In this episode of Investor Connect, Hall Martin speaks with Robert Tucci, Managing Director of Texas Halo Fund. With a career spanning life sciences, technology, and capital, Robert provides insights into the fund's investment thesis, which has evolved since its inception in 2012 as a spin-out from the Houston Angel Network.

The discussion delves into the critical factors that make a deal fundable, highlighting the importance of de-risked, short-term investments, particularly in the current climate of uncertainty in private equity and venture capital markets. Robert also offers a detailed overview of how Texas Halo Fund's due diligence process differentiates opportunities and addresses common failure points, particularly in life sciences versus digital and other sectors. He stresses the significance of management quality and the potential pitfalls of overvaluation in startups.

The conversation further explores the innovation ecosystem in Texas, particularly the strengths of regions like Houston in life sciences and Austin in digital technologies. Robert underscores the value of co-investors and strong leadership in syndication and the benefits of programs like CPRIT. He also hints at potential opportunities for new funds and collaborations with interested investors.

Visit Texas HALO Fund at /www.texashalofund.com/

Reach out to at rob.tucci@texashalofund.com.com , and on www.linkedin.com/company/texashalofund/

_________________________________________________________

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The Ideal Investor Profile of a VC Fund

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

To find the ideal investors for your VC fund, consider the following:

Value proposition

What is the value proposition of the fund?

Answering this question will narrow the field of investors dramatically.

What is the solution your fund offers?

This could be funding women-led businesses, startups using the latest technology or others.

What community do you have?

Investors that fit your fund are looking to join a like-minded community.

Return expectations

The fund's return will determine which type of investor will consider it.

Competitive advantage

What advantage does your fund have over other funds in the space?

Uniqueness

Does your fund stand out or does it get lost in the crowd of many others?

Consider how to communicate these characteristics of your fund to prospective investors.

Use this criteria to guide your search for Limited Partners for your VC fund

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_________________________________________________________

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

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VC Fund References

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

Limited partners considering an investment in a VC fund should check the references.

Here’s a list of references to consider:

Other funds the VC has worked with before.

This could be in the form of a syndicate for funding startups.

Entrepreneur network.

This is the list of startup founders the fund has in their network.

Limited partner references.

This is the list of current and previous investors the fund has worked with before

Community leaders.

This is the list of community leaders the fund has interacted with before.

Followers.

This includes the social media followers of the fund.

The fund is more than just an investment vehicle.

Include these in the VC fund investor documents.

The VC fund is a network of people, a brand with a promise, and a community of followers.

Consider how to build these elements into your fund.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_________________________________________________________

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

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VC Fund Track Record

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

Limited Partners in VC funds look at the team’s track record and also that of previous funds.

Here’s a list of key metrics to disclose about your track record:

Total Value to Paid in (TVPI) 

Compares the value of realized gains and the estimated value of remaining assets to the total amount of capital raised.

Net IRR.

Calculates the Internal Rate of Return on the funds distributed, which is the net present value of all cash flows.

Graduation rate.

The number of investments that raised a follow-on round of funding.

Follow on investors.

The existence of investors who followed up with additional funding.

Key investments.

A list of standout investments showcasing the strength of the investment thesis.

Write-offs.

The number of investments that have been written off.  The fewer, the better

Value distribution.

The number of investments making a return for the fund.  The more the better.

Include these numbers in your VC 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 

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How LPs Test the VC Fund

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

Limited Partners test VC funds before investing.

Here’s a list of the criteria LPs use to test the fund:

Does the fund have a track record that is compelling?

Does the fund fit an open slot in the LPs asset allocation?

Does the fund manager have access to deals the LP does not?

Does the fund manager have the ability to construct a better portfolio than the LP?

Can the fund manager better support the startup than the LP?

Does the fund bring access to other LPs who can provide value to the portfolio?

Does the fund have LPs that bring credibility to the fund itself?

Does the fund require a high minimum investment?

Does the fund's minimum investment require the LP to take on debt?

Does the fund charge below, above, or standard fees?

There are many funds available to the Limited Partner.

Consider these points in preparing a pitch to an LP for your fund.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_________________________________________________________

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

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Types of Limited Partners for a VC Fund

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

In raising a VC fund, there are several types of limited partners.

Here’s a list to consider:

High networth individual

This is a person who has a net worth of over a million dollars available for investment.

They often participate as an active investor.

Ultra high net worth individual.

This is a person who has a net worth of over $5M available for investment.

They can make higher levels of investment and often want a controlling position in the management of the fund.

Single-family office.

This is a family office entity representing one family.

They invest along a more specific investment thesis, but can be patient money.

Multi-family office.

This is a family office entity that represents several families.

They invest in a more risk-averse manner.

Corporate

This is a larger company that makes investments for strategic purposes.

They invest to gain access to new technologies and industries.

Institutions.

These are pension funds, endowments, and foundations.

They invest along a more strict governance structure.

Consider these types of limited partners for your VC fund.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_________________________________________________________

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

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In this episode of Investor Connect, Hall Martin speaks with Henning Schwinum, the co-founder and managing partner of Vendux, a company specializing in connecting businesses with fractional, interim, and full-time sales leaders. Henning shares his journey from a 25-year career in global sales and leadership roles to identifying a gap in the market for senior sales leadership in fast-growing companies that aren't ready for a full-time executive. This led to the creation of Vendux, a specialized marketplace for fractional sales leaders. Henning explains the concept of 'sales leadership capital' and the importance of investing in the talent, processes, and technology needed to build a successful sales function. He also discusses the 'perfect match system,' a proprietary technology used by Vendex to match businesses with the right sales leaders based on detailed criteria. 

The conversation delves into the state of fractional sales leadership, touching upon trends, compensation, and the growing acceptance of fractional roles across various industries. Henning highlights the benefits of fractional executives in de-risking go-to-market strategies for startups and scaling efforts that are often out of reach for small sales teams. The discussion includes real-world examples, emphasizing the impact of fractional sales leaders on pipeline quality, win rates, and accelerated growth. Henning also shares his insights on the evolving ecosystem supporting fractional executives, which includes agencies, marketplaces, and education platforms. 

As the episode wraps up, Henning offers advice for founders considering the fractional route, emphasizing the importance of finding the right match for specific problems and growth stages. He also highlights the role of the Fractional Leadership Alliance, an industry association that amplifies the voice of the fractional executive community. 

Visit Vendux at www.vendux.org/

Reach out to at www.linkedin.com/company/vendux-sales-leadership-capital/ , and on henning.schwinum@vendux.org

_________________________________________________________

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Shutting Down a Startup 2

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

Not all startups succeed.

For those that don’t, there may come a time to shut it down.

Here are some key points to consider in shutting down a startup:

Before announcing the shutdown, collect all accounts receivable.

Sell any inventory left on hand.

Notify investors first so they are aware.

Notify employees and give them their last pay date.

Notify your customers of the transition to a new service or program.

Liquidate all assets.

Pay taxes and payroll withholding.

Pay off outstanding debt as much as possible.

File IRS forms related to employment tax.

Close the bank account.

Dispose of any remaining assets.

This may include patents, trademarks, and other intellectual property, as well as physical assets.

Finally, dissolve the legal entity.

The shutdown process can take some time as each of the steps above requires time to complete.

Consider these steps in shutting down 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 

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Best Practices for Launching a Startup

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

Many founders have unrealistic expectations and misguided notions about how startups work.

Here’s a list of best practices to consider for launching a startup:

Don’t bank on the idea alone.

Startups need more than a great idea; they need execution.

Launch as soon as you can.

Delaying the launch means delaying customer interaction, which is the key driver in the early days.

Build momentum into the business.

Investors will look for momentum and traction to fund the deal.

Choose painkiller solutions over vitamin solutions.

Pick a problem that customers consider a painkiller, as it will be easier to sell.

Generate revenue and happy users.

This will give you momentum in the fundraising process.

Strive for product market fit.

This is a demand outstripping the supply.

Consider these points in launching 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 

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The Value of LTV:CAC

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

The Lifetime Value to Cost of Customer Acquisition ratio is called LTV:CAC and is a useful ratio in determining the health of a startup.

To calculate the Lifetime value, take the monthly revenue and divide by the churn rate. 

To calculate the Cost of Customer Acquisition, take the number of new customers for a month and divide by the cost of sales and marketing for that month.

Compare the LTV to CAC to determine the ratio.

The ratio must be at least 3:1 to prove the business viable.

The higher the LTV:CAC, the higher the gross margins and profit margins.

This provides a greater reinvestment rate into the business.

Investors place a higher valuation on startups with higher LTV:CAC ratios.

SaaS businesses often have a 5:1 LTV:CAC, which comes from the recurring revenue.

SaaS businesses at the Series A level often have a 7:1 LTV:CAC.

The higher the multiple, the higher the growth rate for the company.

Check the LTV:CAC rate of a startup to determine its growth prospects.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_________________________________________________________

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

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When To Sell Your Business

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

Startup founders receive buyout offers throughout the life of the business.

Even in the early days of the startup, they have the opportunity to sell the company.

At each round of funding, the founder has the choice to raise more funding or sell it.

Here’s a list of reasons to sell the business:

The founder no longer wants to run or own the business.

The business no longer appears to have a future due to changes in the market or competition.

The offer is outsized in valuation due to unusual circumstances.

There’s a strategic reason for selling the business that furthers the founders and investors goals.

The founder should consult the investors before selling.

In some cases, it may be better to shut down the business rather than sell it.

Selling the business takes time and preparation to do it properly.

Consider these points in deciding to sell your business.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_________________________________________________________

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

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The Challenge of Regulation

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

Regulation by the government of an industry is meant to protect customers and provide a level playing field for the companies.

The downside to regulation is that it inhibits innovation.

It often favors the incumbents in an industry and makes it difficult for startups to succeed.

It makes market entry for new players more expensive.

The existing players form advocacy groups that lobby the government for their point of view.

Regulation often snuffs out competition for the existing players.

It keeps costs high, which limits the number of users in the space.

It prevents new innovations that the incumbents may not want to adopt since it would come at a high cost.

Some industries move abroad to find acceptance for the new technology, citing the challenges in the US.

In short, regulation drives the cost up and the innovation down.

As an investor in startups, consider the regulatory environment before investing in a particular industry.

Understand the impact of regulation on the startup's growth prospects.

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  

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In this episode of Investor Connect, Hall T. Martin welcomes Mike Sloan, the founder and CEO of Simple Labs. Mike introduces the audience to Cogni, a ground-breaking device designed to address some of the major challenges in the wine and spirits industry, such as product loss due to evaporation and spoilage. With real-time monitoring, Cogni provides distilleries and wineries valuable insights, allowing them to better manage their product quality and significantly increase their return on investment.

Mike emphasizes the importance of continuous barrel monitoring and how Cogni's integration of ML and AI technologies offers unprecedented data visibility and efficiency. Already conducting beta tests and receiving positive industry feedback, Simple Labs aims to launch in the bourbon and wine markets, with expansion plans to service a global market.

With strong financials, a dedicated team, and a pipeline of potential clients, Simple Labs is poised to disrupt and innovate within this traditional sector. Tune in to learn more about Mike's journey, the technology behind Cogni, and the promising future of Simple Labs in optimizing the wine and spirits production process. 

_________________________________________________________

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How To Monitor Your Sales Forecast

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

Forecasting revenue is an important skill because investors want visibility into it.

To forecast better, use the Trailing Four Months model.

In this model, calculate the growth rate by taking the average of the growth rate over the last four months.

Use this growth rate to forecast the remainder of the year.

Do the same for burn rate.

Set up a spreadsheet that calculates this automatically at the end of each month.

This will give you an ongoing estimate for the year. 

It compares sales and burn. 

This takes the guesswork out of forecasting and gives the investors a data-driven forecast.

Knowing where the company stands is important in making decisions.

Share this model with investors so they can track your progress.

Monitor your sales forecast with the trailing four-month model to understand where the company stands.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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

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Mistakes in Scaling the Startup

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

The seed stage grows the business from 0 to $1M.

The growth stage grows from $1M to $10M.

The scaling stage grows from $10M to $100M.

Here are the most common mistakes founders make at the scaling stage:

They stop working on sales to focus on other areas of the business.

The founder can never stop working on sales.

They fail to control the burn.

The burn rate must be managed throughout the life of the business.

They fail to keep up with the competition.

The competition will continually challenge the startup, and it must be managed.

They look to hire “rock star” players.

These rarely work out in the long run, as they often don’t fit the culture.

Failing to keep up with the product.

As the company grows, the product continues to grow so it’s important for the founder to keep up with it.

Overestimating sales capacity.

Founders often overestimate how much the team can manage.

Reaching for the upmarket.

Startups often try to move upmarket to gain a higher dollar sale per customer.

Doing this at the expense of the core business is detrimental.

Consider these mistakes in scaling the startup.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

_______________________________________________________

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

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Investors Look for Execution, Not Ideas

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

Startup founders often believe their idea will carry the day with the investor.

They propose their idea to spark interest.

While that may be a good way to get attention, it will certainly not maintain it for long.

Investors look for execution, not ideas.

In raising funding, investors look for momentum and traction in the deal.

They will look for evidence of execution in sales, team, product, and fundraising.

These are the four core areas in which execution lives in a startup.

Consider your efforts in those areas in crafting an update to the prospective investor.

Showcase that story over a period of time, as execution occurs over time and not in a single moment.

Having an idea is interesting.

Understanding the customer problem and knowing the domain is helpful.

Having a key insight is useful.

Showing execution in a consistent manner is the winning ticket for gaining investor attention and interest. 

Consider these points in pursuing funding 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 

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Lessons From Napoleon for the Startup

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

Napoleon never ran a startup, but his life provides many lessons for the startup founder.

Here are some lessons to take away from his life:

Underestimating risk -- Napoleon underestimated the harshness of the Russian winter and suffered great losses.

The startup should consider carefully the market to pursue before investing substantial resources.

Overconfidence -- Napoleon grew overconfident from his past successes.

The startup should consider each opportunity as a new way to succeed or fail.

Failure to adapt -- Napoleon refused to modify his traditional plan and suffered losses for it.

The startup should adapt to the market conditions and make changes to optimize the team for each stage.

Failing to take timing into account -- Napoleon refused to retreat from the Russian campaign and suffered for it.

The startup should ask if now is the right time to pursue a market.

Overextending -- Napoleon overextended himself in attacking Russia.

The startup founder should consider focusing resources on a few key priorities and not spread out over too many.

Consider the fate of Napoleon and his attack on Russia as a series of lessons 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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Product Strategy for AI

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

Artificial intelligence is a disruptive technology that promises tremendous benefits to the tech industry.

Current products will be upgraded to use AI.

New products will be introduced using AI from the get-go.

Here’s a list of product strategies for AI:

AI-based applications that use large language models called LLMs.

This could be a chatbot that replaces a traditional user interface.

AI-based networks that leverage AI for performance.

This could be a solution that gives a more complete picture of the system.

AI-based platforms that enable multiple applications using an AI engine.

AI-based marketplaces that enable new features for discovery.

Marketplaces are ideal for creating and capturing data, such as the most popular product in a category.

Marketplaces also make matches between a buyer and seller.

AI can perform more comprehensive matches and provide the buyer with help in finding the right product.

AI will find its initial success in creating assistants.

An assistant can guide one through a complex process, enhancing the user experience.

Consider these product strategies 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 

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In this episode of Investor Connect, we welcome Kat Delgadillo and Hall Martin from Ten Capital to discuss their innovative platform connecting startups and investors. Kat and Hall introduce Ten Capital’s mission to streamline the investment process, spotlighting their robust event lineup that includes the Family Office Roundtable, Virtual Quick Pitch, and Life Science Syndicate. Ten Capital aids growth companies in securing funding by connecting them with angel groups, VC funds, high-net-worth individuals, and family offices, emphasizing the importance of building relationships between startups and investors.

The discussion takes an exciting turn with the introduction of Ava, Ten Capital's new AI venture assistant designed to simplify the startup ecosystem. This advanced chatbot leverages over 500 blogs, podcasts, and tools to assist both investors and founders with personalized investment strategies and fundraising tips. Ava is accessible 24/7 on the Startup Funding Espresso platform, exemplifying the integration of cutting-edge AI technology to facilitate venture capital endeavors.

The episode also features a detailed pitch by Nathan Monty of Enamel Pure, a company revolutionizing preventive dentistry with laser and AI technology. Nathan explains how their innovative device improves dental hygiene processes and integrates AI diagnostics, ensuring better patient outcomes. Enamel Pure's strategic partnerships with major distributors and planned monetization strategies highlight the company's significant growth potential. With insights from panelists and further discussions on market positioning and exit strategies, this episode offers a comprehensive look into the intersection of technology, dentistry, and investment. 

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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/ 
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Learning From Mistakes

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

A CEO once said, I don’t mind people making mistakes.

I mind people not learning from them.

It’s important to learn from mistakes.

There are several ways to do this.

Learn from your own mistakes.

Writing down the mistakes and what you learned helps reinforce your knowledge.

Learn from the mistakes of others.

This is easier to do in comparison to learning from your own mistakes.

There are so many other people making mistakes; there’s no shortage of lessons.

Consider mistakes as learning opportunities.

To learn from your mistakes, recognize what the mistake was and how it happened.

What can one take from the mistake to improve in the future?

Consider how to avoid the mistake.

What caused it, and how can I avoid the same mistake again?

Delve into the root cause of the mistake to find a deeper understanding.

To do this, ask “why” five times to drill down.

Once you identify the root cause, there’s a place to start work.

Consider these steps in learning from mistakes.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
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Stages of Technology Adoption

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

Technology adoption goes through several stages over the life of that technology.

Here are the steps of adoption:

Unknown -- no one knows the technology.

Awareness -- some hear about it but don’t know what it is.

Understanding -- those who know it understand how it works but don’t know what to do with it.

Belittlement -- those who know it consider it an underperforming technology and discard it as a toy.

Usefulness -- some users find use cases for it.

Repeat usage -- more users find it helpful and use it repeatedly.

Designed in -- the tool becomes embedded into the workflow and is used constantly.

Locked in -- the tool is something the user has no choice but to use.

Regulated -- the tool becomes so prevalent that it attracts regulatory oversight.

In building your product, consider these stages for marketing the technology behind your 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/ 
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Acid Test for Startup Valuation

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

Valuation is a key negotiating factor in startup investing.

There are many valuation models available.

The most common is the use of comps or comparables to see if the valuation is at market rate.

Consider using the acid test for startup valuation.

The acid test for startup valuation compares the money invested so far to the proposed pre-money valuation.

Some call this the Money-in method.

To calculate this value, take the pre-money valuation and divide by the total funding to date.

Total funding includes founder funding, investor funding, and non-dilutive funding such as grants.

This yields a factor.

A factor in the low single digits is a conservative valuation.

A factor in the double digits is a speculative one.

Most investors look for a factor in the single digits to make an investment.

Anything in the double digits requires more investigation to understand the value proposition of the business. 

Consider this metric in reviewing the valuation of 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/ 
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Innovation Looks Trivial in the Early Days

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

In the early days of a startup, innovation can look trivial.

Innovation is often applied to the lower end of the market.

New technologies often start as simple devices or applications.

These devices have minimal functionality and lack robust features.

In vetting startups, look past the minimal functionality to the rate of change of the technology.

While today it may seem trivial, a fast growth rate can move it into a more competitive position.

Look at the underlying growth driver.

For example, semiconductors double their density every eighteen months.

Genomics brings an even higher growth rate.

It’s these drivers that determine the trajectory of a startup's product.

Startups that leverage growth drivers are positioned to succeed over time.

The incumbents often dismiss startups because their initial solution underperforms the current competition.

Over time, the startup’s product will outperform.

Consider this in evaluating startups for investment.

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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Hiring a Professional CEO

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

Startup founders take the CEO position because they bring the vision and passion to launch the company.  

They know the domain and are building the core product and go-to-market strategy.

They are the ultimate authority at the company.

As the company grows and then scales, there comes a time for a professional CEO.

Here’s a list of key characteristics to look for in a professional CEO:

One who has experience managing a large company.

They’ve grown and exited companies in the past.

They bring a network to the process for growing the company and finding an exit.

They know how to transition the company from the founding CEO.

They are good at processes and programs.

They understand the product development process and can manage it in the company.

Founders are often at their best in innovating and launching startups.

They often do better by turning over the reins of the business to a professional CEO when the company no longer needs the founder’s skills.

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 Startups Can Make Better Forecasts

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

Forecasting is a key skill founders need for raising funding.

Investors want to know the founders' expectations for the business with the funds raised.

Here are some key steps to make better forecasts:

Start with a baseline.

If the startup has revenue, then use that as the starting point.

If the startup is pre-revenue, then look to similar startups to set a baseline.

Determine the drivers behind the revenue.

This could be leads generated, clients viewing a demonstration, or other.

Determine how much can be done with the team proposed.

Focus on the customers signed up rather than a percentage of the available market.

Use the sales cycle for the product to determine lead times.

The more you know about your customer buying cycles, the more accurate your forecasts.

This is called a bottom-up analysis.

For predicting explosive growth, look for trends in the market that can drive hyper sales growth.

Look to other startups for their sales forecast to calibrate your own.

Consider these points in making better forecasts.

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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How To Build an Elevator Pitch

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

The elevator pitch is the short form of your startup pitch.

It introduces the deal to an investor and gives the key highlights.

The goal is not to tell them everything but rather to intrigue them to learn more about it.

Here’s how to build an elevator pitch:

State in five words or fewer what the startup does.

Show two examples of the impact of the startup using numbers.

This could be exploding revenue, such as “We’re seeing 50% month over month growth.”

It could have an impact on the community, such as “We help feed 5000 children a week.”

State the goal of the startup, such as “We’re looking to reach a break-even in 4 months.”

Choose three words that best describe your startup and work them into the pitch.

Choose three phrases that best describe your startup and build them into the pitch.

The keywords will help the audience understand the context.

The catch phrases will help the audience understand what the startup does.

Consider these steps in building your elevator pitch.

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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