending convertible notes and preferred equity shape the future of fundraising strategies for innovative ventures?

Share your thoughts with us on social media, and don't forget to subscribe for more engaging episodes. Your journey in the world of funding continues – stay tuned!

 

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: HTRF_EP09.mp3
Category:general -- posted at: 1:34pm CST

Why Give Equity to Employees

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

Employees are a key factor in the success of startups.

Here’s a list of reasons why you should give equity to employees:

Recruiting -- the market is competitive, especially for quality candidates.

A startup offering equity to employees will find it a competitive advantage over other companies.

Retention -- equity vested over time is a useful tool for retaining employees.

The employee must work a certain number of years before their shares vest.

This is a key factor in building a stable workforce.

Motivation -- employees who have an ownership interest in the company are more motivated than those who do not.

Tax benefits for the employee -- equity compensation is taxed at long-term gains rather than ordinary income rates that apply to payroll.

Tax benefits for the employer -- there’s no income tax cost to the company.

Consider these benefits in setting up an equity compensation plan for your 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/ 
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: Why_Give_Equity_to_Employees.mp3
Category:general -- posted at: 7:15am CST

How To Give Equity to Employees

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

Equity is an important compensation tool for employees.

Startups that don’t provide equity must provide all compensation from the cash flow in the form of salaries and bonuses.

This can be difficult on the finances of the business.

Equity compensation doesn’t require any cash outlay.

Consider these methods of compensating employees with equity:

New employees -- give equity as part of the compensation package and pay market rates.

Promoted employees -- give equity as part of the higher compensation package.

Performance compensation -- give equity as part of the compensation for outstanding performance.

Ongoing compensation -- provide annual distribution of equity to employees to create a ladder of vested shares. 

Avoid big gaps in the equity compensation so there’s a steady flow of vested shares coming up each year.

The market is competitive and equity compensation is a key factor for many employees.

 

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: How_to_give_equity_to_employees.mp3
Category:general -- posted at: 7:06am CST

Evaluating Employee Equity

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

Employees joining a startup will often receive equity as part of the compensation package.

Investors know that only one out of ten startups will generate an outsized return.

The rest turn in a modest return or fail outright.

Employees should consider these factors in evaluating equity compensation:

What is the exit strategy for the firm and is it a reasonable plan?

Many businesses never reach an exit but turn into lifestyle businesses instead.

How much ownership do you have?

Divide your shares by the total number of shares outstanding to find out.

Are you receiving incentive shares or restricted shares?

The strike price shows the value you must pay to receive the shares and compare it to the current valuation.

Understand the tax implications of each.

How long is the vesting period?

The most common vesting is four years with a one-year cliff.

Can you sell your shares on the secondary market and does the company facilitate the sale?

Can you take the vested shares if you leave the company or do you have to sell the shares back?

Make sure the promised equity is formally documented.

 

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: Evaluating_Employee_Equity.mp3
Category:general -- posted at: 2:30am CST

Employee Equity

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

Equity compensation for employees varies greatly based on the location, type of startup, and job to be done.

An overall allocation for employees is around 15% of the total equity.

The first five hires receive 1% to 2% each.

Later employees receive 0.25% to o.5% each.

You can also apply a multiplier against the employee’s salary.

This makes it easy to apply to employees across the board.

Director level and above receive 1% while those below receive 0.5%.

Employees seeking a higher salary receive a lower equity percentage.

Those accepting a lower salary receive a higher equity percentage.

Contractors typically don’t receive equity.

Other factors impacting the equity decision include the current market conditions.

You can use equity to compensate seed-stage employees with salaries well below market rate.

Vest the equity over four years with a one-year cliff.

This ensures the employee stays with the company for a meaningful period.

Capture all equity agreements into the cap table.

Remember, follow-on fundraises will dilute all the employee shareholders similar to the founder and co-founder. 



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: Employee_Equity.mp3
Category:general -- posted at: 4:36am CST

Advisors Equity

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

Startup advisors can help a startup establish the business and find the right track to grow.

Some informal advisors help the business without any compensation.

Some formal advisors help the business but require compensation.

Advisors seeking compensation look for a small piece of equity.

Most advisors are not paid cash in the very early stages as there’s no revenue to draw from. 

Advisors typically receive 0.2% to 1.0% of a share of equity.

The range covers advisors on the low end who give advice.

Those who provide strategic value such as finding investors or C-level hires are in the mid-range.

Experts who provide domain knowledge are on the high end.

The startup undergoes many changes in the early days so an advisor is useful for two years in most cases. 

The equity is vested over two years with a three-month cliff in case the advisor doesn’t work out.

There are standard advisor agreements to paper the engagement.

Any agreement involving equity should be documented and incorporated into the cap table.

Spend time with the advisor before committing to a long-term relationship to make sure there’s a good fit.



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: Advisors_Equity.mp3
Category:general -- posted at: 4:21am CST

Curious about the startup hustle? 

Embark on a journey through the intricacies of startup funding and business strategy in the latest episode featuring Hall T. Martin. In this insightful dialogue with a seasoned guest, we unravel the challenges and triumphs of the startup ecosystem, ranging from crowdfunding endeavors to the profound impact of AI on global education.

We delve into the essentials of safe notes, convertible notes, and the art of securing substantial investments. This segment offers a comprehensive understanding of setting valuation markers, creating urgency, and optimizing timing for fundraising campaigns.

 

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: HOW_TO_RAise_funding_08.mp3
Category:general -- posted at: 5:00am CST

Co-Founders Equity

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

Running a startup it requires a complete team.

Someone is building it and someone is selling it. 

In the early stages of a startup, the founder is doing one of these and the cofounder is doing the other.

Founders should look for cofounders whose skill complements their own.

Since there’s no revenue, equity is used to compensate the founder and cofounder for their early work.

Founders must split the equity with the cofounder. 

Here are some key points to consider in determining the equity split:

Keep the big picture in mind when determining the cofounder's value.

Startups take many years to build and then sell so decisions should be made on long-term value and not just short-term job duties.

The equity split must be compelling enough for both founder and co-founder to motivate a strong contribution. 

Investors will look at the equity split to see if the key players are adequately motivated.

Focus on skills and execution rather than ideas and hours worked.

Make sure you vest the cofounder’s shares over a four-year period.

I see many startups with only half the equity still engaged with the company as a cofounder left early and took their entire equity allocation with them.

Plan for the long term and split equity so everyone is motivated to see it through.

 

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: Co-founders_Equity.mp3
Category:general -- posted at: 5:00am CST

Types of Equity

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

There are several types of equity in a business.

Here’s a list to consider when engaging a startup:

Authorized shares -- the maximum amount of shares the company can distribute.

Outstanding shares -- the number of shares actually distributed.

This determines the current valuation of the company.

Subscribed shares -- the number of shares exchanged for an investment into the company.

Rights shares -- the shares that investors have the right to purchase.

This is often in the form of warrants that give the investor additional shares at a specified price.

Sweat equity shares -- the shares given to those who provide value to the company through labor.

Treasury shares -- the shares repurchased from investors and employees and held by the company.

Options -- shares promised to employees in exchange for their work.

This is used as an incentive to retain employees.

Dividends -- shares of stock converted to cash and given to shareholders.

This is used to provide additional compensation to the shareholders. 

Equity can be used in multiple ways to compensate and incentivize shareholders and employees. 

 

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: Types_of_Equity.mp3
Category:general -- posted at: 5:26am CST

Founders Equity

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

Founders of the startup receive equity to generate loyalty to the firm.

Cofounders also receive equity.

In splitting equity between the founder and cofounder, avoid the 50/50 split as this puts no one in a position to make final decisions.

There are many tough choices to make in a startup and one founder needs to take that role.

Equity should be set based on the contributions each one makes and vested over time.

Consider the following in splitting the equity:

Experience of the founder

Time commitment made

Responsibilities

Funding raised 

These are the key factors in an early-stage company.

Consider setting aside shares for employees and incentive stock options.

Initial employees receive equity after the first round of funding. 

This round of equity replaces salary which comes into play when revenue starts.

Also, consider that investors typically take 20-25% of the equity in each round of funding.  

This dilutes the founders and early employees.

Capture the decisions in writing and consider setting up a cap table as a proof of record.

 

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: Founders_Equity.mp3
Category:general -- posted at: 4:55am CST

Key Equity Terms

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

Equity represents the ownership stake in a startup.

Here are some key terms to know about equity.

Vesting -- the transfer of equity ownership from the company to the employee.  

A typical vesting schedule is four years.

Each month a portion of the promised equity is vested which gives the employee ownership over that portion.

One-year cliff -- this term is used with vesting and indicates vesting starts after one year.

Companies do this to encourage employees to stay at least a year. 

Options -- a contract giving the holder the right to buy shares at a specified price later.

Strike price -- this is the price the holder will pay for the options. The difference between the strike price and the market price is the gain the holder receives.

Stock options -- for non-qualified stock options you’ll need to pay tax on the difference between the strike price and the market price. 

For incentive stock options, you’ll pay capital gains tax on the gains when you sell the shares.

Liquidity event -- this is an event such as selling the company or going public on the stock exchange.   It creates liquidity for the shareholders.

Preference stack -- this is the order of payout to the shareholders based on term sheet clauses.  This puts some shareholders first by way of a liquidity preference.  The remaining shareholders get paid from the remaining proceeds.

Consider these terms when dealing with equity negotiations at a 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/ 
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: Key_Equity_Terms.mp3
Category:general -- posted at: 3:23am CST

Startup Equity Basics

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

Equity is an ownership stake in a company represented by shares.

The three stakeholders are the founders, the employees, and the investors.

Founders start with all the equity and then create and give shares to investors and employees in return for funding and labor.

This additional equity reduces the value of the founder's shares which is called dilution.

The value of a share of stock is the total value of the company divided by the total number of shares outstanding.  

The number of shares authorized doesn’t matter.

Stock options give the holder the right to convert to shares at a later date.

An incentive stock option gives the holder the right to buy shares at a discounted price.

A non-qualified stock option gives the holder the right to buy shares at the grant price.

In a startup you can calculate the value of your stock by taking the most recent valuation and dividing by the number of shares outstanding.

Stock options and founder’s shares are often placed on a vesting schedule.

This is the number of years it takes for the holder to gain ownership over the granted shares.

Vesting is a mechanism to retain employees and founders till the work is completed.

Additional funding dilutes the value of the holders’ shares as it generates more shares outstanding.

The capitalization table (also called the cap table) lists the owners of the company and their percent and shareholder value.

It’s important to know these terms in dealing with equity in a 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/ 
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_Equity_Basics.mp3
Category:general -- posted at: 3:17am CST

On this episode of Investor Connect, Hall welcomes Joy Schoffler, Founder and Principal at Distinctive Edge Partners. Located in Austin, Texas, United States.

Distinctive Edge Partners is a full-service communications, marketing, and events management firm serving clients across the aerospace and defense industry.

They specialize in pairing deep aerospace and defense expertise with creative and digital strategies to help clients build and maximize value, improve operations, and turn risks and threats into opportunities.

Joy Schoffler is an award-winning global communications and investor relations strategist with decades of experience. Joy has a deep history of helping clients achieve business goals, from raising capital to scaling cutting-edge technologies. 

 Joy's experience includes founding and selling a strategic marketing and communications firm, serving on the investment committee at Ascendant Industries, and leading investor relations for Casoro Capital. She has also been involved in real estate acquisitions, growth strategies, and innovation promotion.

Joy shares the opportunities for technology firms to work with the federal government, the modernization efforts in the government, and the opportunities for companies to be part of these efforts. Joy also talks about the resources available for startups to learn more about government needs.

Applications for the Space and Defense Ignite Awards are due by January, 10th, 2024 companies can apply here: https://usg.valideval.com/teams/sdi-ignite-2024/signup 

To learn more about getting involved in the upcoming Space and Defense Showcase and VIP Reception please visit our website: https://www.sdireception.com/ 

To learn more about Distinctive Edge Partners visit: https://distinctiveedge.partners/ 

 

_______________________________________________________

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: Joy_Schoffler.mp3
Category:general -- posted at: 9:46am CST

Brand Equity

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

Brand equity is the value that comes from customer recognition of the brand.

Startups with brand equity command a higher price for the product and differentiate from the competition.

Here are the key elements of brand equity:

Brand recognition

Customers recognize the visual identity of the brand and value it.

This differentiates your startup from the competition and reduces the cost of acquiring new business.

Brand perception

Customers understand what your startup does based on the brand.

Customers are aware of your promise, values, and mission.

Brand image

The brand generates an emotion when customers see the image.

It is the emotional component of the brand that connects with the customer.

Brand value

The brand stands for quality and helps the customer justify the cost of the product.

It is the logical component of the brand.

Brand equity impacts a startup's financial performance including revenue, cost of sales, and profitability.

Other benefits include lowering the cost of launching a new product, upselling and cross-selling, and lowering churn.

 

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: Brand_equity.mp3
Category:general -- posted at: 5:00am CST

Common Branding Mistakes

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

In developing the brand for your startup avoid these common mistakes:

Spending too much on an agency.

Most of the work comes from you, your team, and a graphics design professional.

Take ownership of your brand building and outsource key elements of the project such as logo design.

Designing a logo that looks cool but is hard to read.

Choose a logo design that remains legible in small formats such as email footers and browser tabs.

Creating a brand identity based on this year’s strategic goals.

Goals change every year so focusing on one year’s goals can leave your brand out of date.

Build a brand based on your overall business strategy which will last for several years.

Failing to maintain the promise of the brand.

You must deliver on that promise consistently.

Failing to communicate your message.

Avoid obtuse wording and strained analogies and make sure the majority of your audience understands it.

Missing the why.

Make sure you include in your message why your business exists.

Avoid these mistakes in your branding efforts.

 

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: Common_branding_mistakes.mp3
Category:general -- posted at: 5:00am CST

Best Practices for Rebranding

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

Most startups will at some point need to rebrand their business.

In rebranding your startup consider these best practices:

Just as you start with a minimum viable product so you can start with a minimum viable brand.

This allows you to test out your brand to see what resonates with your audience.

Emphasize the values in your company that arise naturally as these will be conveyed more readily.

Inventory your brand assets so you have a complete picture of your current status.

Involve the team in the rebranding process by having each one capture images that reflect the brand and then review everyone’s contributions.

Check the readability of the brand in all forms of communication.  

Make sure your brand is legible as it oftentimes renders in a very small format making it difficult to read.

Connect your brand to your business strategy.

Create a wordmark using custom and unique typography.

Trademark your wordmark so others cannot copy it.

Focus on one brand for your company and not for every platform or product.

Finally, engage professional graphic designers to help.

 

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: Best_practices_for_rebranding.mp3
Category:general -- posted at: 5:00am CST

When To Rebrand Your Startup

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

There are times when you need to rebrand your startup.

Here’s a list of reasons:

You’re attracting a larger customer base.

You're changing the target market to reach a new audience.

You’re updating the brand to represent the current product offering.

Your startup is merging with another company.

Customers confuse your logo with other company logos.

The brand you chose does not stand out in the market and no one can remember it.

Your competition has changed and you need to differentiate better.

Your startup has gone through a crisis and needs a fresh start.

The startup has evolved into a new business and the brand no longer reflects the company.

The logo design is out of date and needs to be updated.

Consider these situations as a catalyst for rebranding your 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/ 
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: When_to_rebrand_your_startup.mp3
Category:general -- posted at: 5:00am CST

How To Rebrand Your Startup

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

There are several reasons for rebranding your startup.

A new name may be required due to trademark issues.

You may need to differentiate the company from the competition.

Before rebranding your startup, build a team to review the brand and create a new one. 

In rebranding your startup there are several strategies to consider:

Review the current brand positioning in the market. 

Identify what is working and not working with your current brand.

Determine what needs to change and what should stay the same.

If you are reaching out to a new market segment, research customers in the new sector.

Inventory the use of the brand in all formats and media.

This could be quite extensive for companies with a long history.

Revisit the tone, voice, and positioning of the brand.

Reformulate your brand messaging based on your promise to the customer. 

Update your brand positioning statement to include the proposed changes.

Redesign the logo with the new brand elements.

Write out the brand guidelines for the use of the brand.

Relaunch the brand with the company’s story and the reason behind the rebrand.

 

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: How_to_rebrand_your_startup.mp3
Category:general -- posted at: 5:00am CST

How to turn a startup idea into a multi-million dollar investment?

Welcome to another episode of Investor Connect - How to Raise Funding Series, with Hall T. Martin. In this episode, we venture into the world of genuine connections, funding strategies, and the transformative power of AI in healthcare. If you're a startup enthusiast or an investor seeking valuable insights, you're in for a treat.

We talk about the importance of building relationships, and how to break down funding targets into manageable rounds. This is the key to turning startup momentum into multi-million dollar investments.

 


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: How_to_raise_07.mp3
Category:general -- posted at: 9:18am CST

Why Rebrand Your Startup

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

There are times when a startup should rebrand itself.

Here’s a list of good reasons:

Your current brand no longer reflects the values and mission of your startup.

Your startup changed position in the marketplace and the brand no longer matches the promise you made.

Your startup has grown and is now in a new market sector.

Your startup merged with another company and the new company’s mission statement is different.

The brand positioning statement is out of date with the market which may have shifted.

The company’s image needs a new voice that resonates with the market.

Your target customer has shifted and you need to follow the customer.

A crisis has transformed the company and is no longer the same.

Here’s a list of not-so-good reasons:

The logo looks tired and stale.

The company is looking for a short-term boost in sales. 

The leadership has changed and is taking the company in a new direction.

Consider these reasons for rebranding your company.

 

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.

_______________________________________________________

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

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: Why_rebrand_your_startup.mp3
Category:general -- posted at: 5:00am CST

1