On this episode of Investor Connect, Hall welcomes Dave Sanders, angel investor and Membership Chair at SAC Angels. Located in El Dorado Hills, California, Sac Angels is a long-running Sacramento-based angel group that’s been investing in high-potential early-stage startups since the late 1990s, with about 70 members completing roughly 15–20 transactions a year. The group focuses primarily on broad-based technology (about 70–80%) across the western US while remaining open to opportunities nationwide, and it supports founders not only with capital but also with mentorship, connections, and experienced operator guidance through the early, messy stages of growth.

Dave shares how Sac Angels typically invests at the seed stage (with some Series A), with common check sizes of $100K–$250K and rounds often raising $750K–$2.5M. He explains how their multi-class LLC structure allows them to write one check to keep the cap table clean and encourages more participation from members, and he notes SAC Angels’ collaborative approach with other groups and accelerators, including Berkeley SkyDeck and the 14-group NSYNC Angels network. Dave also highlights their ability to move quickly on strong, led deals—sometimes writing checks in under 30 days, and in one case in three days. Dave is an active angel investor who helps source, evaluate, and co-invest in seed-stage companies through SAC Angels. He also serves as a GP in a micro fund and has invested across dozens of companies, sharing lessons learned about portfolio construction and the importance of diversification in an asset class where outcomes are hard to predict.

With deep experience working with founders, Dave spends significant time coaching and mentoring companies post-investment, using his network to open doors and make strategic connections. He emphasizes that successful companies often differentiate early through strong teams, clean deal terms, crisp storytelling, and the ability to raise follow-on capital—since many startups ultimately succeed or fail based on continued access to funding. Dave discusses what SAC Angels looks for in founders, themes they find compelling today, including AI applied to targeted workflows and health tech, and how syndication and relationships drive access to quality deals. He also shares advice for founders raising their first round—question whether venture is the right path, stay lean, and show real traction—and for new angels to join a group, build a diversified portfolio of 15–20 investments over four to five years, and target disciplined, portfolio-based returns.

Visit SAC Angels at sacangels.com/

Reach out to at www.linkedin.com/company/sacramento-angels/ 

________________________________________________________________________

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Avoid Giving Up Too Much Equity in the Early Stages

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

In the early stages of a company, fundraisers should focus on the minimum amount, not the maximum.

The valuation is low, and so the founders encounter greater dilution.

The majority of the fundraise should be done later when the valuation has increased.

Each round will cost the founder 25% of their equity.

Most use convertible notes.

Beware of using the convertible note as a credit card in which the founder keeps raising funds on it.

At the Series A level, venture capital will check to see if there’s enough equity left for their investment.

The VC will also want to see enough equity left in the round for the founders.

If the founders have given up too much equity in the early stages, then investors will not fund the startup.

Founders should keep track of the equity they are giving up with convertible notes.

They should have at least 60% of the equity by the time they approach a Series A investor.

Consider these points in negotiating early-stage rounds of funding.

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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There Are Many Scenarios in Fundraising

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

In fundraising, there are many scenarios and strategies a founder can use.

Here are several factors that impact which strategy to use:

The current market for funding.

In up markets, one can raise more funding and at a faster pace.

The strength of the startup.

Startups with traction and a great team can command greater fundraises.

The target growth rate of the company.

The higher the growth, the greater the fundraising goal.

The type of investor sought.

There are angels, venture capitalists, and family offices to consider.

Angels can be easier funding to acquire.

VCs can invest greater amounts of money.

Family offices can be patient money.

Throughout the campaign, consider which strategy and scenario to use at each stage.

In pitching, be sure not to play out all the options to an investor, as this will be confusing.

Choose a scenario and play it out with the investor.

Consider these points in choosing the strategy and scenario of 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.

_________________________________________________________

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It’s Not Closed Till Money Is in the Bank

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

Founders seeking funding will hear yes from an investor.

Many founders consider the funding to be done. 

Founders should move to close the funding and not rest until the funds have been transferred.

Many funding commitments never materialize.

Issues come up in diligence.

The investor has cash flow issues or unexpected expenses.

Bad news from the financial markets shakes the investor’s confidence.

To close the funding, set up a timeline with the investor.

Baby step in the process to get the documents signed, the diligence done, and the funds transferred.

Remove areas of friction, such as docu-signing the investment documents.

Diligence is a key area to watch out for, as new information will come to light.

This will have the most impact on an investor’s decision.

Finally, keep the fundraise going.

It’s not closed till 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 

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How To Handle Pushback on Valuation

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

In fundraising, the founder encounters a variety of investors.

Some are concerned about the return, some about the traction, and others about the valuation.

For those focused on valuation, here are some key steps to consider:

First, check their knowledge of current market valuations.

Ask what valuations they’ve seen on recent fundraises and exits that match your company.

Next, identify what they consider the most important factors that drive valuation.

This could be revenue, growth rates, team, or other.

Finally, ask what valuation they would ascribe to your deal.

The goal is to delay the negotiation process and gather as much information as possible.

Investors see many deals and have information that most founders do not. 

Consider how their information informs your valuation.

Once you decide on a valuation, stick with it and approach investors who are not as concerned with it.

Raise a meaningful amount of funding for the deal.

Find comps that support your valuation.

Only then do you engage the original investors, but now there’s evidence that other investors are in the deal. 

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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Think Minimum Raise, Not Maximum Raise

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

Most startup founders calculate how much funding they need to accomplish the goal.

This is a good initial step in the fundraising process.

The mistake is then asking for that amount of money in one go.

It’s important to break the raise down into steps and stages.

The first round of fundraising should be the minimum needed to reach a milestone.

Not a maximum to reach the end goal.

The startup’s valuation is low in the early stages, so the fundraise should be at a minimum, so the founders don’t suffer too much dilution.

For a minimum fundraise the founder should consider what is the minimum team focused on a minimum viable product to achieve initial traction.

As the startup generates more products, revenue, and traction, it can raise its valuation and take larger amounts of funding.

This will reduce dilution and make the job of building and selling the product easier.

Consider what your minimum raise should be and what you can do with it.

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

Let’s go startup something today.

_________________________________________________________

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

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On this episode of Investor Connect, Hall welcomes Barry, who presents a medical device focused on improving treatment for hydrocephalus, a condition caused by excess fluid in the brain. Barry describes the current standard approach—ventricular-peritoneal shunts that drain fluid from the brain to the abdomen using a long rubber tube—and outlines key issues including infection, clogging, and siphoning that can over-drain the brain. He notes a 40% first-year reintervention rate, with roughly $1B in first-year reintervention costs and about $3B in annual overall health system costs, and explains that patients typically face a lifetime of revisions averaging about 10 surgeries. Barry explains their alternative approach, “physiologic shunting,” which drains cerebrospinal fluid into part of the venous system and is placed entirely on the cranium, avoiding the long-tube failure points.

The procedure is described as a 15–30 minute implant that can be done under local anesthesia, requires no navigation/robotics, uses standard neurosurgical tools, and is designed for constant, self-regulating flow. He positions the device as a Class II de novo/510(k) pathway and says the team has had two FDA pre-submission meetings, is currently in sheep animal studies, and plans a GLP study later in the year to support an IDE for human use. Barry shares market context: the U.S. hydrocephalus shunt market is about $170M annually with around 100,000 surgeries per year, including about 70,000 revisions; worldwide the market is about $500M. He argues a more reliable device could rapidly capture the revision market and notes the current market is dominated by Medtronic and Integra. He also discusses an additional opportunity in normal pressure hydrocephalus (NPH) in patients over 65, stating there are about 700,000 diagnosed in the U.S. and only 1% receive shunts despite symptom improvement. Barry states the company has raised $2.5M to date and is seeking an additional $2.5M via convertible note to reach a first-in-human pilot targeted around 2025, with initial offshore pilots potentially in South America or Australia.

Barry is a medical device industry professional who presents a cranial implant designed to simplify hydrocephalus management and reduce revision surgeries. He emphasizes the device’s ease of training for neurosurgeons, multiple cranial placement locations, and a “no bridges burned” approach where the implant can be removed and replaced through a small skin incision if needed. Barry describes a competitive landscape that includes one competitor pursuing an endovascular technique, while his team’s approach is a surgical technique intended to be safer, simpler, and not dependent on specialized equipment. He also discusses manufacturing readiness, stating a supplier/contractor has been identified and that devices used in animal studies meet sterility and related standards. Barry discusses the shortcomings of current shunts, the company’s physiologic shunting approach, the regulatory and study plan toward first-in-human use, the funding raise, and the market opportunity—especially capturing the large revision segment and potential expansion into normal pressure hydrocephalus. 

________________________________________________________________________

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Start by Looking for Your First Investor, Not Your Lead Investor

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

In raising funding, some founders focus solely on finding their lead investor.

In most cases, it’s better to find investors to join the round even if they are not leading.

By using convertible notes and SAFE notes, investors can join the raise.

Start with investors who are most likely to join and sign them up.

This shows traction with the fundraiser.

The investor who takes the lead will look for some evidence that other investors will join.

It’s rare that the first investor is also the lead investor.

In most cases, the lead investor is the 5th, the 10th, or often the 25th investor the founder meets.

By picking up investors in the round, this often helps polish the pitch, fill out the data room, and prep the founder for a prospective lead investor.

It’s easier to pick up investors on a convertible or SAFE note because the valuation is not set.  

There’s a valuation cap that protects the investor from outsized valuation by the founder. 

Start your fundraise by looking for your first investor, not your lead investor. 

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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Track Interest, Committed, and Invested

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

In raising a round of funding, most founders focus on the invested funds so far.

When asked about the progress, the founder quotes the invested amount and the amount left in the raise.

This undersells the traction the founder has.

In addition to the invested, also track the interest and committed funds.

For each investor who has some interest, ask for their level of interest.

Add up all the interested investor amounts.

For those who are committed but not yet invested, add up those funds as well.

In discussing with prospective investors, quote the interest, commitment, and investment.

This shows additional interest from investors in the round.

A typical update would be, in our $1M raise, we have $600K invested, $250K committed, and interest at $800K.

It’s often the case that the interest and committed funds are greater than the remaining amount in the raise.

This creates scarcity and generates FOMO with the investors who now see that there’s not enough room to cover all potential investors.

Use this to help close the fundraising round.

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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Prioritize Investor Follow-Up

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

Startup founders raising funding will encounter a range of investors with varying levels of interest.

Founders should prioritize their follow-up and focus on the investors with the greatest likelihood of making an investment with the least amount of work. 

A lead investor can be quite helpful but will require substantial time and effort on the part of the founder.

Budget time for the lead investor.

Close the easy ones first.

These are often angel investors with small checks who typically run a light diligence process.

They invest $25K to $50K on average.

After that come angel groups that have a process for vetting deals.

The application process can be heavy, but once it’s done, the angel group process happens on a known timescale.

A typical angel group will invest $150K to $300K, if not more.

After that come microVCs, who typically write $150K checks on the first round. 

Their diligence will be more substantial.

Finally, the standard venture capital fund will require a full diligence review with an initial investment of $500K.

Start with the easy ones and work your way up.

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 Want Optionality

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

Investors follow many startups before investing.

They stall in making an investment to be certain it’s a good one.

They look for additional information about the startup, its product, and market before making a final decision.

Investors want optionality.

They want to have as many options available as possible.

This gives them a better return on their investment.

Many investors drop out of a deal without telling the founder.

They want the option of coming back in if the deal turns out to gain traction or momentum later.

This leads many founders to chase investors who have basically said no to the deal.

Founders should ask for the investors' status on the deal.

Are you interested?

If so, how much are you considering investing?

Assuming an investor is interested without confirmation is a dangerous situation.

Once the investor decides on a deal to fund, they typically say no to other deals in the running.

Gain clarity with prospective investors about investing in 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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One and Done Is Not Going To Work

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

In raising funding, the founder will need to follow up with the investor to close.

After the pitch, some founders send one email to follow up.

The one-and-done approach to follow up will not work.

It takes multiple follow-ups and outreach to close an investor.

The investor is searching for more evidence that the startup will be successful.

This could be information around the growth of the market, the productivity of the technology, or the strength of the team, to name a few.

Continue to give regular updates to the investor with a focus on traction and market adoption.  

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

Budget time and resources for the follow-up effort.

Set up systems such as a CRM to provide updates to the investors following the deal.

Set up follow-up calls and meetings to showcase the results of the business.

It takes time to follow up, but that’s where the results come in.

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 Nader Fathi, CEO of Enlil Technology, about the innovative strides his company is making in the MedTech industry. Based in Campbell, California, Enlil Technology emerged from the Shifa Fame Innovation Hub. Their AI-powered platform brings compliance, product lifecycle, and regulatory traceability into one unified system for medical device and digital health companies. Designed to reduce complexity and enhance operational efficiency, Enlil's platform streamlines processes from concept to commercialization, empowering MedTech companies to navigate FDA and other regulatory pathways efficiently. 

Nader delves into the genesis of Enlil, explaining how it spun out from the internal needs of Shifa MedTech’s portfolio companies. Initially developed to aid in internal compliance and process management, Enlil was commercialized in early 2022 and has rapidly gained traction, adding over 34 companies to its user base. The platform leverages a proprietary AI called Lilly, which aids in search functionalities, report generation, and even automates critical tasks such as FDA submissions, significantly accelerating product development timelines and reducing costs. 

The conversation also highlights Enlil's go-to-market strategy, including their expansion efforts on the global stage. Despite focusing primarily on the U.S. market in 2022, Enlil has garnered international interest from countries like India, Singapore, and Japan. Nader emphasizes the necessity for startups to implement robust systems early to avoid scalability issues and successfully navigate the complex regulatory environment.

Reach out to at nader@enlil.com

________________________________________________________________________

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Fundraising Takes Time and Focus

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

Fundraising is a full-time job.

It takes time and focus to do it properly.

For some founders, it’s a job within a job.

In running a fundraise campaign, the founder should consider it their full-time job.

Their startup duties should be handled by someone else for the time it takes to raise the round.

Some investors will come in more easily than others.

For those investors who want to be in the deal and are ready to join, have them sign the investment documents.

This is often done with a convertible note in which the valuation is not set.

Most investors will require time and attention to close.

The lead investor, in particular, will take time to negotiate the valuation and other deal terms.

Be sure to budget time and attention for the lead investor negotiation.

These often take up to two months to complete. 

In engaging investors, identify the type of investor you are talking to and understand how much time it will take to close the investment.

Always continue the fundraising process 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 

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Why Use Special Purpose Vehicles (SPVs)

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

Special Purpose Vehicles or SPVs are the use of a legal entity to gather investors into a startup investment, which takes one place on the cap table.

This works well when there are many investors with small-dollar investments.

SPVs bring many advantages to the founder, the VC fund, and the angel group leader.

Here’s a list of advantages:

For the VC fund, the SPV allows for the investment into a deal outside of its fund.

This works well for follow-on rounds, in which case the VC does not want to add more of their fund into it.

For example, the fund can only invest in seed deals, but a portfolio company is now at a later stage and needs more funding.

This also works for the angel group that wants to bring investors into the deal with check sizes below the minimum amount.

Angels often use the SPV to create syndicates for specific deals that fall outside the investment thesis of the group.

Founders find SPVs useful to keep their cap table clean of numerous small investors.

Founders often use SPVs to bring in additional investors after other groups have finalized their investment.

Consider using an SPV in 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 

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Advantages of a Venture Studio Model

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

There are several models for running a VC fund.

The venture studio model is one of them.

It brings additional support to the startup.

The venture studio creates a set of startups in a sector with various skills and capabilities.

As the startups progress, some raise funding while others do not.

Some startups are able to sell their product while others are not.

As startups stall or shut down, the team members can move to other startups in the group that are succeeding.

Here are the advantages of a venture studio model:

The venture studio model brings an advantage to startups in finding talent.

The venture studio is able to leverage the skills of the entire cohort into a few successful startups that succeed.

The studio is able to share experience from one startup with the others.

The venture fund is able to take on earlier-stage deals as it has the ability to test, filter, and build successful ones.

Consider the venture studio model 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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Are You Ready To Be a Public Company?

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

Successful startups have several exit options.

Going public on the exchange is one of them.

Here is the test to know if your startup is ready to be a public company:

Can you provide a 20% annual growth rate for the next five years?

This typically requires a stable customer base that is locked in.

This often shows up in high customer retention rates.

It can be seen in the use of the product with high daily active use rates.

Do you have an operations level that is consistent with other public companies in your sector?

Expenses growing at 85% of the rate of revenue or less is a good indicator.

This improves margins over the course of time. 

Can you accurately predict your sales revenue over the next twelve months?

Public investors expect the company to beat its forecast by 5% each quarter.

To do so, the company needs to have a stable revenue stream.

Consider these points before taking your startup public. 

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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The Challenge of Startup Investing

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

Startup investing is one of the most difficult asset classes to pursue.

Information about the potential of the startup is often scarce and always opaque.

Some information is available, but the early signs provide only scant information.

Investors are torn between the fear of missing out on a good deal and the fear of getting caught up into a bad one.

One must make an investment choice before all the information becomes available.

Otherwise, other investors will come and take it over.

Startup investing is unique among investment options because the upside is truly unlimited.

Almost all other investments have limits.

Startups do not, and this is what fuels the investors' fear of missing out.

Most investors know that they can’t afford to miss the home runs. 

The losses from the others will be too great unless one has a home run hit.

To resolve this dilemma, investors look for additional information.

They look for every piece of information they can to find evidence that it will be a success.

Startup founders should take note of this dilemma and provide updates to assuage their fear.

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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In this episode of Investor Connect, Hall T. Martin delves into the intricacies of venture capital in Middle America with Triet Nguyen, a principal at Render Capital. Based in Louisville, Kentucky, Triet discusses Render Capital's focus on high agency founders who are driving essential infrastructure and innovative technologies in often overlooked markets.

Triet elaborates on how Render Capital remains competitive by fostering strong regional relationships and emphasizing less-tapped markets away from the coastal regions. He also highlights Render's distinctive approach to deal selection, emphasizing the importance of high agency in founders, along with strategies for navigating and thriving in the unique venture landscapes of the South and Midwest.

The conversation covers the tactics Render employs to support underrepresented entrepreneurs and insights into effective portfolio construction for emerging ecosystems. Triet also provides a detailed look into how Render Capital backs its investments with meaningful post-investment support and innovative funding vehicles tailored to the nuanced needs of Middle American startups. 

Reach out to at www.linkedin.com/company/render-capital/ , and on triet@render.capital

_________________________________________________________

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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Understand Why the Investor Said ‘No’

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

In pitching investors, the founder will hear ‘no’ many times.

Without understanding why, the fundraising process can turn into a slog.

By understanding why the investor said ‘no’, the founder can turn it into an educational experience.

Here are some common reasons why investors say ‘no’.

There’s no momentum or traction.

If all you have is an idea, it can be hard for the investor to share your vision.

The team is not complete and sufficient for the task at hand.

Take a hard look at the team to see what the investor sees.

Would you invest in a company with this team?

There are too many missing pieces.

There may be no shipping product, clearly defined customer, or target market.

Make sure you have a clear focus on these factors, as the investor will consider these to be table stakes.

The pitch may not convey all the values in the startup.

Make sure the pitch is complete and communicates the value proposition well.

Go to the next step to figure out why the investor said ‘no’.

Then use it to improve your 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   

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Key Factors in Raising 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 key factors that will lead to a successful outcome.

Here’s a list of key success factors:

Providing value add to the relationship.

For example, make introductions between two Limited Partners who may benefit from knowing each other.

Educate the LPs so they understand the industry better.

Investors love to learn insights about a sector they are investing in.

Fast follow-up shows you value the relationship.

Return calls quickly to show how important the relationship is.

Gain endorsement from LPs, founders, and other VC funds.

A good standing in the industry helps burnish the reputation.

Build a robust program with well-defined processes.

LPs will appreciate a strong operational team in place.

Finally, build a relationship with the Limited partner.

An authentic relationship will bring many benefits throughout the life of the fund.

Consider these factors in raising a 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 

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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How To Create Momentum in Your VC Fundraise

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

In raising a VC fund, it’s important to create momentum in the fundraise.

This helps carry the campaign through the ups and downs that come with fundraising.

Here are a  few steps to create momentum:

Before launching the fundraise, obtain commitments from one or two Limited Partners.

LPs with a brand name or reputation work best.

This motivates other LPs to consider the fund.

Show progress through the fundraising process with updates to the prospective Limited Partners.

Demonstrating traction helps build momentum.

Use content to show how the investment thesis of the fund stands out from the crowd.

Highlight trends and inflection points that indicate how the position of the fund is gaining momentum.

Offer informational sessions to educate the investor about the fund.

This creates a deeper understanding of how it will work.

Gain endorsements from leading figures in the industry.

Investors look for momentum in the deals they fund.

Consider how to use these tools to build momentum into 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 

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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Closing a Limited Partner

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

In raising funds, the VC fund manager needs the ability to close Limited Partners.

Here are some closing techniques to consider:

FOMO

The Fear of Missing Out is one of the most often used techniques for closing.

To use this, the fund manager must demonstrate how other investors are coming into the fund.

It’s best to create some scarcity by showing the current capacity left in the fund and then comparing it to the interest from the investors.

To do so, calculate the interest and committed funds to show the fund is potentially oversubscribed.

For example, the fund is raising $50M, and has $40M invested so far.

Show the interested and committed funds at $25M.

This shows there’s more interest than fund capacity.

Deadlines

Break the raise into rounds or tranches and run deadline campaigns.

When the fund reaches two-thirds of the capacity of the round, then declare a deadline in six to eight weeks.

This forces investors to make decisions or risk missing that round.

Incentives

Offer incentives to investors who come in by a certain date.

This could be warrants, advisor shares, fee discounts, preferred returns, or follow-on investment opportunities.

Consider these techniques to help close the fund round. 

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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Marketing documents 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 funds from Limited Partners, make sure to prepare the following marketing materials:

Website.

The website should reflect the values of the general partners and details about the fund.

This is the first place investors go to learn more.

Pitchdeck.

Just as startups use a pitchdeck to communicate their deal, a VC fund needs a pitchdeck to present to Limited Partners.

One pager.

A one-pager describes the overview of the fund, including investment thesis, track record, and bios of the general partners.

Due diligence questionnaire.

It’s a summary of the fund and how it compares to others, such as ESG funds.

Data room.

The basic documents and records of the fund should be in one place that LPs can access.

Track record.

A spreadsheet showing the track record of the fund with all the basic metrics, including TVPI, DPI, and IRR.

Limited Partnership Agreement.

This document lays out the details of the fund, including investment thesis, capital calls, management fees, and distributions.

Private Placement Memorandum.

This document highlights the financial characteristics of the fund and the risks associated with the investment.

Make sure you have these documents ready for 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/ 
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.