Investor Connect Podcast (general)

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

Corporate VC funding continues to grow as companies look for innovation and startups look for funding opportunities.

There are several types of corporate VC funds. Here are three:

1. Traditional investment fund 

  • This fund looks and acts like a traditional VC fund. 
  • They’ve set up a fund for the program and source and diligence deals similar to a traditional VC fund.
  • They invest for financial reasons and can provide primarily management support.

2. Strategic investment fund

  • They invest off the balance sheet and for strategic purposes.
  • They don’t look for a financial return but rather collaborations.
  • The team is small but works full time on the fund.
  • They invest not only financial resources, but also strategic ones such as partnerships and sales channel access.

3. Opportunity investment fund

  • They often invest off the balance sheet and invest solely for specific projects.
  • The team is not full-time and consists of members from various departments.
  • They are typically product-focused and seek the investment to fill a product need.
  • They provide limited strategic and financial support. 

Make sure the type of corporate VC matches the needs of your startup.


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

Let’s go startup something today.
___________________________________

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

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/ 

For Feedback please contact info@tencapital.group 

Music courtesy of Bensound

Direct download: types_of_corporate_vc_funding.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Hubert Vaz-Nayak, Co-Founder and President of the Chicago Booth Angels Network of Texas.

The Chicago Booth Angels Network (CBAN) of Texas was formed by Booth alumni in Texas who came together to identify and invest smartly in startups. They focus on early-stage companies that are looking for a diverse, high caliber of investors who can leverage their capital, expertise, and global networks to the advantage of the companies they invest in. As part of the global CBAN organization, they also have access to the broader CBAN investor network.  

CBAN Texas is an inclusive organization that encourages all accredited investors to consider participating in their investment opportunities and events. They consider investing in businesses from anywhere in the United States and invest in a broad range of industries.  

Hubert began his career in India working on the launch of Pepsi and 7Up across the country. After graduating from the University of Chicago Booth Business School, he worked with large technology companies including Motorola, BMC Software, and AT&T Wireless where he pioneered several wireless services we all use today. As a management consultant with Accenture and KPMG, he advised the management teams of several Fortune 100 companies.  

Hubert also has a strong start-up track record. He came up with the idea and wrote the original business plan for Convergys, which grew into a $3B public company. He then went on to co-found Eclipse Networks, which went from 2 to 400+ employees in less than 12 months. He led the turnaround and repositioning of Dynamicsoft that was acquired by Cisco Systems. Moving to Houston, he was initially Director of the Tech startups at the Houston Technology Center, where he advised over 30 startup companies.

Hubert is a board member of TIE Houston and TIE Houston Angels, the world’s largest entrepreneurship organization. He is also currently the CFO of a rapidly-growing social media startup called Aapoon, which is focused on the Indian market. Hubert is an active angel investor investing in multiple startups around the country and remains an advisor to many of them.  

Hubert discusses the state of startup investing and his investment thesis. He advises investors and entrepreneurs and discusses some of the challenges they face.

You can visit the Chicago Booth Angels Network of Texas at www.boothangelstexas.com, and via LinkedIn at www.linkedin.com/company/chicago-booth-angels-network-of-texas/

Hubert can be contacted via email at vaznayak@hotmail.com, and via LinkedIn at www.linkedin.com/in/hubert-vaz-nayak-8ab1b1/

Music courtesy of Bensound.

Direct download: Hubert_Vaz-Nayak_of_Booth_Angel_Network.mp3
Category:general -- posted at: 6:00am CDT

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

There are several tools for the corporate VC to use in a venturing program.

Here’s a list to consider:

  • Hackathon - invite those in the industry or area to participate in a coding challenge to solve a particular problem.
  • Shared resources - provide the community with a set of tools and data sets and invite open community collaboration.
  • Challenge prize - offer a cash prize for the winner of a competition.
  • Corporate venture capital - offer investments into startups that meet specific criteria.
  • Commercial incubators - set up a partnership with incubators to provide support in exchange for access to deal flow.
  • Internal incubators - set up an internal incubator and invite employees and partners to participate.
  • Strategic partnership - set up partner programs with accelerators, venture capitalists, and other groups to provide deal flow.
  • M&A program - set up a program for acquiring companies and onboarding into the corporation.

Consider augmenting your corporate venture fund with these tools and activities. 


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  

Music courtesy of Bensound

Direct download: tools_for_running_a_corporate_vc_program.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes David Meltzer, CEO of David Meltzer Enterprises.

David is the Co-Founder of Sports 1 Marketing and formerly served as CEO of the renowned Leigh Steinberg Sports & Entertainment agency, which was the inspiration for the movie Jerry Maguire. Considered one of the top esports entrepreneurs and investors, David is also a three-time international best-selling author, a Top 100 Business Coach, and host of the top entrepreneur podcast, The Playbook.   

David is the Executive Producer of the Bloomberg and Amazon television series 2 Minute Drill and also is the executive producer of Entrepreneur’s #1 digital business show, Elevator Pitch. David is featured in many books, movies, and TV shows such as World’s Greatest Motivators, Think and Grow Rich: The Legacy and Beyond the Secret, airing on Netflix. Additionally, he has been recognized by Variety Magazine as their Sports Humanitarian of the Year and awarded the Ellis Island Medal of Honor.  

His life’s mission is to empower OVER 1 BILLION people to be happy! This simple yet powerful mission has led him on an incredible journey to provide one thing…VALUE. In all his content, and communication that’s exactly what you’ll receive. For the past 20 years, David has been providing free weekly trainings to empower others to be happy. 

David shares what led him to start working in the eSports space, what excites him now, and he advises both investors and startups. He discusses some of the challenges startups face and how he sees the industry evolving.

You can visit David at www.dmeltzer.com, www.free.dmeltzer.com/training, via LinkedIn at www.linkedin.com/company/david-meltzer-enterprises-dme/about/, www.linkedin.com/in/davidmeltzer2, and via Twitter at www.twitter.com/davidmeltzer

David can be contacted via email at david@dmeltzer.com.

Music courtesy of Bensound. 

Direct download: David_Meltzer_of_David_Meltzer_Enterprises.mp3
Category:general -- posted at: 6:00am CDT

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

Founders looking to raise funding from corporate VCs should avoid the following mistakes:

  1. Not matching the corporate VC to the needs of the startup - corporate VCs bring not only money but strategic value.
  2. Not understanding the corporate VC investment strategy - some corporate VCs invest for a financial return while others invest for a strategic partnership.
  3. Not building a strong relationship with the corporate VC team - it’s best to forge a good working relationship upfront as it will bring value later.
  4. Not doing diligence on the corporate VC -  the founder should be doing as much diligence on the corporate VC as the VC is doing on the startup.
  5. Not knowing what you want from the corporate VC - it’s best to identify the needs of the company first and then choose a VC based on that.
  6. Not preparing for the product and technical diligence a corporate VC will put on your startup - a corporate VC comes from the large company world with higher standards for product and technical work.
  7. Not getting the corporate VC to waive audit rights - audits are a major cost in time and dollars.
  8. Not preparing for regulatory issues especially in the financial space - not preparing for corporate team transitions. 

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  

Music courtesy of Bensound

Direct download: mistakes_founders_make_with_corporate_vcs.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Ben Rifkin, CEO at Ten Eighty Capital.

Ten Eighty is a single-family office and diversified private investment firm with three primary focus areas. Ten Eighty Trading develops proprietary technical trading strategies for the public markets. Ten Eighty Capital invests time, capital, and expertise into operating companies ranging from concepts incubated in-house to late-stage growth rounds and even full buyouts, alternative funds, and other investment vehicles. Ten Eighty Land invests in discrete residential and commercial properties as well as broader development projects.

Ben is the co-founder and board director of AcceleratUM, a privately funded collaborative that advances consensus solutions for the unmanned mobility industry. He devotes significant time to public education and youth development organizations as board chair of the Park City Education Foundation and board director of Live Like Sam Foundation.

Prior to Ten Eighty, Ben served as President of Royal Street Investment & Innovation Center, leading strategic investment and business decisions and advising on Royal Street’s sale of Deer Valley Resort and Solitude Resort to Alterra Mountain Company. He was also a founding Venture Partner of Royal Street Ventures. In these roles, Ben worked closely with private and public companies in the hospitality, virtual reality, consumer products, consumer internet, and enterprise software industries. Ben also managed the Park City Angels as Executive Director leading membership, deal sourcing, and diligence efforts. He helped open Park City’s first co-working space and incubator, PandoLabs, and also served as co-chair and emcee of Thin Air, a business leadership and innovation conference underwritten by the Park City Chamber of Commerce.

Ben began his professional career in media, working his way up at Time Warner and Bonnier Corporation from intern to eventually become the youngest-ever Publisher of the SKI and Skiing brands while also serving as associate publisher of Saveur and Garden Design. He left media to pursue a career in finance via sports and entertainment, first as SVP Marketing and Operations at Consumer Capital Partners and world-class cycling stage race the US Pro Challenge, and later as President and General Manager of the Denver Cutthroats, the AA-affiliate of the NHL’s Colorado Avalanche.

Ben grew up in Maine, graduated from Hebron Academy, and went on to the alpine ski race at Dartmouth College, where he majored in creative writing and was involved in various academic and social organizations.

Ben discusses his investment thesis, some of the startups he has invested in, and some of their challenges.

You can visit Ten Eighty Capital at www.teneighty.us, and via LinkedIn at www.linkedin.com/company/ten-eighty-capital/about/.  

Ben can be contacted via email at brifkin@teneighty.us, and via LinkedIn at www.linkedin.com/in/benrifkin/

Music courtesy of Bensound.

Direct download: Ben_Rifkin_of_Ten_Eighty_Capital.mp3
Category:general -- posted at: 6:00am CDT

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

Startups looking to take corporate VC funding should be aware of the requirements put on founders.

Here’s a list to consider:

  • Corporate VCs may seek consent rights on contracts the startup enters with competitors.
  • They may seek higher levels of compliance on the part of the startup.
  • They may require additional rights over an exit, given they are in the deal for a longer time.
  • They may limit the information made available to competitors and the market in general.
  • They may expect right-of-first-refusal on any shares offered.
  • They may put a call option on the company for a future buyout.
  • They may put a put option on the company which must buy back the shares in the future.
  • They may take a board observer role which absolves them of any fiduciary responsibility.
  • They may require the startup to comply with ESG, environmental, social, and governance compliance.

There’s a cost of working in the large company world, so it’s important to understand the requirements that come with the 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 

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 

Music courtesy of Bensound

Direct download: corporate_vc_requirements_of_founders.mp3
Category:general -- posted at: 6:00am CDT

This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding.

In our new Investor Perspectives series entitled “How to Solve the Cannabis Problem”, you’ll hear about primary trends and what makes for a successful company in the segment.

As the COVID pandemic passes, we emerge into a new world. The cannabis space is now undergoing tremendous change as we shift back to a normal way of life. Every state is reviewing its regulations and accelerating legalization across the board. We have investors and startup founders describe the changes coming up.

Our guests are:

William Muecke, Co-founder & Managing Director, Artemis Growth Partners, 00:56
Codie Sanchez, Managing Director, Entourage Effect Capital, 04:34
Michael Boniello, Managing Director, Poseidon Asset Management, 06:44
Sherri Haskell, Founder & CEO, Canna Angels LLC, 12:09

I hope you enjoy this episode.
________________________________

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 

Music courtesy of Bensound.


In this episode, Hall welcomes Chris Fronda, CEO of Logictry.

Headquartered in Austin, Texas, Logictry, the first-ever Logic Management system, is a no-code, low-code application platform that allows anyone to build business Logic Apps that combine learning and productivity for instant expertise.

Logictry helps businesses systematize their processes and institutional knowledge into interactive, actionable content. The result is that businesses can onboard new hires faster, senior members can delegate more with less risk, teams can unlock untapped efficiencies, and overall, businesses can protect against knowledge loss.

Chris is a serial tech entrepreneur and a 15-year software architect. He is well known for his ability to deliver the benefits of complex technologies in efficient ways. His endeavors have included launching a cryptocurrency (ICO) as well as building blockchain dApps, trading algorithms, scalable cloud architectures, and consumer mobile apps.

He has also owned and operated a technical systems integration firm working with clients such as SwRI, Metso, Pfizer, and NASA. His firm built automated production test systems for verification and validation, solar power quality monitoring systems, plant asset condition monitoring systems, and automated cell secretion analysis systems for the research and treatment of Type 1 diabetes.

Chris brings nearly 20 years of experience in delivering productivity through technology. Prior to founding his systems integration firm, he served as a top applications engineer for National Instruments (NI) where he guided clients in bringing complex automation systems online. At NI, he was tapped as a top instructor for NI’s top and senior client base. Chris was promoted to Product Manager for NI’s $25M Sound and Vibration product line overseeing and coordinating sales, marketing, R&D, and manufacturing. In this role, he was often tapped to close large sales opportunities and for global speaking engagements promoting the product line.

Chris has parlayed his high-level achievements in math and physics, his love of strategy and chess, and his desire to unlock the benefits of advanced technology for the masses, into tools that leverage technology to unlock front-line innovation and untapped efficiencies for businesses and clients. Chris is also deeply passionate about learning complex topics and simplifying them to empower others. He aims to help grow awareness of the Socratic Method, formal logic, and systems thinking, and to help anyone think like an expert.

His mission is to optimize the way we structure information and intelligence for better decision-making and his vision is to help keep humans relevant and innovating in this age of acceleration.

Chris discusses the growth rate of the sector and some of the challenges startups face. He explains what his target customer looks like, and the future of Logictry.

You can visit Logictry at www.logictry.com, via LinkedIn at www.linkedin.com/company/logictry, and via Twitter at www.twitter.com/logictry.  

Chris can be contacted via email at chris@logictry.com, and via LinkedIn at www.linkedin.com/in/chrisfronda

Music courtesy of Bensound.

Direct download: Chris_Fronda_of_Logictry.mp3
Category:general -- posted at: 8:46am CDT

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

The corporate VC must set up and run a program.

Here’s a list of core functions the corporate VC must cover:

Planning out the portfolio - this includes estimating the size of each investment as well as the type of company to invest in. There needs to be a target valuation and percentage ownership for each investment.

Searching for startups that meet the plan - startups must be able to grow rapidly and scale to higher levels with limited capital.

Convincing startups to take the investment - this includes connecting the startup to other investors and providing resources to facilitate growth.

Diligencing startups - this includes researching the startup, in particular the team, to understand their skills and ability to accomplish the goal.

Tracking and supporting existing investments - this includes attending board meetings, supporting the startup, and updating the limited partners of the status. Some startups will require more attention than others and limited partners will look for in-depth reports.

 

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  

Music courtesy of Bensound

Direct download: core_functions_of_the_corporate_vc.mp3
Category:general -- posted at: 6:00am CDT

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

With the growing number of startups seeking funding, it’s easy to increase your corporate VC fund to capture more deals.

Fund sizes in many corporate VCs increase almost every year.

For many startups, too much funding can bring unexpected problems.

It’s best to start small and grow the fund organically.

The corporate VC also needs to build out the program to provide the strategic and forecasted results.

Many startups that pursue corporate VC need substantial support.

Most corporate VC funds are started when their strategic initiatives come up short.

The corporate VC must consider the needs of the fund as well as the needs of the startup.

Start with a small investment up front, then start looking for a connection with the corporate group with meaningful interactions.

Too much funding will create the impression that the funding was the end-game when collaboration should be the outcome.

Measure each step that leads to a productive collaboration.

The startup should feel like a successful part of the company and not a hired contractor.

In the end, you must find a good fit and build a strong collaboration process.


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  

Music courtesy of Bensound

Direct download: Positioning_Your_Corporate_VC_Fund.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Jim Stallings, CEO of PS27 Ventures.

Based in Jacksonville, Florida, PS27 Ventures is a veteran-owned venture capital firm that invests in early-stage companies that are driving dramatic changes in high-growth markets. Their investments focus on healthtech, e-commerce, fintech, SaaS, and sustainability companies. 

They work with a diverse group of founders to provide the tools, resources, and expertise they need to succeed. They use a hands-on approach and require their companies to attend weekly sales calls, peer-to-peer events, and annual programs. They also work alongside them to assist with cash flow management. PS27 has a proven success rate for graduated portfolio companies who have gone on successfully to build their companies.

Jim is an internationally recognized business leader, entrepreneur, and investor who specializes in launching and scaling early-stage companies in areas of technology and e-commerce. Jim has been involved in starting dozens of new ventures in fintech, healthtech, and Software as a Service. He believes innovation should be viewed as the core offensive strategy of any company, "either disrupt or be disrupted". Jim's career spans over 30 years as IBM General Manager of several major lines of business including the company's $7B Linux software business, its intellectual property division with 39,000 patents, and its $21B global hardware sales group. He started his business career as a data analyst in the Space Division at GE. Jim earned a Bachelor of Science degree from the US Naval Academy and served as a Captain in the US Marine Corps. He is on the Board of Directors at Fidelity National Informations Systems (FIS), UGI Corporation (UGI), and Cannae Holdings, Inc (CNNE). He also serves as a Trustee on the Folded Flag Foundation which provides scholarships to descendants of fallen warriors in the US Military.

Jim advises investors and entrepreneurs and shares his investment thesis. He discusses the state of startup investing and what he thinks will be the biggest change we will see in five years.

You can visit PS27 Ventures at www.ps27ventures.com, via LinkedIn at www.linkedin.com/company/ps27-ventures, and via Twitter at www.twitter.com/PS27Ventures.   

Jim can be contacted via email at jbs@ps27ventures.com, via LinkedIn at www.linkedin.com/in/jimps27, and via Twitter at www.twitter.com/JimPS27

Music courtesy of Bensound

Direct download: Jim_Stallings_of_PS27_Ventures.mp3
Category:general -- posted at: 6:00am CDT

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

Corporate venture capital is venture funding from a company, rather than a fund raised from limited partners.

Most corporate venture capital invests for strategic reasons rather than financial ones.

Reasons for corporations to invest in startups include the following:

- Gain market insight through their startup portfolio companies - many companies want a front-row seat on how an emerging market is developing. 

- Access to new research and business models - this can support research and development as well as business development.

- Provide a flow of new customers for the corporate investor - investing in companies gives the corporate VC leverage for selling their products.

- Identify new talent for future projects in the space - as the market matures, the corporate VC may want to enter the market with their own products, and having the talent to build and sell those products can be quite valuable. 

- Build a relationship with potential acquisition targets - some corporations use M&A to gain access to a market and investing in early-stage companies is one path to acquisition.

 

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  

Music courtesy of Bensound

Direct download: Purpose_of_Corporate_Venture_Capital.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes JC Otero, COO & Co-Founder of Change4Change.

Headquartered in Austin, TX, Change4Change’s mission is to democratize the political fundraising process by broadening the donor base, making fundraising more accessible to all, while combating the influence of big money in politics. It is this monumental challenge that compelled JC to join forces with Nik Kulkarni to start Change4Change in the Fall of 2018.

Through their mobile apps, politically active donors can round up their everyday debit and credit card transactions to the nearest dollar, and donate that spare "change"​ to political candidates and causes they support.

JC's career has spanned roles in sales, operations, marketing, and management with large companies such as Informatica, a world-leading data management company, Dell (prior to going private), and Wells Fargo, while also being an early employee with tech startups such as nDivision, which went public in 2018, and BestFit Mobile, which was acquired by Software Paradigm International in 2015. JC also co-founded one of Austin's first green cleaning companies and sold his stake in 2009.

Outside of being an early-stage startup employee, JC has also been involved with more mature startups in FinTech, Buzz Points who raised over $25M since its founding in 2009, and in the Cryptocurrency space, Cointerra who generated over $35M in revenue its first year manufacturing ASIC machines for bitcoin mining in 2013 where he helped launched one of the world's first cloud-based mining services in 2014.

Outside of work, JC is very involved in the community, both locally and internationally, is an avid reader with an insatiable appetite to learn, and loves traveling the world. To date, JC has been to 29 countries across 4 continents.

Community accomplishments JC is most proud of are in helping build the largest deaf empowerment NGO in Kenya, being an early catalyst and champion for at-risk youth, entrepreneurship efforts in Central Texas, and his Emzingo NexGen fellowship in Peru with the National Red Cross.

JC discusses how he sees the industry evolving, and how Change4Change fits into the landscape.

You can visit Change4Change at www.change4change.co/, via LinkedIn at www.linkedin.com/company/change4change/about/, and via Twitter at www.twitter.com/change4changeco.

JC can be contacted via email at jc.otero.atx@gmail.com, and via LinkedIn at www.linkedin.com/in/juancarlosotero/.  

Music courtesy of Bensound.

Direct download: JC_Otero_of_Change4Change.mp3
Category:general -- posted at: 6:00am CDT

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

Corporate VCs follow the startup cycle with many launching their programs at the peak of the cycle.

Most Corporate VCs last about 4 to 6 years, at which point the economic cycle creates a challenging environment for the company.

To be successful at running a corporate VC, you’ll need to do the following:

Set goals that are aligned with the corporation.

Are you doing research, learning from the market trends, or driving acquisitions? A
re you pursuing a financial return or a strategic one? If pursuing a strategic one, determine the KPIs you'll use to measure success.

Decide what stage company you want to pursue as there's a big difference between early and late-stage companies with respect to sourcing the deals and controlling the outcome.

Startup investing is typically a long-term investment with a 7 to 10-year horizon.

You'll need to make sure the management team and company can commit to that timeframe.

Understand the cultural differences between a multi-decade old company and a six-month-old startup.

Sourcing deals can be a challenge if you don't have connections in the startup world.

Managing a startup is different from managing a business unit in the company. The needs of a startup are entrepreneurial and don't necessarily fit into the company's current support set. Make sure you incentivize the management team properly for the fund as they can find more lucrative jobs in the VC space.

Finally, set up a dedicated fund for the process so you can support the portfolio with follow on rounds. 
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for 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 

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  

Music courtesy of Bensound

Direct download: How_to_Setup_a_Corporate_VC.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Caroline Lewis, Partner at Rogue Venture Partners and Managing Partner of Rogue’s Women’s Fund.

Rogue Venture Partners is a venture capital firm specializing in investments in startups. It seeks to invest in new and growing businesses in Oregon and the Pacific Northwest. The company invests in entrepreneurs that reject the status quo, and who are driven by market traction. Rogue values ingenuity, insight and intelligence, and accelerates entrepreneurial success with resources, values and vision. Rogue is committed to increasing Oregon's entrepreneurial footprint through committed, sustainable investment in new businesses and growing enterprises.

Rogue optimizes its fund to ensure alignment between investors and founders generating outsized venture returns on market-based exits and are actively investing out of Fund IV and the Rogue Women’s Fund. Rogue focuses on Consumer Health/Tech and B2B SaaS and enterprise in E-Commerce, and Aging/Care tech.

Caroline identifies new investment opportunities for Rogue and leverages her previous experience to assist portfolio companies with growth. She is a Kauffman Fellow and is a board observer for Stix, Source, All Voices, Edify, Caregiven, and EnviralTech. Prior to Rogue, Caroline was Senior Director in Strategy and Operations for Global Design, Product, and Merchandising at Nike where she managed a portfolio of strategic programs focused on consumer experience, digitization, and big data. Prior to being recruited to work for Nike, Caroline was a technology consultant for Propeller and Hitachi Consulting, working with Fortune 100 companies on enterprise technology implementations and organizational restructuring. Her love for start-ups comes from her early career experience as a founder for an e-commerce business and as a leader at a consumer health product company.

Caroline graduated as a Division 1 Field Hockey player with an MS in Psychology from Davidson College. She then received an MBA with a focus on entrepreneurship from Portland State University.

Caroline discusses her investment thesis and some of the startups that fit the thesis. She advises entrepreneurs and investors and shares some of the challenges she sees startups facing these days.

You can visit Rogue Venture Partners at www.roguevp.com, and via LinkedIn at www.linkedin.com/company/rogue-venture-partners/about/. You can visit Rogue’s Women’s Fund at www.oguewmn.com

Caroline can be contacted via email at caroline@roguevp.com, and via LinkedIn at www.linkedin.com/in/carolinejlewis/.  

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Direct download: Caroline_Lewis_of_Rogue_Venture_Partners.mp3
Category:general -- posted at: 6:00am CDT

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

Overall, corporate VCs invest more than traditional VCs by about 2%.

Corporate VCs operate the same as traditional VCs with some exceptions:

  • Corporate VCs seek a strategic advantage rather than a financial return
  • Many don’t lead funding rounds but only follow them
  • They bring strategic support to the startup such as sales channels and industry partnerships
  • They focus on early to mid-stage companies primarily and avoid seed-stage startups
  • They invest based on the current strength of the corporation and don’t follow the traditional raise-a-fund-and-deploy-it cycle
  • They don’t exert substantial control over the company, compared to traditional VCs who seek a financial return in a specific timeframe
  • They don’t look for a strong financial return as the only exit option
  • Corporate VCs are measured by the impact of the investment into the startup, such as number of pilots and programs rather than startup sales growth
  • They don’t limit their investment horizon to the 10-ear fund cycle as a traditional VC does
  • Corporate VCs access deals primarily through their partnerships rather than the general market

 

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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Category:general -- posted at: 6:00am CDT

This is Investor Perspectives. I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding.

In our new Investor Perspectives series entitled “How to Solve the Cannabis Problem”, you’ll hear about growth in the cannabis segment.

As the COVID pandemic passes, we emerge into a new world. The cannabis space is now undergoing tremendous change as we shift back to a normal way of life. Every state is reviewing its regulations and accelerating legalization across the board. We have investors and startup founders describe the changes coming up.

Our guests are:

William Muecke, Co-founder & Managing Director, Artemis Growth Partners, 01:17
Codie Sanchez, Managing Director, Entourage Effect Capital, 03:51
Michael Boniello, Managing Director, Poseidon Asset Management, 05:25
Sherri Haskell, Founder & CEO, Canna Angels LLC, 08:19

I hope you enjoy this episode.
_______________________________

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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Direct download: IP_Cannabis_Show_1_Growth_in_the_Cannabis_Segment.mp3
Category:general -- posted at: 6:00am CDT

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

Corporate venture capital is an existing business utilizing venture funding to further the company’s strategic objectives.

The firm takes an equity stake in startups either through an internal fund or off the corporate balance sheet. 

Unlike traditional venture capital, corporate VCs look to gain a competitive advantage for the company and not a financial return.

The firm seeks to grow their business and uses an investment into a startup to gain knowledge of an emerging market, identify key players in the industry, and potentially use the results to grow sales. 

These initial investments often lead to a buyout of the startup.

The investment is a useful tool for diligencing a startup and influencing its direction.

There are some corporate VCs investing for a return on investment rather than strategic initiatives, but this is rare.

Most corporate VCs make investments with the goal of winning more business for their current product and services.

It’s a useful method for exploring new markets without committing substantial resources from the corporation.


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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Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Jim Denholm, Founder & CEO at IronBridge Private Wealth.

IronBridge Private Wealth was founded in Austin, Texas, to combine the strength and resources of a large financial firm with the independence of a local company. They are true fiduciaries of their clients'​ wealth. Having real risk management strategies that adapt to changing market conditions, while understanding their clients'​ individual goals and objectives, provides the foundation of true fiduciary service.

As founder and CEO, Jim Denholm created IronBridge to assist clients on their paths to financial success. Every aspect of IronBridge was developed with a client-first mindset. Jim's unique background includes nearly two decades spent at large investment firms (JPMorgan, Morgan Stanley, and Wells Fargo) and Jim has a Mechanical Engineering degree from the University of Texas at Austin. Jim serves on various boards, including the First Tee of Greater Austin, the Austin Symphony, and is a member of the Texas Exes Investment Committee. He lives in Austin with his wife, two boys, and two large Rhodesian Ridgebacks.

Jim shares what excites him now and advises startups and investors. He discusses his investment thesis, how he sees the startup industry evolving, and what he thinks will be the biggest change we will see in five years.

You can visit IronBridge Private Wealth at www.ironbridge360.com, and via LinkedIn at www.linkedin.com/company/ironbridge-private-wealth-llc/.

Jim can be contacted via email at jim.denholm@ironbridge360.com, via LinkedIn at www.linkedin.com/in/jim-denholm-ironbridge360, and via Twitter at www.twitter.com/denholm_jim

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Direct download: Jim_Denholm_of_IronBridge_Private_Wealth.mp3
Category:general -- posted at: 6:00am CDT

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

Corporate venture capital is an existing business utilizing venture funding to further the company’s strategic objectives.

The firm takes an equity stake in startups either through an internal fund or off the corporate balance sheet. 

Unlike traditional venture capital, corporate VCs look to gain a competitive advantage for the company and not a financial return.

The firm seeks to grow its business and uses an investment into a startup to gain knowledge of an emerging market, identify key players in the industry, and potentially use the results to grow sales. 

These initial investments often lead to a buyout of the startup.

The investment is a useful tool for diligencing a startup and influencing its direction.

There are some corporate VCs investing for a return on investment rather than strategic initiatives, but this is rare.

Most corporate VCs make investments with the goal of winning more business for their current product and services.

It’s a useful method for exploring new markets without committing substantial resources from the corporation.


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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Direct download: What_is_Corporate_Venture_Capital.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Gopi Rangan, Founding Partner at Sure Ventures.

Sure Ventures is a Silicon Valley-based venture capital firm investing with a mission to enable peace of mind. The main areas of focus are pre-seed and seed-stage startups in the insurance, aging, care, mental health, wealth management, and related sectors.

Gopi created Sure Ventures after spending more than a decade learning and practicing the art of venture capital at Intel Corp. (formerly Altera Corp.) and at USAA. The mission of the new firm is to enable peace of mind for all individuals and businesses, to be a force for good. They work with visionary entrepreneurs who use advanced technologies to seize what he believes to be the greatest opportunities in finance and social development today.

In addition to founding Sure Ventures, Gopi is the host of the popular podcast The Sure Shot Entrepreneur. He is also a faculty in the Department of Entrepreneurship at the INSEAD Business School. As a subject matter expert on corporate innovation and corporate venture capital at management consulting organizations such as McKinsey and Co. and Bain & Co., he advised more than 20 global corporations on accessing innovation in the startup ecosystem. Previously, he was a Managing Director at USAA’s $350 million corporate venture program and a Director of Corporate Strategy at Intel Corp.’s business division fka Altera Corp. where he led the formation of a strategic investment program. Earlier in his career, Gopi spent several years in key positions in product development, technology research, intellectual property, and operations. He has co-authored more than 30 patents. 

Gopi has an M.B.A. from INSEAD, an M.S. in Electrical Engineering from Arizona State University, and a B.E. degree in Electronics and Communication Engineering from Coimbatore Institute of Technology in India. 

Some of Gopi's past and current investments include Adesto Technologies (IPO: NASDAQ: IOTS), BitFusion (acq. by VMWare), Coinbase (IPO NASDAQ: COIN), Coterie Insurance, Decent, Ebrisk (acq. by Intel Corp.), HiMarley, Joshin, MindMeld (acq. Cisco Systems), Pointy (acq. by Google), Rocket Dollar, Surround Insurance, and TrustLayer. 

Gopi explains in detail how he thinks the venture capital industry is evolving and he discusses why he does not have an investment thesis, but rather a “general focus”. 

You can listen to The Shot Entrepreneur podcast at podcast.sure.ventures, Follow Gopi Rangan at www.linkedin.com/in/gopirangan, and on Twitter at www.twitter.com/gopirangan.  

Gopi can be contacted via his website at www.sure.ventures.

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Direct download: Gopi_Rangan_of_Sure_Ventures_Final.mp3
Category:general -- posted at: 6:00am CDT

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

To ensure an advisor engagement is successful, make sure you set up an advisor agreement.

This is a contract between the advisor and the company and defines the work to be done.

Here are some key points to consider:

Make clear what the advisor will do -- bring experience, contacts, domain knowledge, or other.

Include the frequency of meetings and type.

You could add KPIs to the contract or leave it as a general description. 

The more specific it is, the easier it will be to manage later.

If there’s a short duration for terminating the contract, then a general description may be sufficient.

Define the equity compensation and vest it over time.

Include clauses around confidentiality, intellectual property assignment, non-solicit, and non-compete.

This ensures the advisor keeps the company information confidential.

Any IP that comes up from the engagement stays with the company.

The advisor can’t recruit employees away and cannot later compete with the company.

It’s best to bring these issues up and discuss them before the engagement to make sure there’s no misunderstanding later.



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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Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Ganesh Padmanabhan, VP, Global Business Development & Strategic Partnerships at BeyondMinds, technologist, entrepreneur, and early-stage investor.

Founded in 2018, BeyondMinds has built the first enterprise AI solution that is universally applicable and easily adaptable. They deliver hyper-customized, production-ready AI systems that enable sophisticated companies to overcome the massive failure rate in AI adoption and rapidly implement ROI-positive transformations. The company has more than 70 employees, with the majority being AI technologists. Accelerating AI democratization around the world, they have offices in New York, Tel-Aviv, and London, in addition to presence in other countries, and they service Global 1000 companies, including Microsoft and Samsung.

Ganesh is an accomplished technology and business executive with deep expertise in commercializing and building AI and Big Data businesses for Fortune 500 organizations and high-growth startups. Prior to that, Ganesh was the Co-Founder and CRO at Molecula Corp, a data management company that helps enterprises unlock access to their data. Prior to that, he was head of growth at CognitiveScale, Inc., an enterprise AI company, that helps Global 2000 organizations deploy and scale practical, scalable, and trusted AI systems. Ganesh spent 15 years in global companies like Dell Technologies, Intel, and Adaptec, in general management, product, and technical leadership positions. 

Ganesh is passionate about using technology to solve the biggest challenges for humankind and is a believer in the power of AI to augment human potential. He is an advocate for using technology as a global equalizer to create opportunities for all. He has been active in the community by mentoring local entrepreneurs and startups at Capital Factory, Texas. He recently served on the Texas Governor Abbott’s COVID-19 task force on Innovation, helping them unlock data to better decisions on the response and recovery in the State. Ganesh teaches a course on ‘Product Management and Strategy in Technology-Driven Markets’ every Spring semester at the McCombs School of Business at The University of Texas Austin.

A frequent keynote speaker, he is published at Forbes, Business Insider, and other publications and was honored by the Enterprise Management 360 as one of the top 10 tech experts revolutionizing AI. Ganesh holds a Bachelor's Degree in Mechanical Engineering from the University of Calicut, India, and an MBA from UT Austin. 

Ganesh shares what led him to start working in the AI space and advises investors and entrepreneurs. As a huge technology optimist, he discusses how he sees the industry evolving post-COVID-19, 

You can visit BeyondMinds at www.beyondminds.ai, and via LinkedIn at www.linkedin.com/company/beyondminds/.  

Ganesh can be contacted via email at gpadmanabhan@gmail.com, via LinkedIn at www.linkedin.com/in/padmanabhan, and via Twitter at www.twitter.com/_ganeshp.  

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Direct download: Ganesh_Padmanabhan_of_BeyondMinds_V2.mp3
Category:general -- posted at: 6:00am CDT

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

For family and friends funding, sometimes a promissory note is used to set up a loan.

Here are some key points to consider in reading a promissory note:

  1. The note summary section establishes the relationship between the borrower and the lender, the date of the note, the total loan amount, and the agreed-upon interest rate. 
  2. The terms of repayment section defines how the loan will be repaid.
  3. The late fee options typically include a late fee penalty. This clause documents either a fixed amount, such as $100 in addition to the current payment due, or a percentage of the payment due such as 1% per week.
  4. The prepayment option may help the lender as well as the startup. For example, follow-on accredited investors might prefer a loan to be paid off prior to closing their investment deal.
  5. Family and friend loans are intended to be more supportive, so you may choose language that allows time to “remedy” the default within X number of days or weeks. 


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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Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Jeffrey Cherry, Founder and Managing Partner at Conscious Venture Partners, LLC, and Founder/Executive Director of Conscious Venture Lab.

Headquartered in Baltimore, Maryland, the Conscious Venture Fund II (the “Fund” or “CVFUND 2”) is an early-stage venture capital fund by Conscious Venture Partners. The fund partners with their business accelerator the Conscious Venture Lab. The fund and the accelerator exist to train and invest in diverse and under-estimated entrepreneurs who are creating companies operating at the intersection of profit and purpose, solving big problems for cities and using technology to break down all kinds of barriers to access. 

The fund invests in companies that use societal purpose as the foundation for long-term sustainable value. The investment philosophy is built on the foundation of 30+ years of entrepreneurial experience and 16 years of research on the factors that determine which companies consistently innovate and outperform their peers. These companies operate with a specific and identifiable multi-stakeholder operating system, create value for all stakeholders and offer exceptional financial returns for shareholders.

Jeff is a frequent speaker on and writer of the topics of impact investing and new models of business. He was named a Baltimore Business Journal Tech 10 awardee in 2018, and in 2019 the Conscious Venture Lab was named one of the world's 10 greatest social impact accelerators. In December of 2019, Jeff was honored by the Vatican and the Laudato Si Challenge Foundation, with the inaugural Laudato Si Challenge Impact Award for leadership in the transformation of capitalism. More recently Jeff was just named as the Technical.ly 2020 Baltimore Impact Leader of the Year. Jeff serves on the board of directors of Sinai Hospital in Baltimore, the board of sponsors for the Sellinger School of Business at Loyola University Baltimore and is on the Advisory Board of the Maryland Momentum Fund. Jeff is an evangelist for the transformation of capitalism, attempting to reshape cities - like Baltimore - and lives through a more human-centered form of work.

Jeff has recently had the honor to present at The University of Maryland, The Darden School at the University of Virginia, Yale University, Columbia University, The Booth School at the University of Chicago, and The University of Baltimore.

Jeff is a recovering NCAA DIII Football player and a martial artist with a Black Belt in Tae Kwon Do and extensive experience in Krav Maga.

Jeff shares his investment thesis and discusses some of the startups the fund has invested in. He discusses what excites him now in the sector and advises startups and investors.

You can visit Conscious Venture Partners at www.consciousventurelab.com, via LinkedIn at www.linkedin.com/company/conscious-venture-lab, and via Twitter at https://twitter.com/cvlab26?lang=en.  

Jeff can be contacted via email at jcherry@cvpartners.vc, via LinkedIn at www.linkedin.com/in/jeffcherry26, and via Twitter at www.twitter.com/JCherry26_CUA

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Direct download: Jeffrey_Cherry_of_Conscious_Venture_Partners_LLC.mp3
Category:general -- posted at: 6:00am CDT

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

In negotiating the valuation, it’s important to understand the impact of that valuation on follow-on rounds and the exit.

A waterfall analysis maps out the cap table with subsequent rounds of funding.

To run a waterfall analysis, create a spreadsheet with the cap table owners and the current fundraise round.

Include the owners, the pre, and post-money valuations.

Then apply the standard valuation of follow-on rounds of funding that will be required. 

In this exercise, it’s important to gain agreement with the startup on the exit and what is required. 

Many early-stage startups have unrealistic expectations about the exit value.

Take into consideration the impact of convertible notes, participating and non-participating preferred shares, liquidation preferences, options pools, and various exit scenarios.

Vary the valuation on the current round to see the impact on the final exit value. 

Finally, discuss the results with the startup as part of your negotiations.


T
hank 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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Direct download: Waterfalls.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Connor Davidson, Partner at Atlanta Seed Company.

Established in December of 2019, the Atlanta Seed Fund I aims to expand upon their mission of bringing access to high-quality, early-stage investments to their clients. The Fund’s primary purpose is to purchase minority interests in Seed and Series A technology companies across the US, primarily located in secondary markets. They provide a level of service and accountability rare in today’s world of private investments. 

Atlanta Seed Company believes private investors deserve complete transparency as to where their dollars are invested, how company leadership is performing, and what the primary challenges and opportunities are with each investment. Through this transparency, their private investors are better able to make intelligent investment decisions and maintain a healthy balance in their own individual portfolios.

Connor previously worked for True Wealth Ventures in Austin, Texas, and has an extensive background in financial analysis and asset management. He received both a BBA and BS from Southern Methodist University in 2011 and an MBA from the University of Texas at Austin in 2017. He is actively involved in the Atlanta community through Skyland Trail and the Southern Capital Forum.

Connor discusses his investment thesis and how he sees the market evolving for venture funding. He also speaks about one of his current startups and some of the challenges investors and entrepreneurs face.

You can visit Atlanta Seed Company at www.atlantaseedcompany.com, and via LinkedIn at www.linkedin.com/company/atlanta-seed-company/about

Connor can be contacted via email at connor@atlantaseedcompany.com, and via LinkedIn at www.linkedin.com/in/connordavidson1989

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Direct download: Connor_Davidson_of_Atlanta_Seed_Company.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Jim Thomas, Partner at Kirenaga Partners.

Kirenaga is a Japanese term used to describe a knife or sword blade. It literally translates to the duration of sharpness or amount of edge retention.

Headquartered in Orlando, Florida, Kirenaga Partners is an early-stage venture capital firm focused on building great businesses from cutting-edge technologies. They invest in early-stage venture companies that have developed products and are on the verge of initial commercialization, at the stage they call “Post-Technical Validation and Pre-Commercialization.” 

Kirenaga Partners were drawn to the term Kirenaga because it represents the principles they aspire to embody as a company – to find and maintain a distinctive edge in everything they do. It takes a commitment to excellence and great craftsmanship to balance the metallic properties of hardness and toughness to create a blade with high “kirenaga.”

Jim has an extensive background working with non-profits, specifically those aligned with supporting new technologies in and around the Central Florida area. His focus at Kirenaga is enhancing investor relations, helping portfolio companies navigate pitch competitions, and spreading the word about the incredible growth of the Florida startup ecosystem.

Since moving to Orlando in 2011, Jim has been a staunch advocate and supporter of its ecosystem. He was the President of the Orlando Regional Chamber of Commerce, one of the highest awarded COC's in the country, where he worked to shed light on how quickly the Orlando region was becoming a global leader in not only entertainment and tourism but the ideal place to start, grow, or relocate a business. After working with the Chamber for a few years, Jim left to become CEO of the Central Florida Tech Alliance, where he could focus on fostering the continued growth of the region’s tech ecosystem by advocating for the tech community as well as inspiring collaboration between established businesses and startups. 

Jim holds both a Bachelor of Science and a Masters Degree in Public Policy and Management from the University of Southern California. His current philanthropic efforts include being a Board Member of Project Opioid, a non-profit committed to curbing opioid misuse and deaths across the state of Florida.

Jim discusses the state of the venture capital industry and what he thinks will be the biggest change in how startups are funded. He shares his investment thesis and advises startups and investors.

You can visit Kirenaga Partners at www.kirenaga.com, via LinkedIn at www.linkedin.com/company/kirenaga-partners, and via Twitter at www.twitter.com/KirenagaPtrs

Jim can be contacted via email at james.thomas@kirenaga.com, and via LinkedIn at www.linkedin.com/in/jamespaulthomas

Music courtesy of Bensound.

Direct download: Jim_Thomas_of_Kirenaga_Partners.mp3
Category:general -- posted at: 6:00am CDT

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

The Cap Table is an important part of any diligence process.

In reviewing a startup’s Cap Table, look for these signs of a problem:

  • The current team has little equity and thus little incentive to see it through to an exit.
  • The Cap Table is complicated with multiple share classes.
  • The early rounds came with complex rights and terms including liquidation preferences, ratchets, and clawbacks.
  • Founders who left the company still own substantial amounts of equity.
  • There’s no options pool which means all compensation will need to be paid out of cash.
  • There are too many individuals on the Cap Table.
  • Convertible notes, options, warrants, and other items are not listed in the Cap Table but exist in the business. 
  • Existing investors retain sign-off rights on additional funding.

The Cap Table is a standard due diligence document so don’t invest without first reviewing 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 

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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Direct download: Problem_Signs_in_a_Cap_Table.mp3
Category:general -- posted at: 6:00am CDT

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

Investors review the cap table as part of their diligence process. 

They look for the following in the cap table:

The founders have a large enough stake that keeps them motivated.

Those who have very little ownership will most likely not stay with it for the long haul.

The right people need to have enough equity to make the business successful.

The founders should have 40-50% - or greater - after the Series A.

There shouldn’t be too many people on the cap table in early-stage companies.  

There should be no shell companies.

For those who want to use crowdfunding, make sure you create a special purpose vehicle for gathering them into one place on the cap table.

Show the cap table in its fully-diluted form so as to include options, warrants, and restricted stock.

There should not be too much dilution from the investors coming in especially in the early stages.


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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Direct download: What_Investors_Want_to_See_in_a_Cap_Table.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Eric Levine, Fitness Expert, Investor, and Founder and CEO of Eric Levine Global.

Eric started in the fitness industry in 1979, when he was the first franchisee for Golds Gym, and opened up a chain of six clubs. These six clubs were the most profitable in the entire Gold’s chain of more than 100 clubs. During that time Eric established Super Gym Advertising and Marketing company, the exclusive worldwide agency for all Gold’s Gyms, winning many international awards including the silver medal at Cannes! Eric then became a partner with Ray Wilson Family Fitness Centers, which grew to 72 locations. Eric went on to Asia and created California Fitness in Hong Kong, Singapore, Taiwan, Korea, Thailand, Vietnam, and Australia. His clubs broke every imaginable record for fitness centers around the world. Eric then sold the chain of California Fitness centers to 24Hour Fitness, retaining a share in that company. In 2004 24Hour Fitness sold for an incredible US$1,700,000,000. Eric was also the founder of Planet Yoga and Bikram Yoga in Asia, the first large yoga studios anywhere! 

Eric is currently an investor with Mark Mastrov in New Evolution Ventures which owns and manages such companies as UFC gyms worldwide. Eric has an exciting new company, combining with Revolution Precrafted, in a partnership with world champion boxing legend Manny Pacquiao! The new company is called HiTT by Manny, and provides a boxing and full-body workout in a boutique setting. Eric is also the CEO of Eric Levine Global Fitness Expert, a fitness consulting company specializing in all aspects of the industry.

Eric advises startups and investors and discusses how he sees the fitness industry evolving. He shares his investment thesis and some of the challenges startups face. 

You can visit Eric Levine Global at http://ericlevineglobal.com/.

Eric can be contacted via email at eric@ericlevineglobal.com, and via LinkedIn at www.linkedin.com/in/ericlevineglobal

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Direct download: Eric_Levine_of_Eric_Levine_Global.mp3
Category:general -- posted at: 6:00am CDT

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

A fully-diluted cap table shows the impact of the conversion of convertible notes.

A convertible note has a date of issue, an interest rate, a discount rate, a valuation cap, and a maturity date.  

Upon maturity, the debt typically converts to equity.

The conversion is based on the principal amount, accrued interest, and the discount offered. 

To calculate the impact on your cap table, you’ll also need to know the number of shares issued and outstanding. 

The valuation cap sets the maximum value of the company upon conversion.

Let’s say we have a $1M convertible note, with a 10% discount, a 5% interest rate, a $3M valuation cap, and a maturity date of 3 years.

Let’s say the company has 1M shares outstanding and the valuation of the company is $5M at the next round of funding. 

Non-convertible noteholders would get $5M divided by 1M shares, or a price of $5 per share. 

The convertible noteholders will get the valuation cap divided by the number of outstanding shares, or $3M/1M or $3 per share price.

The convertible noteholders will get their shares at a lower price because of the valuation cap. 

The convertible note investors investing $1M divided by $3 per share, equals 333,333 shares.

The interest rate and discount rate would further reduce the price the investors pay for their shares.

These shares are added to the cap table which dilutes the value of the shares of the existing 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/ 
For upcoming Events, check out https://tencapital.group/events/ 

For Feedback please contact info@tencapital.group  

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Direct download: How_to_Handle_Convertible_Notes_in_a_Cap_Table.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Phil Pelucha, Chief Empowerment Officer at Billionaires in Boxers.

Billionaires in Boxers currently provides podcast publicity for circa 100 current and future industry leaders, produces over 50 business podcasts, and manages award-winning podcasts, TV, and movie business content for 15+ satellite TV networks globally.

Ranked as one of the Top 100 Podcasters in the world, Phil has been podcasting for over 12 years and has over 10,000 hours of podcasting under his belt. He has grown & sold two podcast networks before going on to scale two professional B2B service companies – all using the power of podcasting. 

Phil discusses the state of investing, the growth rate, and where he sees the podcast industry going. He also shares some of the challenges podcasters face.

You can visit Billionaires in Boxers at www.billionairesinboxers.com, and via LinkedIn at www.linkedin.com/company/billionaires-in-boxers/.  

Phil can be contacted via email at phil@billionairesinboxers.com, and via LinkedIn at www.linkedin.com/in/philippelucha.

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Direct download: Phil_Pelucha_of_Billionaires_in_Boxers.mp3
Category:general -- posted at: 6:00am CDT

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

It’s important to manage your cap table as you go. Fixing it later will cost you time and money.

Here are some key points for managing your cap table:

Consider setting up your cap table with a provider that keeps track of all transactions in one place.

Founders should take ownership of the cap table and make sure it includes all transactions.

Create an options plan to provide an incentive to employees. This will reduce your need to use cash for compensation.

Keep the cap table up-to-date with the current share price and ownership stakes. 

Include all transactions including stock sales and options exercised so you are up to date.

Track the vesting schedules and update the cap table with these as well. 

Include all convertible notes, warrants, and restricted stock at the time of issue so you don’t lose track of them. 

Keep a fully diluted version of the cap table as well. 

Keep all documents such as subscription agreements, options offerings, and convertible notes in one place. 

Don’t delay in fixing the cap table, but fix it as you go.


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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Direct download: How_to_Manage_the_Cap_Table.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Filipe R. Portela, Managing Partner at COREangels Impact.

COREangels Impact makes angel investing professional and global, improving outcomes while contributing and enjoying the journey. They are a pre-seed impact investment fund focused on European social & environmental impact projects. COREangels is a network of people who are passionate about helping entrepreneurs launching innovative businesses by professionally investing as a business angel. They are available to accept higher risks and help founders add value and they put in the initial funding and go with promoters to create attractive startups to reach new heights. 

Filipe has been an entrepreneur for the last 20 years in the IT, health, and impact sectors. He has also been an investor for the last 10 years directly and indirectly via platforms and investment vehicles. 

Previously, Filipe worked with European Innovation Council (EIC) as the Senior Investor Relations Manager connecting the top 5% of startups and scaleups (from a €2B portfolio) with top investors and was the South European Director for Seedrs, the leader European equity-crowdfunding platform (+800 startups funded with +€750M).

He graduated from the University of Porto (MBA & MSc in Medical Informatics) and is an avid sci-fi fan, investor in alternative assets, and a professional impossible dreamer.

Filipe discusses the state of angel investing, what excites him right now, and some of the challenges investors and startups face. 

You can visit COREangels Impact at www.coreangels.com, and via LinkedIn at www.linkedin.com/company/angelsimpact

Filipe can be contacted via email at fportela@coreangels.com, via LinkedIn at www.linkedin.com/in/filiperportela/, and via Twitter at www.twitter.com/filiperportela.  

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Direct download: Filipe_Portela_of_COREangels_Impact.mp3
Category:general -- posted at: 6:00am CDT

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

It’s important for investors to see your cap table in its fully diluted form.

The total number of shares issued or outstanding will determine the value of each share from which the shareholder can determine their percent ownership.

For startups, issued shares and outstanding shares are the same thing. 

Authorized shares do not apply.

In addition to the outstanding shares, you’ll need to add options, convertible notes, restricted stock, and warrants.

Options granted to employees must be counted.  

You’ll need to include those that have been exercised and those that have not yet been exercised.

Some unexercised options may never turn into shares as the granted options expired unused.

Expired options unused will require an update to the cap table. 

Next, you’ll need to convert the convertible notes into shares.

Conversion to equity happens either on a follow-on fundraise, or at the maturity of the note. 

Here the convertible note will increase the number of shares on the cap table based on the investment and valuation cap of the note.  

You’ll need to add restricted stock which is often used instead of options for its tax benefits.

Finally, you’ll need to add the warrants. These are options to buy stock at a specified price during a specified period.

Just like options, not all warrants may end up being used, but in a fully diluted cap table show them as if they were exercised.

Once the warrant expires unused, then it comes off the cap table. 

 

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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Direct download: The_Fully_Diluted_Cap_Table.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Tom Byrnes, Founder and CEO of ThreatSTOP.

Headquartered in Carlsbad, California, ThreatSTOP uses real-time curated threat intelligence to block threats at firewalls, routers and DNS servers, which isn’t new, but until now has required large security teams, expensive threat intel feeds, and significant manual effort. ThreatSTOP’s cloud platform uses security automation to make it possible for companies of any size to defend their networks with real-time threat intelligence. 

ThreatSTOP’s world-class security team curates the latest threat information from more than 50 public and proprietary sources including trust groups and law enforcement, and dynamically updates your policy as the threat landscape changes.

Tom is a long-standing member of the global cybersecurity community, serving in the U.S. Army for 13 years and ultimately joining the seminal tactical networking group. In the private sector, Tom’s work started with designing large-scale global networks and providing technical advice and leadership for a number of successful startups that all resulted in successful acquisitions. Tom holds two patents in network security using DNS and is credited as the inventor on two additional patent applications. An active member of the IEEE, ISSA, and Infragard, Tom speaks regularly at conferences on the topic of security. Ever the adventurer, Tom is an off-road racing enthusiast and was part of the JCR/Honda team that won seven Baja 1000 races in a row from 2007 to 2014. When not on the road securing the world or seeking the unknown, he lives in North San Diego County with his wife, two sons, and their rescue dog.

Tom shares how and why ThreatSTOP was formed. He advises entrepreneurs and investors and shares how he sees the cybersecurity industry evolving.

You can visit ThreatSTOP at www.threatstop.com, via LinkedIn at www.linkedin.com/company/threatstop-inc-/, and via Twitter at www.twitter.com/threatstop/

Tom can be contacted via email at tomb@threatstop.com, and via LinkedIn at www.linkedin.com/in/tomas-tom-byrnes-662211/

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Direct download: Tom_Byrnes_of_ThreatSTOP.mp3
Category:general -- posted at: 6:00am CDT

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

If you have too many former founders with stock who no longer work at the startup, then you may need to clean up your cap table. 

Due to a lack of a vesting schedule, those founders took substantial tranches of stock without staying long enough to build meaningful value.

If this stock amount is significant, then it will hurt the business later.

That stock needs to be set aside for future employees or to reduce the impact of dilution from future investors.

To resolve this issue, go to the departed founders and offer to buy them out.

In the negotiations, you can offer them a price which matches their contribution.

If they decline, then you can threaten to shut the business down in which case the stock will be worthless.

Since you’ve built a business, they will recognize this as a real threat because you can start a new one without them.

The old saying in the startup world is, “10% of something is better than 100% of nothing”.

Most founders will recognize they have something of value and will not want to see it go to zero.

It’s important to clean up the cap table early on and not let it persist.

 

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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Direct download: How_to_Clean_Up_the_Cap_Table.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Jeremy Carter, Managing Partner at Soterra Capital.

With offices in Austin, Texas, and Louisville, Kentucky, Soterra Capital invests in small to mid-size private companies with capable management teams and fundamentally strong operations. They are seeking businesses with enterprise values from $5 to $30 million with the capacity to underwrite larger transactions under the right circumstances. They currently have three portfolio companies under management. Soterra Capital is industry agnostic, but have unique experience in manufacturing, chemicals, distribution, supply chain, energy, transportation, real estate, and technology. They are generally focused in the midwest and the southern U.S. but are open to opportunities anywhere in the country. 

Jeremy has spent over two decades managing a wide range of businesses and product programs. He is also the CFO of MXD Process, a manufacturer of chemical processing systems and portfolio company of Soterra Capital. Prior to that he was a managing partner with Baines Creek Capital, where he oversaw private equity and special situation investments and fundraising.

Jeremy advises entrepreneurs and investors, and discusses what he thinks will be the biggest change in the industry in five years. He also shares some of the challenges investors and startups face.

You can visit Soterra Capital at www.soterracap.com, and via LinkedIn at www.linkedin.com/company/soterra-capital.  

Jeremy can be contacted via email at jcarter@soterracap.com, and via LinkedIn at www.linkedin.com/in/jeremyc100

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Direct download: Jeremy_Carter_of_Soterra_Capital.mp3
Category:general -- posted at: 6:00am CDT

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

So, who gets access to the cap table?

In general, the CEO, CFO, the board of directors, and investors with information rights get access on an ongoing basis.

Attorneys, auditors, and other financial professionals may get access to the cap table for specific projects.

Employees generally don’t get access to the full cap table.

Employees should get information about their ownership after running a fully diluted cap table.

It’s important that employees know the value of their equity, but they don’t need to know everyone else’s equity,

Employees should also know the potential for dilution from future financings.

Some companies are moving to greater transparency and may give more information about the ownership in aggregate such as how much ownership do non-executive employees have.

If one wants access to the cap table, then they should focus on joining a company at the management level such as a co-founder position. 


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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Direct download: Who_Gets_Access_to_the_Cap_Table.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Francisco Jardim, Co-Founder and Managing Partner at SP Ventures. 

Founded in 2007, SP Ventures is one of the most traditional Venture Capital managers in Brazil. They temporarily acquire equity interests in small or medium-sized companies with innovative technologies and a high potential for non-mid-term growth. They are an early-stage fund investing in tech-powered solutions for agriculture and food across Latam. Its mission is to guarantee the food security of the planet through a sustainable and fair agribusiness chain.

Francisco “Chico” says that working with idealistic, game-changing entrepreneurs is what gets him up in the morning. He deeply believes that entrepreneurship is the answer to humanity’s gravest challenges. He is most passionate about protecting nature while feeding a growing global population.

Chico started investing in agtech over a decade ago and has not looked back. He has led 34 deep tech venture investments and supported founders in over a dozen boards. He has also launched & sits in the credit committee of the region´s first Venture Debt Fund (BVD – Brazil Venture Debt 1).

Before starting SPV, he worked in financial services and had a rather nomadic youth. He grew up on 3 different continents and in 10 cities. Currently, he is on the board of some of the main companies that are leading the digital transformation and the new leap in productivity in the continent's agribusiness. In his spare time, Chico enjoys spending time with marine life and exploring shipwrecks.

Francisco discusses some of the biggest changes he thinks we will see in the next five years, he advises entrepreneurs and investors, and he shares his investment thesis for the agricultural sector.

You can visit SP Ventures at www.spventures.com.br, and via LinkedIn at www.linkedin.com/company/sp-ventures.   

Francisco can be contacted via email at francisco@spventures.com.br, and via LinkedIn at www.linkedin.com/in/franciscojardim

Music courtesy of Bensound.

Direct download: Francisco_Jardim_of_SP_Ventures.mp3
Category:general -- posted at: 6:00am CDT

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

The cap table stands for capitalization table and tracks the equity ownership in a company.

It’s important to be able to read a cap table and understand what it says.

The key terms to know include the following:

  • Pre-money -- the value of the shares before the investment.
  • Post-money -- the value of the shares after the investment.
  • Price per share -- the post-money valuation divided by the total number of shares.
  • Common stock -- basic ownership share in a company.
  • Preferred stock -- a stock with special rights and privileges.
  • Convertible preferred stock -- preferred stock that can convert to common stock.
  • Participating preferred -- preferred stock with a liquidation preference.
  • Stock options -- the right to buy a specific number of shares at a specified price.
  • Warrants -- the right to buy stock at a specific price.
  • Restricted stock -- stock used instead of options for tax purposes.
  • Authorized shares -- total number of shares the company has authorized for present and future use.
  • Outstanding shares -- total number of shares that have been issued.
  • Fully diluted shares -- total number of shares including all warrants, options, and restricted stock exercised.

It’s important to know these terms so you understand what the ownership stake means.


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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Direct download: Reading_Cap_Tables.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes George Ferris, Founder and Managing Member at Bilgola Capital LLC.

Bilgola Capital invests in small dynamic companies with fundamentally strong business models that are led by ambitious and professional management teams. Bilgola provides long-term patient capital and seeks to build companies with sustainable enterprise value. 

Bilgola Capital invests in two types of companies: 

Early-stage, hyper-growth technology companies generally burning cash with large addressable markets (typically SaaS companies); and

Growing companies generating EBITDA of between $1-4 million and enterprise values less than $20 million.

George has been running Bilgola Capital for almost a decade now and works closely with management teams to help them accelerate growth and build profitability.

Prior to founding Bilgola, George had a career in finance as a CFO of a large global energy company, in private equity, and in investment banking. He was the CFO of Louis Dreyfus Highbridge Energy (“LDHE”), a global company with over 500 employees, where he led the execution of several highly successful multi-billion dollar financing transactions and strategic M&A transactions.

George was also the Managing Director at Allied Capital in Washington, DC, where he was responsible for originating, executing, and managing a portfolio of investments in the business services, healthcare services, and consumer products sectors; he led approximately $650 million of investments in subordinated debt and equity securities and served on the boards of six companies.

Prior to that, George was an Investment banker with Merrill Lynch, Goldman Sachs, and Macquarie Bank (Australia), where he managed transactions for companies in a variety of industries including marketing services, advertising, information services, metals and mining with approximately $13 billion of M&A transactions and over $7 billion of debt and equity financing transactions.

George is currently an Adjunct Professor of Finance at the McDonough School of Business at Georgetown University. His academic background includes an MBA from the Wharton School of Business at the University of Pennsylvania and a Bachelor of Commerce (Finance) from the University of New South Wales (Australia).

George discusses his investment thesis, and some of the challenges his startups face. He also shares with Hall what he thinks are good opportunities to pursue.

You can visit Bilgola Capital at www.bilgolacapital.com, and via LinkedIn at www.linkedin.com/company/bilgolacapital/about.  

George can be contacted via email at ferris@bilgolacapital.com, and via LinkedIn at www.linkedin.com/in/george-ferris

Music courtesy of Bensound.

Direct download: George_Ferris_of_Bilgola_Capital_LLC.mp3
Category:general -- posted at: 6:00am CDT

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

Term sheets tend to favor the founder over the investor or the other way around. 

Here is how to tell if you have a founder-friendly term sheet:

  • Valuation skews to the higher end of the market in favor of the founders.
  • There’s no liquidation preference for the investors.
  • The option pool shares will be paid for by both founders and investors and not founders alone.
  • There are no performance reviews nor non-compete clauses for the founders.
  • There are no dividends paid to the preferred shareholders.
  • The term sheet uses a broad-based weighted average for anti-dilution and includes provisions for the investors to “pay to play”.
  • The investors must pay their own legal expenses.
  • The term sheet does not force arbitration which means the founders and investors can use the courts.

Look for these key points in a proposed terms sheet to indicate which party it favors.

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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Direct download: Founder_Friendly_Terms_Sheet_revised_May_2021.mp3
Category:general -- posted at: 8:31am CDT

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

The cap table tracks the ownership in the company.

In applying the company’s equity to the business there are several mistakes to avoid:

One - Not vesting the equity over time. 

It’s important to set up a vesting schedule for the equity to vest over the duration of the project.

If the employee or contractor departs before the vesting schedule is completed, then the unvested shares return to the company.

Vesting should apply to the founders as well.

It’s not uncommon for investors to unvest founder shares and put them on a vesting schedule to ensure commitment from the founders. 

Two - Not writing down all equity commitments. 

Some startups use equity to pay for things such as website development and more.

This should be documented and placed on the cap table.

Make sure equity is given for specific projects and outcomes.

Three - Not keeping the cap table in one place.

It’s easy to sign a number of notes, agreements, and other documents, but it’s important to compile the results into a single cap table.

Four - Not keeping track of tax laws.

There are several tax implications around granting equity ownership, so it’s important to keep track of them.

The most common is the need for a 409A valuation in which you have a third party value the stock for tax purposes on options.

Watch out for the issues in managing your cap table.


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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Direct download: Common_Mistakes_with_Cap_Tables.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes David Hornik, Founder and General Partner at Lobby Capital.

Lobby Capital is a venture capital firm headquartered in San Francisco, California. They join forces to collectively fund, advise, support, and mentor the next great innovators. Seven colleagues, confidants and friends have been building, advising, and funding startups for a collective 175 years and counting. Over those years their paths have crossed, at times converging and others diverging. But today they lock arms to bring you Lobby Capital — a venture capital firm that is all about the people.

For the last 25 years, David has worked closely with technology entrepreneurs to help them build transformative businesses. Prior to founding Lobby Capital, David was a partner at August Capital for 20 years. David invests in a broad range of software companies, including enterprise application, infrastructure, and SaaS businesses (e.g, Splunk, Fastly, GitLab), financial technology companies (e.g., Bill.com, WePay, PayNearMe), and consumer services (e.g., Evite, Ebates, TopHatter).

David has an eclectic educational background. He received a BA from Stanford in Computer Music, an M.Phil in Criminology from Cambridge University, and a JD from Harvard Law School. He teaches courses in entrepreneurship and venture capital at Stanford Business School and Harvard Law School and serves as a VC Partner at the Harvard Business School.

David started the first venture capital blog, VentureBlog, and the first venture capital podcast, VentureCast, and is the host of LobbyTV. He has served as the Tech Curator for the TED Conference in Vancouver and was the co-creator and host of TEDxStanford. David has received Deloitte’s Venture Capitalist of the Year award and has been honored by Forbes Magazine as a member of its Midas List of top Venture Capitalists.

David lives in Palo Alto with his wife Pamela, their four children, and their puppy Teddy. David serves on the board of GLAAD, a leading LGBTQ rights organization, and is a member of the board of the Stanford Alumni Association.

David advises investors and entrepreneurs, discusses where he sees the industry going, and shares what excites him in the space.

You can visit Lobby Capital at www.lobby.vc.

David can be contacted via email at hornik@lobby.vc, and via LinkedIn at www.linkedin.com/in/davidhornik

Music courtesy of Bensound.

Direct download: David_Hornik_of_Lobby_Capital.mp3
Category:general -- posted at: 6:00am CDT

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

As the startup grows it will add new entries to the cap table including new hires, option pools, advisors, as well as new investors.

Here’s a list of potential changes to the cap table to watch for:

New hires and options pools must be added.

Employees who leave before all options are vested will have unvested shares come off the cap table. 

Advisors to whom you grant options or give warrants must be added.

Convertible notes are debt instruments but hold the potential of converting to equity so must be added. 

New shares issued must be added to the cap table such as common stock.

If there’s a transfer of shares, those changes must be reflected in the cap table. 

If you issue dividends you must track these as well.

You must also track liquidation preferences and the existence of anti-dilution clauses as these have a major impact on ownership.

To account for contingencies in the cap table you should run a “fully diluted” cap table.

This shows the impact of all options and warrants being exercised and all convertible notes converting to equity.  


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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Direct download: Cap_Table_Advanced.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Harlan T. Beverly, Ph.D., Ambassador and Advisor at Disruptive Labs, and author of “Lean Startings: A novel about creating a lean startup and life's interruptions” and “Navigating Your Way to Startup Success”. 

Headquartered in Santa Monica, California, Disruptive Labs is a new startup studio making investments in startups by building MVPs and setting up automated sales in exchange for equity. Disruptive Labs helps founders that have proven customer need but cannot build an MVP without investment and cannot get investment without an MVP. They break the cycle by building MVP products for equity and stay on to help scale up sales through sales and marketing automation and partner with ambitious teams to turn complex problems into creative opportunities.

Harlan is a 4-time CEO and 3-time startup founder with a special focus on the consumer technology space. He is currently VP of Engineering at Beneplace, LLC and a lecturer at Texas State University. Harlan has 21 published technology patents and numerous scholarly articles as well as two published books. Previously, Harlan was a lecturer at The University of Texas at Austin where he taught entrepreneurship and helped run the Texas Venture Labs. Harlan specializes in fundraising and growth marketing for consumer, health, and technology companies. He has founded three B2C startups and sold two of them: Bigfoot Networks, Inc. and Karmaback, Inc. Harlan was also CEO of Key Ingredient, Inc which he sold in 2018. He is not actively investing, but has experience as an angel investor and a venture investor and is an active mentor at Capital Factory in Austin, TX. He received his B.S. in Electrical Engineering from Ohio Northern University, an M.B.A. from The University of Texas at Austin, and his Ph.D. in Business from Oklahoma State University.

Harlan discusses what’s next for Disruptive Labs, and speaks about crowdfunding platforms and the state of the investing industry. He shares with Hall the inspiration behind his latest book “Lean Startings: A novel about creating a lean startup and life's interruptions”, and what surprised him the most whilst writing it.

You can visit Disruptive Labs at www.disruptivelabs.io, and via LinkedIn at www.linkedin.com/company/disruptive-labs/about

You can visit Harlan’s website at www.fastai.com and purchase his books at https://amzn.to/377aR3b. Harlan can be contacted via email at harlantbeverly@gmail.com, via LinkedIn at www.linkedin.com/in/hbombers/, and via Twitter at www.twitter.com/harlanbeverly.

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Direct download: Harlan_Beverly_of_Disruptive_Labs.mp3
Category:general -- posted at: 6:00am CDT

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

Cap Table stands for Capitalization Table and tracks the equity ownership in the company.

This includes the number of shares each one owns and what percentage of the company it represents.

It also lists the total number of shares issued as well as the number of authorized shares by the board.

Your number of shares divided by the total number of shares issued shows your ownership stake.

Each one is listed with a pre-money valuation, what it’s worth before the investment on that round, and post-money valuation, what it’s worth after the investment.

Finally, there’s a price per share.

The Cap Table should list all options, warrants, and convertible notes. Listing all forms of ownership as exercised shows a “fully diluted” Cap Table. 

From the Cap Table, the investor can model out the impact of dilution from future funding rounds.


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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Direct download: Cap_Table_Basics.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Isidoros Sideridis, CEO and co-Founder at Pobuca.

Pobuca offers a go-to-market platform for brands and retailers that helps them boost their customer experiences. With Pobuca you can engage your customers and empower your people in sales, marketing, and customer service. Pobuca offers a state of the art AI-based software and a broad range of services like consulting, technical integration, and after-sales support aimed at the digital transformation of their clients.

Isidoros is a technology entrepreneur who has been working nearly all of his life. He started his company at the age of 26. He received the Microsoft Partner of the Year Award in 2011 and 2016 for Pobuca, and participated as a keynote speaker in many technology events & conferences.

Isidoros was born in Athens and studied Mechanical Engineering at the University of Patras, where he was also a member of BEST’s (Board of European Students of Technology) management board. He loves rationalizing nature’s wonders and won the Science Communication contest of FameLab in Greece.

Isidoros shares his plans for Pobuca, advises investors and entrepreneurs and discusses some of the challenges companies face in the industry.

You can visit Pobuca at www.pobuca.com, via LinkedIn at www.linkedin.com/company/pobuca, and via Twitter at www.twitter.com/PobucaHQ.   

Isidoros can be contacted via email at i.sideridis@pobuca.com, via LinkedIn at www.linkedin.com/in/sideridis, and via Twitter at www.twitter.com/isideridis.  

Music courtesy of Bensound.

Direct download: Isidoros_Sideridis_of_Pobuca.mp3
Category:general -- posted at: 6:00am CDT

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

An advisory board is a group of three to five people who provide advice on how to grow your startup.

They bring experience, contacts, and domain expertise.

Advisory boards help the company grow and succeed.

In recruiting for your advisory board, consider the following:

Recruit diverse skills, networks, and experiences so they don’t overlap.

Use the advisors to fill in the gaps of the startup team which is most often a skeletal group.

Use advisors to raise the profile of the startup with their reputations.

They can give the startup branding to help position the company with clients.

You can highlight the advisory board for recruiting the team, investors, and customers. 

They are different from a board of directors in that they don’t have any fiduciary roles and work informally with you on growing your business.

An advisory board can improve your odds at success.


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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Direct download: Purpose_of_an_Advisory_Board.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Bradford Shepherd, Managing Partner at Sugarhouse Investments.

Headquartered in Austin, Texas, Sugarhouse Investments is a real estate private equity firm that provides investors with passive investment opportunities in institutional-quality commercial real estate and they help fund cash-flowing commercial real estate projects to move them forward. Together they build long-term wealth and passive income streams.

The deals they fund preserve capital investments, collect consistent cash flow and build equity through future capital appreciation of the assets.

Real estate investing has been part of Brad’s life since his college days. He earned his undergraduate degree in Finance with an eye towards commercial real estate, interning with one of the premier large commercial property portfolio companies in the Northwest. He purchased his first rental property within months of graduating college and quickly added several more. 

His experience includes management of hotel and vacation properties, development of retail and hospitality space, and raising capital from both domestic and international investors. He's been exclusively focused on capital raising for commercial syndications since 2017. Brad and his young family have called Austin home since 2011.

Brad discusses the state of real estate investing and how he sees the industry evolving. He also shares his investment thesis and some of the challenges investors face.

You can visit Sugarhouse Investments at www.sugarhouseinvestments.com, and via LinkedIn at www.linkedin.com/company/sugarhouseinvestments/.

Brad can be contacted via email at brad@sugarhouseinvestments.com, via LinkedIn at www.linkedin.com/in/bradshep/, and via Twitter at www.twitter.com/bradshep 

Music courtesy of Bensound.

Direct download: Brad_Shepherd_of_Sugarhouse_Investments.mp3
Category:general -- posted at: 6:00am CDT

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

Once you’ve found an advisor you want to bring on board, consider the compensation.

It’s important to pay the advisor something for their time and experience.

Real work requires real pay.

Not all advisors bring the same level of support to the startup.

Also consider that equity increases in value as the company grows.

Later-stage company equity is worth a great deal more than an early-stage company.

With this in mind, consider the following:

There are standard advisors who share their experience.   

For early-stage companies consider 0.25% of equity vested over one year.

For growth-stage companies consider 0.15% of equity vested over a year.

Then there are premium advisors who not only share their experience but also make introductions to investors, customers, and partners.

For early-stage companies, consider 1% of equity vested over one year.

For growth-stage companies consider 0.5% of equity vested over a year.

Set the compensation based on the stage of the company and the contribution of the advisor. 


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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Direct download: How_to_Pay_Advisors.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Donna Hamlin, CEO, & Nola Masterson, Partner at Boardwise.

Boardwise provides companies and executives with the highest quality solutions, tools, education, independent evaluations, research, breaking news, and advisory support in corporate governance and management available for governance needs around the globe.

They work with all forms of companies and organizations, including private and public corporations and associations, non-profit organizations and executives, and teams with a passion for better governance practices.

Donna is the founder and board chair of Hamlin Harkins, Ltd., a 39-year-old global management consultancy providing services in strategy, business development and performance improvement to executive teams across diverse industries. Donna helps board directors and executives discover and develop personal competencies which ensure sustainable success for themselves and their organizations. She is certified in global governance by Harvard University. A published author, she writes articles about human performance and change management.

Donna currently serves on the private company boards of Daily Pay, Inc., AussieWeb, Inc., the Themyscira Institute, and on the advisory boards for Fresh Bellies Inc., Joylux Inc., and Lead Women in Malaysia. She previously served on the board of Interhealth USA, and the compensation committees for publicly-listed companies, Trident Microsystems and Asyst Technologies.  

Nola has had a long career in venture capital investments and board of directors’ work. She sits on early-stage company boards and publicly traded company boards. Nola coaches aspirational board candidates and is passionate about getting diverse representation around the board table. As a lead investor in Portfolia Femtech Fund, she helps educate and support women investors to be comfortable investing at the angel level in companies that have products and services for women's health and wellness, from birth to menopause. She was a trailblazer for women in corporate sales management at Millipore and Ames Company, and the first biotechnology analyst on Wall Street. She is the co-founder of a DNA analysis company, Sequenom, which went public in 2000.  Nola also teaches at the graduate level at the University of San Francisco and is the co-chair of the Women Corporate Directors chapter in SF. Her work with Boardwise includes coaching and consulting with boards and individual board members. She has been honored as a pioneer by Fordham University and is a published author and dynamic public speaker.

Donna and Nola discuss their investment theses, advise startups and investors, and share some of the challenges they face.

You can visit Boardwise at https://boardwise.biz/, via LinkedIn at www.linkedin.com/in/global-board-services, and via Twitter at www.twitter.com/sciencefutures.  

Donna can be contacted via email at donna.hamlin@boardwise.biz.

Nola can be contacted via email at masterson@sciencefuturesinc.com, and via LinkedIn at www.linkedin.com/in/nola-e-masterson

Music courtesy of Bensound.

Direct download: Donna_M_Hamlin__Nola_Masterson_of_Boardwise.mp3
Category:general -- posted at: 6:00am CDT

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

In recruiting an advisor, check to see if they have what it takes to be a good one:

Have they been through the wringer?  

Those who have been tested, such as nearing bankruptcy or going bankrupt will have a deeper understanding of the challenges in running a startup.

Will their work with you put them in conflict with their current or past employer?

Those who want to compete against their previous employer may not be the best.

Are they all show and tell but haven’t built a company before?

They may not have created a unicorn but did they stand up a business and grow it?

Ask for something that they put together.

Are they invested in your business with their money in addition to their time?

Where they put their money says a great deal about their interest.

Will they learn something from the engagement just as you are learning from them?

This will make the project that much more interesting to the prospective advisor.

Can they relate to your situation directly?

Those who can only rehash past experiences may not appreciate the differences between their past and your needs.


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

Music courtesy of Bensound.

Direct download: Does_Your_Advisor_Have_What_it_Takes.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Don Rainey, General Partner at Grotech Ventures.

Headquartered in Arlington, Virginia, Grotech Ventures is a team committed to helping creative and driven entrepreneurs build technology companies that last. Their strategy is simple: early investors in high-potential technology companies. They initially invest from $500,000 to $5 million and look to continue investing and building value throughout the growth of your enterprise. 

Grotech Ventures is committed to advancing a more diverse, equitable & inclusive venture capital ecosystem. As part of this commitment, they have signed the #VCHumanCapital Pledge to submit their firm’s demographic and talent management details to support the industry’s data collection and tracking efforts.

Don currently serves or has served on the boards of Grotech portfolio companies Booker Software, Ceterus, Clarabridge, Contactually, HelloWallet (acquired by Morningstar), ICX Media, Intellinote, LivingSocial, Passport, Payzer, Personal, PetScreening, Rent Ready, The Royalty Exchange, WiserTogether, and Zenoss.

Don is a strong proponent of technology transfer and education and devotes much time to both areas. In 2010, he was appointed to a third term as an emerging technology consultant to the Chief Information Officer of the US Department of Defense through the DeVenCi Program, which is tasked with researching and nominating companies to solve the DoD’s unmet technology needs. In 2011, Don was appointed to the JMU Board of Visitors by Virginia Governor Robert McDonnell. During this four year appointment, he and other board members are responsible for overseeing the effective governance of the university. He also serves on the Board of Directors of James Madison Innovations, Inc., a non-profit corporation which helps commercialize intellectual property produced at JMU. In 2012, he was named to the Board of Directors of the Innovation and Entrepreneurship Investment Authority, which is the parent authority for The Center for Innovative Technology.

Don earned a Bachelor of Business Administration from James Madison University and a Master of Science in Bioscience Management from George Mason University.

Click here to read Don’s complete bio.

Don discusses what excites him now in venture capital. He also advises investors and entrepreneurs and shares what he thinks are some good investment opportunities.

You can visit Grotech Ventures at www.grotech.com, via LinkedIn at www.linkedin.com/company/grotech-capital-group, and via Twitter at www.twitter.com/grotechventure

Don can be contacted via email at drainey@grotech.com, and via LinkedIn at www.linkedin.com/in/don-rainey

Music courtesy of Bensound

Direct download: Don_Rainey_of_Grotech_Ventures.mp3
Category:general -- posted at: 6:00am CDT

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

Here are some warning signs you may be talking to the wrong advisor:

Their primary business-building experience came two tech generations ago.

They have business experience but only in one area such as sales or marketing.

They can relate their experience but have difficulty understanding your situation.

They have a strong ego and center most of the discussion around themselves.

They seem to be busy with other projects and take some time to get back to you.

They treat the advisory work as a joyless task.

They don’t want to write down anything but rather just chat across the coffee table.

They can’t make the company meetings, so they have little knowledge of the rest of the team and company dynamics.

They don’t follow through on their action items and it takes several reminders to get something done.

They often confirm what you already know and don’t add much value.

Their experience and contribution overlap with other advisors.

If you have the wrong advisor, it’s best to bring it up and close out the relationship amicably.

 

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  

Music courtesy of Bensound.

Direct download: Avoiding_the_Wrong_Advisors.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Christian Czernich, CEO/Founder/Managing Partner at Round2 Capital Partners. 

Round2 Capital Partners is a financing partner for European scale-ups with digital and sustainable business models. In the scale-up phase, outstanding entrepreneurs manage to transform their business from a successful venture into a real company. Round2 offers the innovative funding instruments and insights needed to master this transformation process. Founded in 2017, Round2 has pioneered revenue-based finance in Europe: a flexible, non-dilutive funding instrument.

When Christian together with Jan started to develop revenue-based finance in Europe back in 2015, Christian was driven by the vision to find better ways of backing great entrepreneurs than by diluting ownership through equity. Also, neither bank loans nor traditional rigid venture debt loans were a viable solution for funding asset-light and digital business models. Instead – he thought – by linking the funding to revenue one can offer a non-dilutive, yet at the same time highly flexible and simple funding instrument and thus solve the problem. Round2 was born.

Before founding Round2, Christian was working almost 15 years in European investment banking and Private Equity out of Vienna and Munich. He was responsible for more than 30 cross-border equity transactions with transaction sizes up to EUR 600m in various sectors and has built a leading Vienna-based investment boutique.

Christian developed his passion for entrepreneur-led young technology companies when working on his Ph.D. thesis at the Stockholm School of Economics and at Stanford University. In his research, he worked with close to 100 Founders of high-technology spin-offs from Swedish Corporations. His research won the Best Paper Award at the Academy of Management for the worldwide best research paper of a Ph.D. student in his field.

Besides entrepreneurship, Christian has a passion for education. During the last 20 years he has been educating hundreds of students on topics in finance, strategy and entrepreneurship at the Stockholm School of Economics, Stockholm University, and the Vienna University of Economics and Business at the Bachelor, Master and Executive level. This passion also led to the establishment of the Round2 Lab.

An Austrian national, Christian lives in Stockholm and Vienna with his Swedish wife and their three sons. He holds a Ph.D. from the Stockholm School of Economics and a Master in Business and Finance (with distinction) from Innsbruck University.

Christian discusses his investment thesis, advises startups and investors, and shares how he sees the industry evolving.

You can visit Round2 Capital Partners at www.round2cap.com, and via LinkedIn at www.linkedin.com/company/round2-capital-partners/.

Christian can be contacted via email at cc@round2cap.com, and via LinkedIn at www.linkedin.com/in/christian-czernich.

Music courtesy of Bensound

Direct download: Christian_Czernich_of_Round2_Capital.mp3
Category:general -- posted at: 6:00am CDT

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

Once you decide you need an advisor, you’ll need to find and select one.

Here are some key points to consider:

Start with your network and expand out from there.

Hold several conversations with the candidate advisor before making a decision.

If you need to raise awareness for your startup, consider a thought leader in the industry.

Find a mutual connection who can make an introduction.

Look for someone who compliments your skills.

If the candidate does not come from a trusted source, consider running a background check.

Focus on those who understand your strategic vision and at some level, support it.

Discuss their time availability to see if they can commit to your company.

See if they can take their experience and apply it to your business.

Avoid the war stories advisor who tells about his experience but relates nothing to your company.

Finally, look for an advisor who has some empathy for your work.

 

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

Music courtesy of Bensound.

Direct download: How_to_Select_an_Advisor.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Elio Assuncao, Founder and Director at Venture Capital World Summit.

Venture Capital World Summit is a global community for investors and investees where they help businesses get more capital and expertise as they need to scale up and grow internationally with the support, if required, from their trusted network. Their message to international businesses and entrepreneurs is simple: attend their international conferences and get in touch well before. 

Elio has an exquisite vision of life and continuous development focused on quality as a driven entrepreneur, combining a multitude of science tech with an academic background. He has over 15+ years of experience in technology analysis and artificial intelligence. Elio has been organizing events and conferences since 2012 and thus helped many businesses and entrepreneurs to develop and grow both local, national and international markets.

Elio discusses the state of startup investing and shares what he thinks, in five years, will be the most significant change. He discusses some of the challenges entrepreneurs and investors face and also advises them.

You can visit Venture Capital World Summit at www.vcworldsummit.com, via LinkedIn at www.linkedin.com/company/venture-capital-world-summit, and via Twitter at www.twitter.com/vcworldsummit.    

Elio can be contacted via email at hello@vcworldsummit.com, via LinkedIn at www.linkedin.com/in/elioassuncao, and via Twitter at www.twitter.com/eaentrepreneur

Music courtesy of Bensound

Direct download: Elio_Assuncao_of_Venture_Capital_World_Summit_Inc.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes John-Mark Collins, Co-Founder, Owner, and Operator of Electric Playhouse.

Headquartered in Albuquerque, New Mexico, Electric Playhouse is an experiential platform company building easily replicable distributable content and operational facilities for families and adults to enjoy. Electric Playhouse has one open location in Albuquerque, New Mexico, and two more in the works in Dallas and Houston. Electric Playhouse produces creative worlds for immersive and interactive experiences including games, dining & special events for all ages.

John-Mark started his educational career in art and architecture (completing two years), before taking a break from college. His earned education consists of a Bachelor of Science in Computer Science, a Bachelor of Arts in Fine Arts, and an MBA (managed to do all three of those in 6 years). However, his real education came in the form of 15 years in the hospitality industry before returning to his education. He managed restaurants and bars across the US, from Chicago to New Mexico. This experience, coupled with his education, has led him to where he is now - the owner and operator of Electric Playhouse.

Prior to launching Electric Playhouse, he started a B2B business in exhibit and experience design, Storylab Interactive, in 2016. Before that, he worked at Ideum doing exhibit design and software development, and at Sandia National Labs as a software engineer.

John-Mark is from Cleveland, Ohio originally and now resides in Albuquerque, New Mexico with his wife and two young girls - Lola (7) and Mila (5).

John-Mark advises both investors and entrepreneurs, shares how he sees the immersive experiential industry evolving, and discusses some of the challenges startups face.

You can visit Electric Playhouse at www.electricplayhouse.com, via LinkedIn at www.linkedin.com, and via Twitter at www.twitter.com/playelectric.  

John-Mark can be contacted via email at johnmark@electricplayhouse.com, via LinkedIn at www.linkedin.com/in/johnmarkcollins, and via Twitter at www.twitter.com/jmcjedi

Music courtesy of Bensound.

Direct download: John-Mark_Collins_of_Electric_Playhouse.mp3
Category:general -- posted at: 10:18am CDT

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

In working with an advisor for your startup, look for these characteristics:

  • The advisor has first-hand experience in the industry, running a business, closing sales, and more.
  • They listen and can relate your problems to actionable solutions.
  • They have been through the same challenges and experiences as you are going through.
  • They ask meaningful questions and probe to get to the bottom of things.
  • They understand you and can motivate you.
  • They have opinions and share them even if those opinions are not popular.
  • They devote the time to the advisory work.
  • They are effective communicators. They are articulate and can persuade.
  • They can help set goals with actionable steps.
  • They bring a network of investors, other advisors, and collaborators.
  • They respect the opinions of others.
  • They have passion for their work.

If you don’t see these things in a potential advisor, you may want to reconsider.


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

Music courtesy of Bensound.

Direct download: Characteristics_of_a_Good_Advisor.mp3
Category:general -- posted at: 6:00am CDT

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

In choosing a startup to advise, it’s important to find the right fit.

Here are some key points to make sure you are a good advisor to the startup.

Spend time with the startup to really understand if you can add value and if they are ready for an advisor.

Make sure you communicate well with each other and ensure the personal style fits.

Spend as much time on selecting a startup as you would an investment.

If they have other advisors, check with them about their experience.

Find out where they need the help the most.  

Ask what’s slowing them down and where they avoid engaging. That’s an indication they need help.

Avoid the day-to-day minutiae and focus on strategic objectives.

For the day-to-day work, make introductions to people who can solve those issues.

Make clear you will play the role of devil’s advocate and that you will ask a lot of difficult questions as part of your job.

Spend the majority of your time with the startup listening and only talk when you have something important to say.

Get to know the founder and others in the startup outside of work. 

Come to an agreement about the time commitment for your work with the startup.

Give the founder the hard answers as in the end, they will appreciate that more than the kudos.

If the founder seems to be scattered, help them focus on a few key priorities.

If it turns out not to be a good fit, then help the founder close it 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/ 
For upcoming Events, check out https://tencapital.group/events/ 

For Feedback please contact info@tencapital.group

Music courtesy of Bensound.

Direct download: How_to_Be_a_Good_Advisor.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes back Matthew Sullivan, CEO and Founder of QuantmRE.  

Headquartered in Newport Beach, California, QuantmRE is a real estate finance platform that originates and funds Home Equity Agreements. This new financial tool enables qualifying homeowners to get a cash lump sum from their home equity with no monthly payments, no interest and no added debt. A Home Equity Agreement is an equity based solution - it's not a reverse mortgage, it's not a loan and it's not a line of credit. Instead of charging interest, they take a share of the current equity together with a share of the appreciation if the value of the home goes up. They also share in the potential downside risk if the home decreases in value

The QuantmRE platform has also been designed to enable a wide range of investors to fund these Home Equity Agreements, including retail investors. Their platform has been designed to be a secondary market exchange where investors can build, model, manage and trade individual portfolios of fractionalized Home Equity Agreements.

Matthew is the founder of real estate crowdfunding platform Crowdventure.com and is a manager of two real estate funds. He worked with Richard Branson and his corporate finance team and was appointed a director and Trustee of Virgin’s London Air Ambulance service. Matthew went to Westminster School in London, UK and studied Law at Birmingham University before pursuing a career in finance and stockbroking, specializing in the South East Asian markets. He was an early internet pioneer and has founded companies in the United Kingdom, India, Australia and the United States in the finance, telecommunications, technology and real estate sectors.

Matthew shares where he sees the real estate industry going post-COVID-19, and what excites him now in the sector. He also updates Hall on the evolution of the company since his last interview some three years ago. 

You can visit QuantmRE at www.quantmre.com, via LinkedIn at www.linkedin.com/company/quantm-one, and via Twitter at www.twitter.com/quantmre.  

Matthew can be contacted via email at msullivan@quantmre.com, via LinkedIn at www.linkedin.com/in/mattsullivanco, and via Twitter at  www.twitter.com/mattsullivanco

Music courtesy of Bensound.

Direct download: Matthew_Sullivan_of_QuantmRE_follow_up.mp3
Category:general -- posted at: 6:00am CDT

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

Advisors take many roles in their work with startups.

You can use advisors to fill gaps in the early stage of the startup.

Some advisors provide support as informal advisors. 

There’s no set goals, meetings, or formal advisor agreement.

This is the most common way startups work with advisors.

Those advisors signed up with an agreement and a set of objectives to take on a formal advisor role.

Some advisors take the role of a mentor in providing guidance.

Mentors focus on the founder, while advisors focus on the company.

Some advisors take the role of consultant in performing very specific tasks for the company while others take on general responsibilities.

Some advisors take on the role of a board of directors.  

This can be helpful in early-stage companies that are not yet ready to form a board.

Advisors here can provide oversight to the company and help the founder keep the broader picture in mind.

Advisors bring experience, contacts, and networking.

In choosing an advisor, know what role you want the advisor to play.


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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Direct download: Advisor_Roles.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Igor Khmel, Founder and CEO of Brik.exchange.

Brik.exchange is a platform where you can trade stablecoins. BRIK is liquidity protocol for real estate that they are working on. They want to implement the power of the DeFi market and stable coins to automate the biggest asset class in the world - real estate. They have got multifamily properties confirmed for $15m, and are in the process of onboarding other $20m properties.

Brik.exchange has secured relationships with 5 leading real estate data providers, including CoreLogic. Two leading Wall Street investment banks expressed interest to provide them with 3% leverage financing as soon as they reach the $100m portfolio. They plan to reach a $1bn+ portfolio of real estate within 3 years and are looking for real estate partners and financial institutions to work with. 

Igor created and launched the Innovation Lab for Sberbank, the biggest bank in Russia and Eastern Europe. He hired and managed a team of 15 engineers and managers to create new innovative solutions for the bank and the bank's ecosystem. He got the idea when he met with alumni from the Capital One Lab at Stanford and used that Lab and their best practices as a model.

Among 20+ pilots, he developed card retargeting, an innovative banking product that uses real-time bidding technology to target online merchants when customers buy something offline. To realize this, he led the acquisition of a company that enabled this technology for Sberbank and led the integration. He initiated the sale of a 50% stake in this company to the leading Russian telecom, enabling joint use of data and technology by Sberbank and the telecom. They closed the deal based on 2x valuation - doubling the company's valuation in a single year.

Igor shares what led him to start working in the industry. He also discusses the growth rate of the sector, and some of the challenges he has faced.

You can visit Brik.exchange at www.f6s.com/daoreit.

Igor can be contacted via email at team@brik.exchange, via LinkedIn at www.linkedin.com/in/ikhmel, and via Twitter at www.twitter.com/igorkhmel.  

Music courtesy of Bensound.

Direct download: Igor_Khmel_of_Brik.mp3
Category:general -- posted at: 6:00am CDT

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

There are several types of advisors you can choose to help your startup.

Here’s a list to consider:

The Brand Name. This type of advisor offers their name to your company.  

This can be helpful to attract investors, employees, and customers. 

They typically bring some value in the form of advice, but it’s primarily their name.

The Domain Expert. This type of advisor knows the industry well, both in technology and business.

They can be helpful if you are moving into a new domain or the industry is changing rapidly.

The Networker. This type of advisor knows everyone in the industry or region.

Those with a Rolodex and the ability to make connections can be very helpful.

This can be helpful in fundraising and growing sales.

The Business Modeler. This type of advisor may come from other industries but knows business models and can bring new monetization tools to your business.

The Confidant. This type of advisor can coach on the emotional side of running a startup.

Startups have highs and lows that take the founder through the full range of emotions.

This advisor can help the founder navigate through the ups and downs.

Decide what type of advisor you need before looking for one.


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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Direct download: Type_of_Advisors.mp3
Category:general -- posted at: 6:00am CDT

This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding.

In our new Investor Perspectives series entitled “COVID’s Impact on Cybersecurity”, you’ll hear about changes expected in the coming 12 months and our guests’ final thoughts.

As the COVID pandemic passes, we emerge into a new world. The cybersecurity space is now undergoing tremendous change as we shift from a centralized to a decentralized workforce. Every business is impacted by cybersecurity. We have investors and startup founders describe the changes coming up.

Our guests are:

Greg Fitzgerald, Co-Founder, Sevco Security, 00:56
Merrick Andlinger, Partner & Chief Investment Officer, Option3Ventures, 07:23
Ariel Evans, CEO/Founder, Cyber Innovative Tech, 11:53
Christian Kameir, Managing Partner, Sustany Capital, 17:10
Andrew Morris, Founder, GreyNoise Intelligence, 28:41

I hope you enjoy this episode.
_______________________________

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

Music courtesy of Bensound.

 

Direct download: IP_Cybersecurity_Show_4_Changes_Expected_in_the_Coming_12_Months.mp3
Category:general -- posted at: 6:00am CDT

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

Good advisors bring good value to your startup. Great advisors bring great value.

Spend time identifying the right advisor.

In recruiting an advisor, pose specific questions and gauge the response.

How does it rank compared to feedback from other sources?

It should be the best or near best of responses.

If they advise other startups, then ask those startups for their experience.

Advisors bring experience, contacts, and domain knowledge.

Define the help you need on these and set goals.

Set up regular meeting times by phone or in-person to review the progress.

Plan for quarterly reviews to discuss the progress and next steps.

If compensating the advisor with equity, then vest the equity over the timeframe of the engagement.

Set the engagement for one year with the option to renew for another year.

Set the bar high and look for advisors who bring a great deal to your company.


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


Let’s go startup something today.
___________________________________

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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Direct download: How_to_Recruit_an_Advisor.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Berthold Baurek-Karlic, Founder and Managing Partner at Venionaire Capital.

Headquartered in Vienna, Austria, Venionaire Capital is an independent private equity and venture capital firm that offers a wide range of services in a variety of tech-related sectors and industries. Since its foundation in 2012, the company successfully advised more than 50 startups and closed transactions with an overall volume of about 350 million Euros. Throughout the past years, Venionaire Capital made early-stage leads and co-investments and managed to build a strong portfolio of holdings.

Since 2015 the Venionaire Investment GmbH (a majority owned subsidiary of Venionaire Capital) is the first registered European Alternative Investment Fund Manager (AIFM) by the Austrian Financial Markets Authority, with a licence for transnational management of EuVECA funds. Venionaire aims to raise a 100 million Euro Venture Capital Fund, which will support substantial growth for European and especially Austrian and German headquartered startups.

In addition to being the founder of Venionaire Capital, Berthold is the driving force behind dealmatrix.com an innovative valuation software for startups. He is also founder and secretary general of the Business Angel Institute (businessangelinstitute.org), President of the European Super Angels Club (superangels.club) and an expert partner of various accelerators and various venture funds. Shaping the venture scene in Europe and particularly in Austria matters to him a lot. He served several years as board member of the Austrian Private Equity and Venture Capital Association (avco.at), as well as external consultant in the EU programme Horizon2020 and Innovation Radar. 

He recently published the book “100 Startups Made in Austria” and writes on a regular basis for tech media.

Berthold advises both investors and entrepreneurs, discusses his investment thesis, and how he sees the industry evolving post-COVID-19. 

You can visit Venionaire Capital at www.venionaire.com, and via LinkedIn at www.linkedin.com/company/venionaire

Berthold can be contacted via email at berthold.karlic@venionaire.com, via LinkedIn at www.linkedin.com/in/berthold-baurek-karlic, and via Twitter at www.twitter.com/berthold_karlic

Music courtesy of Bensound.

Direct download: Berthold_Baurek-Karlic_of_Venionaire_Capital_V2.mp3
Category:general -- posted at: 6:00am CDT

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

As an investor in a startup, you may want to provide additional value and sign up as an advisor.

Here are some key points to consider:

  • Choose startups that you can help.
  • Make clear the work you plan to do such as introductions, networking, advising on the domain, or just sharing business experience.
  • Define the duration of the advisor work - one to two years is a common timeframe.
  • Determine the frequency and type of meetings - by phone, in person, or in a group meeting.
  • Set aside time to do the work. 
  • Negotiate compensation based on the work to be done.
  • Compensation consists of a half percent to one percent of equity vested over time. 
  • Be prepared to sign a non-disclosure and non-compete agreement.
  • Have informal reviews with the company throughout the process to make sure you are meeting expectations.
  • Add your name to the team as an advisor to help with fundraising activities.
  • Join sales meetings where you can add value.

Advising can be rewarding but comes at a cost in time and effort.


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 

Music courtesy of Bensound.

Direct download: How_to_Find_the_Right_Startup_to_Advise.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Jonathan DeYoe, President & CEO at Mindful Money and author of the Amazon Bestseller, “Mindful Money: Simple Practices for Reaching Your Financial Goals and Increasing Your Happiness Dividend”.

Mindful Money is a comprehensive financial education and wealth management firm that brings mindfulness to personal finance.

Mindful Money practices a behavioral approach to personal finance. In a world that is market-focused and performance-driven, they are goal-focused and planning-driven. If you are just starting out, they have courses, digital planning tools, and evidence-based portfolios. If you are nearing retirement or selling your business, they have personal services to support you as you move forward into this exciting new time in your life.

Jonathan is a Seminarian, turned Buddhist academic, turned financial advisor. He has written for publications including The Huffington Post, Business Insider, NerdWallet, and MindBodyGreen. He has been featured in USA Today, the Wall Street Journal, and the New York Times.

He is also the author of the Amazon Bestseller, “Mindful Money: Simple Practices for Reaching Your Financial Goals and Increasing Your Happiness Dividend”. Jonathan has been meditating for 25 years. He lives in Berkeley, CA with his wife, two kids, and their cat Posey.

Jonathan discusses investing in seed deals and some of the challenges to expect. He also shares the inspiration behind writing his book and explains - what he calls - the pillars of human happiness.

You can visit Mindful Money at www.mindful.money, via LinkedIn at www.linkedin.com/company/mindful-money-plan, and via Twitter at www.twitter.com/mindfulmoney

Jonathan can be contacted via email at jonathan@mindful.money. His book can be purchased at www.Amazon.com

Music courtesy of Bensound.

Direct download: Jonathan_DeYoe_of_Mindful_Money.mp3
Category:general -- posted at: 6:00am CDT

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

Advisors can be very helpful to startup founders. 

Here are steps to consider in selecting an advisor:

  1. Check your company needs for the coming two years and determine what is missing.
  2. Look for advisors who add value to the team by bringing the necessary skills and experience the team doesn’t already have.
  3. Look for those with skills, experience, and contacts needed for the company goals.
  4. Focus on people with time available to spend with the company as many advisors come up short on their time allocation with startups.
  5. Document the engagement so the work to be done is clear to all.
  6. Include the frequency of the meetings and what is expected of the advisor at those meetings.
  7. Define what you expect them to bring to the meetings such as research, contacts, or their experience.
  8. Make sure you compensate the advisor appropriately.

If you want real work done you’ll need to pay something for it.

Compensation is typically equity in the range of half of one percent to one percent per year.

Vest the equity over time so there’s a clear endpoint.

If the engagement went well, you can sign them up for another round if the company needs 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 

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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Direct download: Achieving_a_Good_Advisor_Fit_with_a_Startup.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Donatas Keras, Founding Partner at Practica Capital.

Founded in 2011, Practica Capital is a dedicated Baltic VC focusing on investments in the Baltic (Lithuania, Latvia, Estonia) and Baltic-origin ventures in Europe. Selectively, they also invest in neighboring Europe (Nordics, Germany, Poland).

They invest from €200k to €2m+ in seed and early-stage ventures as a cross-industrial investor focused on backing great teams behind the tech-driven businesses from the region.

Donatas is an entrepreneur and investor with 15+ years experience of in business development, company management, and investments. He is also one of the leading early-stage investors in the Baltics. Donatas has been involved in more than 50 investment deals during recent years.

Donatas shares with Hall what excites him right now in the venture capital industry. He advises entrepreneurs and investors and discusses how he sees the industry evolving.

You can visit Practica Capital at www.practica.vc, via LinkedIn at www.linkedin.com/company/practica-capital, and via Twitter at www.twitter.com/practicacapital

Donatas can be contacted via email at donatas@practica.vc, and via LinkedIn at www.linkedin.com/in/donatas-keras.  

Music courtesy of Bensound.

Direct download: Donatas_Keras_of_Practica_Capital.mp3
Category:general -- posted at: 6:00am CDT

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

Just as you have an ideal customer profile, so you should have an ideal advisor profile.

Start with your industry and growth strategy and look for founders who have experience in the same.

Look for someone who has already gone through what you are going through now.

Start with those who are local and reach further out if necessary.

Once you’ve identified someone who meets the criteria, make contact with them.

Many founders will have some empathy for you since they know well the challenges you face.

Some will offer advice on the first call.

Parlay this budding relationship into a long-term advisor relationship.

In proposing the advisor role, minimize the time commitment and maximize the result.

Make clear to them their importance to you and your company.

Be prepared to pay something for it - most likely equity.

If the potential advisor doesn’t ask, then it’s best to bring it up for discussion.

Identify what the advisor thinks is most important and pursue that first.

Grow the relationship over time.


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  

Music courtesy of Bensound.

Direct download: Ideal_Advisors.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Robert Davidson, CEO of CURE Pharmaceutical.

CURE Pharmaceutical is an innovative drug delivery and development company committed to improving drug efficacy, safety and the patient experience through its proprietary drug dosage forms and delivery systems. CURE has an industry-leading full-service cGMP manufacturing facility and is a preeminent developer and manufacturer of a patented and proprietary delivery system (CureFilm™), the most advanced oral thin film on the market today. CURE has developed an array of products in cutting-edge delivery platforms and partners with leading pharmaceutical companies. CURE has positioned itself to advance numerous therapeutic categories, including the pharmaceutical cannabis sector with partnerships in the U.S., Canada, Israel and Germany, among other markets.

Prior to his role at CURE Pharmaceutical, Robert served as President and Chief Executive Officer of InnoZen Inc., Chief Executive Officer of Gel Tech LLC, Chief Executive Officer of Bio Delivery Technologies Inc., and has served on multiple corporate boards. Robert was responsible for the development of several drug delivery technologies and commercial brand extensions including the popular zinc product Zicam. He has worked with brands such as Chloraseptic™, Suppress™, as well as Pediastrip™, a private label electrolyte oral thin film sold in major drug store chains. He received his B.S. degree with a concentration in Biological Life Sciences and has a Masters Certificate in Applied Project Management from Villanova University, a Masters of Public Health from American Military University, Virginia, and a Masters in Health and Wellness from Liberty University, Virginia. Robert also completed his Post Graduate Studies at the University of Cambridge. 

Robert discusses the growth rate of the sector, the future of drug delivery, and some of the challenges he has faced. 

You can visit CURE Pharmaceutical at www.curepharmaceutical.com, via LinkedIn at www.linkedin.com/company/cure-pharmaceutical, and via Twitter at www.twitter.com/cure_pharma_

Robert can be contacted via LinkedIn at www.linkedin.com/in/rob-davidson-a6baa06/.  

Music courtesy of Bensound.

Direct download: Robert_Davidson_of_CURE_Pharmaceutical.mp3
Category:general -- posted at: 6:00am CDT

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

Advisors can help startups achieve higher growth, avoid problems along the way, and give the founder confidence.

Here are some key points in choosing an advisor for your startup:

  • Avoid the “dabbler”. These advisors want to dabble with startups but don’t have any substantial experience to share.
  • Avoid “Yes” men. These advisors confirm everything you say because they don’t want to go through the heavy lifting of explaining better ways of doing things.
  • Avoid generalists. These advisors have general business experience but know little about your specific industry or growth strategy.
  • Look for advisors who know your industry and space very well. They often bring both experiences.
  • Look for advisors who are well connected. They know the right people and can network you with them.
  • Look for advisors who challenge you and remind you of the goals you have set.
  • You may want to recruit a group of advisors and have them meet both individually and as a group to discuss key issues.
  • Remember the time commitment that comes with advisors and set aside time for 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 

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

Music courtesy of Bensound.

Direct download: Finding_the_Right_Advisor.mp3
Category:general -- posted at: 6:00am CDT

This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding.

In our new Investor Perspectives series entitled “COVID’s Impact on Cybersecurity”, you’ll hear about participation in the cybersecurity segment and what investors look for.

As the COVID pandemic passes, we emerge into a new world. The cybersecurity space is now undergoing tremendous change as we shift from a centralized to a decentralized workforce. Every business is impacted by cybersecurity. We have investors and startup founders describe the changes coming up.

Our guests are:

Greg Fitzgerald, Co-Founder, Sevco Security, 00:59
Merrick Andlinger, Partner & Chief Investment Officer, Option3Ventures, 08:04
Christian Kameir, Managing Partner, Sustany Capital, 13:58
Andrew Morris, Founder, GreyNoise Intelligence, 21:26

I hope you enjoy this episode.
________________________________
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

Music courtesy of Bensound.

 

 


In this episode, Hall welcomes Andrew Bilinsky, Co-founder & CEO of Lensabl. 

Five years ago Lensabl pioneered the concept of “lens replacement”. Before that, when someone with prescription glasses needed to replace their lenses, they typically had to visit a store and spend hundreds of dollars to buy new frames with their new lenses. 

Lensabl gave them a new option: keep your frames and they will just replace your lenses. To date, they have helped over 100,000 customers streamline their vision care and save over $5 million dollars. Lensabl sells replacement vision plans, lenses, frames, contacts, and a vision test, all online. 

Previously, Andy was the co-founder of ivory + mason Eyewear, a direct-to-consumer online glasses brand. He had also founded ChirpAds, a mobile advertising platform, and held business development roles at eCommerce companies HauteLook and BeachMint. Andy, a native of Los Angeles, received his BBA from the Ross School of Business at The University of Michigan, where he double majored in Finance and Entrepreneurial Studies.

Andy discusses how he sees the eye care industry evolving and the growth rate of the sector. He advises investors and shares some of the challenges he has faced.

You can visit Lensabl at www.lensabl.com, via LinkedIn at www.linkedin.com/company/lensabl/, and via Twitter at www.twitter.com/lensabl?lang=en

Andy can be contacted via email at andy@lensabl.com, via LinkedIn at www.linkedin.com/in/andrewbilinsky, and via Twitter at www.twitter.com/andybilinsky?lang=en

Music courtesy of Bensound.

Direct download: Andrew_Bilinsky_of_Lensabl.mp3
Category:general -- posted at: 9:29am CDT

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

Advisors can be helpful to your startup.

Here are some key points to consider to determine if you need one:

  • If you haven’t run a startup before you’ll most likely need an advisor.
  • If you plan to raise funding, you’ll find advisors add gravitas to the team as well as potential contacts.
  • If you have holes in your team, then advisors can help you close them.
  • If you are in a domain you have not worked in before, then an advisor can be helpful.
  • If the business technology has changed dramatically, then an advisor can be useful to guide in the implementation of the latest tech.
  • If you find yourself asking anyone and everyone questions about your business decisions, then an advisor may be the answer.
  • If you have a team that always agrees with you, then you may benefit from an advisor who will be more honest with you.
  • If you need help for your own growth, then look for a mentor. 

Mentors are different from advisors. They typically help the individual grow, while advisors help grow the business.

When you know what you need the advisor to do, then it’s time to look for one.

It’s important to compensate the advisor and make clear the expectations in a written advisor agreement. 


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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Direct download: Do_You_Need_an_Advisor.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Chester J. Jachimiec, President of Down Hole Water Management.

Down Hole Water Management has developed and patented a downhole separation system for disposing of produced water from natural gas wells (the “DGWS” – Downhole Gas/Water Separator) and from oil wells (the “DOWS” – Downhole Oil/Water Separator) in the same wellbore, eliminating the need (and significant operating expense and environmental risks) of lifting the contaminated produced water to the surface and hauling it to a separate disposal well. The DGWS system has been demonstrated in numerous live wells and is ready for commercialization.

Chester has 40 years of professional, entrepreneurial, and large company business experience, and has developed several companies from concept stage to full public company status. In the last twenty years, he has founded three companies that have gone public, including one of which grew to Fortune 1000 size.

Chester has been a close advisor to the Finley companies since early 2017, acting as the CFO of the enterprises and involved in their various operations and investments. Prior to that, from 2012 to 2016, he was a founder and board member, CFO, and ultimately President of Vivione Biosciences Inc., a medical device company taken public on the TSX-Venture Exchange.

From 2005 to 2008, he was a founder, director, and EVP of Production Enhancement Group, Inc., an upstream energy services company involved in coiled tubing, pressure pumping, and wireline services, and rental tools, and taken public on the Toronto Stock Exchange. From 2001 to 2005, he was President of SPI Petroleum, LLC, a private equity-backed consolidation of fuels and lubricants distribution companies that ultimately grew to over $4 billion in revenue and became the largest company in its industry. From 1996 to 2001, he served as a founder, director, and EVP of Encompass Services Corporation, a public company and national provider of mechanical, electrical, plumbing, and janitorial services, with over $4.5 billion in revenue and 35,000 employees. From 1994 to 1996, Chester served as Director of Acquisitions and Investments for Tenneco Energy, where he created and led a group to diversify the company away from regulated assets (pipelines) and redeploy capital in a higher return, non-regulated businesses (independent power plants; pipeline services). From 1990 to 1994, he served as a consultant to a number of companies, assisting them to secure capital or engage in acquisitions, MBOs, or other transactions, and managed his personal investments in oil & gas and technology commercializations.

Prior to 1990, Chester practiced law in the areas of Securities and M&A in Houston and Dallas and was a partner in two large national law firms. He was also licensed as a CPA in the State of Illinois and practiced public accounting with Price Waterhouse prior to attending law school. He received a Bachelor of Business Administration degree in public accounting (1976, with honors) from Loyola University of Chicago and a Juris Doctorate (1979, with honors) from Northwestern University of Chicago School of Law, where he served on and was published in the Northwestern University Law Review.

Chester shares what excites him right now in the oil and gas space. He advises investors, shares some of the technology behind his product, and discusses challenges for the oil and gas operator in today's market.

You can visit Down Hole Water Management at www.downholeinjection.com

Chester can be contacted via email at cjachimiec@att.net, via LinkedIn at www.linkedin.com/in/chester-jachimiec, and via phone at (713)628-6582.

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Direct download: Chester_J_Jachimiec_of_Down_Hole_Water_Management.mp3
Category:general -- posted at: 8:27am CDT

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

The Convertible Note is a commonly used investment structure for funding startups. It’s a short-term debt instrument that converts into equity later. If the issuer wants a debt instrument without conversion to equity, a promissory note would be a better option.

With a Convertible Note, the investor receives accruing interest while holding the note. It works well for seed-stage startups as it does not set a valuation, removes the burden of a complex equity-based term sheet, and avoids issues of dilution and taxes. It’s easy to set up compared to most equity term sheets.

A Convertible Note has three components which are the interest rate, discount rate, and cap rate:

  1. The interest rate determines the annual interest that will accrue. The interest is not meant to be paid out monthly or quarterly like a bank loan but will convert to equity later along with the principal.
  2. The discount rate is the amount of additional equity the investor will receive when the note converts to equity as compensation for investing early.
  3. The cap rate determines how much equity the investor will receive upon conversion.

The conversion from debt to equity is usually based on a future financing round. If there is no follow-on financing round, then the note often sets a time limit (say 3 to 5 years), at which point it will convert at the cap rate.

The Convertible Note works well for investors who want to invest relatively small amounts.  Investors seeking to make large investments typically want a valuation set, board seats determined, and control provisions set which often requires an equity term sheet.


T
hank 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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Direct download: Convertible_Notes.mp3
Category:general -- posted at: 6:00am CDT

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

Equity is used for investment purposes to give the investor an ownership stake in the company.

To calculate your ownership percentage you take the number of shares you are purchasing and divide it by the total number of outstanding shares. Another way to calculate your ownership is to use the pre-money-plus-investment-equal-post-money valuation equation.

Each share is priced so you know how much you’ll pay for that equity stake. 

Be forewarned that startups on the venture track will continue to raise funding and add more shares to the outstanding share pool thus diluting your percent ownership.  

In most cases, the valuation will go up with each successive round of funding so the total valuation of your equity stake will increase even though your percent ownership declines.

It’s not unusual for CEOs exiting their company to have less than 10% ownership of the company.

Also, there are different types of equity. There are common shares and preferred shares. Preferred shares carry additional advantages over common shareholders. 


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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Direct download: Equity.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Gary Boomershine, Founder & CEO of RealEstateInvestor.com.

RealEstateInvestor.com is a vertical solution provider in the real estate niche, servicing real estate investors, agents, and private lenders. Their flagship service, REIvault.com, provides managed marketing, shared systems, and proven results. They have a proven direct response marketing formula offering both direct mail and online PPC/SEO services to their members. They’ve sent out over 14,000,000 pieces of direct mail and are averaging about 500,000 pieces a month currently. They are a "membership" model looking for like-minded investors who believe in shared resources to get altitude in their business faster, cheaper, better. They have been on the Inc5000 Fastest Growing Company List for 2016 and 2017. 

Gary founded RealEstateInvestor.com in 2005 out of the need to scale and grow his own real estate investing and home-buying business.

With a family legacy in the real estate niche and a long successful career in enterprise and emerging technology markets, Gary saw the vision for RealEstateInvestor.com. He noticed the glaring opportunity to leverage people, processes, and technology to gain a leg up in a changing and competitive marketplace. As he worked to develop and use the initial product and service, he saw his real estate business flourish by allowing him to work smarter – not harder, and focusing on the one thing that makes money – talking to sellers and making offers.

Gary currently resides in Northern California with his wife and two daughters where he continues to be a visionary for RealEstateInvestor.com. He is actively involved in real estate investing and private lending. In his free time, he enjoys fly fishing, skiing, hiking, mountain biking, and traveling with family.

Gary shares what excites him right now in the real estate industry. He discusses how he sees the industry evolving, and the best opportunity for investors to pursue today.

You can visit RealEstateInvestor.com at www.Realestateinvestor.com.

Gary can be contacted via email at gary@realestateinvestor.com, and via LinkedIn at www.linkedin.com/in/garyboomershine/. You can also listen to his podcast by clicking here Real Estate Investor Huddl‪e‬.

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Direct download: Gary_Boomershine_of_Realestateinvestor.com.mp3
Category:general -- posted at: 6:00am CDT

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

SAFE stands for Simple Agreement for Future Equity. SAFE notes were created to provide a convertible note-like structure for startup funding but without interest rates or maturity dates. 

The SAFE note operates like a warrant which gives the investor the right to buy shares in a future-priced round. SAFEs are similar to convertible notes as they eventually convert to equity, but are different as they are not debt instruments.

There are many flavors of SAFE notes. Some come with valuation caps and some do not. Some come with discount rates and some do not. 

Startups use them because they are simple, although the cap table treatment later may require more work.

Technically, you should have a C-Corp if using a SAFE note as it must be noted on the cap table. 

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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Direct download: SAFEs.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Chris J. Younger, Managing Director at Class VI Partners.

Headquartered in Denver, Colorado, Class VI Partners provides investment banking and financial advisory services to middle-market businesses and entrepreneurs in Colorado and across the United States. The principals of Class VI Partners have completed hundreds of middle-market transactions and strategic advisory engagements, and by using a disciplined process and extensive research, Class VI Partners is able to provide you with the experience and judgment necessary to complete your transaction. 

Chris has over 30 years of deal experience. He started as an attorney in Silicon Valley, then led acquisitions (27 of them) and was the president for a $1B consolidation in the communications sector, and founded his investment bank Class VI Partners in 2005. He has personally worked on over 100 transactions representing over $2B in value, and has seen most of the bad movies that can occur with an acquisition. He loves working with entrepreneurs and believes their success is the foundation for the health of our communities.

Chris shares what excites him right now in the sector. He discusses the state of investing in startups, how he sees the industry evolving, and his investment thesis.

You can visit Class VI Partners at www.classvipartners.com, and on LinkedIn at www.linkedin.com/company/classvipartners

Chris can be contacted via email at chris@classvipartners.com, and via LinkedIn at www.linkedin.com/in/chris-younger-2a51486.  

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Direct download: Chris_J_Younger_of_Class_VI_Partners.mp3
Category:general -- posted at: 6:00am CDT

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

The traditional method of going public with an IPO is being challenged by a new model called Direct Listing.  

The IPO is typically run by an investment bank which hypes the new offering to investors to create a market. This oversubscription creates artificial demand for the stock.  

After launching the IPO, the issuing company’s stock price often fluctuates which meant the round was mispriced.

This provides significant wealth to the investment banker but does little for the company which issues it.

In a Direct Listing, the issuer lists their proposed price to investors cutting out the middleman investment banker.

This reduces the pump and dump scenario of the IPO and reduces the cost of bringing a new issuer to the market. The issuer uses data analytics to set the price so there’s less chance of mispricing.

Today the private market is much more mature with many more investors who understand the value of startups and want to invest in them.

In the IPO, the investment bank provided research to select clients that guided the investor. In the Direct Listing, the company information is available to everyone. 

Direct Listing has no lockup period as the IPO does. The investor can sell whenever they want. Larger institutions can buy as much as they want. The issuance is promoted online giving many more investors access to the offering. 

In conclusion, the Direct Listing is another example of the internet disintermediating the middle man.


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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Direct download: Direct_Listings_and_IPOs.mp3
Category:general -- posted at: 6:00am CDT

This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding.

In our new Investor Perspectives series entitled “COVID’s Impact on Cybersecurity”, you’ll hear about the primary trends and what makes for a successful company in the cybersecurity segment.

As the COVID pandemic passes, we emerge into a new world. The cybersecurity space is now undergoing tremendous change as we shift from a centralized to a decentralized workforce. Every business is impacted by cybersecurity. We have investors and startup founders describe the changes coming up.

Our guests are:

Greg Fitzgerald, Co-Founder, Sevco Security, 1:01
Merrick Andlinger, Partner & Chief Investment Officer, Option3Ventures, 7:44
Ariel Evans, CEO/Founder, Cyber Innovative Tech, 10:20
Christian Kameir, Managing Partner, Sustany Capital, 14:41
Andrew Morris, Founder, GreyNoise Intelligence, 21:11

I hope you enjoy this episode.

_______________________________

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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Direct download: Show_2_IP_Cybersecurity.mp3
Category:general -- posted at: 6:00am CDT

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

In raising funding or selling your business you may consider using an investment banker. 

Here are some key points to consider in making the decision:

They can build out the dataroom and do the appropriate research of competitors and comps. 

An investment banker can create competition for your acquisition thus raising the buyout value. 

Fees range from 3%-5% of the enterprise value along with some retainers.

In general, most investment bankers are worth the price if you bring them in at the beginning.

If you build the dataroom and find the buyer, then the value of the investment banker is reduced.

The investment banker can remove the burden of negotiating the terms including the valuation, as well as the follow-on employment.

They can free up the CEO to continue working on the business.

Choose an investment banker that has a track record in your sector and size of company.


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

Let’s go startup something today.
___________________________________

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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Direct download: Should_You_Use_an_Investment_Banker.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Daniel McCarthy, Co-Founder of Theta Equity Partners and Assistant Professor of Marketing at Emory University.

Founded in 2018, Theta Equity Partners is a Seattle, Washington-based valuation services firm. The firm specializes in customer-based corporate valuation that prefers valuing firms by forecasting their current and future customer's behavior and predicting their future financials. Theta Equity Partners caters to private equity and venture capital firms, corporations, and public equities.

Daniel is an Assistant Professor of Marketing at Emory University's Goizueta School of Business. His research specialty is the application of leading-edge statistical methodology to contemporary empirical marketing problems. He popularized “customer-based corporate valuation” (CBCV), a methodology that drives any traditional valuation model off of the underlying behaviors of the target company's customers. His work has been featured in major media outlets such as the Harvard Business Review, Wall Street Journal, FT, Fortune, Barron’s, Inc Magazine, the Economist, and CNBC. His research has been accepted and published in top-tier academic journals and has won numerous research awards. 

In addition to his roles and responsibilities at Emory, Dan co-founded and was Chief Statistician for Zodiac, a predictive customer analytics SaaS firm. (Nike acquired Zodiac in March 2018). 

Daniel advises investors and entrepreneurs, shares how he sees the industry evolving, and discusses some of the challenges startups face.

You can visit Theta Equity Partners at www.thetaequity.com/, via LinkedIn at www.linkedin.com/company/theta-equity-partners/, and via Twitter at www.twitter.com/ThetaEquity

Daniel can be contacted via email at daniel.mccarthy@emory.edu, via LinkedIn at www.linkedin.com/in/danielmcc/, and via Twitter at www.twitter.com/d_mccar

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Direct download: Daniel_McCarthy_of_Theta_Equity_Partners.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Vernon Howard, CEO & Co-Founder at Hallo.

Headquartered in San Francisco, California, Hallo is an online events platform that builds authentic relationships with diverse candidates. Hallo’s versatile platform helps teams and passionate employers connect with candidates in natural ways. 

Vernon was a math prodigy, who graduated high school at 16 years old, when he tested into Virginia Commonwealth University to study Computer Science and Math. He paid his way through school by teaching math and serving as a janitor on campus.

He went on to sell men’s suits, which taught him the art of selling. After joining Capital One – whose signing bonus he used to rebuild an Alpha Romeo – he built Capital One’s first mobile banking application. He also built out the Application Security Team at Capital One, before, naturally, becoming a securities trader.

Vernon then transitioned over to being a white hat hacker and eventually ended his career sitting on the derivatives trading floor at Capital One. 

Vernon shares what led him to start working in this sector. He also discusses some of the challenges startups face and advises both entrepreneurs and investors.

You can visit Hallo at www.hallothere.com and on Twitter at www.twitter.com/halloapp

Vernon can be contacted via email at vh@hallothere.com, and via LinkedIn at www.linkedin.com/in/vdhjr/

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Direct download: Vernon_Howard_of_Hallo.mp3
Category:general -- posted at: 12:21pm CDT

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

In negotiating the exit with an acquirer, you’ll need to know the following:

  1. Key metrics about your business, both those that show the company in a positive light as well as a negative one.
  2. The total addressable market for your company.
  3. The top three opportunities your company can attack.
  4. The company’s competition and competitive advantage.
  5. The company’s track record in meeting forecasts and accomplishing milestones. 

Also, acquirers will ask why you are selling the company and why now?

Why is the acquiring company a good fit for your company?

How closely aligned in operations is the company to the acquiring company’s operations?

How much integration work will need to be done?

What role will the CEO play after the acquisition?

Think through the answers to these questions as most of them will come 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 

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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Direct download: Negotiating_the_Exit.mp3
Category:general -- posted at: 6:00am CDT

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

Most startups are launched with the idea of selling the business for a substantial gain in five to seven years.

Many companies reach that stage and find they can’t sell the business, at least not for the price they want.

Here are some options:

  • Reduce your burn rate to zero and keep running the business.
  • You can split up the business into its component parts - team, inventory, technology, and sell IT to multiple buyers.
  • You can sell the business to the other founders and take a revenue share for your equity portion of the business.
  • You can sell the business to the investors and do the same thing.
  • You can line up a manager of the business to take your place and then dividend back to the investors a portion of the revenue ‘til they receive a payback amount. 

While you may not reach a full acquisition as planned, there are several ways to exit the business and pay back the 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/ 
For upcoming Events, check out https://tencapital.group/events/ 

For Feedback please contact info@tencapital.group

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Direct download: What_if_it_Doesnt_Sell.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes Charles Sunnucks, investor and author of “The Company Valuation Playbook”.

“Apple, Amazon, Tesla, Microsoft – great companies perhaps, but are they great investments? While there are a variety of investment styles an investor might apply, investing over any reasonable period ultimately boils down to a simple reality – if you overpay for a stock you are likely to get stung, and if you underpay then odds are you will profit. Therefore, to stack the deck in your favour when investing, the ability to value a company is vital.

The Company Valuation Playbook introduces you to the industry-standard tools used by professionals globally to value companies and their shares. These valuation tools can be applied by anyone, no matter their experience. All you need is a computer, the internet, and a bit of common sense.”

Charles is a  successful professional investor. Formerly a fund manager at Jupiter Asset Management, he has lectured at Cambridge University, made multiple TV appearances commenting on markets, and actively co-managed a London stock exchange-listed investment fund. University educated in China, he speaks fluent Chinese, and is both a Chartered Financial Analyst, and a Chartered Alternative Investment Analyst. 

Charles shares the inspiration behind writing his book and gives Hall a breakdown of the core areas. He discusses who may benefit the most from reading it and what surprised him the most while writing.

You can purchase Charles’s book at www.companyvaluationplaybook.com

Charles can be contacted via email at charliesunnucks@hotmail.com, and via LinkedIn at www.linkedin.com/in/charles-sunnucks.   

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Direct download: Charles_Sunnucks_book_review.mp3
Category:general -- posted at: 6:00am CDT

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

In setting the exit, most investors look to maximize the exit value.

It’s important to remember that the metric investors use, IRR or Internal Rate of Return has a time component to it.

The faster the exit, the higher the IRR.

As an investor, consider pursuing the highest IRR and not just the biggest dollar exit as bigger exits take longer.

While the news highlights the biggest exits, the vast majority of exits are under $20M.

Selling a business for under $20M is not that hard.

Growing a business and selling it over $100M is very hard.

Most acquirers don’t need the business to be large, they just need to know the business model is defined and is profitable.

Staying in the deal longer opens up the investor for dilution and other events that reduce the return on investment.

A startup should be proving their business model and turning it into a repeatable, predictable process.

With funding and time, it will scale.

As an angel investor, you should look for early exits and structure your investments accordingly.


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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Direct download: Early_Exits.mp3
Category:general -- posted at: 6:00am CDT

In this episode, Hall welcomes David J. Neff of Neon Syndicate.

Neon Syndicate is a privately held real estate and investment company run by Chelle and David J. Neff in Austin, TX, with investments in Veritas Beauty, Peace Love and Betty as well as real estate holdings. 

David has 20 years of creating experiences that impact people's lives, from his work in eCommerce, marketing, and digital strategy with the American Cancer Society, to his work with consulting companies like Southwest Airlines, Pepsi, Lululemon, Dell, Office Depot, Build.com, Wolverine Worldwide, Discover Card, Jack-in-the-Box, Kingfisher, Tesco, Gatehouse Media, and tech companies like Hulu. He is also supporting/leading another recent startup acquisition as a go-to-market lead inside of Accenture for Creative Drive.

David currently works as the VP of the data-driven consulting practice at Clearhead (acquired by Accenture Interactive), and also works with Fortune 500 brands on their eCommerce, organizational strategy, and building culture. He is the author of three books, and in 2014 he was named the top person in Austin by the Austin Under 40 Awards for the Community Service and Nonprofit category.

A much-in-demand speaker and trainer, he has spoken at places like TEDx, SXSW (6x), The University of Texas, St. Edward's University, Texas State University, Social Media Club, Social Media Breakfast, The Association of Fundraising Professionals, Planned Practical Giving Conference and NTEN's national technology conference.

Outside of work you can find him gardening, advising, investing in startups, planning an amazing Halloween party, and experimenting with single-board computers and computer vision. 

David shares with Hall how he sees the industry evolving and discusses some of the challenges startups face. 

David can be contacted via email at dneff22@gmail.com, via LinkedIn at www.linkedin.com/in/david-j-neff/, and via Twitter at www.twitter.com/daveiam?lang=en

Music courtesy of Bensound

Direct download: David_J_Neff_of_Neon_Syndicate.mp3
Category:general -- posted at: 6:00am CDT

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

Most exits come from another company buying the startup. 

It takes six months to a year to complete a buyout.

Delays often come from the startup not being prepared or ready for the M&A process.

Also, setting valuation and final terms can take substantial time for research and negotiations.

To shorten the time consider the following:

  1. Identify and contact the likely buyers and build a relationship before starting the process. 
  2. Position the startup leadership as a thought leader with published articles and keynote speeches to provide credibility.
  3. Build a dataroom of key documents that will be used in a transaction process.

This is basically a gathering process but does take some time. 

Beware of competitors in the diligence process as they will have access to your detailed financials and other information.

Understand the interest level from the buyer and what other activities may delay their work on your deal.

Set realistic expectations for how fast things will go.


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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Direct download: Timeline_for_an_Exit.mp3
Category:general -- posted at: 6:00am CDT

This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding.

In our new Investor Perspectives series entitled “COVID’s impact on Cybersecurity”, you’ll hear about growth in the cybersecurity segment.

As the COVID pandemic passes, we emerge into a new world. The cybersecurity space is now undergoing tremendous change as we shift from a centralized to a decentralized workforce. Every business is impacted by cybersecurity. We have investors and startup founders describe the changes coming up.

Our guests are:

Greg Fitzgerald, Co-Founder, Sevco Security, 00:53
Merrick Andlinger, Partner & Chief Investment Officer, Option3Ventures, 04:04
Christian Kameir, Managing Partner, Sustany Capital, 07:20
Andrew Morris, Founder, GreyNoise Intelligence, 10:00

I hope you enjoy this episode.
_______________________________

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

Music courtesy of Bensound.

 

 

Direct download: Show_1_IP_Cybersecurity.mp3
Category:general -- posted at: 6:00am CDT

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

In selling a business there are two types of buyers: strategic buyers and financial buyers.

Strategic buyers look for companies that can enhance their current business.

Financial buyers look for companies that generate cash.

Their motivations and careabouts are different.

The strategic buyer will look to see how closely the acquisition is to the buyer’s business and how much work it will take to integrate it.

The financial buyer will look at the financials to determine the cash flow and how long it may sustain.

A company seeking a buyer will need to develop a relationship with CEO and VP-level contacts in the industry. This can be done through introductions, conferences, and other events. 

The company may also find an avenue through the corporate development team in some cases.

Bankers are also potential conduits to potential acquirers. 

The board of directors of the acquiring company may also provide an entry into the company.

Finding the buyer takes time and building a rapport takes even more time. 

 

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  

Music courtesy of Bensound.

Direct download: Finding_the_Buyer.mp3
Category:general -- posted at: 6:00am CDT