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   

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Music courtesy of Bensound.

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.

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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.