In this episode of Investor Connect, host Hall T. Martin and co-host Kat Delvedio dive into TenCapital's initiatives and upcoming events aimed at bridging the gap between startups and investors. We emphasize the importance of building investor relationships and share details about key programs like the Family Office Roundtable, Virtual Quick Pitch for AI-enabled tech companies, and the Life Science Syndicate. Hal introduces AVA, an AI venture assistant designed to streamline the investment experience by providing insights from a trove of resources, including blog posts, podcasts, and proprietary tools. The episode features pitches from innovative startups, starting with Nathan Monty of Enamel Pure.

Nathan discusses how his company is revolutionizing the preventive dentistry market with a laser and imaging technology that enhances clinical procedures and introduces AI-driven diagnostics. Nathan describes the significant market potential, detailing the benefits of their comprehensive device, which performs teeth cleaning, enamel hardening, and whitening, all while generating valuable diagnostic data. Vadim Balashov of Viaduct Ventures and Nola Masterson of Portfolio join the panel to provide feedback and ask insightful questions about Nathan's presentation.

The discussion covers exit strategies, market approach, and the innovative use of AI in both dentistry and investment strategies. For more information on TenCapital's events and to join upcoming sessions, visit tencapital.group and click on the events button. Those interested in learning more about AVA can find her at startupfundingespresso.com. 

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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Milestone Your Valuation Caps

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

In strategizing your fundraising, it’s best to break your raise into tranches.

Most raises start with a Convertible Note or SAFE Note so one uses a valuation cap rather than the actual valuation.

Give the first tranche an investor-friendly valuation cap.

For the second tranche, raise the valuation cap by 50%.

In the pitch to investors make clear that there’s a limited amount of the low valuation cap equity.

When those funds are raised, move to the next tranche at a higher valuation.

Continue this stair-step of the valuation cap for the remainder of your raise.

This creates scarcity for the low-priced equity and encourages investors to come in early rather than late.

Most investors want to do the smart investor thing which is to be the last investor in the round.

Give investors a reason to invest early.

This will help move your fundraising along and avoid stalling out.

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/ 
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You’re Too Early for Us

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

Startup founders raising funding will often hear an investor say ‘You’re too early for us.’

Many founders believe the investor may be a candidate for a future raise.

In reality, most investors who say you’re too early are actually saying, it’s a pass.

Experienced investors become adept at how to say no to the founder without causing resentment.

In this case, they are saying you’re okay, your startup is okay, but the timing is off.  

This implies it’s no one’s fault and it’s beyond our control.

This type of pass leaves the door open for a future discussion when the investor may be open to investing.

Investors want optionality.

They may not want to invest today but in the future, they may want to join the round.

‘You’re too early’ statement positions them to join later potentially.

In many cases, the investor doesn’t see enough traction to engage the startup.

The next step for the founder is to continue building the business and look to attach to a growth story.

There are sectors in the startup ecosystem that are hot and attract investment.

Founders should find a way to connect their startup to that growth sector to generate more interest from investors.

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/ 
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Keep Going Till the Money Is in the Bank

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

In fundraising, the deal is not done till the money is in the bank.

Many founders stop their fundraise when an investor says, “I’m in.”

It’s important to continue the fundraising process even though you may have commitments to cover your raise.

Not all investors come through with their commitment.

Even a signed terms sheet doesn’t mean the deal is done.

Stories in the startup space abound with “the deal blew up on the one-yard line.”

This football analogy shows the fallout of investors on the way to the end zone for a touchdown.

When an investor says ‘yes’, start working through the process to close the investor and bring the funds into the bank account.

Continue talking to new investors about the deal. 

Once your fundraiser has momentum new investors will ask about the startup.

This is a great position to be in as you can showcase the interest in the deal from other investors to help close the round.

Keep going till the money is in the bank.

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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Fundraise Closing Rate

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

In sales, the average close rate of prospects is 5% to 10%.

This often seems low to first-time salespeople who view their product as superior to the competition.

There are many reasons why customers don’t buy the product.

These include the lack of budget, inability to make a decision, and other priorities taking precedence.

In fundraising, the close rate with investors is similar at 5% to 10%.

The startup founder must talk to a hundred investors to close investments from 5% to 10% of them.

The founder sees the potential of the startup and the opportunity it has.

But only a minority of investors pitched will ultimately come in.

Reasons include lack of funds available to invest, inability to make a decision to go forward, and other startups such as portfolio companies that take priority.

Founders should factor this into their fundraising strategy.

Set a goal to meet enough investors to hit the fundraising target.

There’s a saying in the finance world.  

You have to kiss a lot of frogs.

The startup space is no different.

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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Research Your Investors

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

Just as investors do research on the startup so the founder should do research on the investors.

Research includes both primary and secondary research.

Primary research comes from talking with the investors’ portfolio companies and other investors.

Ask the founders who have worked with the investor about their experience.

Look for what value the investor can bring.  

This includes both connections to other investors and business skills such as hiring, go-to-market strategies, and financial management.

Secondary research comes from researching the investor online for their past experience, investments, and content posted.

Review the investor’s LinkedIn profile to learn more about their work history.

Look at the investors' website to understand their investment thesis and what companies they’ve funded.

Superficial impressions of an investor are often misleading.

Some of the best investors don’t carry a high profile in the community.

Choosing a bad investor can make your startup life problematic so research well and pick carefully.

This type of research will inform your fundraising 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/ 
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In this episode of Investor Connect, Hall T. Martin is joined by Christopher Ezold, a partner at Wisler Pearlstine, a law firm based in Pennsylvania that specializes in business, employment, and corporate law. Christopher shares insights into the complexities surrounding non-compete agreements and non-disclosure agreements (NDAs), especially as they pertain to startups and the investment landscape. He discusses the evolving legal landscape regarding non-competes, the importance of tailoring these agreements to specific roles and states, and the critical factors investors need to consider when evaluating a startup's legal safeguards. Christopher also touches on the broader changes in employment law, the impact of generational shifts on the workforce, and offers practical advice for ensuring legal agreements are enforceable to protect intellectual property and competitive advantage. 

Reach out to Christopher at cezold@wispearl.com. Visit their website at: http://www.wislerpearlstine.com/ 

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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Demonstrate Credibility With Investors

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

In raising funding either as a startup looking for investors or a VC fund manager looking for Limited Partners, it’s important to demonstrate credibility.

Investors love to be educated on a market segment.

There are over 200 market segments in the venture space so it’s difficult to keep up with them all.

One way to demonstrate credibility is to take your market research and showcase it to investors.

In launching a startup or fund, one typically does a deep dive on a market segment and generates an array of charts and graphs showing the trends and status of the segment.

Take that market research and build a 15 slide presentation showing the state of the market including trends that are increasing and areas that are decreasing.

Offer a briefing on the sector and go through the slides showing the status.

Call out the insights to be gained such as where value will accrue.

Show who will be the winners and the losers in the next five years.

This provides the foundation for a startup or an investment thesis for a fund.

By educating the investor on the market you are now positioned to discuss how your startup or fund will take advantage of those trends.

Offer the market brief as a standalone meeting with no ask of the investor.

It’s important to build credibility first.

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/ 
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Identify a Champion in the Group

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

In raising funding look for those who believe in your project and believe in you.

Don’t spend too much time with those who don’t.

In a group identify a champion who can galvanize others to action.

This is sometimes a lead investor and other times it’s just someone who knows everyone.

In working with a VC group, identify a champion for your deal.

In a VC fund, a partner brings a deal to the fund and works to convince others that this will be a great investment.

It’s their job to sell it to their group.

It’s your job to arm that champion with enough information to win the investment.

This includes updates about the progress of the company.

Updates include progress in sales such as leads generated, prospects moving through the funnel, and closed opportunities.

Updates also include experienced people you are bringing on board as core team members or advisors.

Finally, updates showcase other investors joining the round.

Keep your champion informed so they can convince others to join the fundraise.

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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You Need To Have Thick Skin

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

In the fundraising process, the startup founder will hear ‘no’ many times from investors.

For the founder, this can be painful as the startup is their baby.

Investors will say ‘no’ often and in many different ways.

Some articulate it in words while others demonstrate it in their actions.

The founder needs to have a thick skin because not everyone will get it.

Consider these points when hearing a no:

Never take the investor feedback personally -- it’s business.

After each interaction, ask yourself why the investor said no.

Look at the pitch from their point of view.

It’s often the case the investment doesn’t fit their criteria or thesis.

Some investors have finished their funds and cannot take on any more investments.

Other investors don’t understand the space or how that part of the industry works.

Still, others are unsure of the technology behind the startup and want to see more proof.

Each interaction with an investor provides a lesson to learn.

Having a thick skin helps.

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/ 
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It Takes Seven Touches

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

It takes seven touches to close a sale.

So it takes seven touches to close an investor.

In the selling process, one starts by generating awareness of their solution with the prospective customer.

So in fundraising, one generates awareness with the investor that an investment opportunity exists.

In selling, one pitches the solution.

So in fundraising, one pitches the investment.

In selling one follows up to answer questions about the product.

So in fundraising, one follows up to answer questions about the startup.

In selling one reminds the customer that the product is still available.

So in fundraising, one reminds the prospective investor that the fundraise is still open.

It takes several touches to close a customer as they need to convince themselves that this will work.

Fundraising is no different.

The investor needs to work out in their mind that this will be a successful investment.

Consider how you will execute seven touches for each investor on your fundraise.

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/ 
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Recruit an Expert To Help With the Fundraise

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

In the fundraising process, the first-time founder is at a great disadvantage.

Investors and other startup founders have experience raising funding.

The investors have seen many startups, founders, and deal structures.

They have the experience from those prior engagements.

The first-time founder does not.

It’s important to recruit an expert to help with the fundraising. 

This is someone who has seen many deals before and can coach the first-time founder.

Here are some key areas of expertise they can provide:

Deal structure -- there are several ways to set up an investment including type of structure, terms, and conditions.

Positioning -- an investment can be positioned in many different ways.  Choosing the correct positioning for the investor is important.

Pitching -- an expert can help the founder with pitching the deal so it appears polished and professional.

Pitch deck - an expert knows what information the investors want to see and can help raise the quality of the deck.

Diligence -- an expert knows what information the founder needs to prepare.

There are standard practices in the fundraising process.  

The first-time founder should look for an expert to help with the fundraising.

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/ 
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In this episode of Investor Connect, Hall Martin hosts Angela Lee, founder of 37 Angels, a community designed to activate investors through comprehensive training with a mission to diversify angel investing. Angela shares her background as a former entrepreneur and a Columbia Business School professor, highlighting that 37 Angels seeks to bridge the gap for those transitioning from entrepreneurs to investors. The organization offers boot camps that teach budding investors the intricacies of deal flow, due diligence, term sheet negotiations, and startup valuation. They examine around 2,000 companies annually but only invest in 10, maintaining a clear focus on efficiency, transparency, and empathy towards founders, drawing from their own entrepreneurial experiences. 

The discussion further explores how 37 Angels navigates the post-pandemic investment landscape, emphasizing the extended distance between founders and lead investors and the increasing interest in liquidity. Despite such challenges, the network boasts a high success rate with multiple IPOs and acquisitions from their investment portfolio. Angela underscores the importance of their commitment to realistic and humane dealings with entrepreneurs, as evidenced by testimonials, with 75% coming from founders they did not fund. The group aims to guarantee a funding decision within four weeks, a timeline rare in the angel investing space. Angela also addresses the broader role of diversity within angel investing, specifically noting that 37 Angels was created to tackle the gender disparity in the sector. Although there's been progress, Angela acknowledges the ongoing need for improvement, as only a small percentage of VC and angel funding currently goes to women founders. She stresses that while their investment criteria are neutral, the investor community within 37 Angels predominantly consists of women, further bolstering diversity on the investor's side. 

Looking towards the future, the episode delves into evolving investment models and the integration of AI in streamlining the investment process. Angela mentions how AI can assist in initial screenings and sorting of potential deals, saving significant time for investors. She highlights the growing trend of alternative financing methods like venture debt and revenue-based financing, which offer viable options beyond traditional equity investments. This innovative spirit aligns with 37 Angels' mission to support diverse pathways in the startup ecosystem. Tune in to gain insights from Angela Lee on the dynamic, collaborative, and forward-thinking environment that 37 Angels fosters. 

Visit 37 Angels at www.37angels.com. Reach out to at www.linkedin.com/company/37-angels, and on Twitter www.x.com/37angelsny.

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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Highlight the Investors Who Are Already in the Deal

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

In a fundraising round, many investors do not want to go first.  

In fact, most investors want to be the last one to join the round as the risk of not closing is very low.

In raising funding, highlight the investors who are already in the deal.

Some investors have a reputation for successful funding.

Other investors look to the current investors in the deal as a proxy for joining.

Ask your current investors if you can use their names in the fundraising process.

Invite current investors to give a testimonial about why they invested in the company.

This could be recorded and shared with others.

In the recording have the investor talk about what they like about the startup as well as the risks they see.

This gives potential investors insight into the diligence the current investors found.

Emphasize the diligence work done by the current investors in the deal and show the prospective investors any diligence done so far.

Most startup investors are follow-on investors and will look to others for confirmation.

When you reach the halfway point of the raise, the signup rate often accelerates.

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/ 
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Show You Are Thinking About the Exit

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

In raising funding, founders should show investors that they are thinking about the exit.

While no one can predict the outcome the investors want to know you are building a company that can be sold for a high price.

This means the business will have facets that generate high returns.

This includes recurring revenue monetization and a platform-based approach.

This also means you’re building a business in a segment that has high growth potential.

In pitching, the founder should show examples of other companies that have achieved an outstanding exit through acquisition or otherwise.

Show the exit value as a multiple of revenue or EBITDA.

Highlight the companies who bought them and why they did so.

Align your business with startups who achieved a great exit and make clear you are building a company that will sell for a premium price.

While the investors don’t always expect things to work out as planned, they want to know you are thinking about an exit strategy.

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/ 
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Tell the Story Why This Will Work

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

In pitching, many founders focus on how the product works or how the technology performs.

In life science, the founder most often focuses on how biology works.

It’s more important to tell why the business will work rather than how the technology works.

In the introductory pitch focus on the benefits of the technology.

Tell the story of why the business will succeed.

This typically involves not only the technical details but also the business case.

Here are some points to include:

It’s a large market.

The technology commands a premium price.

It’s difficult for others to copy.

You’ve validated the product and the market with the customer.

The team is experienced and brings a unique set of values to the business.

Finally, show how the business can scale.

Scaling means revenue can grow faster than the costs.

Instead of focusing on how the technology works, tell the story of why the business works.

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/ 
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For Feedback please contact info@tencapital.group   

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Show the Support for Your Fundraise

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

In raising funding from investors show the support for your fundraiser.

In addition to talking about the amount invested so far, call out the interest and committed funds.

If an investor indicates they are thinking about investing $50K, then that’s interest.

If an investor indicates they are going to invest $50K, then that’s commitment.

If there’s $50K from the investor in your bank account, then that’s an investment.

Capture and maintain all three numbers for your fundraise and maintain it throughout the campaign.

Just as you show a funnel into your sales pipeline, so you can show a funnel into your investment pipeline.

It’s often the case, that the interest level is greater than the target fundraise.

Most investors will not ultimately invest but it does demonstrate to investors that others are interested in the deal.

Show these numbers in monthly updates to the prospective investors with the amounts increasing.

This demonstrates the support for your fundraising from the investor community.

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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Use Incentives To Attract Early Investors

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

Incentives can entice investors to join the round.

In the early days of the raise, you may want to offer warrants to investors to come in early.

Warrants give the investor the right to buy stock in a specified price range.

One could offer two warrants for those in a group who join this month, one warrant for those who join next month, and no warrants for those who join thereafter.

Those seriously considering an investment will consider coming in earlier to capture the incentive.

Incentives also work to break a stalemate in the fundraiser.

If you have ten or more investors who are slow to join, you can offer the warrants as an incentive so someone in the group goes first.

In this scenario, offer one warrant to each of the next three investors in a group.

Once three investors are in, other investors may follow even though there are no longer any incentives.

Discount stores that promote too many price reduction sales train their customer base to wait for the next sale.

Use incentives carefully so the investors don’t wait for incentives to invest.

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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In this episode of Investor Connect, Hall T. Martin engages in a detailed conversation with Enzi from South Africa, who is trying to raise funds for a significant construction project in the U.S. The discussion begins with Enzi explaining his vision to make housing affordable and sustainable, incorporating key features like clean water, clean energy, and efficient sewage removal. Enzi is currently in the idea phase and seeks initial funding to register his business and patents before moving on to more significant fundraising efforts later on.

The conversation shifts towards Enzi's strategy of acquiring an established U.S. company to speed up scaling once his patents are in place. However, he faces hurdles such as the limitations set by the South African government and a lack of interest from South African investors due to the project being U.S.-focused. Enzi elaborates on his goal to raise $50 million in U.S. investments after securing an initial $58,000, and discusses the challenges of reaching out to over 4,000 potential investors without much success. Hall offers valuable advice on how to improve the pitch and presentation to attract more investors. Hall emphasizes the importance of demonstrating strong support from family, friends, partners, and potential users to make the project more appealing to investors. He also advises Enzi to include details about tax breaks and various types of affordable housing in his pitch deck.

Hall further suggests leveraging social media and personal networks to gain initial traction and support for the project before presenting it to larger investors. By focusing on building a solid network of supporters and presenting a compelling, well-rounded case, Enzi can increase his chances of securing the necessary funding to bring his affordable housing vision to life. Ultimately, this episode offers practical insights into the multifaceted process of raising funds for large-scale, socially impactful projects, emphasizing the need for meticulous preparation, strong support systems, and strategic networking. 

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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Update the Investors on the Fundraise Progress

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

In raising funding it’s important to build a list of prospective investors and keep them updated on the progress.

After you pitch an investor, add them to a list for updates.

It takes seven touches to close a sale so it takes seven touches to close an investor.

Short bullet point updates sent monthly to those who have heard the pitch can be quite effective.

It keeps the investors warm and reminds them you are raising funding.

Investors are looking for momentum and traction in the deal.

So it’s important to showcase that momentum building in the business.

Focus on sales, team, product, and fundraise as those are the core four things investors want to hear about.

It’s best to ask for permission to keep the investor informed after you completed the pitch.

This gives you an opening to provide regular updates.

Before launching a campaign, think carefully about what updates you will send during the campaign.

Updates include what is new to the investors and not just what is new to you.

If you haven’t told them a piece of information then it’s new to the investor and can be included in an update.

Steady, consistent progress wins the race.

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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Creating Scarcity in Your Fundraise

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

In structuring your fundraise it’s important to design scarcity into it for the investors.

If you have one raise at a relatively high valuation then there’s no incentive for investors to come in sooner.

Most will wait to come in later after they see how the business performs.

Here are the key steps to put scarcity in your fundraising:

Take your overall raise amount and break it into smaller tranches.

Price the first round with a fairly low valuation or valuation cap if you are using a convertible or SAFE note.

For each subsequent tranche, raise the valuation by 50%.

Check to see how much revenue you must have to justify that valuation on each round.

Adjust to make each of these tranches reasonable revenue targets for your business.

In proposing your fundraise to investors make clear the overall amount you are raising and announce the first tranche with its investor-friendly valuation.

Make clear that when that funding is done, you are moving to the next tranche at a higher valuation.

This creates scarcity in the fundraising as it limits the amount of investor-friendly priced shares.

Show prospective investors the level of interest you are seeing for the first tranche.

This incentivizes investors to come in early rather than late.

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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How To Handle Toxic Customers

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

Toxic customers can ruin employee morale and distract them from their work.

Here are some steps to handle a toxic customer:

Remind the customer of the company’s policies and what the engagement entails.

It’s sometimes the case that the customer thinks the company is supposed to do more than what was agreed.

Set the rules of working together so the boundaries are clear.

It’s often the case that the customer gets caught up in the excitement of the project moving forward that they start to add more features than originally agreed.

Say ‘No’ to project creep and ways of working that are outside the scope of the company.

Some customers work twenty-four hours a day and expect others to do the same.

Remind them of your working hours and ask to keep the meetings within those bounds.

Some customers miss deadlines and expect the company to make up for it with uncompensated additional work.

Remind the customer of the schedule and indicate they must pay an expedited fee or accept a later schedule.

Some clients act in a passive-aggressive manner.

Keep good records of what was promised and delivered so there’s no guilting your employees into doing work uncompensated.

Some clients can become abusive.

In those situations, it’s important to protect your employees in which case you may have to fire the client. 

Consider these steps in dealing with toxic customers. 

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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For Feedback please contact info@tencapital.group   

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Signs of a Toxic Customer

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

Just as founders, employees, and board members can be toxic, so can your startup’s customers.

Here are some signs that one of your customers is toxic.

They take advantage of your generosity.

Toxic customers push you to the limit and beyond.

They can’t make up their mind.

Toxic customers put your team in a continual holding pattern while they make a decision.

They continually revise their requirements, putting additional work on your team.

They become a squeaky wheel taking more than their fair share of time and attention.

They come up with impossible requests that the team cannot meet.

Watch out for these signs of a toxic customer.

If the problem becomes too much then the CEO should have a discussion with the customer about the boundaries of the service offered.

Another approach is to charge additional fees to those who want service above and beyond the standard offering.

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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For Feedback please contact info@tencapital.group   

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Signs of a Toxic Board

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

Just as employees can be toxic to the company, so can the board.

Here’s a list of signs that your board may be toxic:

The board breaks their non-disclosure agreements and discusses confidential information with outsiders.

The board members put their own agenda above that of the company.

The board meets and performs chaotically without clear order.

The board disrespects the CEO or other board members.  This often occurs when new members join the board.

The board is contentious and each meeting is a heated exchange.

Board members have clandestine meetings with one another to discuss the issues.

The board loses trust with the CEO and other executives of the company.

The board is dominated by one or two personalities who influence the board for their own agenda.

The board is apathetic and rubbers stamp whatever proposal is on the table.

Look for these signs your board is toxic and take steps to rectify the situation.

Make sure the board is aligned with the company’s mission and vision.

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.