Investor Connect Podcast (general)

What Companies Should Know Before Allowing Secondary Sales?

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

Companies who want to give their employees the opportunity to sell their shares should consider the following:

Set specific timeframes to allow for stock sales by the employees.

This limits the distraction of employees and reduces the amount of disclosure the company must do.

Prepare disclosure statements for the employees to use and gain board approval.

Many companies set the selling timeframe to come just after a fundraise.

The share price has been set and can be used for the secondary transaction.

The company should provide standard disclosure information about the company such as risk factors and current financials.

Company-made projections are rarely provided as it’s very difficult to make accurate predictions.

The price set for the secondary sale will impact the next 409A valuation that sets the price of stock options.

The secondary sale price sets a floor for the options price.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes Nitin Rai, Founder and Managing Partner at Elevate Capital. 

Located in Hillsboro, OR, USA, Elevate Capital is a Diversity, Equity, and Inclusion focused fund that invests in US-based early-stage startups led by underrepresented entrepreneurs, including women, BIPOC, LGBTQ+, and veterans. Launched in 2016, it is one of the US's first institutional inclusive venture funds. It includes three funds: Capital Fund I and II, and an Inclusive Fund, a pre-seed and seed-stage fund that invests in diverse and underserved entrepreneurs nationwide.

 Since 2016, Elevate Capital has invested nearly $45 million in 57 startups of which 95% are led by diverse founders. These companies have raised follow-on funding of over $280 Million, with a market cap of more than $1.2 Billion and created more than 1,000 jobs. These companies also report 50% of their employees as diverse.

Nitin is a highly successful software technology leader and entrepreneur turned Venture Capitalist. Nitin is the Founder and Managing Partner of Elevate Capital. Nitin serves as a board member on many of Elevate Capital’s portfolio companies. 

Nitin is also a successful entrepreneur. He started his career in Silicon Valley as an engineer at two startups. In 1994, he founded First Insight Corporation, a highly successful electronic health records (EHR), practice management, and ophthalmic image management software company, and a revenue cycle management service (Fast Pay Health) for eye care professionals based in Hillsboro, Oregon, and Pune, India. First Insight is a leader in the optometry, ophthalmology, and optical software industry with its flagship store, MaximEyes.  

Nitin shares his background as an immigrant from India and his journey as an entrepreneur before starting Elevate Capital. Nitin highlighted the challenges of starting a VC fund in the current economic climate and the limited availability of institutional capital. He also talked about the opportunity to start a VC fund and Elevate Capital's hands-on approach in supporting portfolio companies through board seats, advisory roles, fundraising assistance, and strategic guidance in strategy and go-to-market plans.

Visit Elevate Capital at elevate.vc or follow Elevate Capital on Twitter, Facebook, and LinkedIn.

Reach out to Nitin at nitin@elevate.vc, www.linkedin.com/company/elevate-capital-fund/, and on twitter.com/NitinrRai

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Valuation Method for a Secondary Sale

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

In pricing a secondary sale here are some valuation techniques:

Estimate the value of the equity by multiplying the revenue by the multiple for similar companies.

For example, SaaS companies are sold for a multiple of 10X revenues.

Reduce the value of any debt the company has.

Divide the remaining value by the number of outstanding shares.

Use their 409A analysis to compare to the number you calculated.

Remember, 4o9A’s tend to push the share price down to provide lower-cost stock options to employees.

Other factors to include are time to exit and if the company is a candidate for an IPO or a buyout.

Finally, look for any recent secondary share sales as a guide to setting the current price.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Types of Buyers of Secondary Shares

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

There are several types of buyers for secondary shares.

Each has its own motivation for doing so.

Here’s a list to consider:

Employees often want more shares of a startup that is doing well.

They may also want to sell their shares to pay for expenses such as college tuition for a family member.

When an employee leaves the company will oftentimes let the employee sell their shares.

Venture capital funds will sell secondary shares to provide liquidity to their limited partners.

For companies that are not on track for an exit soon, some venture capital funds sell their shares to wind down the fund.

Companies that are maturing often need cash to retain employees or replace an investor that wants to exit the investment.

They also can sell company shares to raise new capital for growth objectives.

There are several types of buyers each with their own incentive to sell their shares on the secondary market.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Tax Issues With Secondaries

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

There are tax issues associated with a secondary sale.

Here’s a list of issues to consider:

Gains on secondary sales are taxed based on the holding time of the shares.

If less than one year, then ordinary income tax rates apply.  If longer than one year then the capital gains tax rate applies.

If the purchase is made at a premium price, then additional tax issues arise.

If made to an employee then the IRS may treat a portion of the gains as compensation and not as capital gains.

If made to a third party investor the IRS may also determine a portion of the sale to be compensation and require the company to apply withholding.

The identity of the buyer, the type of sale, and the purpose determine the tax treatment where premium pricing is used.

Stock purchases only from employees will be deemed as compensation.

If the purpose of the sale is for reducing dilution, gaining control, or addressing a company in need then those sales will not be deemed as compensation.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Pricing Secondary Shares

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

In selling secondary shares a price must be set.

Since the shares are in a private firm there’s no market to review for a list price.

Here are some factors to consider in pricing a secondary sale:

Are the shares preferred stock or common stock?

Preferred stock has preferences such as liquidation preference and takes precedence over common stock.

Common stock is the equity type issued to founders and employees.  It typically has no special rights beyond ownership.

Since the stock is not publicly traded it’s considered illiquid. 

The price reflects illiquidity and is often set at a 10% to 50% discount to the last priced round.  

Time to exit for the startup is another key factor.  

Most secondary sales come in the last three years of the startup's life. 

Finally, the health of the company impacts the price as the stronger the growth rate and metrics the higher the price. 

Preferred stock, shorter time to exit, and a high growth rate will yield a higher secondary share price.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Type of Secondary Transactions

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

There are several types of secondary transactions as follows:

Confidentially marketed public offerings -- these offerings go to institutional investors.

These transactions use an S3 form to provide shares to known buyers.

Bought deal -- these shares are bought by an underwriter who takes the risk of the transaction.

Since the risk is shouldered by one underwriter the shares are typically priced higher.

PIPEs -- these are Private Investments in Public Entities and give private investors the ability to buy shares directly in the company without public disclosure.

PIPEs are more heavily discounted.

Block trades -- these are transactions used by smaller sellers to sell their shares directly to another buyer without having to go through an underwriter.

These transactions provide alternative ways of completing a secondary sale.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

We are excited to announce a new segment for you, How to Invest Series. Where we will be revisiting some of the smart insights, tips, and advice from our past guests on the show. To start off the series we will be touching on the Biotech and life science subject. So, let's dive right in and hear the answers to the question I made to each of our guests back in 2021: What makes for a successful company in this segment?

Our first five guests are: Carter Williams, CEO and Managing Partner of iSelect Fund, Maximilian Bade, Founding Partner at Nucleus Capital, Orrin Ailloni-Charas, MD, who was the Managing Partner of the Global Health Impact Fund, Eyal Lifschitz, Co-Founder and Managing Partner at Peregrine Ventures, and Ron Paliwoda, President of the Paliwoda Group.

Carter Williams, a seasoned innovator and venture investor, has an extensive background in managing R&D and spearheading technological advancements. Currently, Carter leads iSelect, an early-stage venture firm based in St. Louis, which focuses on investing in companies tackling global issues with financially attractive business models. Maximilian has founded Nucleus Capital to support purpose-driven entrepreneurs addressing systemic challenges to planetary health. Nucleus Capital is a venture capital firm focused on investing in pre/seed stage companies at the intersection of synthetic biology, climate- and food technology.

Dr. Orrin Ailloni-Charas is an experienced anesthesiologist and investment leader, with a diverse background in healthcare. In 2021, he was the CEO and Managing Partner of the Global Health Impact Fund (GHIF), a physician-led venture fund. Eyal, is an experienced entrepreneur and VC partner, with over 20 years of experience managing and investing in healthcare companies. Peregrine Ventures is a leading Israeli capital fund focused on high-tech companies in the life sciences, pharma, and digital health. Ron Paliwoda is an accidental entrepreneur and seasoned investor, primarily through the Ventures arm of The Paliwoda Group.

Links from today's show:

iSelect Fund: www.iselectfund.com; Nucleus Capital: www.nucleus-capital.com; Global Health Impact Fund: globalhealthimpactfund.com/; Peregrine Ventures: www.peregrinevc.com/; Paliwoda Group: www.paliwoda.com.    

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: IC_How_To_invest_01.mp3
Category:general -- posted at: 5:00am CST

How Do Secondary Sales Work?

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

Secondary sales typically occur with later-stage startups.

Investors who want shares in a company will buy the shares from founders, employees, or other investors.

The price is typically at a discount to the last priced round such as 15 to 30%.

The seller must find a buyer for the stock.

This could be existing investors in the company who want a larger position or new investors.

Oftentimes investors who could not get into the investment round will buy shares through the secondary market.

The company itself may know of potential buyers of the stock.

There are websites that match investors to sellers of the stock.

There are venture funds that focus on buying secondary shares as well.

Investors use SPV or special purpose vehicles to structure the purchase. 

The purchased stock has a lock-up period and cannot be sold for a period of time.

Those who sell the stock will need to take taxes into account.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Customize the Pitch for the Investor

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

Customize the pitch for each investor. 

Research the investor before the pitch to learn more about their investment thesis.

Review their portfolio of startups to see what is common about them and how your deal fits.

For each investor choose three points to highlight that you think will connect with the investor.

If the investor is interested in traction then focus on the growth rates and metrics in your deal.

If the investor is interested in the team, then focus on what each team member is doing. 

Give the investor the chance to ask questions during the pitch so you understand their concerns.

Have answers for the questions posed as you’ll hear some questions repeatedly.

Oftentimes you’ll be in a place where the slides are not available.

You need to know your pitch well and can give it even without the slides.

After some practice, you’ll be able to identify investor types and can automatically customize the pitch for them.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Challenges in Secondary Sales

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

There are several obstacles to overcome in completing a secondary sale.

Here are some challenges to consider:

Board approval -- In many cases, the company must approve any founder shares being sold. 

Right of First Refusal -- companies that have raised funding have Rights of First Refusal on any offers of stock sales.   The company must sign off those rights to allow others to purchase the shares.

Co-Sale Rights -- Investors may have Co-sale rights which require any purchasers of the company's stock to purchase an equal amount from the investors.

Corporate Laws -- some states have regulations around the re-sale of the company's stock.

Transfer restrictions -- some companies have restrictions on the transfer of stock and must approve any transfers.

409A valuation issues -- the company uses a 409A valuation to set the price for employee stock options.  Any secondary sales of the company's stock above that 409A price may increase the 409A valuation impacting the price of employee stock options.

Review these issues before pursuing a secondary sale.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Benefits of a Secondary Sale

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

A secondary sale brings several benefits to the stakeholders in a startup.

Companies stay private much longer than before.  

Those in the company need access to capital. 

For founders, a secondary sale provides some liquidity in the near term giving them the opportunity to continue growing their business for a larger exit.

For employees, a secondary sale provides access to liquidity reducing job hopping to find a larger salary elsewhere.

For the early stage investors, the secondary sale provides returns before subsequent larger rounds of funding dilute them.

Institutional investors can use the secondary sale to buy into the business bringing additional expertise as well as cleaning up the cap table of smaller investors.

This makes the business more attractive to the eventual buyers of 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 

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Why Do Investors Want Secondaries

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

Secondaries stands for secondary sales which refers to selling privately held stock in startups to other buyers.

Investors buy secondaries instead of waiting for the next fundraise round.

By buying now rather than later the investor can lock in a lower valuation.

Investors in secondaries provide liquidity to other investors who trade off some portion of the valuation for that liquidity.

Investors in secondaries buy into proven startups and are not at risk to go under for startup failure.

As companies stay private longer, there are more secondaries available for purchase.

Employees selling their shares after a poor-performing quarter often drop the asking price providing an opportunity for investors to gain more shares at a lower valuation.

Later-stage companies come with substantial market and performance data on which to make an investment decision, unlike early-stage companies where little data is available.

Investors often purchase secondaries to gain exposure to new technology markets.

Finally, investors often use secondaries to diversify their portfolios.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes Zeke Trezise, Associate investor of New Stack Ventures and a member of the Full Ratchet podcast team.

Located in Chicago, IL, USA, New Stack Ventures is specialized in pre-seed and seed funding for startups led by entrepreneurs outside the traditional Silicon Valley mold. With a mission to empower underrepresented talent, they invest in a diverse range of sectors such as B2B SaaS, Fintech, and Healthcare. They also stay ahead of industry trends, ensuring their agility in the ever-evolving startup financing landscape. In addition to financial support, New Stack Ventures offers strategic guidance and mentorship to portfolio companies. 

The Full Ratchet podcast is a popular and influential resource in the world of venture capital and startup investing. Hosted by Nick Moran, a seasoned venture capitalist himself, the podcast features in-depth conversations with industry experts, successful entrepreneurs, and thought leaders, providing valuable insights and analysis on various topics related to startups, fundraising, and investment strategies. 

Zeke Trezise is a dedicated venture capital investor with expertise in early-stage investments. His diverse industry knowledge has helped build a balanced and robust portfolio for New Stack Ventures while supporting the success of numerous startups.

Zeke comes from a family of entrepreneurs and has always had a strong interest in business and finance. Zeke's background includes working with startups, sourcing new promising startups, and assisting with diligence on investment deals. He believes in the importance of focus and clarity in startups, and his role primarily revolves around deal flow and evaluating potential investments. 

Zeke is also interested in the trends and developments in the venture capital world, including the democratization of access to investments and the impact of crowdfunding.

Visit New Stack Ventures at newstack.com, www.linkedin.com/company/new-stack-ventures, and on twitter.com/newstackvc?lang=en. Listen to The Full Ratchet podcast here fullratchet.net 

Reach out to Zeke at zeke@newstack.com, and on www.linkedin.com/in/zeke-trezise

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Why Companies Delay IPOs

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

Companies stay private much longer than they used to.

Previously companies ran an Initial Public Offering to gain access to the public markets for financing.

Companies delay their IPOs for any of the following reasons:

Avoid the cost of going public which is fairly high given the regulatory requirements.

Maintain a level of privacy over their operations and financials by remaining private.

Continue to operate the business as usual with their own board of directors rather than gaining public scrutiny that comes with a public company.

Avoid the rollercoaster ride of sentiment in the public markets.

The private markets today provide sufficient capital to pre-IPO companies so the need for capital no longer drives companies to go public.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

What Are Secondaries

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

Secondaries stands for secondary sales which refers to selling privately held stock in startups to other buyers.

This arises from several sources such as investors who want to get into the deal after the fundraise is complete or employees who want to sell some of their shares.

Secondary sales are on the rise since companies are staying private much longer. 

Investors often want to apply some of their startup capital into companies in the three years before an anticipated IPO as investing in the first three years of the startup’s life translates into a long holding time.

There are many sources of secondary shares including:

Employees at companies doing well.

Websites that match investors to startups.

Venture funds that focus on secondary sales.

A secondary sale is different from a fundraise as the latter involves issuing more stock thus diluting the existing shareholders.

A secondary sale is a transfer of ownership and therefore there’s no dilution to the current investors. 

Most secondary sales come with a three-day lockup before re-selling the shares.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Preparing the Diligence Documents

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

Investors interested in your startup will want to perform due diligence on the deal.

Diligence is a standard process investors go through to review all the relevant documents and checkmark all the boxes before investing.

In preparing your diligence documents consider the following:

Start with a checklist of potential items to include.

Most due diligence lists are comprehensive and include many items not applicable to an early-stage company.

Start with the standard documents which include the following:

Entity filings -- investors want to see documentation on your LLC or C-Corp filing.  

Many investors only invest in Delaware C-corps.  You may need to change your entity filing to meet the investor’s requirements.

Patent filings -- half the value of submitted patent filings are for investors as it demonstrates a competitive advantage.

Consider filing provisional patents in advance of a fundraise.  These are relatively simple documents compared to full patent submissions.

Three to five-year financial forecasts -- you’ll need detailed financial projections showcasing your vision of how you will spend the raised funds and the business results from it.

This needs to be bottom-up analysis and not a top-down estimation.

Cap table -- this is the list of the current equity owners and what percentage each one has.

Organization chart -- this shows the current employees and their positions.

Gather these core documents into one folder that you can give to interested investors.

If you consider the information confidential, then you can ask the investor to sign a Non-Disclosure Agreement.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Customize the Pitch for Your Investor

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

In pitching investors, you’ll find that each investor is unique.

Customize the pitch for the investor by emphasizing the elements of your deal that intrigue the investor.

If the investor focuses on the business model, then talk about how your business model works and why it will be successful.

If the investor focuses on the team, then spend time talking about the unique skills the team brings.

While the slides may be standard for each pitch, the time spent on each slide should align with the interests of the investor.

Turn your pitch from a monologue into a dialog with the investor.

Encourage questions along the way to surface areas of interest and disinterest.

Identify the risk points that the investor sees in the deal and focus on how you mitigate those risks.

Some investors are impact investors and want to see how your startup will provide a positive impact in the environment, social, or governance realm.

For those investors, emphasize your impact metric showing how your startup helps the community.

Tailor the presentation to each investor by turning it into a collaborative process.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Preparing the Pitchdeck

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

In preparing your pitchdeck consider the following:

Start with a template slide deck.  This ensures you cover all the key points.

Each slide is one section of the executive summary.  Problem/Opportunity, Solution, Product, Team, etc.

Write out on each slide what you want to say about that topic.

Use the short bullet point format as long descriptions are not necessary.

Go back and convert the bullet points into graphs, charts, and images and polish some into concisely worded bullet points.

Walk through the presentation to see how it flows.

You may need to move slides around to make the story fluid.

If you want to create additional slides then do so but put them at the end of the presentation as Appendix slides.

This way you can provide the basic presentation to everyone but have the additional slides for questions that may arise.

The key is to identify your message first and then write it out in a manner that best communicates that message.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes Zamir Shukho, CEO and Founder at Vibranium VC.

Located in San Francisco Bay Area, California, USA, Vibranium VC is a venture fund based in Silicon Valley and led by an international team of serial entrepreneurs. The investment focus is on seed-stage B2B SaaS startups. 

Vibranium.VC aims to identify future champions and support their rapid growth and global expansion. With Vibranium, every startup becomes STRONGER.

Zamir Shukho is the CEO and Founder of the Vibranium.VC venture fund. With 20 years of professional experience, he has a background as a serial entrepreneur having created 10 companies and organizations. Zamir is also an expert in venture capital, management, and corporate innovation. In addition to this, he is a startup mentor and a certified coach of the Stanford I2M program.

Zamir shares his expertise in corporate innovation and B2B SaaS. He emphasizes the importance of being a smart investor and providing mentorship support to startups, particularly in the B2B SaaS market. He discusses the challenges of starting a VC fund and the need for a committed and excellent team.

Visit Vibranium VC at https://vibranium.vc/, and on www.linkedin.com/company/vibraniumvc

Reach out to Zamir atzamir@vibranium.vc, www.linkedin.com/in/zamirshukho/, and on twitter.com/ZamirShukho.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Identify the Target Investors

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

Once you’ve identified the ideal investor type for your business you’ll need to build a target list of investors to pursue.

Research potential investors for their criteria and how it matches your deal.

Key areas to look for are industry sector, stage of investment, and geographic preference.

Look at the portfolio companies invested to see if they are similar or different from your startup.

After building the list then research the investors by looking at their investment history if available.

Look for press releases on past fundings as well. 

Talk with their portfolio companies to find out their experience with the investor.

Ask the portfolio company if they think your deal would be a good fit for the investor.

If possible, ask the portfolio company for an introduction.

Investors will appreciate the fact that you are taking the time to do the homework.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Profiling the Ideal Investor

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

There are several types of accredited investors in the startup world. 

These include angels, venture capitalists, and family offices.

Angels write smaller checks compared to the other two but can provide support for your business as advisors and networkers to raise more capital.

Venture capitalists write bigger checks and often take a more proactive role in the company such as a board of directors position.

Family offices also write bigger checks but don’t generally provide much in the way of support as advisors or networkers.

Most startups approach angel investors first because their diligence is not as demanding and there’s no need for a board at the very early stage.

Startups approach either venture capitalists or family offices for bigger checks and to gain more management support for the business.

Venture capitalists have a narrow focus on the type of business they fund while family offices have a broader focus.

Venture capitalists are primarily focused on the exit while family offices are often mission-driven in their investment.

Consider the type of investor you need for your business and target the right 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 

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Valuation Methods To Consider

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

In preparing your fundraise you need to consider your current valuation even if you’re using a SAFE or Convertible Note.

There are several methods to use to estimate your valuation.

The most often used method is comparables.

This method looks at similar companies that recently raised funding and uses that as a proxy for your startup's valuation.

It can be a challenge to find companies that fit exactly but if you generalize into tech, healthcare, consumer product goods, etc, you can find comps for your startup.

You can also use the rule of four which gives your startup a $1M valuation for each of four points: sales, team, product, and intellectual property.

Give your startup the full $1M if you have each category fully developed. 

If it’s less than fully developed then give your valuation a portion of it.

For example, if the product is fully developed and ready for the market then it’s $1M.

If on the other hand, it’s in beta form with some functionality then give your valuation $500K.  

Add up all four numbers to calculate your valuation.

There are other methods such as the Berkus method which uses a scorecard and the venture capital method which looks at the exit price and works back to your current valuation. 

It’s best to try several methods to see which one puts your business in the best position.

In the end, valuation is a negotiation and not a formula.

No matter what valuation you propose the investor will challenge it so make sure you have solid evidence of your proposed number.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Preparing the Business Metrics

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

Investors are looking for a high-growth company with good unit economics.

In preparing for your fundraise you need to identify a handful of key metrics that show your growth story.

For the seed stage, you must have a run rate that is above 10K revenue per month.

For the growth stage, you need to be on a revenue rate of 50K per month or better.

Next, calculate your growth rate.  

You need to be doubling sales year over year.

Anything below 50% annual growth rate will not be seen as a high-growth company.

Recurring revenue is a priority because it shows predictable growth.

In fact, investors care more about predictability than the growth rate.

This factor more than any other drives your valuation.

Show your cost of customer acquisition and lifetime value in unit economic terms.

Choose three key numbers from the above to showcase in your presentation.

Don’t make them dig through your spreadsheets to find it.

Instead, pull out three numbers and show them.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

When To Raise Funding

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

Most founders go out for a fundraise prematurely because they need money, not because they are ready for fundraising.

Consider the following to understand when to raise funding.

Have a compelling idea that you can clearly articulate.

Have a validated customer, market, and product lineup.

Have the investor documents prepared.  While you will always be changing the deck it needs to show the core product, team, and fundraise.

Be able to demonstrate the product even at an early stage.

Show customer interest through engagement as well as revenue.

Talk to some investors to identify what risks they see in the deal then show how you mitigate those risks.

When you have these things done, then consider launching your fundraise.

Engage investors with your deal and remember never to attend an investor meeting empty-handed.

Always have some customer engagement to discuss.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes Bentley Adams, CEO & Founder at Way.

Located in Los Angeles, CA, Way is an intuitive eating app that helps people find peace in their relationships with food and their body. Their mission is to impact health and happiness, with a vision of the future where restrictive diets are a thing of the past - where people discuss listening to their body instead of what diet plan they’re failing on.

Through simple, thought-provoking questions and sessions that incorporate intuitive eating practices and apply them within the CBT framework, Way has helped 73% of users think differently about how they eat or actually eat differently (i.e. at the grocery store or restaurant), in the first week. Most apps struggle to get 10% of customers to benefit, ever.

Bentley is a mission-oriented, three-time health entrepreneur. The first company was a VC-backed laboratory management company that exited successfully to Private Equity and the second company was a digital marketing agency focused on the consumerization of healthcare and became an Inc. 500 company.

Earlier in his career he was a top producer for Beckman Coulter and audited Medicaid while at KPMG, but his passion has always stemmed from his mission to impact health and happiness and his college minor studying physiology, functional movement, and the emotional and psychological layers of helping people find lasting behavior change that betters their whole life, health, and happiness.

Bentley shares the unique approach and differentiation of his company, from its competitors Unlike restrictive diets, Way focuses on intuitive eating and cognitive behavioral therapy to create sustainable and long-term changes in eating behavior.

Visit Way at  www.eatmyway.com/, and on www.linkedin.com/company/eatmyway

Reach out to Bentley at bentley@eatmyway.com, and on www.linkedin.com/in/bentley-way.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Milestone the Raise

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

Founders often want to compress their fundraising into one round for the sake of efficiency.

While this may sound like a good idea, it’s actually an expensive one for the founder.

Raising too much money in the early stages will cost the founder equity dilution.

The valuation of the startup is low at the beginning and will rise with more products built and revenue generated.

Raise a small amount upfront to get the business going such as $250K.

If you try to raise less than $250K most angels and venture capitalists will not consider this enough to build something meaningful.

Take your overall fundraising and break it into smaller milestones such as $500K for a seed round.

It’s often the case that you will need to raise another $500K a year later which some call a seed plus round.  It’s still seed funding and comes at the same terms as before.

But it’s easier to raise because you broke a $1M raise into two milestones.

This strategy lets you raise funding and then work on the business.

For the next round, you’ll need some time to build the product and close customers.

A rule of thumb is it takes one year to raise $1M. 

A $500K raise will come in closer to half a year.

When you raise funding it should be a full-time job. 

The key here is it doesn’t have to be a full-time job for the entire year.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

How Much Funding To Raise

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

When raising funding consider how much you should raise.

Start with the overall amount of funding required to take the business to cash flow positive.

This is often a fairly large number for platform-based businesses in a high-growth sector.

Take the overall amount of funding and break it down into milestone raises.

At the early stage of the business, the valuation is low.  

As you build the team, the product, and the revenue your valuation will go up.

For the first round of funding raise as little as you need to reach the next milestone.

If you raise too much funding in the first round you will be giving away too much equity.

Save the larger rounds of funding for later when you have a much higher valuation.

Pre-seed rounds are often at $250K, Seed rounds at $500K to $750K, and Series A rounds at $1M to $5M.

Each round will cost you 20% of the equity.

Be careful in setting valuations too high in the first round as you’ll need to at least double that valuation in the next round.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Fundraising Timeline

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

For every $1M of funding you want to raise, it will take one year to raise it for early-stage startups.

This includes time to prepare the company, the investor documents, and the pitch as well as contacting, pitching, and following up with investors. 

It’s best to have your pitch deck and financial projections prepared before the fundraiser as well as a basic dataroom with the key documents investors expect.

This shows you have the fundraise well organized.

Investors have their diligence process and of course, they are very busy so you have to work through their schedule.

Fundraising should be a full-time job for the CEO with support from the team for document preparation.

The first few investors are the most difficult as every investor wants to go first. 

Once you reach 50% of your fundraising goal you can estimate the remainder of the raise will take about 30% less time than the first half of the raise.

The process may run faster if you have run a startup before, especially if you have had an exit.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Fundraise Differences by Stage

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

In raising funding over the life of the startup you’ll find there are differences in the fundraise at each stage.

The goal at the Seed stage is to show you can sell the product.

At this stage, the investors will look primarily at the team since there’s little in the way of product or revenue.

You need to show a working prototype and initial customer validation though.

You must convince the investor that customers will pay for the product and use it.

At the Series A stage, the goal is to show you can grow the business.

At this stage you need to show a repeatable and predictable process for acquiring the customer, delivering the service, and retaining them.

Show a sales funnel with prospects tracking through the process of turning into customers. At the Series B stage, the goal is to show you can scale the business.

In this stage, you need to show you have growth drivers built into the business that scales the company.

This includes systems that can drive scale growth such as a partner network, sales force capability, and ability to expand into new markets with the same platform.

At each stage, the pitch deck will need to reflect the goal for the fundraiser and demonstrate what the business is doing to achieve it.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Von Restorff Effect

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

The Von Restorff effect is defined by Wikipedia as an item that sticks out and is more likely to be remembered than other items.

The startup pitch that provides something unique will be remembered more than the others.

To use the Von Restorff effect in your pitch consider the following:

Highlight key elements of your message so it is visually distinctive.

Use graphs or charts to help your presentation stand out from text-only slides.

Highlight words or phrases to emphasize key points.

Use GIFs with motion to capture attention.

The goal is to take the investor off ‘autopilot’ and get them to consider the information more deeply.

Presentations that are distinct and stand out from the others will be remembered by investors.

By standing out from the crowd investors will consider the deal on its own merits rather than in comparison to other deals.

 

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

Let’s go startup something today.

_______________________________________________________

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes Liam Krut, Investment Partner, at Reinforced Ventures.

Located in Pittsburgh, Pennsylvania, USA, Reinforced Ventures invest in overlooked areas of deep tech and have a network of over 1700 experts. The company was founded by technologists with a mission to serve and fund the next generation of commercial infrastructure in software and autonomous systems at their source in Pittsburgh, PA. 

Reinforced Ventures was selected into the 2022 Top 50 Emerging Managers by Weekend Fund.

Liam works full time with Reinforced Ventures, previously a private equity diligence consultant for software company acquisitions with computational biology background at CMU, research experience at Harvard/MIT, and founder of a biotechnology and a cybersecurity company. Liam's focus is biotechnology investments.

Liam dives deep into the deep tech space, all the risks and returns, the outstanding approach of Reinforced Ventures, and much more.

Visit Reinforced Ventures at reinforcedventures.com/, and on www.linkedin.com/company/reinforced-ventures/.

Reach out to Liam at liam@reinforcedventures.com, and on www.linkedin.com/in/williamkrut/.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

What Type of Funding Should You Seek

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

When raising funding consider the type of funding you should pursue.

There are many types of funding such as equity funding including angels and venture capitalists.

There are debt funding tools including loans and revenue-based funding.

There are crowdfunding portals including rewards, equity, and peer-to-peer lending.

Before choosing a type of funding, consider the following:

Investigate each type of funding and consider where it may fit into your overall funding plan.

It’s most likely that you will use two or three types of funding over the life of your business.

To understand the type of funding you should seek ask ‘how you will pay the investor back.’

If you plan to pay back when you sell the business, equity funding is an option.

If you plan to pay back out of the business's cash flow, then debt funding is an option.

If you have a consumer-facing product, consider crowdfunding, which offers both debt and equity options.

Break your funding down into component parts and consider using more than one type of funding 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.

_______________________________________________________

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Zeigarnik Effect

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

The Zeigarnik effect is defined by Wikipedia as uncompleted or interrupted tasks that are remembered better than completed ones.

Investors will remember the pitch that leaves them hanging more easily than those with closure.

The cliffhanger in a serialized show is remembered because the action is left unfinished.

It leaves the viewer with an uncompleted story creating cognitive tension.

To use the Zeigarnik effect consider the following:

In your pitch close with a cliffhanger ending by discussing an upcoming event such as closing a big sale or hiring a great team member.

Use the pending outcome as an excuse to return to the investor later for a follow-up.

Investors are often curious about startups and how they turn out later.

Use this in setting up a follow-up call by offering to give them ‘the rest of the story’.

 

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

Let’s go startup something today.

_______________________________________________________

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Verbatim Effect

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

The Verbatim effect is defined by Wikipedia as the "gist" of what someone has said that is better remembered than the verbatim wording.

Catchphrases and taglines will help investors remember your startup and what it does.

Investors remember the essential meaning rather than the specific words you say in a pitch.

They will retain the core information but will lose the details.

Focus your pitch on the core elements of the deal including the core team, core product, and the core strategy.

Fine details will get lost in the process as the investor will only remember the core elements.

Avoid multiple scenarios in your pitch and instead focus on the primary scenario as investors will only retain one.

In the deck use images, charts, and graphics wherever possible to help communicate those messages.

Use mantras, taglines, and catchphrases to communicate the core messages.

Make the headlines clear, bold, and compelling.

If a detail is important to the pitch then call it out as such and make it a part of the core message. 

Investors will only remember the gist of the presentation so gear your pitch to highlight the core concepts and skip the extraneous details.

 

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

Let’s go startup something today.

_______________________________________________________

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Should You Raise Funding for Your Startup

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

Before raising funding consider if you should raise funding for your startup.

Ask why you need funding and see if you have a specific need for funding tied to growing the business. 

If you have a business on a high growth trajectory, consider venture funding. 

If the business is not high growth or you have no vision of selling it, consider other forms of funding such as SBA loans or revenue-based funding. 

Investors expect a return in the ballpark of five times their investment in five years. 

Angel and venture capital funding go to those startups.

Other factors to consider for venture funding include the following:

You have a large addressable market.

You are building a business that is scalable.

You are using a recurring revenue monetization model.

You are building a platform-based business rather than a single product.

You plan to sell the business rather than keep it for a lifestyle business. 

Finally, you have built enough of the business to prove product and market validation -- the product works and people will pay 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.

_______________________________________________________

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Testing Effect

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

The testing effect is defined by Wikipedia as the fact that you more easily remember information you have read by rewriting it instead of rereading it.

Investors remember what which they recall from memory better than just hearing the pitch again.

This comes from research showing that taking a test that requires one to write out a response improves retention better than just rereading the material.

This moves the information into long-term memory.

Founders can use the testing effect by asking investors questions about the pitch to exercise recall.

For example, ask the listener, ‘Remember the problem we are solving?’

Give them time to recall it.

If they don’t respond in a timely manner, then give the answer.

This avoids the awkward silence that can arise. 

During the Q&A portion, engage the investor in a dialog that recalls key points such as the problem you solve, the solution you offer, and the traction you have.

This will help the investor remember your deal better.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes Rodney D'Souza, Managing Director of  Horned Frog Investment Network, a program from the Institute for Entrepreneurship and Innovation at Texas Christian University (TCU).

Located in Fort Worth, Texas, United States, Horned Frog Investment Network brings together an empowering community of accredited investors to support the next generation of innovators. Their mission is to elevate the position of the TCU Neeley School of Business as an innovative leader in entrepreneurship and investing. They connect founders with value-added investors and leverage the resources of TCU to support success.

With the network they source unique, industry agnostic deal flow and deliver exclusive educational and networking opportunities, while also providing hands-on, experiential learning opportunities for top performing business students to help sharpen their skills and strategies.

Rodney is widely recognized as an influential figure in the field of entrepreneurship education and research, having achieved notable success as a business owner and angel fund manager. His expertise led him to assume the role of managing director at the institute and the esteemed Davis Family Entrepreneur-In-Residence position within TCU Neeley.

Prior to joining TCU Neeley, D'Souza held the distinguished position of the Fifth Third Bank Endowed Professor of Entrepreneurship and served as the director of the Center for Innovation and Entrepreneurship at Northern Kentucky University.

Rodney talks about the Horned Frog Network network and what he hopes to accomplish with this unique network.He also shares the first things you should look for when you are looking to make a deal, and much more.

Visit Horned Frog Investment Network at neeley.tcu.edu/Centers/Institute-for-Entrepreneurship-and-Innovation/Horned-Frog-Investment-Network, and TCU at www.tcu.edu/, www.linkedin.com/school/tcu-entrepreneurship.

Reach out to Rodney at rodney.dsouza@tcu.edu, www.linkedin.com/in/rodneydsouza/, and on www.linkedin.com/in/rodneydsouza/

 

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Spacing Effect

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

The spacing effect is defined by Wikipedia as information is better recalled if exposure to it is repeated over a long span of time rather than a short one.

A series of updates is more effective in communicating your startup story as the investor will remember more than if the story were given in one go.

There’s only so much a person can take in during one session.

By spreading it over time and in smaller amounts an investor can absorb the information and retain it better.

Use a variety of communication methods such as email, conference calls as well as formal pitches.

Tie the pitch to real-world situations and events to drive the message home.

Stick to the core information and don’t waste time on side stories.

Summarize information from the last communication to bridge into the new information.

Repeat the key information several times throughout the process.

The more the investor remembers about your startup pitch the better.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Humor Effect

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

The humor effect is defined by Wikipedia as humorous items that are more easily remembered than non-humorous ones, which might be explained by the distinctiveness of humor, the increased cognitive processing time to understand the humor, or the emotional arousal caused by the humor.

Startup pitches with humor are more memorable than those without.

Founders should include humor in their pitches as investors will more likely remember it.

Humor also puts a positive spin on the pitch as it removes negative feelings from the investor.

It energizes and increases the interest level of the investor in the subject matter.

It improves the investor's perception of the founder as someone who is friendly and approachable.

Humor increases learning ability by telling the investor what they want to hear and then following up with what they need to know.

Finally, the humor must be positive and appropriate and not come at the expense of anyone.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Context Effect

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

Context effect is defined by Wikipedia as cognition and memory are dependent on context, such that out-of-context memories are more difficult to retrieve than in-context memories

Investors need context in order to understand the startup offering such as the problem to be solved.

In pitching founders include basic concepts in the presentation.

The problem, solution, and product must be defined upfront.

With context, the investor can understand the rest of the pitch such as the business model, competitive advantage, and market positioning.

Investors are familiar with the standard list of business models, go-to-market strategies, and revenue models.

By connecting to these standards, the founder will find the investor more easily grasps the business of the startup.

For example, if your business provides a marketplace matching buyers to users, then highlight the term marketplace business model in your presentation.

Show how your business fits the marketplace model in terms of users, monetization, and metrics.

Make it easy for the investor to grasp what you are doing with standard startup models.

By showing how your business fits into the startup ecosystem, investors will retain it better.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Bizarreness Effect

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

The bizarreness effect is defined by Wikipedia as bizarre material that is better remembered than common material.

Presentations that use bizarre information are more easily remembered than conventional ones.

Founders can capture and maintain the interest of investors by using unusual wording or language.

This works when the unusual phrase or sentence is mixed with common words and sentences. 

It causes the investor to spend more time encoding the information.

This makes it easier for investors to recall later.

The unusual information should create an image that stands out in their mind as distinctive.

By repeating it several times, the investor will more easily remember it.

In your presentation, reword a key concept such as a value proposition to create a bizarre image.

For example, our education software is so effective it could teach a dog how to ride a bicycle.

Repeat this several times throughout the 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 

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

False Consensus Effect

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

The false consensus effect is defined by Wikipedia as the tendency for people to overestimate the degree to which other people agree with them.

Founders sometimes overestimate how others may share their beliefs.

They often mistake silence for consent in talking with investors.

Investors often nod in acknowledgment of what the founder says but this doesn’t mean they agree.

To overcome the false consensus effect, do the following:

Maintain awareness of the false consensus effect and realize not everyone has the same opinion as you.

Consider various viewpoints and how others may approach it from a different angle.

Consider how much your opinions come from your internal beliefs and personality rather than external factors such as the market and your environment.

View your opinions as if you were an independent observer to see how the deal looks based solely on external factors.

Break down your decision process into steps and verify the assumptions behind each one.  

From this, you can determine how others may view your deal.

Finally, this process can also apply to other persons considering your product.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes Adam Besvinick, Founder and Managing Partner at Looking Glass Capital.

Located in Purchase, NY, USA, Looking Glass Capital is a pre-seed and seed fund that seeks to invest in and support mission-driven founders during the earliest days of company building. They are most inspired by entrepreneurs solving today's biggest challenges across health, climate, and empowerment (education; tools and platforms for SMBs; and products that enable access, identity, or self-expression).

Adam is the Founder of Looking Glass Capital, a pre-seed fund investing as a "first yes" or lead investor in non-consensus opportunities with independent conviction. Prior to starting Looking Glass, Adam invested for five years in pre-seed through Series C companies, including Transfix, BigID, One Concern, NomNom, and Plant Prefab, at Deep Fork Capital and Anchorage Capital Group.

Adam graduated from Harvard Business School, during which he worked part-time for Lowercase Capital, Gumroad, and a couple of other early-stage companies. He also co-led By/Association, an angel investor group, which made three investments. Prior to entering business school, he was a telecom investment banker at Jefferies and graduated cum laude from Duke University in 2009.

Adam shares his thoughts about investing as an angel investor, the economic reset in the venture capital world, and what it means to be in the age of resilience.

Visit Looking Glass Capital at lookingglass.vc/, www.linkedin.com/company/looking-glass-capital/, and on twitter.com/lookingglasscap.

Reach out to Adam at adam@lookingglass.vc , http://linkedin.com/in/besvinick, and on http://twitter.com/besvinick

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Naive Realism

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

Naive realism is defined by Wikipedia as the belief that we see reality as it really is – objectively and without bias; that the facts are plain for all to see; that rational person will agree with us; and that those who don't are either uninformed, lazy, irrational, or biased.

Founders believe their view of the world best matches reality.

Some go further and believe that all other views are erroneous.

To overcome naive realism, consider the following:

Maintain awareness of naive realism and remember that one’s perceptions determine one’s beliefs.

Remember that not everyone perceives the world in the same way and so will not view it in the same way.

Look for alternative views and contrast and compare them to your own.

Look for the connection between their perceptions and their beliefs.

Use this information to inform your own approach to the problem your startup solves. 

There’s more than one way to run a startup or solve a problem. 

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Illusory Superiority

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

Illusory superiority is defined by Wikipedia as overestimating one's desirable qualities and underestimating undesirable qualities, relative to other people.

Every founder considers themselves superior and should be funded accordingly.

This is a flawed view of the startup world in which investors can see many startups while the founder sees far fewer.

In fundraising, there’s competition for startup investment.

To overcome illusory superiority, consider the following:

Maintain awareness of illusory superiority throughout the fundraising process.

Remember how many other startups are raising capital and the challenge that imposes.

Look at startups outside your own circle to see how they compare.

Always be learning about startups and the startup world.

Get an independent view of your startup to see how it compares to other startups.

Look for critical views of your startup to see how you can improve. 

Through constant improvement, you can overcome illusory superiority.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Illusion of External Agency

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

Illusion of external agency is defined by Wikipedia as when people view self-generated preferences as instead being caused by insightful, effective, and benevolent agents.

Founders often believe someone else can make their fundraiser successful.

The responsibility of fundraising for startups lies solely on the founder's shoulders.

While others may help through introductions and mentorship, the duty to follow through lies with the founder.

To overcome the illusion of external agency, consider the following:

The strategy and content of the fundraiser come from the founder no matter who is driving the campaign.

Part of the fundraising process is to build a relationship with the investor. 

The founder must be integral to the fundraising campaign to do so. 

The founder is responsible for the outcome of the fundraising as investors look to the fundraising campaign as a proxy for the founder's skills including communication, execution, and follow-up.

The fundraising campaign is an opportunity to demonstrate those skills. 

While others can help, it’s the founders themselves who must own the campaign.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Group Attribution Error

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

Group attribution error is defined by Wikipedia as the biased belief that the characteristics of an individual group member are reflective of the group as a whole.

Startups often project the characteristics of one investor on the entire group when the group is much more diverse.

Angel groups for example are composed of people with a variety of experiences, expertise, and perspectives. 

One investor doesn’t define the entire group.

To overcome group attribution error, consider the following:

Maintain awareness of the group attribution error when working with investor groups.

Apply emotional intelligence by practicing self-awareness, empathy, and self-regulation.

Remember a time in which you were part of a group and were influenced by the situation.

Explain to yourself the rationale behind your judgment.  

This will help clarify your reasoning and highlight biases in your judgment.

Consider how the investor may view your deal from their perspective instead of your perspective.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Zero-Risk Bias

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

Zero-risk bias is defined by Wikipedia as the preference for reducing a small risk to zero over a greater reduction in a larger risk.

Customers will choose a product that eliminates risk over another product that has a greater price reduction.

For example, you could offer two products that are similar.

The first has a bigger discount but doesn’t provide a money-back guarantee.

The second is higher priced but provides a money-back guarantee.

Customers under the zero risk bias will opt for the higher priced product with a guarantee as they feel they are eliminating risk.

The fallacy in the zero risk bias is that risk can never be reduced to zero.

In this example, the company could go out of business and not provide a guarantee.

To avoid the zero risk bias, analyze your decisions more carefully and calculate the cost difference between the two options.

The price difference is the cost of the guarantee.

Ask yourself is the guarantee worth that cost.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes Jonathan Stidd, President at DealMaker Reach.

Located in Toronto, ON, Canada, DealMaker is on a mission to create the most sophisticated capital markets tools on the planet, empowering capital to flow faster. It offers a suite of primary issuance, shareholder management, and capital raising solutions that includes equity crowdfunding, investor ranking algorithms, and data/analytical tools to support all capital raise types and all securities. Its innovative technology was designed to enable organizations to own and control exempt market raises to get the money they need, faster. 

DealMaker works for their issuers: putting brands and founders back in control to run streamlined, successful capital raises. Its mission is to turn the process of raising capital into simple eCommerce. As Canada’s 3rd Fastest Growing Company, DealMaker has taken major market share in the US and landed clients like the NFL’s Green Bay Packers. To date, DealMaker has processed over $1.9B in transactions and over 1,000,000 investments - more than any counterparts or competitor in North America.

With an unmatched entrepreneurial spirit, Jonathan Stidd has spent the last 10 years helping founders live their dreams. Beginning his career in management consulting, Jon soon found his passions took him down the path of entrepreneurship to launch his own connected device company and mentor other founders through programs like General Assembly. Throughout his journey, Jon was drawn to digital marketing as it was the nexus of his interests across growth strategy, startups, and innovation. 

In 2017, Jonathan co-founded Ridge Growth Agency which quickly became the leading digital marketing agency for equity crowdfunding - helping their clients raise a collective $500M+. Jon continues to help founders raise capital as he serves as President, of DealMaker Reach after Ridge Growth was acquired by leading capital raise platform DealMaker.

Jonathan discusses how to use equity funding, the different types of equity crowdfunding, the different digital trends in the market, and much more. 

Visit DealMaker at www.dealmaker.tech/, www.linkedin.com/company/dealmakertech/, and on twitter.com/Dealmakertech.

Reach out to Jonathan at jonathan.stidd@dealmaker.tech, www.linkedin.com/in/jon-stidd-8b225518/, and on twitter.com/jjstidd.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Survivorship Bias

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

Survivorship bias is defined by Wikipedia as concentrating on the people or things that "survived" some process and inadvertently overlooking those that didn't because of their lack of visibility.

Incubators often measure their results based on startups that get funded rather than all the ones who go through the program.

Taking out the startups that failed early can skew the results by only counting the ones that are up and running.

To overcome survivorship bias, consider the following:

Maintain awareness of the survivorship bias when evaluating a metric.

Consider what has been left out of the calculation.

In our incubator example consider how many companies applied, were accepted, and started the program but were never counted in the metric because they didn’t build a running company.

Find alternative data sources.  

In this example, look for companies that went through the program and talk to both those who succeeded and those that did not.

Go beyond the initial statistic as it often measures only a part of the story.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Subjective Validation

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

Subjective validation is defined by Wikipedia as the perception that something is true if a subject's belief demands it to be true. 

In developing products founders look for information that matches their own view of the problem and solution.

Founders build their products for a market based on their own view of the customer's needs.

Founders will find customer research that matches their experience more valuable than information that doesn’t fit their views.

To overcome the subjective validation bias, consider the following:

Use a checklist so all collected information gets equal consideration.

Build teams of observers instead of single ones so they can check their observations with each other.

Move from qualitative to quantitative in the research.

It’s important to look holistically at the problem in order to devise a workable solution.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Pseudo-certainty Effect

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

The pseudocertainty effect is defined by Wikipedia as the tendency to make risk-averse choices if the expected outcome is positive, but make risk-seeking choices to avoid negative outcomes.

As the startup finds success, the founder becomes more risk-averse because something at stake can be lost.

For startups that are flailing, risk-taking becomes the norm with all projects.

To overcome the pseudo-certainty effect, consider the following:

Maintain awareness of the pseudo-certainty effect and how it can shift your risk-taking based on the current status of the startup.

Probability assessment is not a natural skill most people have.

It’s best to analyze the outcome of a proposed project by looking at other startups and their track record with projects such as generating leads and closing sales.

Assess the probability of the outcome based on actual evidence.

Take calculated risks that don’t put your startup in danger of going out of business.

Avoid the ‘go for broke’ plan unless you have solid evidence that it will work.

If things are going well, then know you can take more risks.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Authority Bias

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

Authority bias is defined by Wikipedia as the tendency to attribute greater accuracy to the opinion of an authority figure and be more influenced by that opinion.

Founders seek experts in various roles to help grow their startups.

In particular, this occurs when the founder is working in unfamiliar areas.

Problems arise if one follows blindly what someone else says without understanding what lies behind the advice.

To overcome authority bias, consider the following:

While experts have experience there is no guarantee of success.

Think through the advice of an expert to see if it makes sense logically.

Question the expert to learn more about the basis of the advice.

Ask yourself, what if this advice came from someone with no authority?

Finally, test out the advice before committing to it.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Optimism Bias

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

The optimism bias is defined by Wikipedia as the tendency to be over-optimistic, overestimating favorable and pleasing outcomes 

Startup founders often focus solely on the opportunity while ignoring the risks.

Skeptical investors do the opposite by focusing on the risks.

Startups succumb to the optimism bias because they believe more things are under their control and they can influence outcomes by their own efforts.

To overcome the optimism bias, consider the following:

Identify the average time it takes to perform each step in a startup such as hiring the team, building the first product, onboarding the first customer, etc.

Then use those averages in building out the schedule.

By using industry averages one can overcome the optimism bias.

In addition, conduct a premortem with the team in which you ask “Pretend we are in the future and the project failed.  Ask why it failed.”

Consider the negative outcomes to identify the risks in the plan.

This will reduce overconfidence in the plan and identify areas for improvement.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes Ethan Rigel, Founder, and Managing Partner at Gore Range Capital.

Located in New York City, New York, USA, Gore Range Capital is focused on investments in early-stage skin health businesses. Their approach is simple: they invest in what they know. Over the course of their respective careers, the Gore Range team has built domain expertise and extensive networks across multiple areas of healthcare. Through Gore Range Capital they are channeling their capabilities to focus on our largest organ and the most visible manifestation of who we are - the skin.

At Gore Range, they blend the hands-on approach of operationally focused private equity with the early-stage guidance needed in venture capital. They were formed in 2015 with the goal of partnering with industry pioneers, working closely with portfolio companies to bring skin health innovations to market. To accomplish this mission, they leverage their team of experienced healthcare investors, leaders, and practitioners to bring strategic, financial, and scientific expertise to their investments.

Ethan has more than 15 years of investing experience and spent most of his time actively working with small businesses with limited resources. During the course of his career, he has invested more than $900 million in companies with a combined enterprise value of greater than $2 billion across dozens of investments. Most of Ethan’s investments have been very hands-on, and he has taken an extensive role in the operations of the business in order to help drive the company’s success.

Ethan has two degrees from the Massachusetts Institute of Technology (Bachelor of Science in Economics and Bachelor of Science in Management Science) and a Master of Business Administration from the Fuqua School of Business at Duke University.

Ethan shares about the ins and outs of the skin healthcare industry, the opportunities and challenges, and how to thrive in this competitive industry.

Visit Gore Range Capital at www.gorerangecapital.com/, www.linkedin.com/company/gore-range-capital, and on twitter.com/gorerangecap?lang=en.  

Reach out to Ethan at ethan@gorerangecapital.com, and on www.linkedin.com/in/ethanrigel.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Ostrich Effect

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

The ostrich effect is defined by Wikipedia as ignoring an obvious negative situation.

It’s common among founders to ignore the challenging parts of the startup such as competitive position or weakness of the product, and more.

Some founders handle it by not paying attention to it.

Others misinterpret the situation as something else so they don’t have to deal with it.

Founders do this to avoid the difficult emotional effects of the situation.

To overcome the ostrich effect, consider the following:

Treat the situation as if someone else has this problem and you are analyzing it from the outside.

This takes your personal emotions out of it and gives you more freedom to explore solutions.

Take the situation and engage others to help you and hold you accountable.

Finally, set up a program that reviews the situation on a regular basis so you can work on it consistently over a period of time.

This lets you break down the problem and start solving it one piece at a time. 

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Planning Fallacy

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

The planning fallacy is defined by Wikipedia as the tendency to underestimate task completion times.

Projects take twice as much time and cost as planned.

First-time founders don’t have previous experience and cannot rely upon past projects when making plans.

Some founders recall selected cases in the past that went well and plan optimistically.

To overcome the planning fallacy, consider the following:

Break the project down into its component parts to make the analysis easier.

Analyze previous projects to determine how long it will take and use that information to build the timeline for the current project.

Have others review the plan to see if there are any tasks that have overly optimistic timelines.

Build accountability into the project timelines to make sure that the team stays on track.

Perform scenario analysis on what could go wrong and how to manage it.

Avoid ego, peer pressure, and other factors that drive optimism into the 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 

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Pro-Innovation Bias

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

The pro-innovation bias is defined by Wikipedia as the tendency to have an excessive optimism towards an invention or innovation's usefulness throughout society, while often failing to identify its limitations and weaknesses.

Startups overestimate the speed of adoption of new technology.

Users are often slow to adopt new technologies due to the cost of time and dollars to integrate them into their workflow.

To overcome the pro-innovation bias, consider the following:

Estimate the cost of switching and design your product to help transition customers from the current technology to the new one.

Make the transition seamless and automatic.

Promote the ease of transition and the cost savings that come from adopting the new technology.

Innovation often creates inequality in that some have access to new technologies while others do not.

Make sure everyone has the ability to access it.

Both startups and startup investors see technology as a solution to all problems and discount the risks and costs associated with it.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Projection Bias

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

The projection bias is defined by Wikipedia as the tendency to overestimate how much our future selves share one's current preferences, thoughts, and values, thus leading to suboptimal choices

Founders who hire team members in the early stage come to realize that different skills will be required later in the life of the startup.

To overcome projection bias, consider the following:

In making decisions with long-term implications, maintain awareness of the projection bias.

On a regular basis make future projections to consider what will be needed in contrast to what is needed today.

Experienced founders often jump to their own conclusions based on their experiences. 

It’s best to engage others in the decision-making process.

Some founders project their views on a situation and assume others believe the same.

It’s best to keep an open mind and allow for other points of view in the decision-making process.

Over time priorities and values shift so it’s helpful to remember that today’s values may be different tomorrow.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Omission Bias

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

The omission bias is defined by Wikipedia as the tendency to judge harmful actions (commissions) as worse, or less moral, than equally harmful inactions (omissions).

Founders will often omit details rather than give outright lies when pitching their startup to an investor.

Ultimately, in due diligence, all the facts will become known.

It’s not a matter of if, but rather when.

To overcome the omission bias, consider the following:

While you can’t put everything in the first pitch, it’s important to inform investors of key issues rather than letting them find out on their own.

Coming from the founder the investor will consider it a new fact about the startup.

Coming from their own diligence the investor will consider it something being covered up.

Instead of procrastinating make sure you are timely with the information as you are building a relationship with the investor.

Trust is the foundation of that relationship.

It’s best to put everything on the table as soon as possible with the investor so there are no surprises later.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes Sarah Jennings, Director of Beyond Angels, and Co-Founder at Beyond Capital Funds.

Located in Dallas/Fort Worth Metroplex, Texas, The Beyond Capital Funds invests alongside established VCs targeting Late-Seed to Series A investment opportunities in disruptive innovation such as Artificial Intelligence, Next Generation Internet, Software as a Service, and other attractive industry segments.

Beyond Capital Funds invests in faith-driven founders with rapidly scaling investment opportunities with near-term exit options 5 years or less from the initial investment.

Sarah Jennings is a co-founder of Beyond Capital Funds and the Director of the Beyond Angel Network. Sarah is also a co-founder and one of the managing members of Beyond Capital Management, a management company for venture funds.

Sarah has been a panelist and podcast speaker for venture capital and entrepreneurship podcasts and events across the United States. Sarah resides in Dallas, Texas, and is a magna cum laude finance graduate of Cedarville University. In her free time, Sarah enjoys being outdoors, watching a sports game, and reading a good book.

Sarah talks about her background, the kind of investments they are looking for, the challenges and rewards, and all you need to know about The Beyond Capital Fund. 

Visit Beyond Capital Funds at www.beyondcapitalfunds.com, and www.linkedin.com/company/beyond-capital-funds.

Reach out to Sarah at sgjennings@beyondangels.org, and on www.linkedin.com/in/sarahgjennings.

 

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: Sarah_Jennings_2023.mp3
Category:general -- posted at: 5:00am CST

Observer Expectancy Bias

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

The observer expectancy bias is defined by Wikipedia as when a researcher expects a given result and therefore unconsciously manipulates an experiment or misinterprets data in order to find it.

Startups will take customer feedback and ignore the elements that don’t match their expectations.

This is a problem that many startups face when gathering data about the problem to be solved and engaging with prospective customers about the solution.

To overcome the observer expectancy bias, consider the following:

Maintain awareness of the bias and check to make sure that all the customer feedback is making its way into the decision-making process.

Have multiple people review the data separately and draw their own conclusions.

Then combine the conclusions into one report.

Design customer feedback questions to avoid observer expectancy bias such as the wording of the questions that lead the respondent one way or another.

Design customer feedback interviews so it doesn’t presume the stated problem is confirmed but rather let the customers confirm it.

Set up customer feedback interviews in a double-blind format so the one asking the questions and those answering are unaware of the hypothesis under discovery.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Normalcy Bias

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

The normalcy bias is defined by Wikipedia as the refusal to plan for, or react to, a disaster that has never happened before.

First-time startups suffer from the normalcy bias as they have limited experience with what can happen to startups over time.

Founders with previous experience tend to prepare better for the unexpected as they have encountered it before.  

To overcome normalcy bias consider the following:

Plan for all potential contingencies such as 

What to do if revenue goes in half.

What to do if revenue goes up 4X in one year.

What if your systems are hacked?

Know your financial numbers and how they interact, particularly what costs are fixed and variable.

Write out your contingency plans and add to them as you hear about challenges other companies face. 

Explore what you don’t know.

Reach out to experienced founders to explore what you don’t know you don’t know.

There’s no way to prepare for every possibility but you can focus on those events that are probabilities.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Money Illusion

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

The money illusion effect is defined by Wikipedia as the tendency to concentrate on the face value of money rather than its value in terms of purchasing power.

In pricing the product, a startup should list their product price in the smallest unit possible such as daily cost rather than annual cost.

For example, if the price of the product over a year is $2000, then list the price as $5 per day rather than $2000 per year.

The smaller dollar number will attract more customers.

Startups raising funding should focus on what the funds will buy rather than the dollar amount alone.

In fundraising, the founder needs to take into account the impact of inflation.

Funding buys services that build a business and grow it.

Inflation eats into those funds and reduces the runway of the company.

Founders should keep in mind the impact of inflation on their cash runway.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Illusory Truth Effect

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

The illusory truth effect is defined by Wikipedia as the tendency to believe that a statement is true if it is easier to process, or if it has been stated multiple times, regardless of its actual veracity. 

In a startup pitch, facts repeated several times can increase believability.

Repetition reinforces a belief because it becomes easier to remember.

The easier it is to take in the more likely the investor will believe it.

This is how advertising works.

To overcome the illusory truth effect, review the proposed facts.

If the facts are not correct, then repeat it back but with the correct information such as

The market size is X, not Y, so let’s use X in our decisions.

Don’t repeat the incorrect information but instead lead with the correct information in all statements such as

Since the market is X, we can estimate the maximum revenue as Y to determine if that will lead to a sufficient profit.

It’s important to verify the data offered as facts and not assume they are true.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Singularity Effect

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

The singularity effect is defined by Wikipedia as the tendency to behave more compassionately to a single identifiable individual than to any group of nameless ones.

People in general feel compelled to help individuals. 

In a disaster scenario such as an earthquake, donors will feel numb to the large number of people impacted by it.

But they will find the individual stories compelling.

Investors feel a stronger connection to one or two people in a startup rather than the entire startup.

To raise funding, the founder should build a relationship with the investor.

The investor will have stronger affective feelings for the founder than the entire group.

In fundraising promote the story of the founder.

Follow up to build the relationship between the founder and 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 

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes David Hurwitt, CEO & Founder at Troove.

Located in Burlington, Vermont, USA, Troove is the first technology to harness the power of alumni and current student experience to help potential students make the biggest decision of their life.  

Troove use predictive AI to gather, mine, and decode experience data from schools and align it with the values, abilities, and priorities of prospective students. Troove provides a Learning Culture fit and a Social Culture fit score for each school.

From just a quick 15 minutes of questions, Troove delivers every applicant's Learning Culture and Social Culture fit scores, explaining how well they align with the people who have come before them and earned the degrees they want. 

David is an innovator. Over the course of his career, he’s led the development and launch of new products and services – from toothpicks to wind turbines – that have generated well over $1 billion in sales.

If you have a large, front-loading washing machine in your house, that was David and his team at Whirlpool. They re-envisioned the traditional, small European washer for the US market and took front loaders from 1% of the market to over 50% today, saving billions of dollars in electricity and water consumption in the process.

David has lived and worked around the world, and is now based in Burlington Vermont with his wife and two Golden Retrievers. Their 3 “kids” have now graduated from college, but his experience with them on their college journeys started his innovator’s brain cranking on what became Troove.

David talks about the American higher education system, the challenges and flaws in the system, and how Troove changed how students get into and successfully through higher education. 

Visit Troove at www.troove.me, and on www.linkedin.com/company/trooveme.

Reach out to David at david@troove.me, and at www.linkedin.com/in/davehurwitt.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Reactive Devaluation  

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

Reactive devaluation is defined by Wikipedia as devaluing proposals only because they purportedly originated with an adversary.

Founders skip the lessons that can be learned from competitors because they view the competitor as wrong in their approach.

This also applies to situations in which the founder discounts advice given from a source that is not well-liked.

To overcome reactive devaluation, consider the following:

Maintain awareness of reactive devaluation and watch for it when making decisions.

Separate yourself from the situation and view it as an impartial bystander to evaluate the information without bias.

Consider the same information but coming from another source.  Would you perceive it differently?

Check with others about their view of the situation and if the information is worthy of consideration.

If so, review the information with other founders to verify it is legitimate.

It’s helpful to separate the information from its source in order to remove any bias either for or against it.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Product Segmentation

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

Product segmentation creates different versions of the product for different users.

Novice users may get a version that is simple to use while power users have access to tools that are more complex.

One can achieve product segmentation by using a platform approach to the product.

A platform approach provides a basic architecture upon which you can build easier-to-use tools as well as modules that provide more access and control over the system.

The key to product segmentation is finding customers who will pay for the differentiated versions.

A platform approach provides a basic system that can be customized for different use cases.

By looking at lost customer reports you can identify new versions of the product for development.

It’s best to test the product concept before committing resources.

A good product segmentation strategy should accommodate the good, better, best pricing strategy.

This captures the low-end user as well as the high-end power user.

A strong software and hardware architecture is required to run a successful product segmentation strategy.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Illusion of Control

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

The illusion of control phenomenon is defined by Wikipedia as the tendency to overestimate one's degree of influence over other external events.

Startups often display an illusion of control about how their product and sales efforts will take over a market.

Just as the gambler in the casino cannot make the dice come up the way he wants so the startup cannot predict how fast his product will gain adoption.

A few organic sales often lead startups to believe they have a working sales and marketing plan when in fact they have not yet developed a way to drive the process.

To convince investors the startup must show a repeatable, predictable process for generating leads, qualifying, and closing the sale. 

Even at the early stage startups can track the number of leads generated through a channel and how many leads convert to a sale.

By showing this on a unit economics basis, you can overcome the illusion of control and provide clear evidence that you have a customer acquisition process in place. 

Those with strong organic sales that come without much effort are the ones most likely to believe that they can grow sales without a program or process.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Hindsight Bias

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

The hindsight bias is defined by Wikipedia as the tendency to see past events as being predictable at the time those events happened.

When an investor sees a  startup fail or succeed, early indicators come back to the investor's mind.

In some cases, investors selectively remember certain events or facts that later confirm the outcome. 

This can lead to overconfidence.  If one believes he can predict the outcome then he’ll make mistakes erroneously thinking he can predict the outcome of any startup.

Oftentimes, success or failure is a combination of factors such as market selection, timing, and team dynamics, and not just one facet of the business.

To overcome the hindsight bias remember you cannot predict the future.

Review the facts of the startup and not just how you feel about it.

Write out your thought process including the facts at hand and the justification for making the investment.

When the outcome of the investment becomes known, you can refer back to the notes to check your decision-making.

Consider other outcomes aside from the one you expect and keep an open mind throughout the process.

Build a decision-making process and focus on it rather than guessing the outcome. 

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Benefits of a Platform-Based Approach

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

A platform-based approach to your business brings many benefits 

Platforms make it easier to use a recurring revenue model. 

Investors appreciate the value of this revenue model.

It brings predictability to the forecast and makes it somewhat easier to manage the business and raise funding.

With three metrics, cost of acquisition, churn rate, and growth rate you know how well you are doing. 

There are other benefits to a platform-based approach.

By focusing your development on one platform the product gets better every day increasing your reach to new customers and keeping existing ones.

It also reduces your cost because you are continually adding to your base platform and not spending resources creating new products from scratch.

It helps you focus your team as everyone works on the same platform,  reducing distractions.

All development results are available to all customers so there’s no resource spent on porting features to other products.

Platforms bring efficiency and revenue gains compared to the individual product approach.

Consider focusing your product development on a platform.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes Pedro Sorrentino, Founder & Managing Partner at Atman Capital.

Located in San Francisco, Miami, and NYC, Atman Capital is an early-stage startup, investing in technology and technology-enabled startups in the US and Latam. They invest in the following themes: B2B software, Commerce, Consumer, and Fintech. At Atman, they partner with their customers for life. They try to offer a life-long product that improves over time from work done via Atman Bequest and the Atman Egregore. 

Atman Capital is specialized in scarce structured opportunities not available at traditional asset managers. Divided into tailored pods, founders vibe with each other and work together to build the best version of themselves, personally and professionally.

Pedro started his career in Venture as an associate at FCVC. This remarkable firm seeded category-defining companies such as Coinbase, Instacart, Gitlab, Flexport, Shippo, Webflow, RapidAPI, Bigfinite, Aircall, and several others. Later, he co-founded ONEVC, where he led investments in Rappi, Pipefy, Kovi, CodeCov, Immi, RocketChat, Maximus, EmCasa, HeyDoctor (acquired by $GDRX), and Apozy.

Pedro has an MS Degree from Colorado University. During his time at Colorado University, he founded two startups. The first was Recomind.net, which he later sold to an e-commerce conglomerate in Brazil called Buscape. The second was Slumdog Productions, a profitable events company that connected startups and investors.

Pedro talks about the VC industry, the ethos of his company, the connection between VC and AI, and much more.

Visit Atman Capital at www.atman.vc and on www.linkedin.com/company/atmancap.

Reach out to Pedro at p@atman.vc, www.linkedin.com/in/pedrosorren, and on twitter.com/pedrosorren

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Applying AI to E-commerce

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

AI brings new capabilities and benefits to e-commerce businesses.

AI can enhance e-commerce companies in the following ways:

Create better search tools for customers seeking products and services online.

Retarget customers for related products.

Provide better recommendations to customers for similar products.

Enhance the customer shopping experience through voice or chat prompts.

Personalize the shopping experience for customers.

Provide virtual shopping assistance to premium customers to find specific products.

Enhance recommendations to customers based on their buying history.

Improve voice assistants used in e-commerce applications.

Identify the ideal price points for each product based on customer shopping history.

Monitor reviews for activity including negative comments and fake reviews.

Monitor for counterfeit products and misleading information.

Identity new products to carry based on customer feedback.

AI can enhance the buying experience for the customer and the operational capabilities of the e-commerce provider.

Consider adding AI to your e-commerce platform.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Applying AI to Current Product

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

AI can be applied to your current products.

Here are some benefits of integrating AI with your product line:

Add new capabilities to the existing product.

This could be a better analysis of the information coming out of the product.

Reduce costs.

AI capabilities could replace more expensive search algorithms.

Improve the performance of the product.

AI can provide better results at a faster rate.

Promote ‘AI-enabled’ as a way of building the product brand.

Add recommendation features to the product.

Recommendations guide the customer on how to work with the product. 

This provides the customer with a better experience.

Enhance data analytics from the product.

Many products provide data that can be mined for insights and monetization.

AI can analyze the data and provide new insights to the customer.

Add more intelligence to the product.

By combining AI and data sets, the product can bring better results to the customer.

Consider these opportunities in adding AI to your product line.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

How To Use Data With AI

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

Data is a key component of Artificial Intelligence systems.

AI looks for patterns in the data and draws conclusions from it.

The better the quality of the data, the better the output.

AI requires a substantial amount of data with which to discover insights.

As AI acquires new data it increases its capabilities.

Data comes in structured and unstructured forms.

The data must be clean and well-structured for AI to use it.

In many applications, the majority of the time is spent capturing and cleaning the data.

Example applications include streaming services that capture the audience's viewing habits to make recommendations.

Some use AI to personalize their marketing campaigns and outreach programs based on what the customer has bought in the past.

Others use AI to predict customer behavior based on similar customer actions.

In launching an AI initiative, ensure you have access to the right data in sufficient quantities to run the program.

Lack of data is a key failure point for many AI projects.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

The Use of Data and Algorithms in AI

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

Artificial intelligence utilizes data and algorithms to create technical solutions.

Data and algorithms could be open or closed giving the business a competitive advantage.

Here’s a list of the business models and how open and closed data and algorithms impact the business.

The Black Box -- both data and algorithms are closed.  

This gives the business complete protection against competitors reviewing the data and algorithms.

The drawback is a lack of trust and transparency by the users of the system as they don’t fully understand how it works.

Open-source model -- both data and algorithms are open.

This gives competitors access to the methodology and the data leaving nothing proprietary to the company.

The advantage here is users can see how the system is working and adapt to it.

Open data model -- the data is open but the algorithm is not.

This makes the algorithm proprietary.

This model works well for customers with their own data so the company monetizes the output.

Open algorithm model - the algorithm is open but the data is not.

This makes the data proprietary.

This model works well for customers who understand the processing aspect but have access to little data so the company monetizes the data.

In building your business model in AI consider what the customer has and does not have relative to the algorithm and the data.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Why Add AI to Your Business

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

AI brings many advantages to your business.

Here’s a list of benefits to consider for your company:

Automate repetitive tasks such as those found in sales, administration, and customer service.

For support, AI can enhance help desk functions by searching the network for potential solutions.

Personalize customer support by using AI to make custom recommendations based on the customer's application and configuration.

Access and analyze new data sources to bring new capabilities to customer needs.

Use AI to improve marketing by customizing the outbound email for the customer’s specific interests.

Many companies have an ideal customer profile and then build marketing campaigns to identify and target those customers.

AI can search for potential customers on social media and customize the message to them.

AI can customize advertising campaigns for customer types making them more effective.

Use AI to enhance cybersecurity in your business.

By identifying standard patterns of data usage, AI can detect abnormal patterns and raise a red flag.

Consider adding AI to your business operations.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes Dr. Harvey Castro, author of the book ChatGPT and Healthcare.

Written by a highly experienced healthcare professional and medical correspondent, this book presents a compelling case for using ChatGPT to transform the way we approach healthcare. With a strong leadership and mentorship track record, the author offers valuable insights and solutions for creating a more efficient and effective healthcare system. Whether you're a healthcare provider, patient, or industry professional, this book is sure to inspire and inform you as we work towards a brighter future for healthcare.

Dr. Harvey Castro is a critically acclaimed author, writer, and sought-after medical media expert & speaker who shares his experiences and knowledge nationally and locally in the Dallas/Fort Worth areas. Dr. Harvey attended Texas A&M and graduated with a BS/BA in Biomedical Science and Political Science. 

Dr. Castro went to Medical School at UTMB, Galveston, Texas. He began writing books for other medical students to pay for his medical books. He went to Emergency Medicine Residency in Bethlehem, Pa., and started his heart vitamin company. When arriving in Dallas/Fort Worth TX area, his first job was to create over 30 iPhone Andriod apps in health care, as a speaker for ACEP ( American College of Emergency Physicians) for health care applications. Then as a consultant for healthcare companies, he founded the 'Trusted ER in DFW.' Dr. Castro has always had a passion for helping others and is currently working on his MBA and looks to graduate in December 2020.

Dr. Harvey discusses what inspired him to write his book, the latest in Chat GPT, all the AI advancements in the healthcare sector, and his predictions for the future of the industry.

Buy Dr. Castro's book here: www.amazon.com/ChatGPT-Healthcare-Key-Future-Medicine.

Reach out to Dr. Harvey at harveycastro4@gmail.com, www.linkedin.com/in/harveycastromd, and on twitter.com/harveycastromd

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: IC_Harvey_V02.mp3
Category:general -- posted at: 5:00am CST

Types of AI

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

There are many types of Artificial Intelligence.

Here’s a list of the types:

Narrow AI -- focuses on a single task or narrow range of functions.

Applications include image recognition, voice recognition, and translation applications.

Generative AI - focuses on a wide range of topics and seeks to generate answers to prompts.

Applications include marketing content generation, sales administration, and general education queries.

Reactive AI -- responds to a current state of the situation such as a game and responds with the next potential move.

IBM’s Deep Blue, which plays chess games, is an example.

Limited Memory AI -- uses past data to understand the situation and react to it.

Self-driving automobiles are an example.

Theory of the mind -- uses physical cues to determine the emotional or psychological state of someone.

Robotic applications that can sense human emotion through visual signals are a good example.

Self-awareness AI -- the ability to understand human conditions and detect human emotion.

This is a type of AI that is shown in films for what the future may hold.

Consider these types of AI and how they may apply to your application.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Issues in adding AI

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

In adding AI to your business consider these best practices:

Create a list of potential applications and order them by the ease of use and value to the company.

Identify a simple use case for the first effort.

Check to see if you have the skills necessary to implement the program.

Build a team to run the implementation and make sure you have sufficient resources.

Identify key data sources and take the time to clean the data and organize it into clean well structured sets.

Implement the project in steps and stages.

Define success in the early stages as MVPs and demos and not completed products.

Reserve enough data storage for the project.

Educate the company on AI and data terminology.

Build an MVP and test it with the target audience.

Identify key points of value and open gaps.

Prioritize the gaps and work to close them.

Continue to test with the target audience and measure the value the program provides.

Consider these best practices in your AI implementation.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Business Benefits of AI

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

AI brings many benefits to a business.

Here’s a list of key benefits that can help your business.

Improve existing products with new features.

AI adds another layer of functionality to current products.

Optimize the business.

AI points out ways to improve business operations by reducing costs.

Reduce costs by optimizing the use of your resources.

AI augments the employee so the team can do more work with the existing headcount.

Create new products.

AI can add new products to the lineup.

Optimize sales and marketing.

AI can enhance the operational aspect of sales and marketing.

Create new markets for the business.

AI creates new applications that must be done creating new business opportunities.

Share knowledge.

AI can capture, store, and relate one group's knowledge to others in the company.

Consider these benefits of AI 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 

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

How AI Can Be Used in a Business

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

AI can enhance the operations of a business.

Here are some steps to implement AI in your startup:

Identify an application where AI can enhance your operations.

Define the outcome of the solution and what it should do.

Choose an AI tool that is built for the application you want to pursue.

Capture data from your business systems to load into the application.

Train the application with your data and other relevant data sets.

Test the implementation to see how it performs.

Tune the application with more data to improve performance.

Test the application with a user to see how well it works for them.

Determine metrics of performance.

Continue to tune the application with new data.

Test with new users to see if the system maintains the performance metrics.

Train the team on how to use the application and roll it out to the broader company.

Finally, monitor the ongoing performance.

AI can be another tool 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 

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

AI Art Generators

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

AI brings new capabilities for generating art.

There are many tools now available to create art of all styles, subject matter, and formats.

One can even generate a new piece of artwork using the same style as an original work.

By using machine language, algorithms and data structures AI can reconstitute an image for a set of criteria.

Art generators create imaging for sales, marketing, and other applications.

It provides a greater variety of images and can be customized to the use case.

The disadvantage of AI-generated art is that it may appear unnatural.

There is also a cost to using AI art generators that goes beyond what one paid for stock photos.

In using an art generator try the incremental approach in which you generate an image and then modify it one step at a time removing the steps that don’t add value.

There are many parameters so you’ll need to test each one several times to get the right result.

AI art generators work well for quick image generation for business projects where time is short.

Consider using an AI art generator for your next project.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes Salvatore Buscemi, CEO and Co-Founding Partner at Harlem River Navy ("HRN").

Located in Las Vegas, NV, USA, HRN  is a referral-only private investment platform that makes principal investments into private opportunities operated by world-class, pedigreed entrepreneurs and operators.

HRN was formed as a direct result of the successes the founding partners and their respective families have enjoyed across statement-class real estate assets and venture capital. Their partnership leverages their reputation, capital, and relationships to sustain and grow the legacy of their member families.

Salvatore has a 20-year career managing cross-asset investment strategies across privately held assets, including real estate principally, institutional-based credit, equity and venture fund creation and management, and private direct investment structures. 

Salvatore has a strong track record of creating value through the challenging environments of 2008 and the extreme environments in 2020. He is experienced in building world-class investment teams and creating a powerful culture that thrives on entrepreneurialism.

Salvatore shares about investment in sports, common founder's mistakes when raising money, how to provide value to your investors, and much more.

Visit HRN at www.harlemrivernavy.org, and on www.linkedin.com/company/hrnllc.

Reach out to Salvatore at sal@hrn.llc, www.linkedin.com/in/salvatore-buscemi-b829305, salvatorebuscemi.com/, and on twitter.com/SMBuscemi.  And buy his book at callingthecapital.com.

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

AI in Gaming

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

AI brings many new capabilities and enhancements to gaming.

Here’s a list of how AI improves gaming:

Image improvement -- AI can enhance the imagery in games by using neural networks to increase the number of pixels in the image.

Level generation -- AI can create new levels increasing the complexity of the game.

New characters -- AI can create new characters for a game through the use of avatars who can respond to the players.

AI includes technologies such as neural networks, decision trees, and heuristic algorithms.

There are many games on the market today using AI.

Some of the higher profile games include IBM’s Deep Blue which plays chess and can beat world champion players.

The possibilities are endless with AI through the creation of new worlds, characters, levels, and outcomes.

Even the scenery and play action can be created through AI generating an endless source of content.

Consider how AI may be used in your gaming 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 

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Direct download: AI_in_gaming.mp3
Category:general -- posted at: 6:39am CST

AI Applications in Business

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

AI solves many business problems.

Here’s a list of AI business applications:

AI can create content for marketing campaigns building copy for social media, email, and website pages.

It can assist sales in prospect management by searching all past correspondence with the lead.

It can augment cybersecurity by tracking vulnerabilities of your network.

It can assist in machine vision for applications such as autonomous vehicles and healthcare.

It can manage large data sets and find key insights in the information.

It can improve natural language processing through its large language model structure.

It can be used to manage a network of IoT devices.

It can be used for video game development.

It can be used in finance by searching large data sets for companies that fit key criteria.

AI continues to increase in capabilities and performance through the expansion of large language models and generative algorithms.

Consider how AI may help 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 

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Generative AI Use Cases

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

Generative AI even in its earliest stage provides meaningful use cases.

Here’s a list of use cases it can handle:

Creating marketing copy such as product descriptions and social media content.

Assisting in sales work such as screening prospects and completing sales contracts.

Code generation for software applications including code verification.

Analysis of a data set without requiring knowledge of database query languages.

Software application development through a series of prompts.

Video game development includes both visual content and gameplay structures.

Image creation for website and promotional work.

Graphics design interfaces for UI work.

Website generation including content, images, and application code.

Email content creation for outbound marketing campaigns.

Social media content creation for influencer campaigns.

Generative AI can act as a content creator, an assistant, a research tool, and more.

Consider using Generative AI to automate basic tasks 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 

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Generative AI

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

Artificial intelligence has been around for over fifty years.

Through the use of large language models and machine learning tools, it is possible to mimic human output.

Generative AI is artificial intelligence that uses algorithms to generate text, data, or images, that is new information.

Generative AI models are trained with enormous amounts of data and processed with machine learning algorithms.

While the output appears to be sentient, it’s merely a construct of words and images compiled from a large data set to mimic human thought.

Using a series of prompts one can create a new form of computer output that mimics human expertise and experience.

Its algorithm predicts what words and phrases might come after a prompt.

Through a series of prompts, one can use generative AI to create a sophisticated answer to a question.

There are simple examples of this in word processing which can predict what words might come next while typing a message.

There are many startup opportunities with this new level of computing for assisting and enhancing one's work.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Curse of Knowledge

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

The Curse of knowledge is defined by Wikipedia as when better-informed people find it extremely difficult to think about problems from the perspective of lesser-informed people.

Startup founders are often experts in their field and find it difficult to discuss with investors who are not experts.

They are so close to the project that they often forget that others unfamiliar with the deal need more information.

To overcome the curse of knowledge in a startup pitch, consider the following:

Avoid using jargon and acronyms in the pitch.

Assume your audience is not familiar with your sector or technology and state keep points to clarify.

For example, don't assume the investor knows what your startup does.  

Instead, state what your business does in five words or less.

Don’t assume they understand your market and how it works.

Instead, outline the market structure and the key dynamics.

Don’t assume they understand the importance of your metrics.

Instead, show how your metrics compare to others in your industry.

It’s often the case that the investor fails to grasp the pitch because there are too many key points missing from the 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 

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes James Frinzi, CEO at Multiband Global.

Located in Austin, Texas, USA, Multiband Global offers a solution for the complete IT and Network Lifecycle from deployment to decommissioning. They are backed by logistics, enterprise field service systems, and a global technician base.

At Multiband Global, they specialize in large-scale telecommunications, system/network planning and engineering, fire and life safety systems, low voltage cabling, electronic security, audiovisual, installation services, 5G, electronic waste recycling, and data destruction.

They custom design each project to meet the specific needs of our clients. Their design and planning stages are very thorough to ensure industry standards and maximum effectiveness. With unmatched engineering and project management methods, they ensure that every project is fully aligned and completed in accordance with the client’s goals.

James is focused on providing a complete lifecycle of telecom services in the US, and across the globe, and in this episode he shares about the latest in the telecom world, the future of 5G and 6G, the importance, and the challenges he faces in the industry and much more.

Visit Multiband Global at multibandglobal.com/, www.linkedin.com/company/multiband-global, and on twitter.com/MultibandGlobal

Reach out to James at james.frinzi@multibandglobal.com, JAMES@FRINZI.NET, and on www.linkedin.com/in/jamesfrinzi

 

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Default Effect

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

The Default effect is defined by Wikipedia as when given a choice between several options, the tendency to favor the default one.

It’s also called the Status Quo bias in which people choose the default option because it’s less risky.

Startups should position their deal as the default so that in case of a tie, the investor will choose their startup over others.

To make your deal the default, consider the following:

In many investment groups, the favorite pitch is the one investors choose to invest in even if diligence shows other deals to be stronger. 

Some investors favor deals that are similar to past investments and so choose them because they consider the deal to be the current standard.

So make your deal the favored pitch by presenting it as a standard deal.

Align your deal with past investments by the investors to position it as the ‘default.’

Startups that are outside the norm are considered riskier.

Show how other investors are already in the deal and why they invested.

Position your deal as the ‘safe’ choice because the risks have been mitigated and other investors have ‘set the standard’.

It’s often the case that the investor fails to grasp the pitch because there are too many key points missing from the presentation.

Make sure you include in the pitch all the values in the deal.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Expectation Bias

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

The expectation bias is defined by Wikipedia as the tendency for experimenters to believe, certify, and publish data that agree with their expectations for the outcome of an experiment, and to disbelieve, discard, or downgrade the corresponding weightings for data that appear to conflict with those expectations.

Startups select market and customer data that aligns with their own view which may or may not represent market reality.

Ralph Waldo Emerson once wrote, “People only see what they are prepared to see.”

To overcome the expectation bias, consider the following:

Recognize the expectation bias and how your attention moves to evidence that supports your current beliefs.

Actively question what you see and what conclusions you draw from it.

Review your assumptions to see if they still hold true.

Look for conflicting information and probe further into it to understand how it may impact your view.

Examine the source of the information to see how credible it is or is not.

Be willing to see the data from another side.

Consider a different potential outcome and imagine what that would look like.

This will help overcome the expectation bias and give a clearer picture of the market.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Fading Affect Bias

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

The fading affect bias is defined by Wikipedia as a bias in which the emotion associated with unpleasant memories fades more quickly than the emotion associated with positive events.

Startups encounter both hard times and good times.  

People forget the hard times but remember the positive moments.

The harder the times, the faster the memory fades.

Founders can use this to help carry their business forward through difficult times.

Those with a higher level of grit and persistence have a higher fading affect bias.

This can be used by founders for motivation and team-building activities by recalling the good times and the bad times.

The bad times provide examples of the team’s grit and perseverance.  

The team won’t feel the pain of the bad times but will consider those days as building blocks for who they are and how far the company has come.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Framing Effect Bias

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

The framing effect bias is defined by Wikipedia as drawing different conclusions from the same information, depending on how that information is presented.

How you frame the startup in a pitch can determine how an investor regards it.

One can use framing to position a startup so it’s more relevant to the investor.

If the investors are tech investors then position the startup as a tech deal.

If the investors look for recurring revenue then position the startup based on its revenue model.

If the investors are impact investors, then position the startup to show the impact it makes.

By positioning the startup for the investor you can increase the chance that an investor will align with it.

Also by framing the pitch to show the accomplishments of the startup rather than the work left to be done, one can position the startup as successful and on track rather than falling behind.

Use framing to put your startup in the best position to connect with the 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 

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Ambiguity Effect

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

The ambiguity effect is a bias defined by Wikipedia as the tendency to avoid options for which the probability of a favorable outcome is unknown.

Startups are risky and make proposals about the outcome of their deal. 

Investors avoid engaging with startups when they do not have confidence in the proposed outcome.

Startups should make clear what is currently known about the business and the potential prospects of the deal.

By clarifying the risks associated with the deal the startup makes it easier for investors to evaluate it.

For each risk in the deal, the startup should identify it and make clear how they will mitigate it. 

If there are too many risks and they are not clearly articulated then investors will not engage with the deal.

Missing information often leads investors to the ambiguity effect. 

Startups should cover all the basic elements of the business including the team, the market, the business model, and current traction. 

Startups pitching their deal must convince the investor that the proposed outcome is certain to happen. 

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

On this episode of Investor Connect, Hall welcomes Yaniv Sneor, Founder of Mid Atlantic Bio Angels (MABA).

Mid Atlantic Bio Angels is a NY-based life science angel investment group that was formed in 2012 with the goal of bringing together the expertise required by investors to make informed investment decisions in scientific, regulatory, and commercially-complex healthcare investment opportunities. MABA invests exclusively in early-stage, private life science companies (primarily therapeutics, devices, diagnostics, and some digital health), with no geographic restrictions.

Participation in MABA is limited to accredited individuals and corporate MABA members who are actively involved in company screenings and diligence, requiring a time and financial commitment, as well as scientific, regulatory, and commercial expertise in the life sciences.

Yaniv Sneor is one of the founders of MABA, where he also administers MABA’s internal investment pools, and MABA’s co-investment Sidecar Fund, for non-MABA member investors.

Yaniv is originally a physicist, who made the transition into the business world about 30 years ago, at which point he took the helm of his first company. Mr. Sneor has senior merger, acquisition, capitalization, and turnaround leadership experience with companies ranging from start-ups to growth. He has held positions of CEO, COO, President, and General Manager at a number of companies, including a bio-informatics company, a surgical laser company, a manufacturing and distribution company, a software and network integration company, and several others.

Yaniv discusses what it means to be a life science angel investment group, the challenges that they face, and the rewards of working in this field. 

Visit Mid Atlantic Bio Angels at bioangels.net, and www.linkedin.com/company/mid-atlantic-bio-angels.

Reach out to Yaniv at yaniv@bioangels.net, www.linkedin.com/in/yaniv-sneor-5534131 , and on twitter.com/ysneor?lang=en

 

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Attribute Substitution

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

The attribute substitution is a bias defined by Wikipedia that occurs when an individual has to make a judgment that is computationally complex and instead substitutes a more easily calculated heuristic attribute.

Startups presenting a complex concept such as how their technology works should replace it with a heuristic or analogy that is easier to understand.

Complex concepts can be difficult to communicate to investors in a pitch.

Instead of explaining the concept in detail, the startup should replace it with an analogy or metaphor to explain it.

The investor doesn’t need to know the specific details of how a concept works but rather why it’s important as there’s typically not enough time to explain it.

In discussing intellectual property it is better to highlight the benefits of the technology rather than how it works in detail.

Oftentimes the technology is proprietary and kept as a trade secret.

Explain complex concepts with analogies to show the benefits and importance of the concept.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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

Backfire Effect

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

The backfire effect is a bias defined by Wikipedia as the reaction to disconfirming evidence by strengthening one's previous beliefs.

Investors can reject a startup’s pitch if they doubt the premise even if confronted with the facts. 

Providing more facts will only make the investor dig in further. 

To overcome the backfire effect, avoid the topic if at all possible and steer away from it.

Don’t confront it head-on as it will distract from the pitch.

Coming on strong will only make the investor dig into their original beliefs.

Keep emotions out of it.

Step back and take a look at it from the big-picture perspective.

Identify the core reason the investor does not like your deal and focus on that.

Acknowledge how the investor's belief was true at one time but that times have changed and things are moving in a different direction.

 

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

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