Investor Connect Podcast (general)

March 2026
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Tue, 15 July 2025

Startup Funding Espresso – Using Rule 701 To Issue Equity to Employees

Using Rule 701 To Issue Equity to Employees

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

In a startup, it’s helpful to compensate employees with company stock.

Most companies use stock options.

Rule 701 gives the startup the ability to issue equity to its employees.

This works even if they are not accredited investors.

The limit is $10M or 15% of the outstanding shares in a 12-month period.

Once you set the 12-month period, it must remain fixed.

Rule 701 provides an alternative to the traditional stock option plan.

It’s more flexible than an options plan and can be used to create more specific compensation plans.

Founders often align the 701 disclosure with the fiscal year of the company.

The shares are restricted stock, which means they must be registered with the SEC before one can trade them.

Consider Rule 701 for your stock compensation plan.

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

Let’s go startup something today.

_______________________________________________________

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

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Music courtesy of Bensound.

Direct download: 02.using_rule_701_to_issue_equity_to_employees.mp3
Category:general -- posted at: 5:00am CST

Mon, 14 July 2025

Startup Funding Espresso – Create a Sense of Urgency

Create a Sense of Urgency

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

In running a fundraiser, it’s important to build a sense of urgency into the campaign.

Here are some key steps to create that sense of urgency:

Break your fundraising into smaller rounds or tranches.

Demonstrate this by showing the fundraising plan that has more funding to come, but at a higher valuation.

This lets you run deadlines at the end of each round, creating urgency with investors.

Show how other investors are joining the round.

Show the interest and committed investors, as well as the funds invested.

Call out milestone events such as finding a lead investor, closing the round, or hitting the 50% mark of the fundraise.

Start canvassing investors before you begin the fundraise to educate potential investors on the campaign.

This moves investors down the path by learning the details of the business.

Provide regular updates to the investor on your progress.

Show how now is the right time to invest.

Use these tools to create a sense of urgency for your fundraiser.

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 01.create_a_sende_of_urgency.mp3
Category:general -- posted at: 5:00am CST

Fri, 11 July 2025

Startup Funding Espresso – The Role of AI and Data in Fundraising

The Role of AI and Data in Fundraising

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

Startup fundraising begins with family and friends and then expands to the founders' network.

In that part of the fundraising, founders will engage those they know well.

Half the reason these investors join the round is to help the founder.

After this group is exhausted, the founder draws the circle wider and starts to encounter investors they don’t know.

These investors will be more difficult to close because they don’t have a relationship with the founder already.

They will make an investment decision based solely on the merits of the business.

For this stage, founders will need to use AI and data tools to identify the most viable investors for their deals.

Founders will need to find those investors who fit their deals based on revenue, sector, and stage.

AI and data analytics are key tools to use in this part of the fundraising.

AI can search large amounts of data to identify the right investors to pursue.

The funds flowing through the industry are moving every day.

It’s important to have the latest data on who has dry powder and who may be looking to invest.

Consider the use of AI and data analytics for your startup fundraising.

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

Let’s go startup something today.

_______________________________________________________

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 05.the_role_if_ai_and_data_in_fundraising_.mp3
Category:general -- posted at: 5:00am CST

Fri, 11 July 2025

Investor Connect 835: Family Office Roundtable - April 2025 Part 03

On this episode of Investor Connect, we are joined by Ron from South Highland Ventures for an enlightening presentation on search funds, touted as the best-performing asset class in the world. Ron dives deep into the 40-year-old model initially developed by Stanford and Harvard, highlighting its relevance and success today in addressing the $10 trillion succession challenge faced by businesses globally. He emphasizes the robust returns and lower risks associated with search funds compared to traditional venture capital or private equity, detailing how they capitalize on small, stable companies with strong profit margins that lack succession planning but have immense growth potential.

Ron also shares insights into the distinctive features of South Highland Ventures and its collaboration with Nova Stone Capital Advisors in building a streamlined deal flow machine, underscoring the firm's innovative and scalable approach to search fund investments. For more updates and information, connect with Ron through the contact details provided, and join us next time on Investor Connect.

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound

Direct download: FamilyAprPt03.mp3
Category:general -- posted at: 5:00am CST

Thu, 10 July 2025

Startup Funding Espresso – Bring Three Stats for Your Startup Fundraising

Bring Three Stats for Your Startup Fundraising

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

In raising funding, it’s important to showcase the key numbers behind your business.

Here are three statistics for your startup fundraise:

Revenue traction -- show what traction you have so far including the dollar amount and the growth rate.

Customers need to know where you are on the revenue-generating path and how fast it’s going.

A 50% annual growth rate is the minimum for a venture investment.

Customer pain point -- show how much the problem you are solving is currently costing the customer or the economy.

This number needs to be big and in most cases growing.

Customer ROI -- show what value in numbers your customer receives from your product.

This could include both productivity improvements and cost reductions.

A good rule of thumb is you want this to be a 10X increase.

The key numbers reflect the problem, the solution, and the startup's effectiveness.

Show these three numbers in your startup fundraising.

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

Let’s go startup something today.

_______________________________________________________

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 04.bring_three_stats_for_your_startup_fundraise.mp3
Category:general -- posted at: 5:00am CST

Wed, 9 July 2025

Startup Funding Espresso – Bring Three Stats for Your LP Fundraise

Bring Three Stats for Your LP Fundraise

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

Raising funds from Limited Partners requires a track record, an investment thesis, and a competitive advantage.

It’s important to show you have a track record of successfully deploying capital.

Investors want to know what you will be investing in, and is that space growing.

Finally, they will look for your competitive advantage in finding and closing deals.

In raising funds from Limited Partners, add these three statistics to your pitch:

Track record -- have your IRR, MOIC, or TVPI numbers available to show.

This is most often an IRR number or MOIC.

If you haven’t deployed funds and don’t have a track record, it’s best to build one before launching a fund.

Target market growth rate -- show the growth rate in the market sector you are targeting.

Investors invest in growth, so look for a growth sector in your target market.

Competitive advantage -- investors want to know what you have that they don’t in deploying capital.

This could be a network of CEOs who bring you deals and help you diligence them.

Call out the number of people in that network and something about them, such as their geographic location or their market sector.

Use these three numbers to anchor your pitch.

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

Let’s go startup something today.

_______________________________________________________

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 03.Bring_three_stats_for_your_LP_fundraise.mp3
Category:general -- posted at: 5:00am CST

Tue, 8 July 2025

Startup Funding Espresso – Raising Funding in Downtimes

Raising Funding in Downtimes

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

Fundraising goes through the same cycles as the stock market,

When the stock market is going up it’s easier to raise funding.

When it’s going down it’s harder.

Raising funding in down times requires more creativity.

Here are some ideas on how to raise funding in a down market:

Use more grant funding to fill in the gaps.

The grant funding from the government continues regardless of the market.

Consider crowdfunding.

For smaller amounts of funding, this can help.

Use revenue-based funding for a portion of the raise.

These funds must be paid back but are non-dilutive to the cap table.

Consider low-end angel funding in which accredited investors write $25K checks.

For the right valuation, angel investors will come into the deal.

In addition to these funding options, consider customer funding.

This requires building custom projects for specific customers but if done right can continue to build out the platform and pay the bills.

On the strategic side, shift from a high burn rate to a low burn rate and grow organically for a while.

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 02.raising_funding_in_down_times.mp3
Category:general -- posted at: 5:00am CST

Mon, 7 July 2025

Startup Funding Espresso – Show How Your Valuation Is Already Achieved

Show How Your Valuation Is Already Achieved

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

Valuation is a key factor in a startup's fundraising.

Most startups show an aspirational valuation and then spend the pitch trying to convince investors it’s appropriate.

Most use their forecasted revenues to justify their valuation.

Forecasts hold little value to the investor and often leave them unconvinced about the proposed valuation.

Instead of using revenue, articulate the values already in the business.

Highlight the intellectual property and its value by showing comparables with other companies.

Show recent exits in which the IP was a central part of the valuation.

Show the other assets in the business, such as the team and their track record.

Call out the customers that you have already won.

Show the product and what has been built so far, and highlight the revenue generation underway.

In raising funding, show that your valuation has already been achieved.

Make the case by showing specific values already in the business that add up to the proposed valuation.

Futures hold little value to the investor.

Focus on what’s in the business today.

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 01.show_how_your_valuation_is_already_achieved_.mp3
Category:general -- posted at: 5:00am CST

Fri, 4 July 2025

Startup Funding Espresso – The Four Phases of a Pitch

The Four Phases of a Pitch

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

The successful startup pitch goes through four phases.

Start by capturing their imagination.

This could be a bold statement, such as we can solve cancer within ten years.

This sets the context for the problem to be solved.

Next, show your solution and how it will achieve the goal just set forth.

Show how the solution works at a high level.

Highlight the value proposition you have.

Next, make the case that shows how your business will be successful.

This includes the team and what they bring to the table.

Highlight the current traction.

This shows product and market validation -- the product works and customers will pay for it.

Finally, give the investor a call to action.

Instead of asking for the funding today, encourage them to learn more about the business.

This is basically asking for the next meeting.

Invite them to join the conversation.

There’s a natural arc to good pitches that takes the investor through your story.

Consider how to implement these four phases in your startup pitch.

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

Let’s go startup something today.

_______________________________________________________

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 05.the_four_phases_of_apitch.wav.mp3
Category:general -- posted at: 5:00am CST

Fri, 4 July 2025

Investor Connect 834: Democratizing Institutional Strategies with Ram Kolluri of Expo-Wealth

In this episode of Investor Connect, we sit down with Ram Kolluri, Founder and Chief Investment Strategist at Expo-Wealth based in Austin, Texas. Ram shares his insights on navigating today’s wealth management landscape and how he's helping high-net-worth individuals access institutional-grade strategies. We talk about balancing traditional portfolio construction with exposure to private markets, and how families are increasingly looking for both performance and purpose. As Ram puts it, it’s not just about doing well — it's about doing good while doing it.

Ram dives into how Expo-Wealth approaches alternative investments like venture capital and private equity, especially in a world where clients demand real-time access, personalized dashboards, and responsiveness at the speed of a text message. He also discusses the evolution of investor education and how overcoming the fear of illiquidity is more about trust, communication, and introducing alternatives gradually. As the next generation steps up to manage family assets, Ram sees a growing appetite for impact, AI-driven opportunities, and proven sponsors with deep track records. The firm’s role, he says, is part educator, part fiduciary, and sometimes even part psychologist.

Looking ahead, we explore where the wealth management space is going — from the massive $50–60 trillion wealth transfer ahead to the increasing demand for transparency, digital integration, and high-touch relationships. Ram also hints at the next chapter for Expo-Wealth: blending high-caliber investment access with seamless technology and client empowerment.

Visit Expo-Wealth at expo-wealth.com/

Reach out to at rkolluri@expo-wealth.com , www.linkedin.com/in/ram-kolluri-7535396/ , and on 6099154338

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: AUD-20250702-WA0025_corrigido.mp3
Category:general -- posted at: 5:00am CST

Thu, 3 July 2025

Startup Funding Espresso – Researching Investors for Your Fundraise

Researching Investors for Your Fundraise

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

Before launching your fundraiser campaign, make sure to research your investor prospects.

Start with those who invest in your startup stage and sector.

It’s pointless to reach out to investors who have an investment thesis completely out of scope for your startup.

Once you have the investors who invest in your sector and stage, drill down to those who invest in your type of business.

Healthcare, for example, is a broad sector with many subsectors and applications.

Look for those who fund your type of business.

Next, check their geographical preference.

Some investors only invest in their local region, while others invest nationally.

Next, look for the right point of contact.

Who is the one most likely to have an interest in your deal?

VC funds often have multiple general partners.

Look for the right partner who is the best point of contact.

In the initial call, make it a two-way conversation.

Ask questions about what the investor looks for in a startup, as well as answer their questions.

This demonstrates you are working with them to make sure this is a good fit.

Consider these points in researching and contacting investors for your fundraising.

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

Let’s go startup something today.

_______________________________________________________

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 04.researching_investors_fir_your_fundraise_.wav.mp3
Category:general -- posted at: 5:00am CST

Wed, 2 July 2025

Startup Funding Espresso – Fundraising Tips

Fundraising Tips

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

Most founders are raising funding for the first time.

They often miss the nuances that come from experience.

For the second go-around, founders are often much smarter about the process.

Here are some fundraising tips from those who have done it:

Start your outreach to investors six months in advance of actually raising funding.

Put your investor network on alert that you will be raising funding in the near future.

This makes it easier to set up pitches when the campaign kicks off.

Practice your pitch with existing investors well before you approach the most important ones.

Make sure you have practiced it and had enough questions from the initial investors to work out the kinks.

Show investor validation of your fundraise.

Make clear that other investors are reviewing the deal, and some have already come in.

This signals there is competition for the round.

Choose investors based on their fit to your business first, and valuation and terms second.

The valuation and terms are short-term negotiating points.

A good investor-founder fit will be a factor throughout the life of the company.

Consider these tips in your upcoming fundraiser.

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 03.fundraising_tips_1.wav.mp3
Category:general -- posted at: 5:00am CST

Tue, 1 July 2025

Startup Funding Espresso – Conversion of a Convertible Note

Conversion of a Convertible Note

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

There are three ways a Convertible Note converts to equity.

The note matures and converts to equity on the maturity date.

The startup raises a follow-on funding round in equity that counts as qualified funding.

The startup sells the business.

In each case, the note converts to equity.

If the convertible note does not have a maturity date, then it can stay in debt for the life of the note.

This may be a problem for the startup as the investor could demand their funds back.

Most convertible notes have an interest rate, so that would be an additional amount on the demand.

In signing a convertible note, check to see if all the conversion provisions are clearly laid out.

If there’s no maturity date, then ask to put one in.

These are most often at year 3 or 5.

Convertible notes make for a great way to start a fundraiser.

Make sure you know the potential outcomes for the convertible note you are signing.

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 02.conversion_of_a_convertible_note.wav.mp3
Category:general -- posted at: 5:00am CST

Mon, 30 June 2025

Startup Funding Espresso – How a VC Fund May Shut Down Early

How a VC Fund May Shut Down Early

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

Venture Capital funds typically run on ten-year cycles.

There are some conditions in which the VC fund may shut down early.

Here’s a list of reasons:

Key persons -- the Limited Partners invested in a fund that has a certain number of key persons.

If the number falls off, then the fund may suspend activities until a replacement is found.

The fund managers are found to be liable for fraud or gross negligence.

In this case, the fund may shut down and return the funds to the Limited Partners.

In other cases, the fund may replace the managers and continue on.

Limited Partners want to shut down the fund -- the market may have changed, or the investment thesis may no longer be viable.

In this case, the Limited Partners could demand their funds returned.

Alternatively, the Limited Partners could vote to fund a new investment thesis.

The VC fund managers may be found to have a conflict of interest.

The Limited Partners could demand the return of their uninvested capital.

Consider these points in running or investing in a VC fund.

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

Let’s go startup something today.

_______________________________________________________

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 01.how_a_VC_fund_may_shut_down_early__6.wav.mp3
Category:general -- posted at: 5:00am CST

Fri, 27 June 2025

Startup Funding Espresso – Lifecycle of the VC Fund

Lifecycle of the VC Fund

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

Venture Capital funds typically run on ten-year cycles.

At a high level, the VC fund takes in capital from the Limited Partners and deploys the first half of the funds in years 1 to 3.

The follow-on rounds are deployed in years 4 to 5.

The fund collects returns in years 6 to 10.

There may be early failures, in which case the allocated funds for the follow-on round are still available.

The funds not yet deployed or allocated are called ‘dry powder’.

This is the amount of funds available to deploy for new companies.

Investments made during the latter half of the fund are made in later-stage companies, which can achieve an exit faster.

Some portfolio companies fail to exit during the ten-year window.

The team must decide whether to delay the exit to gain a larger return or sell the company to remove it from the books.

During the latter half of the life cycle, the VC team helps the companies grow and then achieve an exit.

This is where the VC’s network comes in.

A good fit for a VC is a company in which they can help find additional team members as well as follow-on funding.

Consider the life cycle of the VC fund and how it impacts the time spent by the VC team.

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 05.lifecycle_of_the_vc_fund.mp3
Category:general -- posted at: 5:00am CST

Fri, 27 June 2025

Investor Connect 833: Family Office Roundtable - April 2025 Part 02

On this episode of Investor Connect, we welcomed Mike Green and Nicholas, the co-founders behind Grid Matrix, a cutting-edge infrastructure intelligence company turning city sensors into powerful tools for real-time decision-making. Mike walked us through how Grid Matrix is using AI and computer vision to help large-scale operators—like airports, ports, and municipalities—optimize operations by turning existing infrastructure, such as legacy cameras, into smart, scalable data networks. No new hardware needed. With $550K in 2024 revenue and nine paying customers including the Port Authority of New York and New Jersey and Dallas-Fort Worth Airport, the company is already proving traction and real-world value.

Mike highlighted how Grid Matrix is tackling a trillion-dollar civil engineering market, offering governments and infrastructure managers the ability to answer questions they couldn't before: curbside management, emissions tracking, pedestrian safety, cargo visibility, and more. Instead of installing costly new systems, their platform plugs into what’s already there—turning passive sensors into active intelligence. Their "crawl, walk, run" model starts with pilot deployments and quickly scales as trust and data value build, and their 100% customer retention rate is a powerful signal of product stickiness and strong fit in a space known for long sales cycles.

Backed by 8VC and with a priced round at a $9.2M pre-money valuation, Grid Matrix has already closed $2.2M and is filling the final $1M of this raise. With government interest in smart infrastructure growing and a pipeline of projects and RFPs accelerating, Grid Matrix is well-positioned for expansion. Learn more about the company and the raise at https://www.gridmatrix.com, and to explore funding opportunities with 10 Capital, visit https://www.tencapital.group.

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: FamilyAprPt02.mp3
Category:general -- posted at: 5:00am CST

Thu, 26 June 2025

Startup Funding Espresso – How To Answer “What’s Your Timeline?”

How To Answer “What’s Your Timeline?”

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

Investors often ask startups raising funding, “What’s your timeline?”

They want to know if the process is so far along that it’s too late for them to join.

They have limited resources and can’t afford to chase a deal that will close before they can complete it.

Investors are also looking for an indication of interest from other investors.

The founder's answer to the question must address these concerns.

Here’s an example response:

We have meetings lined up for the next three weeks.

We’re seeing investors go into diligence.

We have more investors showing interest.

So we hope to wrap up in the next six to eight weeks.

This shows the prospective investor that there’s interest in the deal.

The team has a process for finding investors, pitching them, and closing the investment.

Six to eight weeks is an ideal time for closing, as it gives the investor enough time to run diligence.

More than eight weeks means the investor can procrastinate.

Less than six weeks, and the investor may not have enough time to run their own process.

Show prospective investors that others are interested in the deal and there’s still time to get in.

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

Let’s go startup something today.

_______________________________________________________

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 04.how_to_answer_whats_your_timeline_.mp3
Category:general -- posted at: 5:00am CST

Wed, 25 June 2025

Startup Funding Espresso – How To Optimize for Efficiency

How To Optimize for Efficiency

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

In startup fundraising, capital efficiency is a key criteria for investors.

They look to see how efficiently the startup uses capital.

This most often shows up in revenue per employee, cash burn rates, and use of funds.

To achieve higher capital efficiency, focus on setting up systems within the business.

Systems always achieve a higher productivity rate.

Design the work to create a flow process.

Some startups design the work to be resource-efficient.

In this case, each resource, such as a team member, is at full capacity.

The better process is to design the system to provide flow efficiency.

That means the system is optimized for the flow of work rather than the use of each team member.

Determine the core work that must be done and design the team to work in an efficient flow.

Consider the flow of operations in your startup and set up the system so the work gets done in the most efficient manner.

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 03.how_to_optimize_for_efficiency_.mp3
Category:general -- posted at: 5:00am CST

Tue, 24 June 2025

Startup Funding Espresso – Choosing an AI Model for Your Startup

Choosing an AI Model for Your Startup

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

Artificial intelligence, or AI, is becoming a standard part of every startup's business.

It can be used to improve the startup's operations.

And it can also be used to enhance the startup’s product line.

The startup must choose an AI model that fits their needs.

There are large AI models and there are small AI models.

Large models are provided by deep-pocketed companies with a considerable investment of resources into it.

Large models work well for those who don’t want to build their own.

This avoids having to hire a team of people to build out the model.

Small models are developed in-house and work well for those who want to build their own.

Small models give the startup more control over their data and can be tuned to their requirements.

Those in vertical niches find small models ideal for their application.

For business operations, most startups adopt a large model as they look primarily for operational efficiency.

For product lines, some will choose the small model as it fits better their product and customer application.

Consider how you will use small and large AI models in your startup.

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

Let’s go startup something today.

_______________________________________________________

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

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Music courtesy of Bensound.

Direct download: 02.choosing_an_ai_model_for_your_startup.mp3
Category:general -- posted at: 5:00am CST

Mon, 23 June 2025

Startup Funding Espresso – The Burn Multiple

The Burn Multiple

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

The burn rate is a key metric for high-growth startups.

This is the amount of cash being spent over and above the cash revenue taken in.

The Burn Multiple is the amount of cash being burned divided by the net revenue.

This metric indicates how fast the money is being spent compared to the growth rate.

For startups that are in high-growth mode, this metric ranges from 1 to 5X.

The lower the multiple, the more efficient the business.

In diligencing a startup, calculate the Burn Multiple to check the capital efficiency.

Most healthy startups run in the 1x to 2x range.

Anything below 1x is outstanding.

Anything above 2x is in the questionable zone.

Anything above 3x is in the danger zone.

The Burn Multiple by itself doesn’t give the full story.

But it does indicate the capital efficiency of the business or the lack thereof.

Calculate the Burn Multiple for your business.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 01.the_burn_multiple.mp3
Category:general -- posted at: 5:00am CST

Fri, 20 June 2025

Startup Funding Espresso – The Benefit of Investing in Tranches

The Benefit of Investing in Tranches

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

Tranching the investment means breaking it down into tranches or rounds.

Tranche comes from the French word meaning slice.

Investors find it advantageous to break their investment into rounds.

In the angel world, many investors break their allocation to a startup into two rounds.

The first round goes in at the beginning of the investor engagement.

If all goes well, then the investor puts in the second round.

If things don’t go well, then most likely they skip the second round of investment.

This reduces the investor's risk in the deal.

It can also optimize the investor's return.

The startup goes through ups and downs.

During the down cycles, investors with dry powder can find more favorable terms.

It’s a good idea to save some of the allocation for an opportunity that provides better terms for the investor.

As an investor, consider how to tranche your investment into the startup to balance risk and reward.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 05.the_benefit_of_investing_in_tranches_.mp3
Category:general -- posted at: 5:00am CST

Fri, 20 June 2025

Investor Connect 832: Family Office Roundtable - April 2025 Part 01

On this episode of Investor Connect, Hall welcomes Lance Tkach, Co-Founder of Printed Technologies. Located in Dallas, Texas, Printed Technologies is leading the charge to revolutionize the home construction industry through the integration of automation, AI, and large-scale 3D printing. With the U.S. facing a shortage of over 7 million affordable homes and traditional construction lagging behind in innovation, Printed Technologies is tackling this crisis by bringing precision manufacturing techniques to the job site—cutting costs, reducing build times, and improving sustainability.

Printed isn’t just building homes; they’re designing and manufacturing the machines that will enable builders across the country to adopt 3D-printed construction at scale. Their homes are fire-, mold-, termite-, and storm-resistant, and their vertical integration with All Metals Fabricating gives them a significant edge in cost control and production capacity. With a pipeline of $2.5 million in early sales activity and proprietary patents secured, Printed Technologies is not just solving a market problem—it’s transforming an industry. Their mission is simple yet powerful: to make home ownership more accessible while creating a scalable, high-growth business built for the future.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: FamilyAprPt01.mp3
Category:general -- posted at: 5:00am CST

Thu, 19 June 2025

Startup Funding Espresso – Aviate, Navigate, Communicate

Aviate, Navigate, Communicate

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

In flying an aircraft, there’s a saying regarding priorities: “Aviate, Navigate, Communicate.”

First, fly the plane.

Second, navigate to where you want to go.

Third, communicate with others.

This prioritizes the pilot’s activities.

This applies to founders.

In the startup world, the founder must Operate, Direct, Communicate.

The founder must first and foremost keep the startup running.

Then the founder must maintain the direction to go in.

Finally, the founder must communicate with others.

Fundraising is an important activity, but it rests on the foundation of the startup running well.

Before launching a fundraiser campaign, make sure the operations are in place and can run without the founder for the most part.

Also, make sure the business is on track for the direction in which to go.

This will free up the founder to run the fundraising campaign, which includes communication with others.

Operate, Direct, Communicate

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

Let’s go startup something today.

_______________________________________________________

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

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Music courtesy of Bensound.

Direct download: 04.aviate_navigate_communicate_.mp3
Category:general -- posted at: 5:00am CST

Wed, 18 June 2025

Startup Funding Espresso – Sell Your Business Instead of Shutting It Down

Sell Your Business Instead of Shutting It Down

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

Many startups fail to achieve product-market fit or breakout growth.

Founders who decide to move on most often shut down the business.

Instead of shutting it down, consider selling your startup.

If you have a functioning team, then look to competitors who may want an acquihire.

The team itself can be sold to another company as a working business unit with its own technology base already in place.

This provides ongoing employment for the team members.

Review the customer list to see which other businesses may be interested in taking over the customer base.

Look at other data elements to determine potential value.

It’s possible another company will buy out the startup for its data generation value.

Consider the industry the startup is in.

There may be companies that want to enter that industry and are looking for a way in.

Most of these options will not bring an outsized return to the founders and their investors.

However, it does give the founders a win.

In their next startup, they can say they launched a business and sold it for a gain.

This puts the startup into the win column.

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

Let’s go startup something today.

_______________________________________________________

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

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Music courtesy of Bensound.

Direct download: 03.sell_your_business_instead_of_shutting_it_down_.mp3
Category:general -- posted at: 5:00am CST

Tue, 17 June 2025

Startup Funding Espresso – State the Purpose Behind the Startup

State the Purpose Behind the Startup

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

In pitching, start with the Why of the business.

Why does this business exist?

It’s important to state up front the purpose.

This is different from the problem to be solved.

The purpose is similar to the problem but different.

It goes to the heart of why the business exists.

It shows the overall purpose of the business and what role it takes.

To find the purpose of the business, look at the problem to be solved and find the process that’s driving it.

For example, a company that makes an app that crowdsources funds for small businesses is solving the problem of growing businesses through funding.

The process behind the app is that fundraising takes time and can be difficult.

The purpose is to accelerate small business growth by speeding up the funding process.

The pitch should start with the purpose, then explain the specific problem to be solved.

Follow up with the solution the company offers.

The purpose connects the startup to a greater cause.

Businesses with a why are stronger and last longer than those that are just making money.

Start the pitch with its purpose.

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

For Feedback please contact info@tencapital.group

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Music courtesy of Bensound.

Direct download: 02.state_the_purposes_behind_the_business_.mp3
Category:general -- posted at: 5:00am CST

Mon, 16 June 2025

Startup Funding Espresso – The Downside of SAFE Notes

The Downside of SAFE Notes

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

SAFE Notes were designed to simplify the investment process.

By removing many of the terms found in equity agreements, SAFE Notes reduce the complexity of startup fundraising.

SAFE notes are similar to a warrant as they give the holder the right to buy shares in the future.

There are drawbacks to SAFE Notes as follows:

There’s no debt component that can be used for payback.

SAFE notes require the holder to have a C-Corporation.

The SAFE note is listed on the Cap table like an option.

There’s no maturity date on SAFE Notes, so there’s no trigger to convert equity.

There’s no interest rate.

Over time, this can add additional value to the investor.

Many SAFE notes don’t have a valuation cap, which can reduce the value to the holder.

The presence of additional SAFE notes can reduce the return through dilution.

For early-stage funding, SAFE notes are simple to use, but they don’t always convert to equity the way investors thought they would.

Be sure to understand the SAFE note structure before using it for an investment.

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

Let’s go startup something today.

_______________________________________________________

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

For Feedback please contact info@tencapital.group

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Music courtesy of Bensound.

Direct download: 01.The_Downside_of_SAFE_Notes_.mp3
Category:general -- posted at: 5:00am CST

Fri, 13 June 2025

Startup Funding Espresso – How To Raise a First-Time VC Fund

How To Raise a First-Time VC Fund

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

Raising a first-time venture capital fund is hard work.

Here are some key steps in raising a VC fund for the first time.

Build a track record of successful investing by joining an angel network and making small but profitable investments.

Share the deal flow with prospective Limited Partners so they learn your investment thesis.

Show the deal flow on a regular basis so they understand the consistency of your network.

Share your due diligence with those investors so they see the quality of work you do.

Perform market research on an area of interest and share the results with the prospective Limited Partners.

Build an investment thesis for how to invest in the area of interest.

Showcase the investment thesis in your investing so the Limited Partners understand your methodology.

Present a few successful investments to the Limited Partners.

By showing them your market research, investment thesis, and track record, the Limited Partners can better understand the value of your work.

Ask for an initial investment from the Limited Partners to continue the process already underway.

Consider these steps for raising a first-time VC fund.

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

Let’s go startup something today.

_______________________________________________________

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

For Feedback please contact info@tencapital.group

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Music courtesy of Bensound.

Direct download: 05.how_to_raise_a_first_time_vc_fund__.mp3
Category:general -- posted at: 5:00am CST

Fri, 13 June 2025

Investor Connect 831: Family Office Roundtable - March 2025 Part 04

In this episode of Investor Connect, we engage with Nathan Monty, co-founder and CEO of Enamel Pure, a company pioneering advancements in dental hygiene through novel laser technology.

Nathan walks us through the development of their innovative product, 'Loon,' which uses a laser for non-contact teeth cleaning, hardening, and whitening, paired with advanced imaging to produce an annual oral health report. He emphasizes the inefficiencies and pain points in traditional dental cleaning methods and explains how Enamel Pure's technology not only improves the patient experience but also significantly enhances diagnostic accuracy with AI-driven analysis from a rich dataset of dental images.

The episode covers the company's business model, partnerships with major distributors like Henry Schein and Benko, and their robust intellectual property portfolio. Nathan also discusses their go-to-market strategy and plans for future AI integrations, aiming to create the most comprehensive dental health database. Finally, he shares insights into their successful FDA clearance and ongoing fundraising efforts to expand production and distribution, providing a comprehensive look at Enamel Pure's promising future in modernizing dental care.

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

For Feedback please contact info@tencapital.group

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Music courtesy of Bensound.

Direct download: IC_MarFamily_Parte_04.mp3
Category:general -- posted at: 5:00am CST

Thu, 12 June 2025

Startup Funding Espresso – Fundraising Hones the Founder's Skills

Fundraising Hones the Founder's Skills

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

Fundraising brings not only capital to the startup, but it also hones the founder’s skills.

Here are the skills the founder will improve:

Relationship building -- the founder learns how to build a relationship.

Networking -- the founder learns how to grow a network and use it to connect with others.

Public speaking -- the founder learns how to read the room, adjust the presentation on the fly, and pitch to an audience.

Financing -- the founder learns how to read financial statements, financial contracts called terms sheets, as well as cap tables.

Board management -- the founder learns how to manage a board and report to those who oversee the business.

Evaluate people - the founder learns how to evaluate people to determine what they bring to the company. This is most often done with investors.

Delegation -- the founder learns how to delegate, which comes down to what to outsource and what must be done by the founder.

Look at how you can build your skills during the fundraising 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

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Music courtesy of Bensound.

Direct download: 04.fundraising_hones_the_founders_skills__.wav.mp3
Category:general -- posted at: 5:00am CST

Wed, 11 June 2025

Startup Funding Espresso – Negotiating the Valuation

Negotiating the Valuation

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

Negotiating the valuation is a key step in the fundraising process.

Here are some helpful strategies to consider in negotiating the valuation:

Understand the comparable valuations in your space.

These are called comps and give you a starting point for negotiating.

The founder should have a proposed valuation to show investors.

This could be renegotiated later, but it gives a starting point to the discussion.

The key to a successful negotiation is to articulate all the values in the business.

VCs will often throw out a lowball offer.

This, for the most part, is a negotiation tactic.

The VC is testing to see how much the founder believes in their own valuation.

Keep the terms on a pre-money valuation basis.

If you state the valuation in post-money terms, then any additional funding raised will eat into the founders' ownership stake.

Consider the options pool in the negotiation process and how that will be paid for by both the founder and the VC, rather than the founder alone.

Finally, don’t rush the process or be rushed by the VC.

Take your time and consider all the terms.

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

Let’s go startup something today.

_______________________________________________________

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

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Music courtesy of Bensound.

Direct download: 03.negotiating_the_valuation__.wav.mp3
Category:general -- posted at: 5:00am CST

Tue, 10 June 2025

Startup Funding Espresso – Put the Why Before the How

Put the Why Before the How

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

In pitching, it’s important to start with the why before diving into the how.

The founder often dives straight into how things are going to work.

In a biotech startup, the founder will jump to how their therapeutic interacts on a molecular level.

This often puzzles the investor who is not familiar with the science behind the project.

To solve this problem, first start with the why. Why is this important?

State up front the meaning of it.

For example, start with a challenge such as, “the common cold can't be defended against because it mutates too fast.”

State why the therapy can be effective, such as “our therapy prevents the common cold from mutating.”

Then dive into the details about how the therapy works.

Founders who go straight into the details without stating the challenge to be solved and what benefit the solution brings fail to communicate their value proposition.

State the challenge and solution at a high level in layman’s terms so everyone will understand it.

Consider these steps in your pitch presentation.

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

For Feedback please contact info@tencapital.group

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Music courtesy of Bensound.

Direct download: 02.put_the_why_before_the_how__.wav.mp3
Category:general -- posted at: 5:00am CST

Mon, 9 June 2025

Startup Funding Espresso – How To Build a Relationship With a VC

How To Build a Relationship With a VC

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

In raising funding, it’s important to make contact and build a relationship with a venture capitalist.

Here are some key steps in building that relationship before you need to raise funding:

Make contact with the VC.

Offer help to the VC in the form of introductions to key people who can help them.

Make referrals to other investors, in particular limited partner candidates.

Share market research and point out areas where value will accrue.

This works particularly well for VCs who want to enter a new market space.

Share what other investors are doing based on your research and experience.

Invite the VC to join panels and other networking activities as they want to build their brand and get their name out there.

Refer quality startups to the VC that actually meet their investment criteria.

Avoid wasting the VCs time as it’s limited and precious.

Make every interaction meaningful.

Follow through on your commitments.

Consider these steps in building a relationship with a VC.

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

For Feedback please contact info@tencapital.group

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Music courtesy of Bensound.

Direct download: 01.how_tobuuld_a_relationship_with_a_VC__.wav.mp3
Category:general -- posted at: 5:00am CST

Fri, 6 June 2025

Startup Funding Espresso – Use Angels for the Initial Fundraise

Use Angels for the Initial Fundraise

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

In the earliest stages of the fundraise, angels are often a better fit than venture capitalists.

VCs come into the round when there’s strong traction and the business is well-formed.

Angels are go-to-market investors and like to come in early when the valuations are relatively low.

The terms sheet is typically a convertible note or SAFE note, where the valuation is not set.

Most angel investors are follow-on investors and are not going to take the time to set the terms and valuation of the deal.

They just want to be in the deal and will write a $25K or $50K check to do so.

They’ll let a lead investor set the valuation in a later round.

In the early stages, it can be hard to set the valuation since there are still many unknowns.

Valuation is more easily set when the revenue traction is clearly defined.

Start your fundraisers with family and friends.

As you draw the circle wider, go to angel investors.

Bring a solid growth story with some revenue.

Revenue demonstrates product and market validation.

The product works, and people will pay for it.

Delay pursuing VCs till there is more traction.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 05.use_angels_gor_the_initial_raise__.wav.mp3
Category:general -- posted at: 5:00am CST

Fri, 6 June 2025

Investor Connect 830: Family Office Roundtable - March 2025 Part 03

In this episode of Investor Connect, we welcome Ken from Synaptically, who introduces a groundbreaking personalized therapy for Alzheimer's disease. He discusses their innovative use of Transcranial Magnetic Stimulation (TMS) paired with Electroencephalograms (EEG) to achieve unprecedented results in slowing down disease progression.

With two successful phase two clinical trials and strong validation from scientific experts, the therapy shows significant improvements in cognition, function, and behavior in patients. Ken explains how their technology targets neuroplasticity, creating new brain connections and preserving brain microstructure and gray matter volume, with minimal side effects.

The discussion also touches on Synaptically's strong financials, market strategy, and future prospects, including potential FDA approval and investment opportunities for interested parties.

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

For Feedback please contact info@tencapital.group

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Music courtesy of Bensound.

Direct download: IC_MarFamily_Parte03.mp3
Category:general -- posted at: 5:00am CST

Thu, 5 June 2025

Startup Funding Espresso – Key Series A Metrics

Key Series A Metrics

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

Series A fundraises focus on growth.

The goal of the fundraising pitch is not to show that you can sell the product to someone, but rather that you can grow the business.

Here are some key metrics to evaluate the startups' growth story:

Revenue -- this can be done on a month-over-month, quarter-over-quarter, or year-over-year basis.

Focus on net revenue.

Revenue model -- this could be subscription, transaction fees, fees for service, or more.

Focus on how much of the revenue is recurring or repeating.
Customer concentration -- this measures how much revenue comes from a handful of customers.

Compare the revenue from the top 3, 5, 10, and 20 customers to see if there’s too much concentration.

Gross margin -- measures the difference between the net revenue and the cost of goods sold.

The healthier the margins, the more resilient the business.

CAC:LTV -- this ratio compares the cost of customer acquisition to the lifetime value of the customer.

For a Series A company, this should be 1:5 or 1:7.

Focus on these key metrics in evaluating a Series A 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

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Music courtesy of Bensound.

Direct download: 04.key_series_a_metrics__.wav.mp3
Category:general -- posted at: 5:00am CST

Wed, 4 June 2025

Startup Funding Espresso – Uncapped SAFE Notes

Uncapped SAFE Notes

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

SAFE notes are commonly used in startup fundraises.

They most often come with a valuation cap.

This means the valuation will not rise above that cap no matter what the priced round that follows.

For an investor, an uncapped SAFE note can reduce the return on the investment tremendously.

Some founders offer a discount only on the SAFE note to provide a return.

The investor gets the discount amount as their return based on the next valuation round.

While this may sound attractive, it takes the potential unlimited upside off the table for the investor.

It’s best for the founder to set a valuation cap for the SAFE note and provide the full return potential to the investor.

In setting the valuation cap, use the pre-money valuation one would expect if it were a priced round.

While the valuation cap does not have to be exact, it will give some comfort to the investor.

Some founders spend a great deal of time trying to sell investors on uncapped SAFE notes.

Their time is better spent closing prospective investors and finding new investors.

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

Let’s go startup something today.

_______________________________________________________

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

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Music courtesy of Bensound.

Direct download: 03.uncapped_safe_notes__.wav.mp3
Category:general -- posted at: 5:00am CST

Tue, 3 June 2025

Startup Funding Espresso – Fundraising Requires a Process

Fundraising Requires a Process

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

Fundraising is a complex problem that requires ongoing focus and effort over a period of time.

It is not just one check or milestone but rather many.

Fundraising requires a process

Here are some key steps in setting up a fundraiser:

Set up a sales-like funnel for tracking the investors and the process steps.

Consider the steps for each part of the fundraising process, including researching the investor, gaining an introduction, and engaging the investor.

Prepare your investor documents before launching.

This includes the pitch deck, the terms sheet, and the data room.

Build a list of connectors and networkers to engage in the process.

Spend time researching the investors, including talking with their portfolio companies.

Evaluate each investor for their propensity to invest.

Update the investors systematically and consistently.

Always be looking for new investors to bring through the funnel.

Run your fundraisers as a campaign.

This requires a message, an audience, and the engagement of the two.

Dedicate full time to it.

Consider these steps in setting up your fundraising 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

For Feedback please contact info@tencapital.group

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Music courtesy of Bensound.

Direct download: 02.fundraising_requires_a_process__.wav.mp3
Category:general -- posted at: 5:00am CST

Mon, 2 June 2025

Startup Funding Espresso – Investor Introductions – the Good, the Bad, and the Ugly

Investor Introductions – the Good, the Bad, and the Ugly

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

Investor introductions can be helpful in connecting with new investors.

Here is an example of a good introduction:

I notice this investor funded a company with the same business model, sector, and metrics as mine.

I’m coming to your area next week. Can you make an introduction?

This shows there’s a match between the startup and the investor.

Here is an example of a bad introduction:

I’m in the area this week. Who do you know that I can meet?

This shows there’s no match between the startup and the investor.

Here is an example of an ugly introduction:

Can you introduce me to a brand-name VC?

This shows no match between the startup and the investor, and it demonstrates vanity on the part of the founder.

In making an introduction, include the reason why there’s a match, the purpose of the meeting, and how best to make an introduction.

Offer content for the introduction.

Finally, offer to return the favor.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 01.investor_introduce_ctions_--the_good_the_bad_and_the_ugly__.wav.mp3
Category:general -- posted at: 5:00am CST

Fri, 30 May 2025

Startup Funding Espresso – Showing Traction at the Seed Level

Showing Traction at the Seed Level

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

At the seed stage, the product is just going into the market.

The customer engagement is beginning.

Here are some steps to show traction at the seed level:

Show signs of repeatability.

This can come in several forms as follows:

Customers are using the product repeatedly.

Show daily, weekly, and monthly active uses.

Customers are buying the product repeatedly.

Show the number of customers making repeat purchases.

Show a repeatable process for acquiring new customers.

This could be a sales funnel with a repeatable process for acquiring and closing.

Show partners providing leads repeatedly.

Show qualified leads coming from the sales funnel repeatedly.

Also, virality is a good measure at the seed level.

Show how many customers are referrals from existing customers.

This demonstrates that customers are happy with the product and tell others about it.

In short, the startup has business processes in place for acquiring and retaining customers, and it’s working.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 05.showing_traction_st_the_seed_level_.mp3
Category:general -- posted at: 5:00am CST

Fri, 30 May 2025

Investor Connect 829: Family Office Roundtable - March 2025 Part 02

In this episode of Investor Connect, Hall T. Martin welcomes Brian to discuss emerging opportunities in deep tech spaces. Brian emphasizes life sciences and healthcare technologies, highlighting investments needed to innovate and control costs. He points out the inefficiencies in the current healthcare system and the potential for AI-driven remote patient monitoring to shift care from hospitals to homes. Additionally, Brian identifies robotics, automation, and energy management technologies as other promising areas for deep tech advancements. The conversation also touches upon the commercialization of university innovations and proprietary IP management, shedding light on how startups can navigate these aspects effectively.

The discussion wraps up with Brian's views on the future of alternative energy, particularly the significant role nuclear technology might play amidst growing global energy demands. In the second part, we transition to Chris, who presents on ATE Technology, a FinTech company focused on collections and recovery software. Chris delves into the company's journey, market strategy, and future plans, emphasizing their growth and innovative solutions. ATE Technology has demonstrated strong revenue growth and proven products that address the needs of banks and credit unions. Chris explains how their SaaS-based solutions provide compliance and efficiency in managing disputes and collections, touching on the company's impressive client base and strategic partnerships.

The presentation also highlights the management team's extensive experience in the FinTech industry and outlines their plans for leveraging AI to further enhance their offerings. An engaging Q&A session follows, providing deeper insights into ATE Technology's business model, investment opportunities, and potential exits. The episode concludes with an invitation for listeners to reach out for further discussions and explore potential collaborations.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: IC_MarFamily_Parte_02.mp3
Category:general -- posted at: 5:00am CST

Thu, 29 May 2025

Startup Funding Espresso – The MicroVC Pitchdeck

The MicroVC Pitchdeck

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

MicroVCs need to raise funding to invest in startups, just as startups need to raise funding for their own business.

For MicroVCs raising funding, consider these points in building the pitch deck:

Call out two to three trends in the market.

Highlight the insights to be gleaned from those trends.

State the investment thesis to show the criteria for investing in a startup.

Show the strength of the team and their ability to execute on the investment thesis.

Show the community the team has and how it helps them source deals.

Call out the resources the team has for vetting deals.

Demonstrate the competitive advantage the team has in winning the best startups.

Finally, show the track record from past investments by the team.

It helps to show a portfolio company as an example.

Include how the team found the deal and why the fund invested.

Call out why the startup chose to take funding from the MicroVC.

End with the value the team provided to the startup.

Investors care little about the general record of similar funds.

Each fund is unique, so the investor wants to know how this fund will be successful.

Include these elements in your MicroVC pitch deck.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: 04.the_microvc_pitchdeck_.mp3
Category:general -- posted at: 5:00am CST

Wed, 28 May 2025

Startup Funding Espresso – Investor Access to Customers

Investor Access to Customers

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

In the diligence process, investors may want to talk with the startups' customers.

Their goal is to determine how well the product works and how committed they are to the startup's solution.

This can be a sensitive topic for founders as their customer relationships are highly confidential and often kept close to the chest.

It’s best to have a few customers who will talk with investors and give them a positive review of the product and the company.

This can be accomplished by providing great service and, in some cases, an additional discount.

This can be a negotiated point between the founder and the customer.

The customer often asks for a discount, so the founder counters with an additional ask, such as taking interviews from prospective investors.

Keep the more sensitive customers off the list.

Also, make the customer interviews the last step in the diligence process.

The founder should continue the negotiations with the investor by indicating that if the customer passes the investor’s test, then the investor commits to funding.

This prevents too many investors from contacting the same customers with only a potential investment on the table.

Consider these steps in handling the investor interaction with the startups' customers.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 03.investor_access_to_customers_.mp3
Category:general -- posted at: 5:00am CST

Tue, 27 May 2025

Startup Funding Espresso – The CEO Leads the Fundraise

The CEO Leads the Fundraise

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

In a fundraiser, the CEO should lead it by setting the strategy and engaging investors.

This doesn’t mean the CEO must do everything by themselves.

It does mean that the CEO does the pitching and investor follow-up.

CTOs and CFOs can be helpful, but not by pitching the investor.

The investor wants to hear from the CEO as they want to know more about them.

Can they communicate well?

Do they have a clear vision?

Do they know their business well enough to cite the growth numbers?

What is their story?

Do they have all the key elements lined up to be successful, such as a great team, a solid product, and a large target market?

Others can help in building the pitch deck, researching the investors, and lining up investor pitches.

Advisors and investors can help by making warm introductions to other investors.

They can coach on fundraising strategies.

They can also help make decisions around oversubscribing fundraising rounds and other key points.

Make sure the CEO is signed up to lead the fundraising round, but line up additional support throughout the 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

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Direct download: 02.the_ceo_leads_the_fundraise_.mp3
Category:general -- posted at: 5:00am CST

Mon, 26 May 2025

Startup Funding Espresso – Non-Dilutive Funding Options

Non-Dilutive Funding Options

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

Startup funding comes in two forms: dilutive and non-dilutive.

Equity funding is dilutive in that the fundraising reduces the ownership of the founders.

Debt is non-dilutive in that the fundraise doesn’t change the founders’ ownership.

Here’s a list of non-dilutive funding options.

Loans -- these tend to be short-term loans from a bank.

Grants -- these are most often acquired from government agencies that make grants to startups to foster innovation.

Rewards/prepay crowdfunding -- this generates funding for startups in the form of prepayment for a product to be delivered later.

Licensing -- funding comes in the form of licensing the technology to other companies who use the technology in their product.

Tax credits -- funding comes in the form of tax breaks, such as an angel tax credit offered by many states.

Factoring -- funding comes in the form of short-term loans for manufacturing the product.

Venture debt -- a form of loan that uses the startups' raised capital as collateral.

Subscription-based financing -- loans to startups with recurring revenue that use the subscription revenue as collateral.

Consider these non-dilutive funding options for your startup.

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

Let’s go startup something today.

_______________________________________________________

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

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Music courtesy of Bensound.

Direct download: 01.non-dilutive_funding_options_.mp3
Category:general -- posted at: 5:00am CST

Fri, 23 May 2025

Startup Funding Espresso – When To Consider Venture Debt

When To Consider Venture Debt

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

In startup funding, there is venture capital and venture debt.

Venture capital takes an equity stake in a startup in return for funding.

Venture debt makes a loan to the startup for that funding.

Both have their place in the startup ecosystem.

Venture capital comes in at the early stage of the business as the startup needs funding but has no revenue to pay it back.

Venture debt comes in at the later stage of the startup because the business has revenue with which to repay the funding.

Venture capital launches the business, but venture debt continues the growth.

As the startup grows from the early stage to the later stage, equity becomes worth a great deal more.

At the later stages, the founders calculate the value of their equity and compare that to the cost of a loan.

Dilution in the form of equity funding becomes expensive to the founders.

Founders turn to venture debt when the dilution from the funding costs more than the loan repayment.

Consider the use of venture debt in replacement of equity funding from venture capital for your fundraising.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 05.when_to_consider_venture_debt__.wav.mp3
Category:general -- posted at: 5:00am CST

Fri, 23 May 2025

Investor Connect 828: Family Office Roundtable - March 2025 Part 01

In this episode of Investor Connect, Hall T. Martin, CEO of 10 Capital, introduces co-host Kat DeLillo and special guest Brian Wood of Wave Ventures. Brian delves into the innovative approach of Wave Ventures in partnering with universities to commercialize intellectual property. He shares the backstory of Wave Ventures' collaboration with Baylor University and how this partnership successfully accelerated the university's research status to R1 in record time. Brian outlines their unique model which allows Wave Ventures to hold over 80% equity in their startups, and how they strategically place business experts to guide these deep tech innovations from conception to market.

The discussion covers various successful projects, including advances in digital display technology, novel ventilator systems, and significant improvements in propeller design for drones and aircraft, all sourced from university partnerships. Brian also shares personal anecdotes about his unexpected journey into the venture capital space, highlighting his background in medicine and previous success in the entrepreneurial world.

This episode provides a comprehensive view of how Wave Ventures is not only financing the next generation of deep tech startups but also de-risking these investments to secure substantial returns. For more information on Wave Ventures' projects and their innovative investment strategies, stay tuned to Investor Connect. To engage with Wave Ventures and learn more about their upcoming initiatives, please visit their website and explore their wide range of high-potential startups transforming deep tech landscapes.

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

For Feedback please contact info@tencapital.group

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Music courtesy of Bensound.

Direct download: IC_MarFamily_Parte_01.mp3
Category:general -- posted at: 5:00am CST

Thu, 22 May 2025

Startup Funding Espresso – How To Stand Out From the Crowd

How To Stand Out From the Crowd

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

In raising funding, it helps to stand out from the crowd of other startups pitching.

Most founders will give the standard pitch, often with slides in the same order.

Here are some key pointers to make your startup stand out.

Show your business model in unit economic terms.

Show your growth story with a chart that goes up and to the right at a 45-degree angle.

This demonstrates there’s a growth story happening in your business.

Point out the recurring and repeating revenue streams you already have.

Show the skill set in its entirety that your team brings to the table.

List the team's exits and other performance wins.

Show your business with numbers that the investor can digest.

Choose three compelling metrics and show them in the presentation.

The investor will have a hard time remembering more than three, so choose the best.

Show the customer engagement with your product in terms of daily, weekly, and monthly active users.

Show how you have figured out customer acquisition and its repeatability.

Show your ideal customer profile. Make it clear you know who you want.

Consider adding these points to your presentation.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 04.how_to_stand_out_from_the_crowd__.wav.mp3
Category:general -- posted at: 5:00am CST

Wed, 21 May 2025

Startup Funding Espresso – Show the Business Model Unit Economics

Show the Business Model Unit Economics

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

Early-stage companies pitching investors often have little revenue traction.

In place of traction, show how the business model performs on the unit economic level.

Calculate the cost of acquiring a customer and the expected lifetime value of that customer.

Show the ratio between the two and make a note of it.

Show how your business model is profitable at the unit economic level.

This will resonate with investors who seek working business models.

Discuss the variability of the costs and how the costs will scale with the business.

Make a note of the gross margins and the profit margins at the early stage.

Some investors judge the business based on the margins and the variability of costs.

This allows the startup to ride the economic waves of good times as well as bad times.

Show how the business is close to breakeven already.

Note how few customers it will take to reach break-even.

Show how the business is profitable at the very early stages.

Show the business model in unit economic terms when pitching to an investor.

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

Let’s go startup something today.

_______________________________________________________

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

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Music courtesy of Bensound.

Direct download: 03.show_the_Business_model_unit_economic__.wav.mp3
Category:general -- posted at: 5:00am CST

Tue, 20 May 2025

Startup Funding Espresso – Raising Funding in a Down Market

Raising Funding in a Down Market

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

The best time to start a new business is during a down market.

Labor is plentiful.

The competition is on their heels.

Yet, customers are still looking for a solution to their problem.

In a down market, it can be even more difficult to raise funding than in an up market.

The outlook is gloomy, and uncertainty about the future hangs in the air.

Here are the key steps to raise funding in a down market:

Bring your A-game to the table.

Show all the values in the business, including a strong team and a large target market.

Also, show your key insights into the customer problem and your unique solution.

Show initial interest and traction with customers.

Highlight the robust margins in the business.

Talk about the short timeline to break even.

If your business requires a long timeline and has thin margins, rethink your business model.

Investors look for robust margins and short runways to profitability.

Show how the business is up and running and stable, and can weather uncertain economic conditions.

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

Let’s go startup something today.

_______________________________________________________

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

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Music courtesy of Bensound.

Direct download: 02.raising_funding_in_a_down_market__.wav.mp3
Category:general -- posted at: 5:00am CST

Mon, 19 May 2025

Startup Funding Espresso – What Angels Look For

What Angels Look For

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

Angel investors are not professional investors in the same way as venture capitalists.

Angel investors are typically successful business people who want to invest in startups.

The old angel saying is, they want to make a little money, do a little good, and have a little fun.

They often have a broad or general investment thesis.

They don’t focus on one sector or niche in most cases.

They look for startups that are solving a big problem with a differentiated solution, and led by a strong team with experience.

They look for product validation and market validation.

The product works, and people will pay for it.

Most importantly, they look for startups demonstrating the growth story.

The revenue is growing, and the startup is making good progress on building the business.

There needs to be a large potential reward but it doesn’t have to be 100X as in the case with many VCs.

They avoid companies that need to raise a large amount of additional capital, as this will dilute them.

They get excited about an opportunity that has recently reached an inflection point.

This could be closing a lighthouse customer, launching the final version of their product, or hiring a team to accelerate sales.

In raising funding, position your deal for angel investors with these care abouts.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 01.what_angels_look_for__.wav.mp3
Category:general -- posted at: 5:00am CST

Fri, 16 May 2025

Startup Funding Espresso – First Meeting With an Investor

First Meeting With an Investor

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

After a number of calls with a prospective investor, there comes the first meeting in person.

Here are some key steps in running that meeting:

Introduce yourself and your team.

Show the market you are pursuing.

Present your solution.

Show your sales process and how it works.

Explain your go-to-market strategy.

List the milestones you plan to achieve with the funds raised.

Define the fundraising status, including the amount, terms, and how much has been raised so far.

Make the presentation a collaborative effort, taking questions along the way to ensure everyone is tracking with you.

Answer questions directly and to the point.

If the question begins with How many or How much then the answer should be a number.

If the question begins with When, then the answer is a time or date.

Stay on topic and avoid long, meandering stories.

Finally, come prepared knowing your numbers.

Consider these points when preparing for your investor meeting.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 05.first_meeting_with_an_investor.mp3
Category:general -- posted at: 5:00am CST

Fri, 16 May 2025

Investor Connect 827: Family Office Roundtable Part 04

In this episode of Investor Connect, we welcome Alan Foreman, the CEO of Be Secure, who discusses the transformative journey of his company in the realm of heart health. Alan shares that he founded Be Secure nine years ago after a lengthy career in Accenture's Life Sciences division. Currently, the company is on a $12 million growth raise to commercialize its breakthrough heart health technology, which received FDA clearance recently. Be Secure focuses on making preventive rather than reactive heart health solutions, leveraging their powerful, device-agnostic software that offers high accuracy ECG readings in consumer and medical devices alike, such as the latest versions of the Whoop and Fitbit devices.

Alan elaborates on how the recent challenges faced by Philips, a significant player in heart monitoring technology, present both a testament to the need for better solutions and an opportunity for Be Secure to make a substantial impact on the market. Alan details the company's innovative use of cybersecurity experts and detailed signal processing to develop technology that bridges consumer wellness and medical-grade ECG technology. He highlights how Be Secure's cloud-based and on-device solutions offer transformative accuracy and efficiency in heart monitoring, even earning the interest of major insurers like Blue Cross Blue Shield. The conversation turns to the scalability and swift deployment of Be Secure’s solutions in medical environments, emphasizing how their data quality can accelerate and improve diagnosis in cardiologists' workflows. Alan stresses the importance of their upcoming scale-up and commercial focus, particularly in filling the funding gap to expedite the deployment of their remarkable technology in the healthcare space.

We also learn about Be Secure's financials and investment strategy, which involves contributions from venture capital and venture debt providers. Alan emphasizes ongoing discussions with top medical companies and the anticipated rapid revenue growth fueled by the latest FDA clearance. The episode wraps with Alan addressing some practical questions about scaling, design timelines, and the lifecycle of deals with their partners, giving a comprehensive view of Be Secure's promising future. For more updates and opportunities to engage with Alan and Be Secure, stay tuned to Investor Connect.

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

For Feedback please contact info@tencapital.group

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Music courtesy of Bensound.

Direct download: IC_Parte_04.mp3
Category:general -- posted at: 5:00am CST

Thu, 15 May 2025

Startup Funding Espresso – Early Stage Traction

Early Stage Traction

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

In the very early stage of the life of a company, traction can be more than just revenue growth

Here are some key traction points to look for.

The founder has an idea.

The founder has an idea and a pitch deck.

The founder has an idea, a pitch deck, and an MVP or minimum viable product

The founder has an idea, a pitch deck, an MVP, and a customer.

The founder has an idea, a pitch deck, an MVP, and a customer with revenue.

The founder has an idea, a pitch deck, an MVP, and a customer with revenue that is growing.

The founder has an idea, a pitch deck, an MVP, a customer with revenue that is growing, and a repeatable process for signing up customers.

By breaking the early stage into phases, one can better understand if the startup is making progress.

Startup investors look for signs of traction and momentum in the deal before investing.

Consider this more nuanced version of traction in assessing very early-stage startups.

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

Let’s go startup something today.

_______________________________________________________

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

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Music courtesy of Bensound.

Direct download: 04.early_stage_traction.mp3
Category:general -- posted at: 5:00am CST

Wed, 14 May 2025

Startup Funding Espresso – Why Now?

Why Now?

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

In raising funding, it’s important to instill a sense of urgency in the fundraiser.

One of the key elements is describing why now is the right time for this fundraiser.

Follow these steps to show how everything is aligned for success:

The team is experienced and in place.

The product is ready and has been validated.

The market is ripe for disruption.

The window of opportunity has been opened by a recent event.

An inflection point now gives the startup an advantage over the competition.

Show how all the elements have lined up to make this a successful endeavor.

It’s important to show the why now, as investors may assume that the startup can raise funding at any time.

Make it clear, now is the time to pursue this opportunity.

The chance of success is at its greatest.

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

Let’s go startup something today.

_______________________________________________________

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

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Music courtesy of Bensound.

Direct download: 03.why_now_.mp3
Category:general -- posted at: 5:00am CST

Tue, 13 May 2025

Startup Funding Espresso – Build Your Presence With a VC Fund

Build Your Presence With a VC Fund

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

In raising funding from a VC fund, it’s important to understand the partner team.

Each VC fund has a number of senior partners, junior partners, and others such as analysts and scouts.

One of the partners will bring the founder to a weekly group meeting of the team to hear pitches from the founders.

The partner bringing in the founder is the advocate.

The founder pitches to the team.

The team discusses and decides to pursue or pass.

This process can play out over several weeks.

The advocate’s job is to convince the team that they should pursue the startup.

The founder’s job is to arm the advocate with updates and information to help close the team members.

Each team member has their own list of founders they want the fund to support.

The advocate must bring compelling information and overcome objections from others.

In raising from a VC fund, provide your advocate with enough ammunition to build your presence within the VC fund.

It’s helpful to know more about the team and their careabouts.

It’s a must to always go through your advocate.

Consider these points when raising funds from a VC fund.

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

Let’s go startup something today.

_______________________________________________________

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

For Feedback please contact info@tencapital.group

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Music courtesy of Bensound.

Direct download: 02.build_your_presence_with_a_VC_fund.mp3
Category:general -- posted at: 5:00am CST

Mon, 12 May 2025

Startup Funding Espresso – How To Say No to a Startup

How To Say No to a Startup

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

Investors receive pitches from startups almost every day.

Many of these startups simply don’t match the investment thesis of the investor.

Here’s how to say no to a startup.

Respond with the same level of effort that the founder put into the outreach.

For an automated email, simply don’t respond.

For a personalized email outreach, respond with a message “thank you for your outreach, this doesn’t fit our investment thesis. We look for” and explain your target area.

For a warm introduction, respond with what you like about the deal, but admit this doesn’t appear to be a fit.

It’s often the case that the founder will come back with more information.

In this case, respond with feedback on how to make the deal more interesting.

If the deal is missing key information, then advise the founder to include those key points.

This provides value to the interaction between the investor and the founder.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: 01.how_to_say_no_to_a_startup.mp3
Category:general -- posted at: 5:00am CST

Fri, 9 May 2025

Startup Funding Espresso – Don’t Play the Scenario Game in the Pitch

Don’t Play the Scenario Game in the Pitch

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

Founders are confronted with many options for their fundraising.

If they raise more, they can achieve more milestones.

If they raise less, they can achieve fewer milestones.

Some founders play out these scenarios in the pitch to investors.

This is a mistake.

Multiple scenarios of varying amounts of funding with differing outcomes only confuse the investor.

Investors often try to figure out what the startup is doing.

Adding complexity with several fundraising options only makes the process harder.

It’s best to choose a fundraising amount and decide what can be done with it.

Present this to the investor.

If multiple investors indicate this is not the best path forward, then consider changing it.

It’s okay to have multiple versions of the pitch, each geared to a different investor type.

Choose the appropriate version of the deck for the one you are pitching.

Avoid the multiple-scenario game in the pitch.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: 05.dont_play_the_scenario_game_in_the_pitch.mp3
Category:general -- posted at: 5:00am CST

Fri, 9 May 2025

Investor Connect 826: Family Office Roundtable Part 03

In this episode of Investor Connect, Hall T. Martin talks with Mike Sloan, CEO and founder of Simple Labs, about their groundbreaking product, Cogni. Mike shares insights from his background in both bourbon and wine country, emphasizing the industry's challenges such as significant losses from evaporation and spoilage. Cogni offers a comprehensive barrel monitoring solution, leveraging real-time data to optimize quality, efficiency, and profitability. The discussion spans their impressive ROI, their expansion plans across various spirit and wine markets, and their substantial growth potential, backed by existing patents and no direct competition. Mike also highlights their successful beta testing with major brands and raises the company's anticipated Series A funding to accelerate growth.

Following Mike's presentation, Hall introduces Andrew Dahl from Biomes, who presents their end-to-end technology for diagnostics that captures raw patient samples and delivers lab-quality results with ease. Andrew emphasizes the uniqueness of their platform, which converts existing FDA-approved lab tests to point-of-need or at-home use, making sophisticated diagnostic tests accessible anywhere. The discussion includes their first-to-market canine Alzheimer's urine test in partnership with Hill's Science Diet, the team's extensive expertise, and their strategic business model targeting global brands for further growth. Together, Mike and Andrew showcase how innovative technology can revolutionize traditional industries, providing efficient, real-time solutions to long-standing challenges. They both illustrate the importance of having a strong, knowledgeable team and the strategic partnerships necessary for scaling and achieving success in the competitive market landscape.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: IC_Parte03.mp3
Category:general -- posted at: 5:00am CST

Thu, 8 May 2025

Startup Funding Espresso – Raising a Series B Round

Raising a Series B Round

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

In raising a seed or Series A round, the story carries the fundraising pitch.

Investors in those rounds are looking at a seven to ten-year trek to the exit.

In Series B, the time to exit is much shorter.

The fundraising pitch here focuses on the numbers.

The Series B deck shows the repeatable, predictable process that generates money.

Investors expect all the systems to be up and running and the bugs to be worked out.

This means putting a process on every program and a funnel on every output.

The Series B fundraise goes faster than the seed.

The investor’s focus shifts from the pitch deck to the data room.

Make sure your data room contains all the relevant information about the deal.

View your data to predict what questions the investor will ask.

Key questions from the investor focus on growth capacity.

Without any more funding, how far can you go with revenue growth?

What will be the limiting factor?

How far will each fundraising dollar take you?

The pitch deck for seed and Series A shows how you will sell the product.

The Series B deck shows how you will scale it by highlighting the drivers behind cost and revenue.

Consider these points for your Series B fundraise.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: 04.raising_a_series_b_round_.mp3
Category:general -- posted at: 5:00am CST

Wed, 7 May 2025

Startup Funding Espresso – European Waterfall Model

European Waterfall Model

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

Venture capital funds use different payback structures.

Each varies the structure for how the Limited Partners receive their returns.

The European waterfall model does not pay back the carried interest to the general partners until the limited partners have received all their capital and return.

The American waterfall model pays the general partners on a deal-by-deal basis.

This spreads the risk over several deals and throughout the life of the fund.

The American model works at the deal level.

The European model works at the fund level.

The American model gives equal precedence to the managers and the investors.

The European model gives precedence to the investors.

Other factors to consider include the carry rate and the management fee.

In raising funds, consider the payback structure for 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.

_______________________________________________________

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Direct download: 03.European_water_fall_model__.wav.mp3
Category:general -- posted at: 5:00am CST

Tue, 6 May 2025

Startup Funding Espresso – How Performance-Based Valuations Work

How Performance-Based Valuations Work

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

In startup funding, the valuation is often fixed and does not change.

Performance-based valuation changes the valuation if certain conditions are not met.

Here’s how performance-based valuations work:

Let’s take an example.

The startup proposes a valuation of $10M and forecasts revenue to reach $1M by the end of the year.

The investor agrees to a $10M valuation.

If the startup does not achieve the revenue forecast, then the investor claws back some of the equity.

In the example, if the revenue falls short, then the valuation goes from $10M to $8M.

The startup must achieve certain performance requirements to maintain the valuation.

This provides an incentive to the founder to achieve the milestone promised to the investor.

This compensates the investor in the event the milestone is not achieved.

Consider a performance-based valuation for your fundraise.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: 02.how_performance_based_valuations_work__.wav.mp3
Category:general -- posted at: 5:00am CST

Mon, 5 May 2025

Startup Funding Espresso – Roadmap for Medical Device Startups

Roadmap for Medical Device Startups

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

The path for a medical device startup is clearly defined.

In building a medical device startup or diligencing one, consider this roadmap.

Market requirements -- establish the current state of the market, including size, needs, and current solutions.

Product requirements -- define the requirements a medical device product must have to be successful with customers.

Clinical unit -- a prototype that is used to run initial clinical tests.

Preclinical validation -- initial test results with the clinical unit.

First in human test -- clinical trials with human subjects.

Clinical validation -- in human clinical test results.

CE Mark -- regulatory approval to sell a product in Europe.

First European orders -- initial sales of the product in Europe

510 K clearance -- regulatory approval to sell the clinical device in the US.

First US orders -- initial sales of the product in the US.

Break even -- sales equal operating costs.

Growth then scale -- sales continue to grow.

In reviewing a medical device startup, it’s important to know the steps ahead and plan your fundraising 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.

_______________________________________________________

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Direct download: 01.roadmap_for_medical_device_startups.mp3
Category:general -- posted at: 5:00am CST

Fri, 2 May 2025

Startup Funding Espresso – Building the Competition Slide

Building the Competition Slide

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

The startup pitch deck should contain a competition slide.

Some founders start the pitch with, ‘we have no competition’.

Avoid this, as investors will interpret this as if there is no market.

The purpose of the competition slide is to show your competitive advantage.

What do you have that others don’t have?

It’s important to know your market and the players within it.

It’s also key to know what customers value -- price, performance, other?

Here are the steps in building the competition slide:

List out the direct competitors -- those who compete with you head-on.

List out the indirect competitors -- other options the customer has, such as doing nothing.

Show your market positioning -- where do you stand relative to others.

Call out your differentiation -- how you are unique.

Show potential competition that may arise.

Show the product from the customer’s point of view.

If possible, define your competitive advantage with numbers.

For example, our product reduces cost by 3X.

Use these steps to build your competition slide.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: 05.building_the_competition_slide.mp3
Category:general -- posted at: 5:00am CST

Fri, 2 May 2025

Investor Connect 825: Understanding Fiduciary Duties and Legal Risks for Board Members with Christopher Ezold of Wisler Pearlstine

In this episode of Investor Connect, Hall Martin chats with Christopher Ezold, a partner at the Pennsylvania-based law firm Wisler Pearlstine, which specializes in business, employment, and corporate law. Christopher dives deep into the fiduciary duties of board members, emphasizing the duty of care, loyalty, obedience, and confidentiality.

He explains that these duties are crucial at every stage of a company’s lifecycle and discusses the complexities that arise when board members have conflicting interests, particularly in startups seeking venture capital investments. Christopher highlights the importance of having a diverse board, the significance of transparent documentation, and the hazards of self-interested decisions by board members.

Additionally, he touches on the repercussions of failing to meet these duties, ranging from shareholder lawsuits to regulatory sanctions and loss of trust among stakeholders. Hall also brings up a personal anecdote about dealing with a CEO who manipulated the board for self-benefit, with Christopher offering actionable advice on handling such situations.

For more information or to contact Christopher, visit www.wislerpearlstine.com or email him at cezold@wispearl.com.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: Chris_Ezold_04_IC_05_02_mp3.mp3
Category:general -- posted at: 5:00am CST

Thu, 1 May 2025

Startup Funding Espresso – Party Rounds – Going Without a Lead Investor

Party Rounds – Going Without a Lead Investor

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

In raising funding, many founders believe they can’t raise funding without a lead investor.

At the seed level, this is not necessarily the case.

Founders should launch their fundraising campaign with a convertible note so it’s easy for the investor to join the round.

Since valuation is not set, there’s no need for a lead investor to start it.

There is a valuation cap, but this means the valuation will be set later.

At the seed level, it can be hard to agree upon valuation, so it’s best to set it when there’s more information available.

Founders can fund their early rounds without a lead investor.

At the seed level, founders can find enough funding to close the round.

This is called a party round.

Many but not all investors will provide support to the startup.

In launching a Series A raise, one should start with a convertible note to pick up funding from investors while in pursuit of a lead investor.

Consider a party round for your seed fundraising.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: 04.party_rounds--going_without_a_lead_investor.mp3
Category:general -- posted at: 5:00am CST

Wed, 30 April 2025

Startup Funding Espresso – SaaS Growth Metrics

SaaS Growth Metrics

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

There are several key SaaS metrics to know in evaluating a startup.

Here’s a summary of the key metrics:

SaaS Quick Ratio -- New MRR divided by the churned MRR.

This measures how efficient your growth is.

Low efficiency will make scaling difficult.

LTV: CAC -- Lifetime value to Cost of Customer Acquisition

This measures how long customers continue to use the product and compares it to the cost of acquiring that customer.

An early-stage company should see a 3:1 ratio.

Over time, it should improve to 5:1 and later to 7:1

Churn Rate

This measures how many customers drop off during a time period, such as a month.

Segment the customers into groups to examine churn to see where the business is not succeeding.

40% Rule

Growth and profitability should add up to 40% or more.

There’s a tradeoff between growth and profitability.

The more invested in growth, the less profitability.

This shows the viability of the business regardless of whether or not they focus on growth or profitability.

Use these metrics to understand a potential startup investment.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: 03.saas_growth_metrics.mp3
Category:general -- posted at: 5:00am CST

Tue, 29 April 2025

Startup Funding Espresso – How To Build Momentum in Your Fundraise

How To Build Momentum in Your Fundraise

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

Fundraising has its ups and downs, including long patches of slow-paced activity.

Here are some key steps in building momentum for your fundraiser.

Always break the total fundraising into smaller rounds.

This makes the raise manageable from the start.

Do the easy ones first.

Investors who know you and believe in the deal will sign up the quickest.

With those signups, you now have money in the deal.

Use this to spur the momentum to other investors who are not yet ready to invest.

Show why the other investors joined the round.

Strive to reach the halfway point.

From there, the optics on the deal will look better to the prospective investor.

The risk of the deal not getting funded goes way down.

Build a list of interested and committed investors.

Assign an amount to each one and map them out on the remaining portion to be raised.

Show all of them how this will close the round.

For the remaining investors on the list, give them a deadline and push them to pass.

This takes them off your list and lets you focus on closing the interested and committed 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.

_______________________________________________________

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Direct download: 02.how_to_build_momentum_in_your_fundraise.mp3
Category:general -- posted at: 5:00am CST

Mon, 28 April 2025

Startup Funding Espresso – How To Show Your Market Size

How To Show Your Market Size

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

The market slide in the startup fundraise pitch shows the total available market opportunity.

Here are some key steps in showing your market size.

Show the components of your market, including the number of buyers and average selling price.

Include the source of the market research so others can retrace your reference.

Define the market segments clearly so there’s agreement about what part you are pursuing.

Include serviceable and obtainable sizings as well. Avoid phrases such as “only 1% of the market gives us $10B in revenue”.

This means nothing to the investor.

In fact, the investor is left wondering how you will enter the market.

Instead, focus on the first twenty customers you’ll pursue.

Call this out as the beachhead market and show how you have already contacted the first twenty customers and have some traction with them.

It’s important to show the overall market as well as the initial segment you will pursue.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: 01.how_to_show_your_market_size__.mp3
Category:general -- posted at: 5:00am CST

Fri, 25 April 2025

Startup Funding Espresso – Best Practices in Telling Your Story

Best Practices in Telling Your Story

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

Storytelling is a key skill in fundraising.

Use these best practices in telling your story in the pitch to investors:

Declare the problem as the villain in your story.

This sets up a conflict.

Raise the tension by creating a sense of urgency.

Raise your product as the solution to the problem.

Spark interest by noting the possibilities of what the solution can do.

“What if we could cure cancer with this?”

Show the benefits of your solution at a high level.

Don’t just predict your growth story, show it happening now.

Build confidence in the team by showing what they have done so far.

Talk about the solution and what it can do at scale.

Describe the big picture about where this is going.

Invite the investor to join you on the journey.

Investors want to make a return, but they also want to be a part of something great.

Use these best practices in telling your story to raise 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.

_______________________________________________________

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Direct download: 05.best_practices_in_telling_your_story.mp3
Category:general -- posted at: 5:00am CST

Fri, 25 April 2025

Investor Connect 824: Family Office Roundtable Part 02

In this episode of Investor Connect, Hall T. Martin welcomes Herbert to discuss the pivotal role family offices play within the entrepreneurial ecosystem. Herbert highlights the importance of understanding local accelerators, venture capitalists (VCs), and other funding sources in the community during the investment due diligence process. He emphasizes that co-investment requests from family offices to VCs are typically more successful than those from individual entrepreneurs, as they signify a commitment and vested interest from the family offices, thus encouraging VCs to engage more readily.

Herbert also notes the unique contributions of family offices in supporting emerging managers within the venture capital space, often stepping in to fund those who have yet to build the extensive track records required by larger institutional investors like pension funds or foundations.

In the latter part of the episode, Hall introduces Mark Depa of BIO Oxo, a biotech company pioneering innovative treatments for conditions like stroke. Mark pitches their leading compound, BIO 01, which is in phase two clinical trials for treating intracerebral hemorrhage, a type of hemorrhagic stroke. He explains the compound’s unique origins and mechanisms, derived from the saliva of ticks, and discusses its potential to address a significant unmet medical need. Mark also outlines the company's milestones, market potential, and funding strategy, emphasizing the strong backing and promising preliminary data that positions BIO Oxo for substantial growth and impact in the medical field.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: Ic_Parte_02.mp3
Category:general -- posted at: 5:00am CST

Thu, 24 April 2025

Startup Funding Espresso – How Much Funding To Raise Based on Valuation

How Much Funding To Raise Based on Valuation

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

In planning the fundraiser, the amount of funding is a key factor to determine.

The funding amount should take the company to the next major milestone.

It should give the company 18 months of runway at a minimum.

Investors expect the valuation to be around 3X to 4X that of the funds raised.

Most investors want 20% to 25% of equity for each major round of funding.

Therefore, the founder needs to see the valuation be at 3X to 4X the raise amount to account for the dilution.

Each deal will vary based on the following factors:

Growth rate of the sector -- some sectors are growing faster than others and can command a higher valuation.

Location -- some regions offer higher valuations than others.

Team -- strong teams with a great track record will command higher valuations than first-time teams.

Traction -- those with stronger traction can command higher valuations.

Use the 3 to 4x rule to set your valuation and fundraising goals.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: 04.how_much_funding_to_raise_based_on_valuation.mp3
Category:general -- posted at: 5:00am CST

Wed, 23 April 2025

Startup Funding Espresso – How To Wrap Up a Pitch

How To Wrap Up a Pitch

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

In a pitch to an investor, there’s no need for an agenda slide or a summary slide.

The investor knows the format of the pitch and what topics will be covered.

There’s little time for summarization of what was covered.

To wrap up a pitch, consider the following:

Show your contact information, including phone number and email address.

Have a call to action so the investor knows what you expect from them.

Potential calls to action include let’s set up a call to discuss your questions or join our diligence meeting next week.

Most startups end their pitch with a slide labeled “Questions” and little else.

Use the space on the last slide to highlight a key value proposition.

This could be a call out, such as “We’re the A team working on the B project.”

It could be “Come join us in saving the planet from plastic.”

It could be a closed sale of a key account, such as “IBM is just the beginning of many companies we will win.”

Consider your most important value proposition and place a quote that highlights it.

Give the investor something to remember your pitch.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: 03.how_to_wrap_up_the_pitch.mp3
Category:general -- posted at: 5:00am CST

Tue, 22 April 2025

Startup Funding Espresso – Basic Mistakes in Fundraising

Basic Mistakes in Fundraising

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

In the startup world, there are mistakes founders make in their fundraisers.

Avoid these basic mistakes in fundraising

Raising less than $250K.

In the venture world, $250K is the lowest amount of funding to raise.

Below that level, it’s not possible to do something meaningful with the startup.

Raising funds from first-time investors.

Those who have never invested in startups will require a great deal of education.

The investor will need help on terms sheets, standard operating procedures, and more, taking the founder’s time away from other investors.

Not setting a minimum investment amount.

In the angel world, $25K is a common floor for an investment.

Too many investors with $5K and $10K checks can fill up the cap table.

Not raising sufficient funding.

The fundraising target should provide enough runway to take the company to the next level.

Not performing diligence on your prospective investors.

The investors will perform diligence on the startup, so the startup should do so with investors.

Signing up the wrong investor can create headaches for the founder later.

Avoid these mistakes in your fundraising.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: 02.basic_mistakes_in_fundraising.mp3
Category:general -- posted at: 5:00am CST

Mon, 21 April 2025

Startup Funding Espresso – Basic Due Diligence

Basic Due Diligence

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

Investors pursuing an investment in a startup should perform due diligence on the business.

The purpose is to evaluate the opportunity and ensure everything relevant is known about it.

Here are the basic steps to perform diligence:

Market -- this includes the target market and its size and segmentation.

It’s important to understand the current state of the market and the competition.

Is the market size large and growing, and is the competition fragmented or concentrated?

People -- this includes the founder, CEO, and other C-level people.

It’s important to know the experience and background of the team.

Do they have the skills necessary for the startup to succeed?

Financials -- this includes the cash runway, current revenue traction, and fundraising.

It’s important to know the startup has sufficient cash and time to achieve its objectives.

Does the fundraising match the stage of business, and will it be enough to go to the next level?

Product -- this includes the technology base, the core product, and secondary products.

It’s important to know the current state of the product, including features, position in the market, and competitive advantage.

Will the product win enough customers to achieve the financial forecast?

Legal -- this includes the legal entity and intellectual property.

It’s important to know what protection the business has and what legal entity it currently holds.

Will this give the business enough protection to achieve a place in the market?

Consider these basic steps in your due diligence 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

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Music courtesy of Bensound.

Direct download: 01.basic_due_diligence__.mp3
Category:general -- posted at: 5:00am CST

Fri, 18 April 2025

Startup Funding Espresso – Key Slides in Your Pitch Deck

Key Slides in Your Pitch Deck

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

In the pitch, there are specific slides that are key to the investor.

Here’s a list of key slides to include in your deck.

Problem -- provides the overall context for the startup.

It must be a big problem outlined with a few numbers.

Solution -- shows the product that solves the problem.

It’s important to make clear what the solution is and how you make money.

How it works -- shows the product in action with the customer’s situation.

Shows how the solution fits into the customer's workflow.

Traction -- shows the current status of revenue with customers.

It’s important to state the current status as the investor needs to know where the startup is today.

Team -- shows who will take the business forward.

The team must have experience and be all-in on the startup.

Target market -- shows the market the startup will pursue.

The market must be large and growing.

It’s also important to show where the startup will enter that market.

Fundraise -- shows the amount of funding sought and at what terms.

The fundraising ask must fit the stage of the company.

Be sure to include these slides in your pitch deck.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: 05.key_slides_in_your_deck.mp3
Category:general -- posted at: 5:00am CST

Fri, 18 April 2025

Investor Connect 823: Family Office Roundtable Part 01

In this episode of Investor Connect, Hall T. Martin talks with Herbert Drayton, a partner at Highmark Capital, about the importance of building capacity before expecting change in the startup ecosystem. They delve into the legwork involved in preparing companies for investor engagement, including managing pitch events, and running marketing campaigns. Herbert shares his insights on the key components that make a startup successful, emphasizing the significance of infrastructure, mentorship, and community support. He discusses how Highmark Capital focuses on investing in AI startups led by underrepresented founders in the southeastern US, mainly in South Carolina.

Additionally, the episode introduces Ava, the new AI-powered assistant at 10 Capital that helps entrepreneurs find funding tips and investors locate their next big investment. Ava extracts knowledge from over 500 blogs, podcasts, and tools like the 'How Fundable is Your Startup' calculator to answer user questions efficiently.

For more information about the events and resources at 10 Capital, visit their website and poke around the 'Events' tab. Herbert addresses the crucial yet often neglected aspects of creating sustainable investments, such as ensuring the founders are ready to scale and providing them with robust ecosystems for long-term success. He illustrates how successful investment isn't just about providing capital but also about offering the necessary support systems, including mentorship, strategic partnerships, and continuous guidance. This comprehensive approach ensures that both the investments and the entrepreneurs have the foundation needed for impactful growth.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 2025-01-28_Family_Office_Roundtable_Video-001.mp3
Category:general -- posted at: 5:00am CST

Thu, 17 April 2025

Startup Funding Espresso – Burn Multiple

Burn Multiple

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

Burn rate is the amount of cash spent over and above the revenue received.

It’s typically calculated on a monthly basis.

Burn multiple is a metric that calculates the capital efficiency of a startup.

To calculate burn multiple divide the monthly burn rate by the net new ARR.

It shows how much revenue your startup is generating vs dollars spent.

The burn multiple shows the efficiency of the business unlike the CAC: LTV ratio which measures just sales and marketing.

In most startups raising venture capital the burn multiple ranges from 1X to 3X.

Anything below 1x is fantastic.

From 1x to 2x is good

2x to 3x is a problem

Over 3x is a major problem.

Very early-stage companies may have a 3X burn rate because the revenue hasn’t come up yet.

At Series A many companies have a 2X multiple.

At Series B the burn multiple should drop down to 1X or less.

At break even, the burn rate multiple will drop to 0.

Check the burn multiple of startups in your portfolio to see if they are tracking for their stage.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 04.burn_multiple.mp3
Category:general -- posted at: 5:00am CST

Wed, 16 April 2025

Startup Funding Espresso – Pre Seed Seed Seed+ Seed++ Series A

Pre Seed Seed Seed+ Seed++ Series A

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

In startup funding, the raises come in rounds.

The startup can raise a pre-seed round followed by a seed, then a Series A, Series B, and so forth.

Many founders view this approach as one step after the other.

The reality is there’s a large gap between the Seed and the Series A.

Some call this the Valley of Death.

This occurs because the startup often moves from family and friends and angel funding to institutional investors.

The gap is wide between the two investor types.

The funding reality is closer to Seed Seed+ Seed++ another $250K bridge round and then Series A.

One strategy is to find bigger and more lucrative customers as you move through the series so you can generate more revenue.

This reduces the amount of funding required to reach the next level.

Another strategy is to factor this many rounds into your fundraising strategy from the start.

Consider the valley of death and how you will cross it with your fundraising planning.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 03.pre_seed_seed_seed_seed_Series_A.mp3
Category:general -- posted at: 5:00am CST

Tue, 15 April 2025

Startup Funding Espresso – The First Raise Is a Minimum Round

The First Raise Is a Minimum Round

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

In startup fundraising, many founders try to raise too much funding in the first round.

This causes dilution for the founder as the valuation will be low.

In startup fundraising, the first raise is a minimum round.

Instead of raising everything you need to accomplish the goals, you should raise a minimal amount to get the initial product up and some revenue coming in.

The startup’s valuation will be at the lowest point in the life of the business so it’s best to raise the smallest amount possible.

As the startup builds more products, teams, and revenue the valuation will rise.

The majority of the funding comes later when the valuation is higher.

This strategy reduces the founder's dilution.

In structuring your fundraiser consider what can be done to generate the biggest bang for the buck with the least amount of funding.

Then add more capabilities to the product and more team members.

By tranching out the product features one can reduce the funding requirements.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 02.the_first_raise_is_a_minimum_round.mp3
Category:general -- posted at: 5:00am CST

Mon, 14 April 2025

Startup Funding Espresso – Valuation Is the Primary Factor Impacting Returns

Valuation Is the Primary Factor Impacting Returns

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

There are many terms in a startup fundraising terms sheet.

Valuation is the primary factor impacting investor returns.

Here’s an example showing the impact of valuation on the returns.

The pre-money valuation plus the investment yields the post-money valuation.

The investor's ownership is the investment divided by the post-money valuation.

For example, if a startup is raising $1M with a $4M pre-money valuation that yields $5M post-money.

This gives the investor a 20% ownership stake as the post valuation is $1M divided by $5M.

In another example, a startup is raising $1M with a $19M pre-money valuation that yields $20M post-money.

This gives the investor a 5% ownership stake as the post valuation is $1M divided by $20M.

There are terms that can help mitigate an outsized valuation such as a liquidation preference in which the investor receives their original investment first.

Of all the terms in the deal, the valuation is the primary factor to consider.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 01.valuation_is_the_primary_factor_impacting_returns.mp3
Category:general -- posted at: 5:00am CST

Fri, 11 April 2025

Startup Funding Espresso – Consider Dilution in Setting Your Fundraise

Consider Dilution in Setting Your Fundraise

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

In startup fundraising dilution is a key issue for founders.

At each stage of funding investors will demand a certain amount of equity.

Here’s how much each round will cost a startup in equity:

Pre-seed

Typically funded by family and friends the cost of funding is 5 to 10%.

Seed

Angels take 5 to 10% while venture capitalists take 10 to 25%.

Seed+

Most founders will need additional funding to carry the business forward.

Seed+ rounds cost the same amount as seed rounds.

Series A

Venture capital investors will seek 15 to 25% of equity at this stage.

Series B

Later-stage VCs look for 10% to 20% of the equity at this point.

Series C and following.

Growth equity investors look for 10% to 15% at this level.

Consider the impact of dilution on your startup from fundraising.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 05.consider_dilution_in_stting_your_fundraise.mp3
Category:general -- posted at: 5:00am CST

Fri, 11 April 2025

Investor Connect 822: Navigating Legal Challenges with Christopher Ezold of Wisler Pearlstine

In this episode of Investor Connect, Hall T. Martin chats with Christopher Ezold, partner at Wisler Pearlstine, a Pennsylvania-based law firm specializing in business, employment, and corporate law. Christopher shares insights on emerging legal risks and trends that businesses should prepare for, especially amid economic uncertainties in 2025. Key topics include the importance of securing debt, the complexities of cybersecurity and privacy laws, the rise of labor and employment issues, and the challenges around mergers and acquisitions.

Hall and Christopher also delve into common legal missteps that lead businesses into lawsuits and emphasize the significance of proper documentation and early involvement of legal counsel. Christopher explains the nature of fraud, distinguishing between intentional deception and negligence that creates opportunities for fraudulent actions. He recounts complex fraud cases, including one involving a private equity fund's deceptive practices, and shares lessons learned from these experiences.

The conversation also touches on the fluid legal landscape of non-compete and non-disclosure agreements, offering advice on how to ensure these agreements are both necessary and enforceable. Christopher highlights various ways fraud can occur within a company, from overvaluing assets to manipulating earnings, and stresses the importance of internal vigilance and thorough investigation. Hall and Christopher discuss strategies for addressing potential fraud or legal violations, from preserving data and starting immediate investigations to understanding the impact and having flexible plans in place. Christopher underscores the importance of having a trustworthy attorney who understands the business and can provide early advice to avoid litigation.

The episode concludes with practical tips on engaging the right authorities for different types of fraud cases and the critical role of transparency and trust in the attorney-client relationship.

For more information or to contact Christopher, visit www.wislerpearlstine.com or email him at cezold@wispearl.com.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: Chris_Ezold_03.mp3
Category:general -- posted at: 5:00am CST

Thu, 10 April 2025

Startup Funding Espresso – Diligencing AI Startups

Diligencing AI Startups

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

Artificial intelligence or AI brings new capabilities and applications.

Many startups launch their business around AI technology.

Investors considering an investment in an AI startup should check the following:

Source of data.

Does the startup have access to data sets?

Unique data.

Does the startup have a data set that others do not have access to?

Clean data.

Is the data clean and ready for use or must it go through a costly cleaning process?

Quantity of data.

Does the startup have access to a substantial amount of data?

Cost of processing.

How much does it cost to process the data?

Machine learning. Also called ML.

Do they have their own ML model or are they using an open-source one?

Core competency.

What is their core competency -- core data, machine learning, user interface, and others?

ML skills.

Does the team have a core skill set around developing ML?

Data collection regulatory

Does the team gather and use the data sets within compliance?

Consider these factors when you are conducting your diligence on an AI startup.

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

Let’s go startup something today.

_______________________________________________________

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Direct download: 04.diligencing_ai_startups.mp3
Category:general -- posted at: 5:00am CST

Wed, 9 April 2025

Startup Funding Espresso – Medical Device Milestones

Medical Device Milestones

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

The medical device startup has a well-defined list of milestones to achieve to bring a product to market.

Here’s a list of key milestones for the medical device startup:

Market requirements -- defines the current status of solutions and unmet needs of the market.

Product requirements -- defines the features and specifications of the proposed product.

Prototypes -- intermediate implementations of the product for testing, customer feedback, and fundraising with investors.

Clinical unit -- a version of the product to be used in clinical testing.

Pre-clinical validation -- clinical tests to determine safety and efficacy.

Clinical trials -- animal and human tests with the clinical unit.

CE Mark -- certification to sell the product in Europe.

FDA 510K approval -- for non-invasive products in a sector with previously certified devices this is the shortest path to FDA approval.

First orders from customers -- the initial purchase of the approved product.

Break-even -- the product achieves break-even on revenue with cost to build and sell.

A typical medical device will take three to five years to gain FDA clearance and reach the market.

Consider these steps for your medical device development.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 03.medical_device_milestones.mp3
Category:general -- posted at: 5:00am CST

Tue, 8 April 2025

Startup Funding Espresso – Overcoming the Investors' Hesitancy

Overcoming the Investors’ Hesitancy

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

In fundraising, there comes a time when the investor must decide to join or pass on the round.

Many investors hesitate to join as they try to decide.

Here are some steps founders should take to overcome the hesitancy:

Start the outreach to investors well ahead of launching the campaign.

Begin six months before contacting potential investors and indicating you are preparing a fundraise.

Use the six-month window from first contact to campaign launch to educate the investor and provide a few updates.

Craft a strong story and use case for your company.

Take the investor on the journey with you by keeping them up to date on the ups and downs of the business.

Show how short the time from launch to break even will be and how well-defined it is.

In the very early stages avoid forcing the investor to climb the valuation wall.

The valuation wall is the challenge the investor undergoes to determine the correct valuation.

Instead, use a convertible note with a valuation cap which effectively kicks the valuation question down the road.

Consider these steps to avoid the investor hesitancy phase.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 02.overcoming_the_investors_hesitancy.mp3
Category:general -- posted at: 5:00am CST

Mon, 7 April 2025

Startup Funding Espresso – How Private Equity Differs From Venture Capital

How Private Equity Differs From Venture Capital

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

Private equity and venture capital are different types of investment.

Here are the key differences:

Risk level

Private equity takes less risk and thus a lower potential return than venture capital.

Private equity investments invest in firms with a positive profit line while venture capital investments run negative on the bottom line putting everything into top-line growth.

Control level

Private equity often takes a controlling position in the company.

Venture capital takes only an oversight position in most investments.

Stage of business

Private equity invests in mature companies with a history of revenue and profits.

Venture capital invests in early-stage companies with great promise.

Funding source

Private equity raises funding from institutional investors.

Venture capital raises funding from limited partners who are typically high-networth individuals.

Size of investment

Private equity often invests substantial amounts of money into the business to increase profitability.

Venture capital typically invests smaller amounts of capital to increase the growth rate.

Consider these differences in considering private equity or venture capital funding for your fundraise.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 01.how_private_equity_differs_from_venture_capital.mp3
Category:general -- posted at: 5:00am CST

Fri, 4 April 2025

Startup Funding Espresso – The Gap Between Seed and Series A

The Gap Between Seed and Series A

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

In startup funding, we talk about preseed, seed, Series A, Series B, and so forth.

It sounds like each stage is just one step after the other.

When you finish your pre-seed round you raise your seed.

In reality, there’s a gap between seed and Series A.

It often takes several rounds of funding to close it.

Most startups raise a preseed, seed, seed+, seed++, and another bridge round for $250K, and then go to Series A.

This is often a surprise to first-time founders.

The reasons are as follows:

In most cases, the Series A is the first institutional round of investment.

The requirements regarding revenue, growth, margins, churn, and other factors are fixed and rigorous.

Prior rounds of funding were often made regardless of the results of the business but rather on the promise of future results.

Series A investors have specific requirements around valuation and ownership stakes.

This often requires better metrics and more revenue to make it work.

It’s often the case that the founders have a vision for a specific valuation.

Specific valuation targets often require better metrics from the startup.

Make sure you plan for the gap between the seed and Series A in your fundraise.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 05.the_gap_betw_seed_and_series_a.mp3
Category:general -- posted at: 5:00am CST

Fri, 4 April 2025

Investor Connect 821: TEN Capital Virtual Investor Education Series Part 4

In this episode of Investor Connect, we dive into the world of live entertainment as a service with Jason Seitz of Ticket Rewards. Jason provides an insightful overview of how Ticket Rewards is transforming live entertainment by partnering with brands and venues to offer a seamless, engaging experience for consumers. With a significant inventory of tickets worth half a billion dollars, Ticket Rewards works with major brands like HBO Max, Celebrity Cruises, and United Mileage Plus to drive engagement and retention through exclusive ticket deals and loyalty programs.

This innovative approach helps these brands maintain customer loyalty and reduce churn by providing unique, emotionally resonant experiences that tie back to the brand itself. Jason also discusses some compelling case studies, such as the impact of their partnership with Celebrity Cruises, which saw a 40% higher open rate and 20% higher click-through rate for live entertainment emails. Similarly, their collaboration with HBO Max resulted in higher engagement rates and retention. The podcast further explores their revenue streams, scalability, and how they are striving to grow their client base amid increasing interest from new potential partners like Lyft, Travelzoo, and others. Their innovative business model and successful partnerships have helped them make commendable strides in the industry, including finishing the year on a profitable note.

Towards the end, Hall T. Martin and his guests delve into the intricacies of term sheets, offering a comprehensive breakdown of key financial parameters and how convertible notes like the 3x in 3 provide a flexible investment option. Hall emphasizes the importance of understanding term sheet dynamics, especially how these agreements can significantly favor either the founder or the investor. This episode is a must-listen for anyone interested in the intersection of live entertainment and innovative business models, as well as those keen on investment strategies in dynamic startup environments.

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

For Feedback please contact info@tencapital.group

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Direct download: Ic04.mp3
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Thu, 3 April 2025

Startup Funding Espresso – The Startups Advantage Over Big Companies

The Startups Advantage Over Big Companies

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

While big companies have size, resources, and reach, the startup holds advantages of their own.

Here’s a list of the startups' advantages:

Focus - the startup can focus all its energy and resources on one thing.

Big companies have an existing product line, team, and commitments they must maintain

They cannot focus solely on one thing.

Speed -- the startup can move fast in building and iterating on a product.

Big companies must coordinate teams across department lines.

They cannot move fast given their structure, culture, and workload.

No legacy products -- the startup has no existing products to defend.

Big companies have legacy products they must support and sell.

In most cases, they must work around their current product lines.

No brand risk -- the startup has no historical brand to maintain.

Big companies have a brand and must protect it.

They cannot take on risky startup products as it puts their reputation at risk.

While big companies have a brand, scale, and resources, the startup is particularly well-positioned to pursue new products with disruptive technologies.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 04.the_startups_advantage_over_big_companies.mp3
Category:general -- posted at: 5:00am CST

Wed, 2 April 2025

Startup Funding Espresso – Startup Stages

Startup Stages

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

The startup goes through several stages before it achieves product market fit and then scaling.

Here are the key steps that come before:

The founder establishes the team.

This is often driven by a passion or a business opportunity.

The founding team develops a vision for the business they will build.

This is often improving the customer experience around a current problem.

The team envisions a product that provides value to the customer that solves the problem.

The team tests the market by talking with customers.

This often involves building minimum viable products and prototypes.

The team builds an initial version of the product and tests the business model.

The goal is to see if the customers use the product and if demand will spread.

The team takes the product out to a broader range of customers to check interest.

The initial customers are often family and friends and may be biased in their assessment of the product.

The team works on the product to achieve product/market fit.

The goal here is to make sure the product works well for the customer and meets their needs.

Consider these steps in establishing a startup for your idea.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 03.startup_stages.mp3
Category:general -- posted at: 5:00am CST

Tue, 1 April 2025

Startup Funding Espresso – No NDAs Before the Investor Pitch

No NDAs Before the Investor Pitch

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

In startup fundraising, the NDA comes near the end of the process, not at the beginning.

An NDA stands for Non-Disclosure Agreement and requires the signatory to keep confidential any, and all information disclosed.

A founder asking an investor to sign an NDA before the pitch signals to the investor that there’s nothing protectable about the business.

In most cases, the investor will not sign the NDA and will take a pass on the deal.

A founder should give the investor basic information without an NDA.

The founder should focus on the benefits of their technology and business model instead of describing exactly how it works.

An example includes, our software reduces cost by 3x.

There is a place for NDAs later in the process.

When investors go into diligence, it’s appropriate for the founder to ask the investor to sign an NDA.

Other cases to use an NDA in the startup space include the following:

A potential acquirer wants to license a product or technology.

A potential acquirer wants to buy the company.

The diligence box has employee, customer, or partner information that is sensitive.

Keep the dialog on a non-confidential basis with investors so they can learn more about the business.

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

Let’s go startup something today.

_______________________________________________________

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

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Direct download: 02.no_ndas_before_the_investor_pitch.mp3
Category:general -- posted at: 5:00am CST

Mon, 31 March 2025

Startup Funding Espresso – Fundraising – Important but Not Urgent

Fundraising – Important but Not Urgent

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

Fundraising can be hard for startups because it falls into the important but not urgent category.

The Eisenhower matrix shows four sectors.

Important and urgent-- spurs immediate action

Not important but urgent -- delegate it

Not important and not urgent -- discard it

Important but not urgent -- plan for it

In fundraises where there is no pressing need for funding, it can be difficult to complete.

Other urgent tasks can take precedence over fundraising.

This includes hiring employees, closing sales, and keeping clients happy.

Fundraising most often is not urgent and doesn’t press the founder so it gets deprioritized.

Fundraising requires intention, discipline, and focus.

Develop a fundraising schedule and map it out on your calendar.

Set aside time for it each week.

Set activity goals for the number of contacts you will make.

Engage your team to hold you accountable.

In the startup world, what you focus on and pay for gets done.

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

For Feedback please contact info@tencapital.group

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Direct download: 01.fundraising-important_but_not_urgent.mp3
Category:general -- posted at: 5:00am CST

Fri, 28 March 2025

Startup Funding Espresso – What Angels Can Do for Your Startup

What Angels Can Do for Your Startup

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

Angels can bring more value than just funding to your startup.

Here’s a list of what angels can do:

They bring a network for hiring key people on the team.

Their network can also help find customers, partners, and others.

They bring experience and can help make key decisions along the way.

They help with fundraising, product development and launch, and financial decisions.

For those with a high profile in the community, they bring notoriety to your startup.

This helps in finding more investors and partners.

They bring domain expertise if they come from the industry the startup targets.

They provide coaching to help formulate strategy.

They provide mentorship to startup founders.

They provide additional support in the form of CFO and COO work.

They bring a rich history of success and failure stories about other startups.

They provide access to new networks and communities.

Consider these points when recruiting angel investors for your fundraise.

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

Let’s go startup something today.

_______________________________________________________

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

For Feedback please contact info@tencapital.group

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Music courtesy of Bensound.

Direct download: 05.what_angels_can_for_your_stsrtup__05.what_angels_can_for_your_stsrtup.mp3
Category:general -- posted at: 5:00am CST

Fri, 28 March 2025

Investor Connect 820: TEN Capital Virtual Investor Education Series Part 3

In this episode of Investor Connect, host Hall T. Martin speaks with Barry Fella of Cranial Devices about their innovative approach to treating hydrocephalus. Barry sheds light on the significant challenges associated with the current treatment method, such as high failure rates, infections, and the need for multiple revisions throughout a patient's lifetime. Cranial Devices is developing a physiologic shunt that offers a safer, more reliable alternative by draining excess cerebrospinal fluid directly into the venous system, significantly reducing the likelihood of failures and complications. The new shunting method presents a promising advancement in medical technology, with numerous benefits for patients, surgeons, and healthcare payers alike. Barry elaborates on the device's FDA classification, ongoing animal pilot studies, and plans for human trials in South America or Australia. He also discusses the future market opportunities, particularly for older patients with normal pressure hydrocephalus, and how Cranial Devices aims to capture a considerable share of the revision market. Tune in to discover how this groundbreaking technology could transform the landscape of hydrocephalus treatment.

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: Ic_03.mp3
Category:general -- posted at: 5:00am CST

Thu, 27 March 2025

Startup Funding Espresso – Comparing Funding Sources

Comparing Funding Sources

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

In startup fundraising, there are four distinct groups to consider for funding.

The list includes venture capital, angel investors, angel groups, and family offices.

Here’s the comparison of each source:

Venture capital

VCs have their diligence process and will take some time to complete it.

They write $150K to $500K checks on the first round.

They are very sensitive to valuation.

They often require board seats.

They provide the most support of any investor type.

Angel investors

They can make decisions quickly

They write $25K to $50K checks.

They tend not to be swayed by valuation as much as other investors.

They rarely require board seats.

They provide the least support.

Angel groups

They have a process that will take some time to complete.

They write $100K to $500K checks for a typical deal

They can be sensitive to valuation.

They sometimes require board seats.

They provide some support.

Family offices

They can act like angels and move quickly or they may have a more detailed process.

They write $100K to $250K checks on the first round.

They can be sensitive to valuation.

They sometimes require board seats.

They provide some support.

Consider these factors for your fundraise in selecting your target investor.

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

Let’s go startup something today.

_______________________________________________________

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 04.comparing_funding_sources.mp3
Category:general -- posted at: 5:00am CST

Wed, 26 March 2025

Startup Funding Espresso – How To Fundraise in Down Markets

How To Fundraise in Down Markets

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

The venture world cycles up and down based on technology breakthroughs, stock market gyrations, and other factors.

In up markets funding can be more plentiful.

In down markets, it can be more challenging to obtain.

Consider these steps in fundraising in a down market:

Spend more time bootstrapping the business to gain traction.

For funding look for individual angels.

Angels are less impacted by the financial cycles and can usually afford to invest a small amount at just about any time.

Look for a corporate client or partner that can provide a great deal of business through one channel.

Make sure you are using any available non-equity financing such as revenue-based funding, factoring, and equipment leasing.

Consider joining professional groups where your customers live to make connections and learn more about the industry.

Look for custom projects that utilize your core product.

This helps pay the bills and keeps your team engaged with solving customers' problems with the core product.

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

Let’s go startup something today.

_______________________________________________________

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 03.how_to_fundraise_in_a_down_market.mp3
Category:general -- posted at: 5:00am CST

Tue, 25 March 2025

Startup Funding Espresso – Core Slides in the Pitchdeck

Core Slides in the Pitchdeck

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

The pitch deck tells the startup's story and provides key information about the investment opportunity to the investor.

There are five key slides that an investor needs to see to understand the state of the business.

Problem.

The investor needs to understand what problem the startup solves to determine the market size.

Solution

The investor needs to see what the startup proposes to solve the problem to understand what product the startup must build and sell.

Team.

The investor needs to know who is on the core team leading the effort to build and sell the proposed product to see if they have the requisite skills.

Traction.

The investor needs to know where the startup currently stands on the path to engaging the market.

Fundraise.

The investor needs to know how much funding the startup needs to accomplish the go-to-market plan.

These five slides provide the basic context with which an investor can understand the business.

Without all of these, the investor lacks enough information to move forward with the deal.

Make sure you cover these points in your presentation.

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 02.core_slides_in_the_pitchdeck.mp3
Category:general -- posted at: 5:00am CST

Mon, 24 March 2025

Startup Funding Espresso – Startup Business Models

Startup Business Models

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

Businesses sell to consumers, which is called B2C, or to businesses called B2B.

Startups aggregate users, create marketplaces or sell services.

Here’s a list of key startup business models to know:

Freemium -- the startup gives something for free to build the customer list and then sells premium services to them.

Subscription -- the startup finds a needed service and sells it to the customer on a recurring revenue basis.

Marketplace -- the startup brings buyers and sellers together in one place and makes money off the transactions.

Fees for service -- the startup provides a service, content, or access in exchange for a fee.

Advertising -- the startup attracts an audience and sells advertising to those who want to promote their product or service to that audience.

Data monetization -- the startup collects data from a group of people or processes and sells that data to others who use it to improve their business.

Razor - razor blade model -- the startup sells a product that requires disposable components to use.

This creates a recurring revenue stream from repeat purchases of the disposable product.

Consider these business models for your startup.

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

Let’s go startup something today.

_______________________________________________________

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 01.startup_business_models.mp3
Category:general -- posted at: 5:00am CST

Fri, 21 March 2025

Startup Funding Espresso – The Pre-Seed Pitch Deck

The Pre-Seed Pitch Deck

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

The pre-seed company raising funding faces a challenge.

There are no revenue, traction, or performance metrics to show the investor.

The startup basically has an idea, a team, and little else.

For the pre-seed pitch deck, cover these topics:

Start with the team and show each one's past experiences.

Talk about how the team knows a particular market and use case.

Highlight the problem in that market.

Show the key insight the team has about the market and the problem.

Discuss how to solve a problem with that insight.

Show why now is the best time to pursue this opportunity.

Point out a recent change in the industry or an inflection point in the market that provides an opening.

Show what the team has done so far to reach these conclusions and who they have talked to.

Show the market size and the entry point into that market.

State the investment ask and use of the funds.

The key to a successful pre seed pitch is to show you have a strong team with a unique insight that can be exploited in a short time frame.

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: 05.the_pre_seed_pitchdeck.mp3
Category:general -- posted at: 5:00am CST

Fri, 21 March 2025

Investor Connect 819: TEN Capital Virtual Investor Education Series Part 2

In this episode of Investor Connect, Hall T. Martin chats with Mike Sloan, Founder, and CEO of Simple Labs. Mike introduces Cogni, an innovative device designed to tackle significant challenges in the wine and spirits industry, such as product loss due to evaporation and spoilage. Starting from his background in bourbon country and transitioning to wine country, Mike shares insights on the industry's pressing needs and how Cogni could potentially save billions in losses annually while optimizing premium product selection through continuous barrel monitoring and data analytics powered by AI and ML technology.

Mike outlines the substantial market opportunities with both immediate and future potential, illustrating how Cogni's platform extends beyond a simple device to a scalable solution with a global reach. He emphasizes Cogni's current traction in the market, with agreements in place with leading distilleries and collaborations with academic centers. Investors will be keen to note the $10 million Series A round intended to accelerate growth, scale production, and refine the innovative real-time monitoring technology further.

The discussion also delves into the technical specifics of Cogni, including hardware and software integration, cost, and reusability, demonstrating how the platform offers a comprehensive and cost-effective solution for winemakers and distillers alike. Tune in to learn more about how Simple Labs is poised to disrupt the wine and spirits industry and capitalize on a $1.6 trillion global market opportunity.

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: IC_02.mp3
Category:general -- posted at: 5:00am CST