Fri, 19 June 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Equipment leasing lets you borrow funds to obtain assets such as computers, machinery, and other items you may need to build your product and run your business. Instead of raising equity funding to buy the equipment, you can lease the equipment. Equipment leasing spreads the payments over a period of time rather than funding the equipment upfront. This works well for businesses that are capital-intensive. Equity funding is expensive funding. Equipment leasing reduces the amount of equity funding you need to raise.
Direct download: EG_Apr_2020_Startup_Funding_Espresso_--_Equipment_Leasing_1.mp3
Category: -- posted at: 12:18pm CDT |
Fri, 19 June 2020
In this episode, Hall welcomes Olusegun Okubanjo, Managing Partner of Obsidian Capital. Based in London, Obsidian Capital is a boutique investment banking firm that arranges infrastructure-oriented, transaction-based funding for mid-sized clients in West Central and East Africa. They are excited about Emerging Africa's economic potential and are committed to supporting private-sector led growth on the continent by providing onshore institutional clients access to the best global investment banking services. They create, incubate and invest directly in high-growth businesses in the region, and are less focused on specific sectors and more focused on investing in the right people - who have ambitious ideas, foresight and passion to change the world. Olusegun has over 20 years of experience in wealth management and investment banking and is skilled in crafting and implementing sophisticated financial solutions to the uniquely complex personal and corporate investment structures that are typical of the entrepreneurial clients in emerging Africa. Prior to joining OBSIDIAN, Olusegun was Executive Director, Africa at UBS, London. He began his career with ARM Investment Managers, Lagos and went on to head the West Africa offshore private client divisions at Standard Bank and Renaissance Capital and led a team covering West Africa at Barclays Wealth in London. Olusegun has a BSc in Business Administration and an MBA in International Business from the Gardner School of Business & Technology, Wayne State College. He studied Law (Juris Doctor) at the University of Nebraska, Lincoln and is a member of the Chartered Institute for Securities & Investment, London. Olusegun speaks with Hall about the state of investing in Africa, what excites him as an investor and what Obsidian Capital’s investment thesis is. You can visit Obsidian Capital at www.obsidian.capital. Olusegun can be contacted via LinkedIn at www.linkedin.com/in/segunokubanjo/, via Twitter at www.twitter.com/segunokubanjo and via email at ooo@obsidian.capital. |
Thu, 18 June 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In fundraising, milestones are specific goals you have accomplished. In crafting your fundraise story, focus on key milestones both those you just hit and those you are striving for. This demonstrates you are making progress. There are four types of milestones to consider:
While you may not always hit the milestones you planned for, you will most likely find success along the way which demonstrates accomplishment to showcase to investors.
Direct download: Startup_Funding_Espresso_--_the_importance_of_milestones.mp3
Category: -- posted at: 12:18pm CDT |
Thu, 18 June 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Equity funding is just one source of funding for your startup. There are many others such as licensing. You may be able to reduce the amount of funding needed to grow your business by licensing your technology to others. Instead of building and selling a product, you can license to others who will build and sell a product. In licensing, you must have a patent to protect your technology and oftentimes a series of supporting tools to help those who license your technology for using it. Licensing brings the following benefits:
The disadvantages are:
Licensees can also bring you new ideas for improvements on the technology. For applications requiring high capital expenditures for building and selling the product, licensing is a good fit.
Direct download: EG_Apr_2020_Startup_Funding_Espresso_--_Licensing.mp3
Category: -- posted at: 12:10pm CDT |
Thu, 18 June 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Equity funding is just one source of funding for your startup. There are many others such as factoring. Factoring is selling your accounts receivables to a finance company at a discounted rate. It’s not a loan, so you are not taking on debt but rather selling your invoices for cash, albeit at a discount. A typical factoring arrangement gives the business 85% of the value of the invoices and keeps 15%. The factoring company often charges a processing fee and a fee for however many days it takes the customer to pay the invoice. These two costs add up to be the discount the business is paying for the receipt of cash. Factoring works well for the company as it comes with long payment terms. Businesses with a cash flow shortage often use factoring as it’s a fast way to access capital without taking on debt. The factoring company will look at the credit history of the customer paying the invoice rather than the startup providing the product. The cost is giving up a portion of the profits which makes fast cash expensive. Your customers will know you are factoring, as the invoice will be retitled into the name of the factoring company. Slow-paying customers will become more expensive as the cost of collecting their payment will take longer. Factoring works best for short-term cash flow management when you have predictable payments from customers that take some time.
Direct download: EG_Apr_2020_Startup_Funding_Espresso_--_Factoring_2.mp3
Category: -- posted at: 12:00pm CDT |
Thu, 18 June 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. When you sell a physical product and invoice the customer, it can take 30, 45, 60 days or more before they pay. Factoring provides funding by reducing your accounts receivable by selling the invoice. The factoring company gives you cash immediately when you sell and takes a transaction fee on the use of their funds. The factoring company is now at risk for non-payment. Factoring works well for consumer product companies that have cash-flow challenges as the business requires capital to build the product, sell, and ship the product only to collect payment later. Factoring reduces the amount of working capital needed and may reduce the amount of funding you need from equity capital raises.
Direct download: EG_Apr_2020_Startup_Funding_Espresso_--_Factoring_1.mp3
Category: -- posted at: 11:41am CDT |
Thu, 18 June 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Equity funding is just one source of funding for your startup. There are many others such as loans. Loans are debt instruments that must be repaid. Startups can find it difficult to get a traditional loan from a bank. The Small Business Administration offers several loan types for early-stage companies. These loans come with personal guarantees and cannot be closed out with the dissolution of the business. There’s also debt through the use of credit cards and microloans. It’s difficult to use debt to pay for your core product development. Debt makes sense when you have some revenue coming in to pay for the loan. There are other types of debt including accounts receivable factoring in which you raise money on what customers owe you. There’s also equipment financing in which the equipment collateralizes the debt. Factoring works when you have paying customers and want to shrink the cash float from the time you build the product till the time you receive payment. Equipment financing works well if you need machinery to build your product or run your business.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Direct download: EG_Apr_2020_Startup_Funding_Espresso_--_Loans.mp3
Category: -- posted at: 11:29am CDT |
Thu, 18 June 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Equity funding is just one source of funding for your startup. There are many others such as accelerators and incubators. Accelerators and incubators provide startups with workspace, mentorship, pitch practice and in some cases funding. They are sponsored by universities, companies, and entrepreneur collectives. Accelerators provide an intensive program to help the entrepreneur prepare their business and product for an initial investment. The classes are usually small, around 5-10 companies. At the end of the program, the participants pitch to investors for funding. Incubators offer a physical workplace with offices, administration, and meeting rooms. Universities offer accelerators and incubators for students and faculty who want to commercialize research. The accelerator or incubator may have a fund from which it invests in startups who complete the initial program. This often takes the form of equity funding but some programs structure it as a grant. They often sponsor demo days in which you pitch to prospective investors. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Direct download: EG_Apr_2020_Startup_Funding_Espresso_--_Accelerators__Incubators.mp3
Category: -- posted at: 11:23am CDT |
Thu, 18 June 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. So how do Venture Capitalists make money? VCs charge the limited partners a management fee on the funds raised. This is traditionally 2% which is paid out every year for the life of the fund. Some funds stop the management fee around year six or seven as proceeds from the investments start coming in. MicroVCs often charge 2.5 or 3% of the funds raised since the amount of funds is lower than standard. The second source is called “carry” and is a percentage of any proceeds going back to the investor from the investments. This is traditionally 20%. Some funds start taking carry at the beginning of the investment returns, while other funds start this after the investor receives their initial investment.
Direct download: EG_Mar_2020_Startup_Funding_Espresso--_How_VCs_Make_Money.mp3
Category: -- posted at: 11:00am CDT |
Wed, 17 June 2020
In this episode, Hall welcomes Tarek Assaad, Managing Partner of Algebra Ventures. Algebra Ventures is Egypt’s leading technology VC firm. Based in Cairo, the company is a $50-million venture capital fund that invests in early-stage technology companies in Egypt and the MENA region. Its LPs include Cisco, the European Commission, EAEF, EBRD, IFC, and private family offices. Algebra has invested in 15 transformative technology companies in MENA, including HolidayMe, Trella, Elmenus, GoodsMart, and Halan. Tarek started his career as an engineer at Lucent Technologies then as a software developer for SAQQARA Systems, an internet startup in Silicon Valley. He later became General Manager of CID Consulting where he led the company’s high growth, helping it to become one of the leading local consulting firms in Egypt. Apart from his role at Algebra Ventures, Tarek is Managing Partner at Ideavelopers where he has been managing $50m of VC investments since 2009, including some of Egypt’s most prominent technology startups. Tarek is a director of Smart Card Applications, Siwareand IdealRatings. In this role, he was also responsible for the investment in Fawry, the leading bill payment and presentment company in Egypt, which realized a $100m exit in 2015. Tarek holds a B.Sc. in Electronics and Communication Engineering from Ain Shams University in Cairo and an MBA from Stanford Graduate School of Business. Tarek speaks with Hall about the state of investing in Egypt and what excites him as an investor. He also talks about Algebra’s investment thesis, some of the startups they have funded, and the general challenges his startups have faced. You can visit Algebra Ventures at www.algebraventures.com. Tarek can be contacted via LinkedIn at www.linkedin.com/in/tassaad/, via Twitter at www.Twitter.com/tassaad?lang=en, and via email at tarek@algebraventures.com. |
Mon, 15 June 2020
Investor Connect is proud to introduce a brand new Podcast series: Investor Perspectives. Over the next few weeks, we continue our discussion on the Impact of the COVID-19 Economy on Startup Funding with experienced investors from the TEN Capital network. In today’s installment, we’re focusing on their preparation for the market after the lockdown, what new investment thesis the COVID-19 pandemic will bring, and what startup sectors will be diminished or eliminated by COVID-19. Today’s episode features insights from: Ash Kaluarachchi of StartEd & EdTech Week 0:45 We hope you enjoy listening to this informative new series. _____________________________________________________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Investor_Perspectives_Impact_of_the_COVID-19_Economy_on_Startup_Funding_Part_3A.mp3
Category: -- posted at: 11:22am CDT |
Fri, 12 June 2020
In this episode, Hall welcomes Eyal Lifschitz, Co-Founder & General Managing Partner at Peregrine Ventures. Peregrine Ventures is Israel's leading venture capital fund and they invest in promising early-stage high-tech companies with a strong emphasis on Life Sciences, Digital Health and Information Technology. Eyal has been an entrepreneur since the ‘90s and prior to founding Peregrine Ventures, he co-founded and led the business development efforts of a number of medical technology companies including PharmaSys (acquired by Elan Corp. NYSE:ELN), ECR (acquired by AVX Corp. NYSE:AVX), Visioncare Ophthalmic Technologies, and BioControl Ltd. From 2003-2007 Eyal also served as a Director of Given Imaging (NASDAQ: GIVN). Eyal speaks at length about robotics in the field and he is very excited about medical devices. He gives insight into the evolution of the industry, his fund’s investment thesis, and he advises both entrepreneurs and investors. You can visit Peregrine Ventures at www.Peregrinevc.com. Eyal can be contacted via LinkedIn at https://www.linkedin.com/in/eyal-lifschitz-459285134/ and via email at eyal@peregrinevc.com. |
Wed, 10 June 2020
Investor Connect is proud to introduce a brand new Podcast series: Investor Perspectives. Over the next few weeks, we continue our discussion on the Impact of the COVID-19 Economy on Startup Funding with experienced investors from the TEN Capital network. In today’s installment, we’re focusing on what our investors are doing to prepare for the market after the lockdown and what their new investment thesis is. Today’s episode features insights from: Evan Cohen of Healthbox 0:42
_____________________________________________________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org
Direct download: Investor_Perspectives_Impact_of_the_COVID-19_Economy_on_Startup_Funding_Part_2C.mp3
Category: -- posted at: 11:07am CDT |
Mon, 8 June 2020
In this episode, Hall welcomes Mireya Manigault founder and CEO of Foundation LLC, founder at WeDemption, and an angel investor at 37 Angels. Located in Chicago, Foundation, LLC provides end-to-end support for targeted business needs in corporate culture, behavioral risk management and executive team coaching. WeDemption is its own ecosystem and has all your angel investing needs in one place. From learning to researching, tracking, storing and communicating, it all happens in one mobile space. Designed to bring founders and investors together, WeDemption is helping more, deserving companies succeed and getting more equity in your hands. Their goal is to positively change the lifetime and generational economic gaps by making angel investing more efficient, accessible and friendly for all. Mireya is an innovation and brand strategist who is passionate about corporate culture and executive team development. She has helped large organizations, nonprofits and start-ups define their strategic goals and optimize their people, processes and infrastructure for relevancy. Mireya speaks about the future of angel investing, her investment thesis, what excites her and she gives advice to both investors and entrepreneurs. You can visit Foundation LLC at https://bethefoundation.com/ and WeDemption at https://www.wedemption.co/. Mireya can be reached via LinkedIn at https://www.linkedin.com/in/mireyamanigault/ and via Twitter at https://twitter.com/mireyasunshine. For VCs wanting to identify and mitigate cultural risk in their portfolios, they can reach Mireya or her team at contact@bethefoundation.com. For angels, would-be angels and those preparing for funding, they can reach Mireya or her team at hello@wedemption.co.
Direct download: Mireya_Manigault_of_Foundation_LLC-WeDemption.mp3
Category: -- posted at: 9:50am CDT |
Fri, 5 June 2020
Investor Connect is proud to introduce a brand new Podcast series: Investor Perspectives. Over the next few weeks, we continue our discussion on the Impact of the COVID-19 Economy on Startup Funding with experienced investors from the TEN Capital network. In today’s installment, we’re focusing on the short-term impact of COVID-19 on startup funding and what our investors are doing to prepare for the market after the lockdown. Today’s episode features insights from: Christian Kameir of Sustany Capital We hope you enjoy listening to this informative new series. ________________________________________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org
Direct download: Investor_Perspectives_Impact_of_the_COVID-19_Economy_on_Startup_Funding_Part_2B.mp3
Category: -- posted at: 12:26pm CDT |
Tue, 2 June 2020
Investor Connect is proud to introduce a brand new Podcast series: Investor Perspectives. Over the next month, we continue our discussion on the Impact of the COVID-19 Economy on Startup Funding with experienced investors from the TEN Capital network. In today’s installment, we’re focusing on what our investors are doing to prepare for the market after the lockdown. Today’s episode features insights from: Ash Kaluarachchi of StartEd & EdTech Week We hope you enjoy listening to this informative new series. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org
Direct download: Investor_Perspectives_Impact_of_the_COVID-19_Economy_on_Startup_Funding_Part_2A.mp3
Category: -- posted at: 11:12am CDT |
Tue, 2 June 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. When a Venture Capitalist makes an investment, they place a portion of their allocated investment upfront in the first round and save the rest for a follow-on round. Most VCs put criteria on the startup’s progress before joining the follow on round. This means the startup must achieve milestones such as revenue generated to get the follow-on funding. VCs have some of their funds invested in startups, some reserved for follow-on rounds on those startups, and some funds that are available for new startups. The funds for new startups are referred to as dry powder. This is the number you need to know before pursuing a fund because you could spend your time selling to an investor that has no money to invest. The last thing an entrepreneur wants to hear from an investor is, “That’s great, we’ll call you when we raise our next round of funding.”
Direct download: EG_Mar_2020_Startup_Funding_Espresso_--_Funds_held_in_Reserve.mp3
Category: -- posted at: 7:58am CDT |
Tue, 2 June 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Both angels and venture capitalists often invest in syndicates. In a syndicate, one of the investors leads the round and the other investors follow. Sometimes the syndicate is a formal group in which the lead investor receives compensation from other investors who join the round. Angel investors often join syndicates in which they pay a portion of their carry to the lead investor for organizing the deal. Other times, the syndicate is informal with investors sharing deals with each other for no compensation. VCs also syndicate deals with each other to help fill out the round as a way of attracting the better deals. They bring not only their own funding but can also attract additional capital.
Direct download: EG_Mar_2020_Startup_Funding_Espresso_-_Syndicates_and_Syndication.mp3
Category: -- posted at: 7:52am CDT |
Tue, 2 June 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. A venture fund brings a fiduciary responsibility to those raising the funds from limited partners. A fiduciary means the VC must act in the best interest of the investors. VCs who sit on the boards of their portfolio companies also have a fiduciary duty to that company. There are times when the two fiduciaries come into conflict. It’s best to have your duties to the investors stated in the PPM such as liquidation preferences, preferred shareholder treatment, etc. The VC must appear to be following a fair treatment of both parties and may need to engage in negotiations to resolve conflicts. VCs often use incentives such as offering additional equity to either the startup or the fund’s investors to resolve that conflict. For example, the investors may want to see an exit sooner rather than later. The startup founders want to wait to potentially gain a bigger exit. The VC can offer additional equity to the founders if they agree to an exit now.
Direct download: EG_Mar_2020_Startup_Funding_Espresso_--_Fiduciaries.mp3
Category: -- posted at: 7:47am CDT |
Mon, 1 June 2020
In this episode, Hall welcomes Steve Hoffman, Chairman, Founder & CEO of Founders Space. Located in the San Francisco Bay Area, Founders Space has created an international network of incubators, entrepreneurs, and investors, with over 50 partners in 22 countries. They offer corporate innovation programs, an online startup incubator, tours, and seminars. Steve is an angel investor, limited partner at August Capital, serial entrepreneur, and author of several award-winning books. He was the Founder and Chairman of the Producers Guild Silicon Valley Chapter, Board of Governors of the New Media Council, and founding member of the Academy of Television’s Interactive Media Group. While in Hollywood, Hoffman worked as a TV development executive and went on to pioneer interactive television with his venture-funded startup Spiderdance, which produced interactive TV shows with NBC, MTV, Turner, Warner Brothers, History Channel, Game Show Network, and others. In Silicon Valley, Steve founded two more venture-backed startups, in the areas of games and entertainment, and worked as Mobile Studio Head for Infospace. Steve has a BS from the University of California in Computer Engineering and an MFA from the University of Southern California in Cinema Television. He currently resides in San Francisco but spends most of his time in the air, visiting startups, investors, and innovators all over the world. Steve explains his investment theses, tells Hall what business model excites him, and gives advice to entrepreneurs and investors. Visit Founders Space at www.foundersspace.com. Steve can be reached via LinkedIn at https://www.linkedin.com/in/captainhoff/, on Twitter at https://twitter.com/captainhoff, and via email at vc@foundersspace.com. |
Fri, 29 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing So how do Venture Capitalists raise funding? VCs raise funding from limited partners which include family offices, high-net-worth individuals, foundations, pension funds, and other sources. Institutional investors such as pension funds require a track record so first time VCs focus on family offices and high-net-worth individuals. Also, the VC fund may be too small. In most cases, institutional investors do not like to be more than a certain percent of any one fund due to concentration limits - usually no more than 20%. The VC develops an investment thesis which is a reasoning why their approach to selecting and funding deals will be successful. They build out their investment prospectus which includes the investment thesis, how it’s unique, the fees the limited partners will pay, and how the profits will be distributed. The VC then meets with limited partners to pitch the investment thesis, track record, and view of the market. Limited partners look to fund VCs who have a unique investment thesis and access to deal flow they do not.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Direct download: EG_Mar_2020_Startup_Funding_Espresso_--_How_VCs_raise_venture_funding.mp3
Category: -- posted at: 11:08am CDT |
Fri, 29 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. You can now start your own VC fund. Venture capital, angel investing, crowdfunding, and most forms of startup funding are best done through a fund model for when deal flow volume reaches scale. A fund structure also provides diversification. If you have experience finding and screening startups for funding and a track record for successfully investing, then you may want to consider starting your own fund. As of this writing, there are over 4000 microVC funds in the US alone. These are funds with < $100M of raised capital with most in the $25M to $50M range. Many of these funds are led by those who ran sidecar angel funds, invested their own money into startups and did well, or are experienced VCs who set out to run their own fund. The funds tend to focus on a very tight niche in which they have access to quality deal flow. Most raise funding from family offices as institutions require long track records and large fund sizes so their investment doesn’t take more than 20% of the round. You can now take your expertise and run your own fund.
Direct download: EG_Mar_2020_Startup_Funding_Espresso_--_Starting_your_own_VC_fund.mp3
Category: -- posted at: 10:03am CDT |
Thu, 28 May 2020
Investor Connect is proud to introduce a brand new Podcast series: Investor Perspectives. Over the next month, we will be discussing the Impact of the COVID-19 Economy on Startup Funding with experienced investors from the TEN Capital network. In today’s installment, we’re looking to the other side when the economy will reopen. Today’s episode features insights from: Evan Cohen of Healthbox We hope you enjoy listening to this informative new series. ----------------------------------------------------------------------------------------------------------------------------------------------------------- For more episodes from Investor Connect, please visit the site at: http://investorconnect.org
Direct download: Investor_Perspectives_Impact_of_the_COVID-19_Economy_on_Startup_Funding_Part_1C.mp3
Category: -- posted at: 11:12am CDT |
Thu, 28 May 2020
In this episode, Hall welcomes Sharon Vosmek, CEO of Astia. Located in San Francisco, Astia was founded in Silicon Valley in 1999 as a non-profit organization dedicated to identifying and promoting best-in-class, high-growth ventures that include women leaders. Astia levels the investment playing field by cultivating a trusted global ecosystem of engaged male and female investors and advisors, who offer crucial resources, including capital, networks, and expertise. Unlike most VC’s, investment firms, or accelerators, Astia provides a creative, proven approach that contributes to the success of women leaders and their ventures. Astia is rigorous about using a global process to source and screen their investments and that process is called the Astia's Expert Sift. Astia's Expert Sift leverages the wisdom of a highly curated expert crowd made up of advisors within Astia’s global 5000+ community to source, screen and evaluate high-growth companies. The process identifies best-in-class, investor-ready opportunities, and then presents them to accredited investors. Over 60% of companies achieve funding or an exit within one year of presenting at Astia. Sharon is not only an angel investor but is also a member on many boards. She is well-regarded around the globe for her opinions, research and commentary on the importance of women leaders as integral to innovation and high-performing entrepreneurial companies. Sharon goes into detail about Astia’s investment thesis and some of the companies within the fund, tells Hall what she is excited about and gives advice to entrepreneurs and investors. Sharon can be reached via LinkedIn at www.linkedin.com/in/sharonvosmek/, on Twitter at https://twitter.com/Vosmek, and via email at sharon@astia.org. |
Mon, 25 May 2020
In this episode, Hall welcomes David Wadler angel investor and CEO of Vendorful, Inc. Located in New York, Vendorful is a standalone SaaS product delivered via public or private cloud. In addition, it can be integrated into existing procurement software stacks, allowing organizations to drive more return on their existing investment. Vendorful saves time and money while driving increased value for businesses of all types and sizes, from SMB to enterprise. David was the CEO and co-founder of a company called Twistage, where he turned an idea into a profitable multimillion-dollar business and an exit to a Fortune 1000 company. He is a seasoned software/digital media executive with a decidedly entrepreneurial bent. Over the course of his career, he’s spent time in sales, software development, product management, and even crafting narratives as a writer. David tells Hall how he sees the industry evolving, what excites him and gives advice to both entrepreneurs and investors. David can be reached via LinkedIn at https://www.linkedin.com/in/davidwadler/, on Twitter at www.Twitter.com/davidwadler and via email at david@vendorful.com. |
Sun, 24 May 2020
Welcome back to Investor Connect for the second show in our new series Investor Perspectives. This month we will be discussing with investors in our network the following topic: The Impact of the COVID-19 Economy on Startup Funding. In this installment, we ask the following investors to give us their views: Christian Kameir of Sustany Capital Peter Adams of Rockies Venture Club/Rockies Venture Fund Jake Rosenfeld of Bonsai Phil Nadel of Forefront Venture Partners Steve Shapiro of eHealth Ventures We hope you enjoy listening to this very insightful interview.
Direct download: Investor_Perspectives_Impact_of_the_COVID-19_Economy_on_Startup_Funding_Part_1B.mp3
Category: -- posted at: 8:27am CDT |
Sun, 24 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In calculating returns the timing of the return is a key factor. There are two metrics for measuring return. ROI is return on investment without respect to time, and IRR which is Internal Rate of Return, is ROI WITH respect to time. If I invest $50K and receive $150K back in three years, then my ROI is 3X. If I receive it back in five years the ROI is still 3X. For IRR the timing makes a difference on the calculated result. If I invest $50K and receive $150K back in three years, then my IRR is 44%. If I receive it back in five years the ROI is 25%. The sooner the return comes back the higher the IRR. That’s why most angels and VCs quote IRR on their investment results rather than ROI. Angels and VCs look for a 20%-30% IRR on their investments.
Direct download: EG_Mar_2020_Startup_Funding_Espresso_--_The_time_element_of_returns.mp3
Category: -- posted at: 7:56am CDT |
Sun, 24 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In angel investing the two basic approaches are generalist and specialist. The generalist funds across all sectors but with certain criteria focused on growth rates, team composition, or monetization models such as recurring revenue. The second is a specialist who narrows the focus to a specific industry vertical or application. The generalist has many deals to choose from while the specialist has a limited supply. The generalist must deal with more markets and segments and often focuses on providing value through the business model rather than industry knowledge. The specialist brings domain knowledge and can provide more value through contacts in the industry and application-specific advice. The trend in the industry is to move to either a generalist approach in which one places a large number of investments to find a hit, or to move into a specialist role and provide more value to a smaller number of deals.
Direct download: EG_Feb_2020_Startup_Funding_Espresso_--_Follow_a_Disciplined_Investment_Strategy.mp3
Category: -- posted at: 7:49am CDT |
Sun, 24 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. You’ll need to gather your basic company documents for investors to review. In preparing a due diligence box also called a dataroom, there are basic documents to include: Income Statement and Balance Sheet Three to five year financial forecast Cap Table including shares outstanding Entity filings (LLC or C-Corp, etc) including Articles of Incorporation Intellectual Property filings including patents, trademarks, etc. C-level team resumes Most early-stage companies don’t have lawsuits, years of tax returns, and other baggage that comes with time. There may be other documents you may need to add based on your situation.
Direct download: EG_Feb_2020_Startup_Funding_Espresso_--_Key_Documents_for_Your_Due_Diligence_Box.mp3
Category: -- posted at: 7:40am CDT |
Wed, 20 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In diligencing a startup, the team is the most critical factor in the process. Since the startup has only a nascent product and perhaps some intellectual property, the team is the only thing that you can really dig into. For diligencing the team, first review the resumes of those who are on the team or planned to join when funding becomes available. Placeholders of ‘we’ll look for someone later’ is a red flag. The CEO should know who they are planning to bring on. Next, look for domain knowledge. Who has it and how current is it? After that, look for complementary skills -- is there someone who has sales skills and will spend their time selling the product? Is there someone who is going to build the product and will manage either an internal development team or an external one? Outsourcing the product development with no one actively managing it is a recipe for disaster. Next, look at how long the team has worked together if at all. Ideally the team has some experience working with each other. The more the better. Finally, look at completeness. Many successful teams follow the Designer, the Hacker and the Hustler formula. The Designer knows the customer problem and plans the product development, including how it will be monetized and promoted. The Hacker is the developer who builds the product and the Hustler is the one who sells it. Let’s go startup something today. Check out our other podcasts here: https://investorconnect.org/
Direct download: EG_Feb_2020_Startup_Funding_Espresso_--_How_to_diligence_the_team.mp3
Category: -- posted at: 12:12pm CDT |
Tue, 19 May 2020
Welcome back to Investor Connect for the first show in our new series Investor Perspectives. This month we will be discussing with investors in our network the following topic: The Impact of the COVID-19 Economy on Startup Funding. In this installment, we ask the following investors to give us their views: Ash Kaluarachchi We hope you enjoy listening to this very insightful interview.
Direct download: Investor_Perspectives_Impact_of_the_COVID-19_Economy_on_Startup_Funding__Part_1a_with_music.mp3
Category: -- posted at: 10:58am CDT |
Mon, 18 May 2020
In this episode, Hall welcomes back Vic Pascucci, Managing Partner of Energy Capital Ventures. Located in Chicago, Energy Capital Ventures is a strategic venture capital firm serving the needs of the power and utility industry. They invest at Series A through C in technologies that provide clean, intelligent, mobile and distributed solutions. Vic has over 20 years of experience in venture capital and financial services and has been a part of over $750M in venture capital and M&A transactions. As Managing Partner, he is responsible for the day-to-day operations and strategic direction of the firm. Prior to Energy Capital Ventures, Vic was a Director/Partner at Munich Re Ventures, a Managing Partner for Lightbank, and prior to that, he built and led USAA’s $330 million corporate venture capital program where he led investments in fintech (insurtech, banking, investment management), consumer internet, enterprise technologies and digital capabilities. Vic tells Hall what excites him and gives advice to both entrepreneurs and investors. Vic can be reached via LinkedIn at www.linkedin.com/in/victorpascucci/ on Twitter @victorpascucci3 and via email at vic@energycapitalventures.com.
Direct download: Vic_Pascucci_of_Energy_Capital_Ventures_-_FOLLOW_UP.mp3
Category: -- posted at: 1:09pm CDT |
Fri, 15 May 2020
In this episode, Hall welcomes Soraya Darabi, General Partner of Trail Mix Ventures (TMV). TMV is an early-stage venture firm investing in the future of living well. TMV backs start-up companies focused on ideas that will reshape industries or inspire new ones. Fund I and Fund II investments focus on: frontier health organizations, marketplaces and design-driven technologies. Soraya began her career in journalism at The New York Times, positioning them on large social networks. She has also partnered with startups large and small, establishing award-winning campaigns. Soraya has appeared on magazine covers, mentored for TechStars New York, and is also a podcast host. She graduated with honors from Georgetown University and completed the Global Leadership and Public Policy for the 21st Century module at the Harvard Kennedy School. She is currently on the board of the non-profit Yamba Malawi in New York City and is in her 12th year helping the organization connect to global entrepreneurs. Soraya shares her advice for both investors and entrepreneurs and discusses her fund’s thesis with Hall. Soraya can be reached via LinkedIn at www.linkedin.com/in/sorayadarabi/, via Twitter at www.twitter.com/sorayadarab, via Instagram @Soraya and via email at soraya@trailmix.vc. |
Thu, 14 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funding you will hear “no” from investors a lot. When I say a lot, I mean it’s more than most entrepreneurs think. I know one entrepreneur who made 50 investor pitches before he received his first “yes”. For some startups they perceive this as a negative and after a while it can wear them down. Hearing “no” is not necessarily a bad thing. Instead of hearing “no” and thinking “they don’t like the idea”, consider it as guidance on how to make the business better. When you hear “no”, ask what they would do to improve it. Gain their feedback and guidance on how to position the deal, how to present it, how to run the startup. You’re not bound to use every single suggestion, but you will learn a great deal and your business will certainly be the better for it. You could consider it free consulting.
Direct download: EG_Jan_2020_Startup_Funding_Espresso_--_Youll_Hear_No_a_Lot.mp3
Category: -- posted at: 4:05pm CDT |
Wed, 13 May 2020
In this episode, Hall welcomes Charlie Banks, Co-Founder & Managing Director of VentureSouth. VentureSouth based in Greenville, South Carolina, is one of the largest angel investment infrastructures in the US. The firm develops and manages angel investment groups and funds comprised of 300+ accredited investors and has invested $50M+ in over 70 early-stage companies throughout the Southeast. Charlie can be reached via LinkedIn at www.linkedin.com/in/charliebanks1/ and via email at charlie@venturesouth.vc. |
Wed, 13 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. So many entrepreneurs think the most important moment in the investor engagement is the pitch. In fact, the pitch is the second most important. The most important moment is the follow-up after the pitch. The pitch establishes the relationship and sets the context. It’s a foundation upon which you now must build the case for funding your startup. The follow-up both in emails and in person should demonstrate how you have a great business and how it’s moving forward. Investors don’t know how your business is progressing unless you tell them. The rule of startup fundraising is, “if you don’t tell them -- it didn’t happen”, at least not in the investor’s mind. At the end of your pitch ask the investor about the best way to keep them up-to-date on your progress. Is it a monthly email? Is it a coffee or is it a phone call? And whatever method you choose, make sure you keep at it. It takes seven touches to close a sale -- so it takes seven touches to close an investor.
Direct download: EG_Jan_2020_Startup_Funding_Espresso_--_The_Importance_of_Followup.mp3
Category: -- posted at: 6:49am CDT |
Wed, 13 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In running a fundraise campaign you’ll need to set up calls and meetings with investors who are busy and may struggle to find time to give you. Of course you can have a mutual contact make an introduction and depending on the strength of their relationship you’ll get a meeting. Also, you only have so many mutual contacts and eventually that runs out. Another way to get a call/meeting is to do some meaningful research in a trend, company, or market and offer to share the results with the prospective investor. Investors love to be educated about the market and companies and appreciate gaining relevant information that informs their decision process. In your outreach, show the time and effort you’ve put into researching an area and some of the findings to pique their interest. Then ask for a call/coffee to review the rest of the findings. Investors are much more likely to find time for a meeting in which they will gain something rather than just give something.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Direct download: EG_Jan_2020_Startup_Funding_Espresso_--_How_to_Contact_Investors.mp3
Category: -- posted at: 6:22am CDT |
Mon, 11 May 2020
In this episode, Hall welcomes Gary Trauner, Executive Director of Silicon Couloir. Silicon Couloir, based in Jackson, Wyoming, is a 501(c)(3) nonprofit organization that strives to be the hub connecting local entrepreneurs to all resources needed to succeed. Gary is an accomplished senior-level leader with extensive financial, operational and managerial experience across a wide array of industries. He has over 25 years’ experience in startup, growth, and mature organizations, both public and private. He grew up in New York but has lived in Jackson Hole, Wyoming for the past 30 years. Gary is excited about the people who are working in startups and growth companies and gives his advice to both groups.
Gary can be reached via LinkedIn at https://www.linkedin.com/in/garytrauner/ and via email at gary@siliconcouloir.com. |
Mon, 11 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Venture Capital investors make investment decisions as a group. As an associate, partner, or otherwise, you must convince the team to move forward with it. Even if you could make the decision alone you want buy in and support from the others as you’ll need their support to help make the company successful. After the initial pitch to a VC investor, the startup meets the rest of the investment team and pitches the entire group. The team decides together to pursue diligence. With the diligence results, the team again comes together to make a go/no go decision. The advocate for the startup makes the case for moving forward with the investment. It’s best to arm your advocate with enough information to make your case. The startup should also remember that the advocate is taking a reputation risk as well as a financial risk on the startup and that’s never an easy thing to do.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Direct download: EG_Jan_2020_Startup_Funding_Espresso_--_How_Do_VCs_Make_a_Decision.mp3
Category: -- posted at: 8:05am CDT |
Mon, 11 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In pitching you can position your startup in more than one way. You could pitch for the sector it is in -- such as Edtech. Many investors focus on a sector. In this case you talk about the metrics that investors look for in tech companies, such as CAC LTV ratios. You could also pitch your startup as an impact deal. Many investors have impact investing as a part of their investment thesis and could engage with your deal on that level alone. In this case you talk about your impact metrics, such as how many students graduated, how many students' scores improved, etc. You could also position your deal based on the monetization such as recurring revenue. There are many investors looking for SaaS businesses regardless of the sector. In this case you talk about your ARR or MRR numbers and growth rate. In most cases the pitch deck is the same but what you emphasize changes to fit the audience.
Direct download: EG_Jan_2020_Startup_Funding_Espresso_--_Multiple_Position_Points.mp3
Category: -- posted at: 7:55am CDT |
Fri, 8 May 2020
In this episode, Hall is joined by Randy Myer, Managing Director at Carolina Angel Network. Established in 2016, the Carolina Angel Network (CAN) brings together the UNC-Chapel Hill entrepreneurial community, University alumni network and innovative private companies to support the Carolina entrepreneurial community with an angel investing platform and co-investment fund (the Carolina Growth Fund). Randy became involved in the startup world in the ‘90s, having started his own company in 1991. He has also been an angel investor for many years. In the 2000s he started teaching at the University of North Carolina, and whilst he still teaches there, his main focus and time are spent with the Carolina Angel Network. Randy is an undergraduate of the University of North Carolina and received his MBA from Harvard University. He is excited by AI and the healthcare industry, shares information on some of the companies CAN has invested in, and gives advice to both investors and entrepreneurs.
Randy can be reached via LinkedIn at www.linkedin.com/in/randy-myer-8322a844/ and via email at randy_myer@unc.edu. |
Thu, 7 May 2020
In this episode, Hall welcomes back Maggie Sprenger, Managing Director at Green Cow Venture Capital (GCVC). GCVC is an early-stage venture fund based in San Francisco and New York City. They invest at the Seed and Series A stages into dynamic founders that combine unparalleled drive, talent, and diverse perspectives to solve problems around scarcity and inefficiency in global markets. They like companies that are particularly leveraging technologies like AI, ML, and robotics. Maggie has an extensive track record of more than fifteen years in venture and real estate investment. Fueled by a strong desire to make a positive impact, Maggie has a passion for applying her entrepreneurial and portfolio expertise to drive meaningful innovation. Maggie holds an MBA from Wharton with a double major in Finance and Management. In this episode, Maggie goes into detail about some of the companies GCVC is investing in and speaks to what surprises her about the greenfield technologies sector. She gives her thoughts on what changes will happen in that space post-COVID-19. Visit Green Cow Venture Capital (GCVC) at www.Greencow.vc. Maggie can be reached via LinkedIn at www.linkedin.com/in/maggiesprenger/ or email at maggie@greencow.vc.
Direct download: Maggie_Sprenger_of_Green_Cow_Ventures_-_FOLLOW_UP.mp3
Category: -- posted at: 10:17am CDT |
Mon, 4 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Entrepreneurs look at the opportunity in the deal. Investors look at the risk. There are two factors that help the investor decide to invest or not. The first is the worst-case scenario approach. They ask, “What is the worst that can happen?” Most oftentimes, the answer is, “You’ll lose all your money.” Sometimes the answer is, “You could be in the deal for the next 10 years with very little return.” If the investor can live with the worst case scenario then they move forward. The second is the reputation factor. The investor will ask how this will impact their reputation. Many have a standing in the community and in their investor circle and they don’t want to be seen as “the fool.” If the deal turns out to be a dud or even goes sideways, their reputation takes a ding. The investor cares about reputation because it impacts how other investors treat them. In presenting your deal to an investor, consider how the investor will view the deal and its impact on them.
Direct download: EG_Jan_2020_Startup_Funding_Espresso_--_How_Do_Investors_Decide_to_Invest.mp3
Category: -- posted at: 7:16pm CDT |
Mon, 4 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. At each stage of funding, investors bring not only funding, but also some level of support. From crowdfunding you receive not only the investment (or prepayment, if you are running a rewards campaign), but you are also lining up customers. From angel investors you receive customer introductions and connections to those who can join your team. From early-stage venture capital you receive information about the market and connections to partnerships and other resources. From later-stage venture capital you receive information about potential exit strategies and the connections to those who could potentially purchase your company. It’s important to draw upon these resources to grow your business. |
Mon, 4 May 2020
In this episode, Hall welcomes Dougal Cameron, Director of Golden Section Ventures (GSV). GSV is a seed-stage venture investment group focusing on B2B SaaS companies that are posted revenue and post product, but still early in the revenue cycle. Dougal is an experienced founder and CEO with a demonstrated history of working in the software, manufacturing, and energy industry. He is skilled in business planning, business development, valuation, financial analysis, turnaround, performance improvement, operations, and entrepreneurship. Dougal is a strong professional and CFA who also graduated with an MBA from Rice University - Jesse H. Jones Graduate School of Management and a degree in history and math from Rhodes College. In this podcast, Dougal speaks with Hall about how GVC fits into the B2B-SaaS market, the trends he sees, and the challenges investors and entrepreneurs face. Visit Golden Section Ventures (GSV) at Gstvc.com or Gstdev.com. Dougal can be contacted via Twitter at Twitter.com/dougalcameron, on LinkedIn at www.Linkedin.com/in/dougalcameron/ or via email at dougal@gstvc.com. |
Mon, 4 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funding, start with your own network. Set up calls with angels, family offices, and others who you already know. Since the relationship is already built, it’s much easier to set up the meeting. These investors can give feedback on how to improve the business and the pitch. Practice with your network first before going to other investors who may not give you feedback and certainly won’t be as easy to contact and set up meetings. Once you have pitch practice done and the feedback you need, you can focus on the right type of investor for your deal. It could be an angel, venture capitalist, family office or other early-stage funding investor type. Consider the risk and returns your deal offers and approach the investors who match your startup. Venture capital wants 10X home runs on every deal. Angels want a 3-5X return in the next 3 to 5 years. Family offices want a good return but will patiently remain longer. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Direct download: EG_Jan_2020_Startup_Funding_Espresso_--_Who_Should_You_Pursue_for_Your_Raise.mp3
Category: -- posted at: 4:52pm CDT |
Mon, 4 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are many sources of capital. There are family and friend loans. There are bank loans. There are revenue share loans. There are equity investments in the form of convertible notes and equity ownership. There are various combinations of the above. The key is to figure out the end game for the business and ask how you plan to pay the investor back. If you plan to keep the business for the next 20 years, then a loan would be best so you can pay off the investors in a timely manner. If you plan to build a business that you will sell for a nice gain, then equity is a candidate. Once you know how the startup will finish, you can choose the appropriate source of capital for your needs. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Direct download: EG_Jan_2020_Startup_Funding_Espresso_--_What_is_the_Best_Source_of_Capital_to_Align_With_My_Needs.mp3
Category: -- posted at: 4:45pm CDT |
Mon, 4 May 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In the Coronavirus lockdown, we’re seeing trends that will establish the next cycle of startup innovation. We’ll see the government shift to building out the infrastructure and response programs for healthcare and public safety initiatives, such as building up stockpiles of medical supplies and equipment. This will include initiatives to establish flexible manufacturing and secure supply chain to build equipment on demand such as ventilators. The government will declare certain industries as strategically important. Governments will look to establish safety nets through direct and indirect means. There will be a move to provide support for gig workers and other small business workers with a basic income during times of pandemic. Medicare will update HIPAA laws to allow for the use of commonly used communication tools such as Skype and will allow for Medicare billing for telemedicine. In education, the government will look to allow homeschooling and online learning for K-12 kids. Taxes will most likely rise to cover the costs of these changes.
Let’s go startup something today. Check out our other podcasts here: https://investorconnect.org/
Direct download: COV_Series_Startup_Funding_Espresso_--_Coronavirus_economy_trends_--_Government.mp3
Category: -- posted at: 8:17am CDT |
Fri, 1 May 2020
In this episode, Hall welcomes Jak Knowles, Vice President Venture Investments and Head of Pharma at Leaps by Bayer. Leaps by Bayer was “created in 2015 to break boundaries in life sciences investment—in scale, risk, collaboration, and mission.” Since 2015, Leaps by Bayer has invested over $800M in ventures that tackle fundamental breakthroughs and shift core paradigms in their industries. Jak began his career in the medical field, but shifted to equities research at an investment bank and then on to venture capital. Leaps’ main focus is biotech, with some investments solely on the tech side. Jak speaks about some of the companies that Leaps by Bayer have invested in, gives advice to investors and entrepreneurs, and speaks about the challenges on both sides.
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Wed, 29 April 2020
In this episode, Hall welcomes Lydia Kinkade, Managing Director at iiM (Innovation in Motion) located in Merriam, Kansas. iiM is an angel investment group that invests in high-growth, early-stage animal health, human health and agribusiness companies. They provide capital, seasoned business expertise and access to their network of industry experts. Prior to becoming an early-stage investor, Lydia graduated from college with a degree in Secondary Education and joined Teach for America. She wants to “learn about and be part of the solutions to some of the most pressing challenges that span the globe.” Lydia speaks about the investment thesis for her fund, what she is excited about, what the challenges are in this space and gives advice to investors and entrepreneurs.
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Tue, 28 April 2020
In this episode, Hall welcomes William Bissett, President and Founder of Portus Wealth Advisors and podcast host at Charlotte Angel Connection. Portus Wealth Advisors is a Private Wealth Management firm based in Charlotte, NC and serves clients across the country. William began his career in insurance sales, then moved on to a job at a wealth-management firm. After a number of years, he then moved on to his own business, but soon realized that he wasn't the right person to run it long-term. After an exit there, a colleague suggested to him that 'because he had a lot to offer' he check out the Charlotte Angel fund. As they say, the rest is history. William speaks about the evolution of the angel-investing world, the challenges faced and what excites him. He also gives advice to investors and entrepreneurs. Visit Portus Wealth Advisors at www.Portusadvisors.com/index.html, Charlotte Angel Connection at https://williambissett.com/ and the Charlotte Angel Fund at www.cltangelfund.com/. William can be contacted via LinkedIn at www.Linkedin.com/in/williambissett/, on Twitter at www.twitter.com/wbbissett, or via email at william@portusadvisors.com.
Direct download: William_Bissett_of_Portus_Wealth_and_Charlotte_Angel_Connection.mp3
Category: -- posted at: 8:14am CDT |
Mon, 27 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In developing the pitch deck, there are several mistakes I often see. One of the most common is trying to explain in great detail how the product or technology works. Instead, focus on the benefits of the product and what it does for customers. Save the detailed explanations for later when you are in diligence. -- Not identifying the competition or claiming there is none. -- Making the font so small that no one beyond the first row can read it. -- Using too many words so that readers get distracted by reading it. -- Not setting up a flow so the slides follow a logical story form. -- Using market sizings to distract the audience from the fact that you have no traction. -- Forgetting to put the investment ask at the end, so investors are left wondering what you want from them. -- Using cut and paste from Excel for financials, rendering the slide unreadable. -- Trying to tell the investor everything in one sitting. The pitch deck should focus on your core product, team, customer and fundraise. The details can be fleshed out later. Finally, the biggest mistake is not asking questions and listening. Most startups spend their time talking when they should be listening for objections and concerns.
Direct download: Startup_Funding_Espresso_--_Common_Mistakes_in_developing_a_pitchdeck.mp3
Category: -- posted at: 5:58pm CDT |
Mon, 27 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In the Coronavirus lockdown we’re seeing trends that will establish the next cycle of startup innovation. While already underway, there’s an accelerating shift to digital. Startups in this area will find investor interest if they can provide the following: Online businesses where you can work from anywhere. Evergreen products that are always in demand. Efficient delivery of products and services both online and offline, such as the internet or delivery to the customer’s doorstep. Examples of this include: Local restaurants moving from in-house dining to curbside delivery. Local businesses move to sell online rather than in the store. Instruction such as education and physical training delivered online. Students moving from physical classes to online instruction. Shopping is moving from the physical store to online. These trends were underway before but are not accelerating.
Direct download: COV_Series_Startup_Funding_Espresso_--_Coronavirus_economy_trends_--_shift_to_digital.mp3
Category: -- posted at: 5:41pm CDT |
Mon, 27 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In evaluating a team, there are elements to look for in a CEO for early-stage companies. The first is character. The CEO must have integrity and demonstrate character. Over time, the company will adopt the character of the CEO. If the CEO cuts corners, so will the rest of the company. The second is confidence. The CEO must have enough confidence in their vision, plan and team that they can execute. Starting up brings challenges that require confidence to succeed. The third is coachability. This is especially true for first-time CEOs in that they don’t know what it is they don’t know. Experienced CEOs understand this better and recognize their limitations. CEOs who shun advice or forego coaching will run into problems later.
Direct download: EG_Jan_2020_Startup_Funding_Espresso_--_Character_Confidence_and_Coachability.mp3
Category: -- posted at: 1:59pm CDT |
Mon, 27 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In the Coronavirus lockdown we’re seeing trends that will establish the next cycle of startup innovation. While physical events for esports have been cancelled and future events may be postponed, in general, esports continue with online activity. Online competitive gaming will continue to accelerate through platforms such as Twitch. Online access provides more opportunities to engage the audience and allow for audience communication with each other. Startups in this area will find investor interest if they provide the following: Physical arena sports such as football, basketball and baseball will go on hold with esports taking over as the audience moves to online viewing. Imposed quarantine has increased consumer play time. Software development for games carry on with remote workers. While already underway, there’s an accelerating shift to online sports. Some sports programs such as Formula One are creating virtual events to showcase their events. We may see traditional sports teams in football, basketball and baseball launch a virtual version of their team to continue to play in the rapidly-growing esports market. |
Mon, 27 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In the Coronavirus lockdown we’re seeing trends that will establish the next cycle of startup innovation. While physical events for esports have been cancelled and future events may be postponed, in general, esports continue with online activity. Online competitive gaming will continue to accelerate through platforms such as Twitch. Online access provides more opportunities to engage the audience and allow for audience communication with each other. Startups in this area will find investor interest if they provide the following: Physical arena sports such as football, basketball and baseball will go on hold with esports taking over as the audience moves to online viewing. Imposed quarantine has increased consumer play time. Software development for games carry on with remote workers. While already underway, there’s an accelerating shift to online sports. Some sports programs such as Formula One are creating virtual events to showcase their events. We may see traditional sports teams in football, basketball and baseball launch a virtual version of their team to continue to play in the rapidly-growing esports market.
Direct download: COV_Series_Startup_Funding_Espresso_--_Coronavirus_economy_trends_--_Sports.mp3
Category: -- posted at: 11:23am CDT |
Mon, 27 April 2020
In this episode, Hall welcomes Yaniv Sneor, founder of Mid Atlantic Bio Angels (MABA). MABA is a life-science angel group focused on therapeutics, devices and diagnostics. Yaniv started a career in physics and moved to working as a consultant with companies in the life-sciences sector. He noticed that these smaller, early-stage life-science companies were having difficulty raising money, so he decided to invest himself. He talks about his excitement for the "very-challenging" life-science space, and explains what some of those challenges are. He gives his advice to investors about what to do before writing that very first check and, on the flip side, gives advice to first-time entrepreneurs.
Yaniv can be contacted via email at info@bioangels.net. |
Sun, 26 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Direct download: Startup_Funding_Espresso_--_Pitchdeck_-Investment_Opportunity_slide.mp3
Category: -- posted at: 8:19am CDT |
Sun, 26 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Direct download: Startup_Funding_Espresso_--_Pitchdeck_-Financial_slide.mp3
Category: -- posted at: 8:14am CDT |
Sun, 26 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Direct download: Startup_Funding_Espresso_--_Pitchdeck_-Team_slide.mp3
Category: -- posted at: 7:45am CDT |
Sun, 26 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Direct download: Startup_Funding_Espresso_--_Pitchdeck_-Competition_slide.mp3
Category: -- posted at: 7:35am CDT |
Sun, 26 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. |
Sun, 26 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In startup investing, “Team isn’t everything, it’s the only thing”. All problems will ultimately be solved by the team. If the team can’t solve it, then the business will fail. In many years of angel investing, almost all failures trace back to the team not being up to the task. In some cases, the investors underestimated the task, but in the end, it’s the team that must face it. In reviewing a deal, the investor often makes the mistake of matching the team to the current problem but not future problems. In the earliest stages, one looks for a team that can build and sell the product, but will that same team be able to grow the business and later scale it? These are the future problems that must be solved. Hopefully, the CEO will change the team to match the needs of the business. |
Sat, 25 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. First highlight your core value proposition for the customer. Show what value the customer receives from your product/service. A competitive advantage gives you a 30% increase in revenue or decrease in cost. Show what competitive advantages you have such as --recurring revenue --virality --network effects --channel access --platform-based solution Using numbers to describe your advantage will make clear the benefit.
Direct download: Startup_Funding_Espresso_--_Pitchdeck_-Competitive_Advantage_slide.mp3
Category: -- posted at: 9:15am CDT |
Sat, 25 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. It’s important to start the pitch with the problem you are solving so the investor has a frame of reference for your startup.
Direct download: Startup_Funding_Espresso_--_Pitchdeck_-Problem_slide.mp3
Category: -- posted at: 9:04am CDT |
Sat, 25 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The goal is not to tell your full story or explain how your product works. From this pitch, you want a follow-up meeting with the investor. Good pitch decks show what you are doing and the opportunity to grow more with funding.
Direct download: Startup_Funding_Espresso_--_Goal_of_the_pitchdeck.mp3
Category: -- posted at: 7:12am CDT |
Fri, 24 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. After the COVID-19 pandemic of 2020, investors look to see if you have made your business COVID-19-proof. Here are some steps to COVID-19-proof your startup. Ensure your startup can continue day-to-day operations by working remotely, even when everyone is in lockdown in their own homes. Setup remote work tools such as Google Drive, Asana, Trello and other systems. Update your cybersecurity measures as a remote workforce bring new challenges. Create backup and redundancy plans to cover for those who fall ill or must step out to take care of others. Choose partners, suppliers and others who have COVID-19-proof businesses. Secure the supply chain for your operations as well as for product/service delivery. Pursue customers who are also COVID-19-proof and whose operations will continue in the case of a lockdown. These businesses include: Those who can run some portion of their business online. Those who can continue operating using existing workers in remote locations. Those who don’t require large numbers of people to deliver and support a product/service. Those who have a flexible workforce and can shift duties from one team member to another seamlessly.
Direct download: COV_Series_Startup_Funding_Espresso_--_How_to_Covid-proof_your_business.mp3
Category: -- posted at: 3:47pm CDT |
Fri, 24 April 2020
In this episode, Hall welcomes Tony Jeff, President and CEO of Innovate Mississippi & Mississippi Angel Network who accelerate startups and drive entrepreneurship throughout the state. They strengthen and grow the culture of innovation in Mississippi. Tony is a technology evangelist who speaks regularly on emerging trends and strategies in technology and innovation commercialization. Tony has overseen the coaching of more than 1,200 entrepreneurial ventures and he’s consulted with companies that have successfully raised more than $175 million in private-equity financing. He is excited by the breadth of the companies that Mississippi is seeing, especially out of young entrepreneurs. He explains where he sees the state of investing in angel-level deals, early-stage companies, how the industry is evolving and the changes he sees coming up. Tony gives advice to both investors and startups, gives his thoughts on the challenges they face and he speaks about Innovate Mississippi’s investment thesis. Visit Innovate Mississippi at www.innovate.ms. Tony can be contacted via LinkedIn at www.linkedin.com/in/tonyjeff/ and via email at tjeff@innovate.ms.
Direct download: Tony_Jeff_of_Innovate_Mississippi__Mississippi_Angel_Network.mp3
Category: -- posted at: 2:31pm CDT |
Wed, 22 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Then show the serviceable market, which is your core target market. Finally, show the beachhead market (who are the first 20 customers you’re going to sell if you are early stage). For each market, show the growth rate. The total available market should be at least $1B.
Direct download: Startup_Funding_Espresso_--_Pitchdeck_-Market_slide.mp3
Category: -- posted at: 8:27am CDT |
Wed, 22 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Research the investors in advance by looking them up on LinkedIn and their own company websites. It’s important to convey a sense of momentum in your deal with news about sales, team, product and the fundraise.
Direct download: Startup_Funding_Espresso_--_Investor_discussion_after_the_pitch.mp3
Category: -- posted at: 6:33am CDT |
Wed, 22 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Direct download: Startup_Funding_Espresso_--_Pitchdeck_-_Traction_slide.mp3
Category: -- posted at: 6:24am CDT |
Wed, 22 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In your pitch deck, the first slide is the title slide.
Direct download: Startup_Funding_Espresso_--_Pitchdeck_--_title_slide.mp3
Category: -- posted at: 6:15am CDT |
Wed, 22 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Many startups use loans to fund their business. If you are taking a loan from family and friends, here are some points to consider: The first step is to determine the amount of the loan and how it will be disbursed to the startup. There’s time-based disbursements. For example, the startup gets $20,000 now, $20,000 in three months, and the final $20,000 three months after that. Then there’s milestone-based disbursement in which the funds are disbursed when the startup reaches specific milestones or goals such as prototype complete, product complete, customer sold. The loan should be made to the startup and not the founder. You want clear dividing lines between the assets of the startup and the personal assets of its founders. Comingling personal assets with those of the startup is a bad practice. Avoid no-interest loans and establish an interest rate of at least 3%. If you set up a no-interest loan, the IRS will assume an “imputed interest rate” and tax the lender on an “assumed” amount of interest on income received. Determine if a personal guarantee and/or collateral are required. Most startups don’t have assets aside from the intellectual property (IP) created by its founders and employees, so collateral is usually limited. A personal guarantee states that the entrepreneur will agree to be liable for repayment of the loan if for some reason the business cannot make the payments.
Direct download: Startup_Funding_Espresso_--_Taking_loans_from_Family_and_Friends.mp3
Category: -- posted at: 6:09am CDT |
Tue, 21 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Many startups use profit sharing to fund their business. It is important that everyone involved has a very clear understanding of how “profit” is calculated. There are three locations in the startup’s profit and loss to dip in and take out a “share” to pay back an F&F investor. They are as follows:
To know how much profit to share, you must first build a financial model. Another key issue is when to start payments to the investors. You could set a timeframe such as 3 to 6 months out, or upon closing a customer sale You could set a specific amount of revenue or profit or whenever you are able to payback. There needs to be a limit to the amount of profit sharing. It could be a specific dollar amount or a time limit. |
Tue, 21 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Many startups raise funding from family and friends on their first round to get the startup going. Before launching, make sure you do the following: Co-founders should agree on the equity split for each one and document the ownership agreement legally. Intellectual property (IP) needs to be assigned to the startup, including programming code, product designs, product trademarks, and domain names. If you are hiring employees you need to establish a stock-incentive plan to enhance their compensation package. You are accepting investment funds so you need a legal entity. You’ll setup either an LLC or a C-Corp. For an LLC, you give membership units for an LLC, and shares for a C-Corp. You are starting a business so you’ll need a business bank account. For this you’ll need a Federal Tax ID (also called an EIN) to complete the process. Let’s go startup something today.
Direct download: Before_Launching_Your_Business_With_Family__Friends_Funding.mp3
Category: -- posted at: 11:45am CDT |
Tue, 21 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Many startups use loans to fund their business. Here are a few ways to set up a payment structure and schedule. For payment structure you can use: Interest-only payments -- in the beginning the startup only pays out the interest and later pays the original loan. Deferred start of payments -- you may consider starting payments 6 to 12 months after the loan is taken to give the startup time to build product and close customers. Pay back when you can -- this is the easiest of all payment options which gives the startup lots of freedom in paying back, by deferring the start to some date in the future. You will need to determine how much will be paid when the payments start so you can create an amortization schedule. Once you’ve decided on the loan amount, the interest rate, term, and payment schedule, you can plug those numbers into an amortization calculator to create a schedule of payments needed over the life of the loan.
Let’s go startup something today.
Direct download: Startup_Funding_Espresso_--_Paying_off_the_Loan.mp3
Category: -- posted at: 11:37am CDT |
Tue, 21 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Do they have industry or domain expertise?
Let’s go startup something today.
Direct download: Startup_Funding_Espresso_--_Family_and_Friends_Funding.mp3
Category: -- posted at: 11:25am CDT |
Tue, 21 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. I’m often asked if you should you take money from family and friends to fund your startup. Outside investors will look at family-and-friends funding as a sign of support for your business. If your family and friends won’t invest, why should the outside investor invest? Many startups are reluctant to take family-and-friends funding because Thanksgiving turkey tastes different if things don’t work out. In addition, there’s valuation. I’ve seen some startups give their family a special valuation because well, they’re family. This becomes a problem later when raising follow-on funding from outside investors. You have to give them the same valuation or higher, or your family loses their equity position. My recommendation is to take family-and-friends funding as a show of support. But only as a donation and only in $10K amounts from each person. Offer to pay them back by supporting their project in the same way when the time comes. Let’s go startup something today.
Direct download: Startup_Funding_Espresso_--_Should_you_take_money_from_family_and_friends.mp3
Category: -- posted at: 11:13am CDT |
Tue, 21 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Targeting investors for your fund and getting buy in is a key step in raising a fund. Potential investors include family offices, high net-worth individuals (HNI), and angel investors. Larger, institutional investors such as pension funds, are typically not interested in unproven fund managers and rarely go below $50M funds. Institutional investors look for a prior track record and have minimum investments that would put their investment above a limit on how much of the fund their investment takes. This is typically around 20%. You could engage a placement agent whose fee is usually in the range of 2 to 3 percent. You can also use meetings with investors before the fundraise to see how the market will respond. The key to launching the fund is to secure an anchor investor who will allow you to use their name. This gives the fundraise momentum as the initial funds are secured. The most common question will be about past performance. If you have led funds in the past then you have a track record to present. If not, then if you invested as an angel investor in numerous startups then that too could give you a performance record. Be sure to highlight any investments that resulted in a successful exit. If you were an operator of a company with a successful track record, that could be used as well. Let’s go startup something today.
Direct download: Startup_Funding_Espresso_--_Targeting_Investors_for_your_Fund.mp3
Category: -- posted at: 11:06am CDT |
Tue, 21 April 2020
In this episode, Hall welcomes Eric Berman, Co-chair and President of Element 8 (E8) Ventures, an angel, impact-investing group who invest for profit with a purpose. E8 is an international, Seattle-based community whose mission is to accelerate the transition to a prosperous and cleaner world by investing in and fostering emerging cleantech enterprises. Its flexible, investor-centric platform supports different types of investors and asset classes, including direct angel for-profit investing, pooled investing in expertly managed VC funds such as the E8 Fund and via syndication. E8 members have invested $39.3 million over 14 years, in over 90 different companies. Eric worked with Microsoft through most of the 90s and then Expedia, but decided after many years that he wanted to work in the environmental sector where he had a huge passion for the environment and renewable energy. He speaks about the evolution of angel investing in cleantech specifically and gives advice to both investors and startups. Visit E8 Angels at www.e8angels.com/ Eric can be contacted via LinkedIn at www.linkedin.com/in/erberman/ and via email at ericbe@hothpark.com. |
Tue, 21 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. So what is growth equity? Growth equity refers to investing in a company at later rounds such as Series C or D. These companies typically have $3-5M of revenue and are beginning to start the scale process. Growth equity venture firms look for a company that will become a market leader. A typical ROI is in the 3-5X range. Private equity is not typically in the picture yet as they look for profit, which for startups doesn’t yet exist. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today.
Direct download: Startup_Funding_Espresso_--_What_is_Growth_Equity.mp3
Category: -- posted at: 9:31am CDT |
Tue, 21 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. As a startup, it’s helpful to understand the VC investor you are talking to and how they make money. Say you are raising $1M. The VC will turn that into a $2M pre-money and then add the $1M investment to reach a $3M post-money valuation. The investor receives Investment divided by the post-money which is 33% of the equity. That’s how much equity the startup gives to the VC for the funding.
Direct download: Startup_Funding_Espresso_--_How_can_VCs_Make_More_Money.mp3
Category: -- posted at: 9:19am CDT |
Tue, 21 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The Returns on a Fund are based on the power law which means that the Pareto Principle applies: The bulk of returns come from just a few of the companies. Out of ten investments, one will be a home run, two to three will be small returns, and the rest will be losses. Some use the J-curve to show the returns. The returns in the early days are negative because the losses typically happen first. The winners come later. The shape of the returns curve looks like the letter J when plotted on a graph. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today.
Direct download: Startup_Funding_Espresso_--_Returns_of_a_Fund.mp3
Category: -- posted at: 8:31am CDT |
Mon, 20 April 2020
In this episode, Hall welcomes Peter Adams, Executive Director of Rockies Venture Club. Rockies Venture Club is “...an angel investing group dedicated to accelerating economic development by educating and connecting investors and entrepreneurs.” Their culture is based on the following three “pillars”: events, education and execution. Excited by impact investing, Peter explains Rockies Venture Club’s investment thesis and gives examples of startups within the Club. Peter also gives advice to both investors and entrepreneurs, and speaks at length about the challenges startups face. Visit Rockies Venture Club at www.rockiesimpactfund.com Peter can be contacted via LinkedIn at www.linkedin.com/in/peteradams/ and via email at peter@rockiesventureclub.org |
Thu, 16 April 2020
In this episode, Hall welcomes Charles Sidman, Managing Partner and Member of ECS Capital Partners. ECS is a fund that invests in a wide range of enterprises from early-stage Angel start-ups, to later Venture-stage or even public growth companies, focusing completely on investor returns (Internal Rate of Return). Charles’ career path is vast and includes building computers to becoming a professor and performing scientific research. He is a financially-oriented investor with two filter systems and explains his approach to investing and the four criteria that must be in place in order for him to consider investing. He is very excited about discovery and application, and investing, participating, supporting and working with companies that are going to change the world and make it a better place. Although Charles is an avid traveller and has seen startups all over the world, he sees many similarities amongst them. He gives advice for both investors and entrepreneurs and speaks about the big changes he sees in the startup industry. Charles can be contacted via LinkedIn at www.linkedin.com/in/charles-sidman-0b778620/ and via email at csidman@ecs-partners.com |
Thu, 16 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In running a fund it’s important to analyze market segments. First, evaluate the leading companies in the market. Are there any leaders that stand out, or are all the companies competing head-to-head with the same approach? Highlight the supply chain to show who has control of the market -- is it the producer or the consumer that drives the price? Discuss the introduction of new technology and its impact on the current market equilibrium. Will it shift control from the producer to the consumer, or vice versa? Review the number of companies playing in the segment and discuss the resulting fragmentation. Highlight the total available market for the companies in the segment. Identify companies within the market that stand out for competitive advantages such as network effects, virality, recurring revenue models, etc. Conclude with a proposal to pursue investment in a company in the market segment.
Let’s go startup something today.
Direct download: Startup_Funding_Espresso_--_How_to_analyze_a_market.mp3
Category: -- posted at: 2:27pm CDT |
Thu, 16 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Investors in the startup space have a certain expectation for returns. Startups raising funding should keep in mind these expectations and only approach them if you have a deal that is in the game for it. Venture investors including angels, venture capitalists, and limited partners, typically look for a 20-30 percent internal rate of return (IRR) over a 5-year time horizon. This can also be expressed as a“two and a half to four times” the original money invested. If it takes longer than five years, then investors will look for a 5-10X ROI to maintain a 20-30 percent IRR.
Let’s go startup something today.
Direct download: Startup_Funding_Espresso_-_Investor_expectations_of_returns.mp3
Category: -- posted at: 2:16pm CDT |
Thu, 16 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Fund managers must present their investment ideas to the other general partners. Here’s how to analyze a potential company for investment: Identify a recent event for the target company, such as entering a new market. Discuss how the company can disrupt the newly-entered market with their expertise and business model. Talk about the positives you see in the company’s financials and market position. Express caution based on any concerns about the business including product/market fit, management team, or cost structures. Discuss macroeconomic issues both positive and negative. Conclude with a recommendation to pursue an investment based on the positives outweighing the negatives.
Direct download: Startup_Funding_Espresso_--_How_to_Analyze_a_Startup.mp3
Category: -- posted at: 6:37am CDT |
Wed, 15 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The fund manager provides a quarterly report to the Limited Partners. The reports typically contain the following sections:
Direct download: Startup_Funding_Espresso_--_Fund_report_to_LPs.mp3
Category: -- posted at: 4:31pm CDT |
Wed, 15 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are 3 key legal documents for your fund. They are
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today.
Direct download: Startup_Funding_Espresso_--_Key_Legal_Documents_for_your_Fund.mp3
Category: -- posted at: 3:26pm CDT |
Wed, 15 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are three key metrics for tracking the performance of a Fund. The first is Net Internal Rate of Return (called Net IRR) -- this measures the performance of fund distributions and the change in value of the invested companies over time, after management fees. The second is Total Value to Paid in Capital (called TVPI) --this measures the total value of a fund’s holdings plus distributions, as compared to total paid in capital. This takes into account investments that have increased in value but have not been paid out. Finally, there is Distributions to Paid in Capital (called DPI) -- this measures total distributions paid to investors compared to total paid in capital. This compares the investors paid in capital to their distributions as measured on a cash-on-cash basis. DPI is the metric investors care about the most. Let’s go startup something today.
Direct download: Startup_Funding_Espresso_--_Key_Metrics_for_a_Fund.mp3
Category: -- posted at: 3:02pm CDT |
Wed, 15 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Fund Objectives, (Legal) Structure, Fund Specifics, Investment Strategy, Investment Criteria, Investment Process Overview, Management Team and Disclaimers. Fund Objective -- purpose of the fund and how it will be deployed. Legal Structure -- is it a fund, a syndicate, a pledge fund or some other structure? Fund Specifics -- most funds are based on a ten-year window. Distribution Strategy -- most funds provide a recycle provision that let’s GPs reinvest profits back into the fund. Other funds require a hurdle rate before GPs can share in the profits. This means the investors get their principal investment back before the GP takes any carry. Limited Partner Units -- private funds are limited to a maximum of ninety-nine accredited investors in the fund. Fee Structure -- most funds use the two percent management fee and a twenty percent carry. Compensation Structure -- this determines when and how the GPs receive their compensation. Initial Deposit -- funds vary in how much of the funds are required from investors up front. Investment Strategy -- outlines the investment thesis. Management Team -- the resumes of the general partners. Finally, there are disclaimers to include. Let’s go startup something today.
Direct download: Startup_Funding_Espresso_--_Creating_an_Executive_Summary_for_a_Fund.mp3
Category: -- posted at: 2:13pm CDT |
Wed, 15 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. For those raising a fund, you must develop an investment thesis for your fund or investing strategy. An investment thesis is a hypothesis that describes how a particular market is suitable for producing a positive return. Most funds are formed around a specific vertical in which the general partners have expertise and access to dealflow. More than one vertical will require the partners to have expertise across several sectors and the associated dealflow access. You must be able to articulate your thesis and demonstrate your expertise to investors. Use numbers to describe market sizes and growth rates. Identify trends and their impact on markets and businesses. Show how your investment thesis takes advantage of these trends and how you envision the future will result in a positive return for the investors. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let’s go startup something today.
Direct download: Startup_Funding_Espresso_--_Develop_and_Investment_Thesis_for_your_Fund.mp3
Category: -- posted at: 11:24am CDT |
Wed, 15 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
There are several ways to find it for your startup. You could buy a market research report. These typically run anywhere from $5K to $20K. This is an expensive way to do it and there are other ways to find the market size. Oftentimes you can find the summary of the market research report on the web which usually gives the market size at a high level. You can also contact the trade association related to your industry. These associations are most often located in Washington D.C., as they provide government advocacy in addition to industry support. The website of the association typically provides stats on the industry including market size and sector breakdowns. These sources are often more reliable than market research reports. Let’s go startup something today.
Direct download: Startup_Funding_Espresso_--_How_to_find_Market_Sizing.mp3
Category: -- posted at: 11:19am CDT |
Wed, 15 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
When a startup pitches their idea, you should be skeptical of founders that don’t mention potential risks or discuss their experience in the industry, or their traction. Here are other key items the investor should look for: Focus on what needs to be done and what risks exist in the deal. Understand if the startup is offering a pain killer or a vitamin. Verify the market size and growth rates actually reflect the market the team is pursuing.
Direct download: Startup_Funding_Espresso_--_What_isnt_being_said_in_Due_Diligence.mp3
Category: -- posted at: 10:51am CDT |
Wed, 15 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Direct download: Startup_Funding_Espresso_--_Red_Flags_in_Due_Diligence.mp3
Category: -- posted at: 9:42am CDT |
Wed, 15 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Direct download: Fundraise_Show_That_Others_Are_Interested_in_the_Deal.mp3
Category: -- posted at: 6:23am CDT |
Tue, 14 April 2020
In this episode, Hall welcomes Harlan Mandel, CEO of Media Development Investment Fund (MDIF). Harlan joined the company in 1998 and was appointed CEO in 2011. MDIF is an impact-investment fund which “provides affordable debt and equity financing to independent news and information businesses in countries where access to free and independent media is under threat.”
Direct download: Harlan_Mandel_of_Media_Development_Investment_Fund.mp3
Category: -- posted at: 4:31pm CDT |
Mon, 13 April 2020
In this episode, Hall is joined by Vikram Lakhwara, Co-founder and Managing Director of Green Cow Venture Capital (GCVC) which is a sector-agnostic, early-stage, micro venture capital fund “backing dynamic founding teams solving global market problems around inefficiency and scarcity using greenfield technologies.” They invest at the Seed+ and Series A stages and their average seed deal check size is $450K.
Direct download: Vikram_Lakhwara_of_Green_Cow_Venture_Capital.mp3
Category: -- posted at: 3:45pm CDT |
Sat, 11 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Direct download: Startup_Funding_Espresso_--_the_Coronavirus_impact_on_whats_getting_funded.mp3
Category: -- posted at: 10:35am CDT |
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