Mon, 12 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are many terms used in terms sheets but there are only a few that have a significant impact. Here are the key ones:
These are key terms to look for in a terms sheet. |
Fri, 9 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are many terms in a standard terms sheet for investing in a startup. Six terms have a direct impact on the return the investor receives. They are as follows:
Direct download: EG_Sep_2020_Startup_Funding_Espresso_--_Terms_Affecting_the_Returns.mp3
Category:general -- posted at: 7:00am CDT |
Thu, 8 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In negotiating the terms of a startup investment, the investor should develop a standard terms sheet and modify it for each deal. In going into due diligence, send the terms sheet to the startup for their review. In some cases, they may be unfamiliar with terms sheets and need time to study it. The key elements to consider in negotiating terms are as follows: Valuation -- this is the most critical term to negotiate as it has the biggest impact on returns. Vesting founders shares -- it’s important to unvest founders shares and have them revest over the next few years. If the founder leaves early, there are shares to compensate for the replacement. Option pool -- set up to offer options to the employees. If you don’t have an option pool, then you have to provide all compensation out of cash which is a hard way to run a business. Board of directors -- set up a board with proper governance. Liquidation preference -- consider including a liquidation preference to set a floor on your return. Growth strategy -- gain consensus with the team and the investors on the growth strategy. Are we hitting the gas and going for the moon, or are we growing it carefully? This is often a sticking point that comes up after the investment is made.
Direct download: EG_Sep_2020_Startup_Funding_Espresso_--_Negotiating_the_terms.mp3
Category:general -- posted at: 7:00am CDT |
Wed, 7 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In setting the valuation for a startup, there are financial calculations, and then there are non-financial factors. I call the non-financial factors the “soft side of valuations”. These include the following: Current market conditions -- as the market heats, up certain sectors turn ‘hot’ and therefore command a higher valuation than the numbers indicate. Predictability - companies with recurring revenue streams and long-term contracts command a higher valuation because their revenue is much more predictable. Customer concentration -- startups with a broader list of customers will survive longer. If a customer accounts for over half of the business, then this should be reflected in the valuation. Pre-profitability -- for early-stage companies, those with profitability should command a higher valuation. Pre-revenue -- for even earlier-stage businesses without revenue, intellectual property and customer forecasts come into play. Start with the financial calculation and then refine the valuation from there based on these issues.
Direct download: EG_Sep_2020_Startup_Funding_Espresso_--_the_soft_side_of_valuations.mp3
Category:general -- posted at: 12:10pm CDT |
Wed, 7 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The terms sheet glossary contains over 125 terms that can be used. For every risk in the startup, there is a term to place in the terms sheet to mitigate that risk. If you feel the valuation is too high, you can add a liquidation preference. If you think the team needs oversight, you can add board seats and fill it with advisors who can help. For maintaining an investor’s position in the deal, there are anti-dilution clauses, right to participate, and right-of-first-refusal terms. For maintaining oversight over the operations, there are information right terms, board seats, and founder-vesting terms. For achieving an exit, there are drag-along rights, redemption rights, and registration rights. For the risks in the deal, engage the terms to mitigate those risks.
Direct download: EG_Sep_2020_Startup_Funding_Espresso_--_Using_Terms_Sheets_to_Mitigate_the_Risk.mp3
Category:general -- posted at: 7:00am CDT |
Tue, 6 October 2020
In today’s show, you’ll hear investor perspectives on the growing space sector. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. Commercial exploration of space continues to advance in technology by SpaceX and other companies. In today’s show, you’ll hear about a new company in the space sector called EXOS. Our featured guests are: Scott Robinson, Lead Investor - https://in/scott-robinson-133588bb I hope you enjoy this episode. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org For Feedback please contact info@tencapital.group |
Tue, 6 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. For a startup to raise funding it must have a legal structure. The two choices are LLCs, which is a Limited Liability Company, or a C-corp. Most startups launch with an LLC and convert to a C-corp later due to the cost. It’s very easy to move from an LLC to a C-corp, but it’s very hard to go back the other way. C-corps are taxed at the corporate level, while LLCs are a pass-through structure allowing losses and profits to flow to the members. A Delaware C-corps is the venture capital standard. Most VCs have their terms sheets set up for Delaware C-corps and they won’t be changing it. To accept their funding you must have a Delaware C-corp entity. If you have a C-corp, your ownership will be stated in shares. If you have an LLC, your ownership will be stated in units. Upon exit, LLCs can be preferable to the owners as you can build up losses from the early days to reduce the tax burden upon selling the business. LLCs cannot take advantage of tax laws such as 1202, 1045, or 1244 which provide tax incentives to startups but only if it’s in a C-corp structure. Setting up boards and providing stock options are more difficult for LLCs than C-corps. Start with an LLC and convert to C-corp when you raise institutional funding.
Direct download: EG_Sep_2020_Startup_Funding_Espresso_--_LLC_vs_Corps.mp3
Category:general -- posted at: 7:00am CDT |
Mon, 5 October 2020
I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. Therapeutics continues to advance across the board. In today’s show, you’ll hear about a new company in the pharma space called BiorganicPharma who develop and make nutritional supplements in liquid form using natural ingredients. Our show host today is Ashley Matthysse. Our featured guests are: Jackie Kapur, Strategic CFO - https://in/jacqueline-kapur-49b1b81/ Dr. Simon Mills, Chief Investment Officer - https://in/drmills/ Through her 15-year corporate finance career, Jackie has a proven track record of formulating and executing strategies & budgets for both start-ups and established businesses. She is a thoughtful and experienced leader in finance, business development, operation, marketing, and HR across industries including information technology, news, research, data, financial services, and consumer products. Excellent communication and people skills with significant experience navigating C-level management through major strategic changes. Simon is a skilled and successful entrepreneur with over thirty years of business experience. Born in Perth Western Australia in 1967 Dr. Mills studied at the Conservatorium of Music in New South Wales and went on to become a piano tuner/restorer, tour with many successful rock bands, and to host a radio program that became nationally syndicated. Mills founded London Music Group (LMG) with business partner Wazza Bray in 1990 and grew that company to the number one commercial music house in the country winning award after award and culminating in the world’s best jingle award. In 2006, with several successful startups completed, Simon moved from Australia to New York City with his wife and three children. Simon grew LMG Digital Media in the US to attract customers as significant as Hyatt, AIG, BBDO, CBS, Starbucks, Pepsi, The Economist and many more. I hope you enjoy this episode. Check out our other podcasts here: https://investorconnect.org/
Direct download: Intro_to_BiorganicPharma_WEBINAR_to_IC_Sector_Review_FINAL.mp3
Category: -- posted at: 9:57am CDT |
Mon, 5 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In launching your fundraise, you should always be in a position to take funding. There are many investors who want to join the deal but won’t take on a lead investor role in setting the terms. A convertible note works well for this stage of the raise. It’s a debt instrument that converts to equity later, so there’s no valuation to negotiate. Startups can accept investors into the deal with relative ease, given most notes have simple terms, rights, and conditions. The note is on a rolling close. So the investor signs the check, the startup signs the note, and the funding goes into the business the next day. One can use the note over several smaller fundraises to gather investor funds. When setting up a convertible note, consider what will happen upon conversion to the cap table. Startups should take care not to raise too much funding off convertible notes. In later stages, such as raising a Series A, investors are going to want a certain amount of ownership in the deal. If there is too much convertible debt, then it will be difficult to give the investor the ownership they want.
Direct download: Startup_Funding_Espresso_--_Using_Convertible_notes_wisely.mp3
Category:general -- posted at: 6:34am CDT |
Fri, 2 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. After diligence, investors who want to move forward will sign the investment documents. For a convertible note raise, the investor and CEO will sign the note. It’s a rolling close, so the funds go into the business the next day. For an equity raise, there are several documents in addition to the terms sheet. Some Series A raises can contain up to 9 separate documents including a subscription agreement, an option pool agreement, investor accreditation status, and more. It’s best to have an attorney help with these documents. If the investors requested a minimum amount of funding before closing, then the investor funds will go into an escrow account until the minimum threshold is reached. Some companies have the investors sign the documents before due diligence, in which case the funding is contingent on passing that due diligence. This screens out those who just want to see what you have without having to commit any funds.
Direct download: Startup_Funding_Espresso_--_how_to_paper_the_fundraise.mp3
Category:general -- posted at: 7:00am CDT |
Fri, 2 October 2020
In this episode, Hall welcomes Albert Meyer, Founder & Chief Investment Officer at Bastiat Capital. Headquartered in Plano, Texas, and established in 2006, Bastiat Capital is an asset management firm directing a concentrated and conservative large-cap equity portfolio. They apply unparalleled forensic accounting expertise, human insight and rich company-specific research as they seek to outperform the S&P 500 Total Return while mitigating downside risk. Albert is a veteran investment manager and forensic accountant who received global attention for uncovering one of the largest Ponzi schemes in U.S. history, the “Foundation for New Era Philanthropy”. He published the research report on Tyco that ultimately led to the prosecution and imprisonment of Dennis Kozlowski. He has also uncovered noteworthy accounting irregularities at Enron, Lucent and Coca-Cola. His work on Coca-Cola and eBay became the basis of several Harvard Business School case studies. Albert launched his career in corporate accounting with Deloitte & Touche, then dedicated 15 years to teaching accounting in academia. In 1996, he began applying his forensic accounting expertise to investment management on a professional basis, first at Martin Capital Management, and later with David Tice & Associates, and with Clark Hunt (current CEO of the Kansas City Chiefs) and the Hunt family office in Dallas, Texas. In 2002, Albert established an investment research business school named 2nd Opinion Research and in 2005, he received the American Accounting Association’s highest honor, the Accounting Exemplar Award (previously awarded to former SEC commissioner Arthur Levitt), in recognition of his many contributions to the field of accounting. Albert is a Chartered Accountant (the British Commonwealth equivalent of a CPA) and a Certified Public Accountant. He is a regular contributor to national financial media on investing and accounting topics. He and his wife Melenie reside in Plano, Texas near their three sons and their spouses, as well as six grandchildren. Albert shares with Hall what excites him right now in the industry, some of the challenges he sees investors facing in today's economy, and his company's thesis. He suggests some immediate opportunities for investors to pursue and those to avoid. Albert concludes the interview with his very detailed opinion on the benefits of the S&P 500 vs. Social Security. You can visit Bastiat Capital at www.bastiatfunds.com, and via LinkedIn at www.linkedin.com/company/bastiat-capital-llc/. Albert can be contacted via email at ameyer@bastiatfunds.com. |
Thu, 1 October 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Startup fundraising requires investment documents. Of course, you should seek counsel with your startup-friendly attorney before committing to an equity fundraise, but here are several sources of terms sheets on the web. Ycombinator provides a set of terms sheets for SAFE documents used in seed raises. The NVCA (National Venture Capital Association) provides a set of model legal documents that include terms sheets. Cooley provides the "Series Seed" set of documents on its website. There are many online sources for convertible notes. Just Google it and you’ll find a wide range. You can find the links on the Investor Connect Resources page. The link to the Investor Connect Resources page is below:
Direct download: Startup_Funding_Espresso_--_Sources_of_Terms_Sheets.mp3
Category:general -- posted at: 6:15am CDT |
Wed, 30 September 2020
In this episode, Hall welcomes Doug Smith, CEO and Lead Investor at Hawthorne Funds. Hawthorne Funds is a Houston-based private equity firm that couples Doug Smith’s funds with those of other investors to purchase, subdivide and sell large rural tracts of land in Texas. Their unique approach to adding value during the holding and disposition process gives them a competitive advantage that generates outsized returns for our investors. Doug was previously a software developer for ExxonMobil, and he has gone on to buy and sell over 100 houses. More recently, he has bought and sold over 3,000 acres of rural Texas land from within Hawthorne Funds and his other business entities. Apart from his real estate investments, he serves as founder and partner of REI Network, which regularly lands on the lists of Inc. 5,000 Fastest Growing Companies and Best Places to Work. He was recently named to Houston's 40 Under 40 list and became bilingual after spending a year living in Spain and Chile. Doug received a B.B.A. in M.I.S. from Texas Tech University, finishing as the highest-ranking graduate. Doug tells Hall what excites him right now in the real-estate sector, and he advises investors in the space. He explains how COVID-19 has affected the industry and the changes he sees coming up. You can visit Hawthorne Funds at www.hawthornefunds.com, and via LinkedIn at www.linkedin.com/company/hawthorne-funds-jds-holdings/. Doug can be contacted via email at doug@hawthornefunds.com. |
Wed, 30 September 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Terms sheets can be founder-friendly or investor-friendly. The terms sheet provides terms in favor of the founder over the investor or vice versa. Here’s how you can tell which one you have. In a founder-friendly terms sheet: There is no expiration date on the investment offer The option pool comes out of both the investor’s portion, as well as the founder’s portion. There is no confidentiality agreement. The founders are free to talk about the deal. There is no liquidation preference for the investors. The startup does not pay investors legal fees. In an investor-friendly terms sheet, these terms go the other way.
Direct download: Startup_Funding_Espresso_--_Founder_vs_Investor-Friendly_Terms_Sheets.mp3
Category:general -- posted at: 7:00am CDT |
Tue, 29 September 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In negotiating a terms sheet, there are several key elements to keep in mind. Valuation is the biggest hurdle as it sets equity ownership. Key terms that often come into play include the following: Liquidation preferences - if the investors feel the pre-money valuation is too high, they may ask for a 1 or 2x liquidation preference.
Direct download: Startup_Funding_Espresso_--_Negotiating_a_Terms_Sheet.mp3
Category:general -- posted at: 7:00am CDT |
Mon, 28 September 2020
In this episode, Hall welcomes Greg Thomas, Managing Director of 375 Park Associates. Headquartered in New York with affiliates in Asia, Europe, and the U.S., 375 Park Associates is a strategic growth advisory firm which helps private equity firms overcome challenges in their portfolio. Their partners and associates have closed transactions in the U.S. and abroad, ranging from US$10 million to US$150 million in value. Named as one of the Top 100 in Finance for 2020, Greg specializes in business development, structured finance, and LBOs with a focus on disruptive companies. He has nearly 20-years' experience in Asia, helping many U.S.-based firms to expand their presence in the region; results include reducing costs by more than 20% and increasing profits by millions of dollars. Before joining 375 Park Associates, Greg was the Regional Director and Managing Partner of IMC International Asia-Pacific. At IMC, he worked on several LBO teams, led a joint venture with a New York-based hedge fund, and started a ship finance operation. Greg spent four years as the Managing Director & President of Foundation Consulting, a company that was acquired by IMC in 2013. He has held management positions with Fortune 500 companies in the U.S., and has led business units of ultra-growth companies in Asia-Pacific with P&Ls in excess of US$30 million, and had previously served on the advisory council for CX@Rutgers, a judge for the 16th Annual M&A Advisor Awards, and as a director of financial advisory for Mazars. Besides acting as an advisor to several startups in the U.S. and Asia, Greg is an advisor to the digital ecosystem - Dreamr, a member of the advisory councils of the Harvard Business Review, McKinsey Quarterly, the Gerson Lehrman Group, and Expert Coin. He is also a regular guest on Dukascopy TV. Greg studied Organizational Communications, Learning, and Design at Ithaca College and has a BSc in Communications from Almeda University as well as an MBA Administration from Edinburgh Business School at Herriot Watt University. Greg shares with Hall the company's investment thesis pre and post-COVID-19 and how he sees the early-stage funding world evolving. You can visit 375 Park Associates at www.375parkllc.com, via LinkedIn at www.linkedin.com/company/375-park-associates, and via Twitter at https://twitter.com/375ParkAssoc. Greg can be contacted via email at greg@375parkllc.com. |
Mon, 28 September 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. When I ask startups how much they are raising for investment, they often quote their total raise for the life of the startup. We then talk about breaking the raise into smaller rounds so the founder doesn’t have to spend too much time on the fundraise process. Here’s some guidance on how to breakdown your startup fundraise into tranches or what some call rounds. Family and Friends funding: $10K to $100K Pre-seed: $250K Seed: $500K to $750K Seed +: $500K to $750K Series A: $1.5M to $3M Series B: $5M to $15M If you raise too much money too early in the life of your startup, you will find yourself giving away too much equity so it’s important to raise in stages.
Direct download: EG_Aug_2020_Startup_Funding_Espresso_--_Standard_Raises_by_Stage.mp3
Category:general -- posted at: 7:00am CDT |
Fri, 25 September 2020
In this episode, Hall welcomes Ellen Weber, Executive Director at Robin Hood Ventures. Robin Hood Ventures is a group of angel investors, focused on early-stage, high-growth companies in the Greater Philadelphia region. They help entrepreneurs build great companies, providing capital, mentoring, expertise, and connections, to help companies reach their potential. Robin Hood generally invests $250k to $500k and collaborates with angels, institutions, and VCs in their network. Since 1999, they have invested in over 45 companies in industries including software, medical devices, biotech, internet, and financial technology. Ellen is passionate about innovation and about helping build great companies in Philadelphia. She serves as the Executive Director of Temple University’s Fox School of Business Innovation and Entrepreneurship Institute, and an Assistant Professor of Entrepreneurship. Ellen is very active in the Philadelphia startup community, supporting Philly Startup Leaders, Philly Tech Meetup, and the Alliance of Women Entrepreneurs. Previously, Ellen was the COO and co-founder of VisionMine (www.visionmine.com), which provides a specialized Open Innovation portal to large corporations. Ellen has more than 25 years of experience creating strong teams and building strong leaders for emerging companies as well as Fortune 500 clients. She has been a Managing Director and Founder of Antiphony Partners, LLC, a strategic consulting firm that specializes in helping companies create sustainable value through innovation. She was involved in the growth of Investor Force, a provider of technology-based solutions for institutional investment professionals, where she created the company’s initial human resources department, facilitated strategic planning, and managed the organizational aspects of the company’s mergers and acquisitions. Additionally, she spent twelve years at Shared Medical Systems where she was responsible for initiatives encompassing organizational development, customer support, and corporate communications. She was also a senior consultant for Andersen Consulting. Ellen graduated from The Wharton School with a B.S. in economics. Ellen discusses with Hall the current state of angel investing, how she thinks the industry is evolving, what challenges the group is experiencing, and she goes into detail about their investment thesis. Ellen shares what excites her in the space and how COVID-19 has impacted the group. You can visit Robin Hood Ventures at www.robinhoodventures.com, on Twitter at https://twitter.com/RobinHoodVent, and on LinkedIn at www.linkedin.com/company/robin-hood-ventures. Ellen can be contacted via email at eweber@antiphony.com. |
Fri, 25 September 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In determining your raise amount, consider what you need for the next 18-24 months and focus on that window rather than the entire life of the company. Raise enough to accomplish the goals for that timeframe. Consider any revenue you currently have coming in and by how much it will grow. Estimate the amount of money you will burn through each month so you know how much runway funding will buy you. Set an ideal raise amount and a fallback plan in case the fundraise comes up short of the ideal. For every $1M of funding you need, it will take you one calendar year to raise it. Based on this information, you can determine how much you need to raise and when you should start the campaign.
Direct download: Startup_Funding_Espresso_--_Know_your_burn_rate.mp3
Category:general -- posted at: 7:00am CDT |
Thu, 24 September 2020
In this episode, Hall welcomes Brendan Nugent, CEO of Adrenaline. Adrenaline is the leading online supplier of awesome and unique gifts and they have sought out life-defining experiences for their clients for over 8 years. Adrenaline connects experience seekers and gift-givers with over 1,300 heart-pumping things to do across the United States. The company enables real-time booking of experiences and gift options with a fully integrated CRM and support team. Adrenaline U.S. was an expansion from the proven Adrenaline.com.au platform, Australia’s leading activity aggregator. Since 2012, the business has built a product portfolio of experiences from land adventures, flying experiences, water sports, and driving experiences. Brendan is based in Austin, Texas, and he is the figurative head of Adrenaline’s online travel agency and gift marketplace. Prior to Adrenaline, Brendan spent 6 years at iFLY Indoor Skydiving Support Center and joined the company at the cusp of major growth; the company grew from 8 retail locations to 80 locations during those 6 years. Initially building sales training, teams, and procedures, Brendan built large-scale distribution and ticketing programs in the tourism, retail, and gifting sectors. He enjoys travel, watching Formula One Racing, and real estate. Brendan shares his thoughts on the rise of the travel-venture segment and explains what it takes for a company in this segment to be successful. He also describes some of the changes he expects to see in this segment in the coming 12 months. You can visit Adrenaline at www.adrenaline.com, and on Twitter at https://twitter.com/AdrenalineIncUS. Brendan can be contacted via email at brendan.nugent@adrenaline.com. |
Thu, 24 September 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. I often hear investors say if the company just had revenue then the risk would be gone. But once the startup achieves revenue, the next stage of risk comes up - will they be able to grow that revenue? There’s a risk for the investor at each stage of startup funding. At the seed stage, the question is, can you sell the product? At the Series-A stage, the question is, can you grow the product revenue? At the Series B-stage, the question is, can you scale the product revenue? At the Series-C/D stage, the question is, can you become a market leader? Each stage brings a new risk. For investing, the old risk is replaced with a new risk.
Direct download: EG_Aug_2020_Startup_Funding_Espresso_-_The_Risk_at_Each_Stage.mp3
Category:general -- posted at: 7:00am CDT |
Wed, 23 September 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Startups raising funding should keep track of their cap table which shows who has ownership in the business. If you have one, make sure to keep it up to date. If you don’t have one, then here are the steps to set up your cap table. Identify all the founders and equity owners in the company. Include anyone who has stock options or warrants. Keep track of any special agreements you have with the founders, partners, or investors. For each person or entity on the cap table, list the class of stock, price paid for it, and how much of that stock they own. Calculate the total amount of shares and the money paid for it. To create a fully diluted cap table, include all options and warrants even if they are not yet vested. Also, track all convertible notes and SAFE notes that could convert into equity in the future. During the fundraise, investors will want to see your cap table so they know who owns what and who they are investing with.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_How_to_setup_the_cap_table.mp3
Category:general -- posted at: 7:00am CDT |
Tue, 22 September 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Depreciation represents the reduced value of assets. Each asset in your business has its own useful lifetime. Based on that useful lifetime, one can expense a portion of the value each year over the life of that asset. Depreciation goes on the profit and loss statement and also impacts the value of the asset listed on the balance sheet. Computers for example are often depreciated over a four-year timeframe. If you spent $16,000 on computers and they last four years, then a straight-line depreciation will expense $4,000 per year. You’ll need to set up a separate worksheet for each asset to calculate and track the depreciation. You then place the expense on the profit and loss statement and show the reduced value of the asset on the balance sheet. Based on the type of asset, you may be able to use other depreciation methods aside from straight-line depreciation. You’ll need to check the IRS rules for each asset as they have stated requirements for how you depreciate each type.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Financial_Projections_--_Depreciation.mp3
Category:general -- posted at: 7:00am CDT |
Mon, 21 September 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Your financial projections will be important for your fundraise. Banks will want to see your projections when you apply for a loan. And investors will want to see them as well when you raise equity funding. There are two basic forms of capital: debt and equity. Debt is in the form of a loan with specific terms, including interest rate and payback plans. Debt has some advantages:
Equity has advantages:
Your financial projections will help you decide how much funding you should take from debt and equity.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Financial_Projections_-_Fundraise.mp3
Category:general -- posted at: 7:00am CDT |
Mon, 21 September 2020
In today's show, you'll hear investor perspectives on the COVID-19 impact on the chronic pain market. This is Investor Perspectives, I'm the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It's the time of COVID-19. The healthcare industry is overwhelmed with patients from the pandemic. Medical conditions such as chronic pain continue to grow due to the opioid crisis. We recently held an interview with experts and investors in the area of chronic pain. Our host is Ashley Matthysse. Our featured guests are: Brian Carrico, CEO with Innovative Health Solutions: https://i-h-s.com I hope you enjoy this episode. ————————————————————————————————————————————————————— For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: IP_Aug._Show__2_Impact_of_COVID-19_on_Chronic_Pain_Market_Featuring_Brian_Carrico.mp3
Category:general -- posted at: 7:00am CDT |
Fri, 18 September 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Operating expenses are the day to day expenses a business incurs. They support the operational side of the business covering sales, marketing, product development, and administration. These expenses include legal, digital marketing, payroll for employees, accounting, rent, insurance, IT costs, office supplies, bookkeeping services, phones, computers, and more. Recurring expenses, such as sales and marketing expenses, are often defined as a percent of revenue. These include software subscriptions, advertisements, promotional material, and dues. Build an operating expense budget with a bottoms-up approach by costing out the individual components such as employee cost, administration, and IT, as each expense will be specific to your business. Over time, these costs will grow at a lesser rate than sales, which will increase the profit of the business.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Financial_Projections--Operating_Expenses.mp3
Category:general -- posted at: 7:38am CDT |
Thu, 17 September 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. For later-stage startups with revenue, one can use the financial projections to estimate the company’s valuation for fundraising purposes. Discounted cash flows, called the DCF method, values the company based on future cash flow projections. This weights the value of the company on future revenues rather than today’s revenues. The DCF method is purely a financial valuation method and does not take into account other factors such as the team, intellectual property, or sales activities that have not yet been realized with cash flows. Your financial projections should have the key elements including projected cash flows, a chosen discount factor, and a net present valuation of the free cash flows to generate the DCF valuation. It’s just one more valuation tool. Predicting cash flows in the future can be difficult given the sales process is not fully in your control.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Financial_Projections_--_Valuation.mp3
Category:general -- posted at: 7:14am CDT |
Thu, 17 September 2020
In this episode, Hall welcomes Shawn Singh, Chief Executive Officer & Director at VistaGen Therapeutics, Inc. Located in South San Francisco, California, known as the “Birthplace of Biotech”, VistaGen Therapeutics is a clinical-stage biopharmaceutical company developing new-generation medications for anxiety, depression, and other central nervous system, or “CNS,” diseases and disorders where current treatments are inadequate to address high, unmet needs. Their CNS portfolio includes three differentiated CNS drug candidates, PH94B, PH10, and AV-101, each with a novel mechanism of action, an exceptional safety profile, and therapeutic potential for multiple indications. Shawn has over 25 years of experience working with private and public biotechnology, medical device, and pharmaceutical companies, a venture capital firm, and a profitable contract research and development organization (CRO), serving in numerous senior management roles. Prior to joining VistaGen, he served as President of Artemis Neuroscience, and prior to VistaGen’s acquisition of that company, Managing Principal of Cato BioVentures, a healthcare-focused venture capital firm. Earlier, Shawn assisted with the IPO of SciClone Pharmaceuticals, a revenue-generating, China-focused specialty pharmaceutical company, and served as its Chief Business Officer before departing to form Cato BioVentures with the founders of Cato Research. He began his career as a corporate finance attorney in the Silicon Valley offices of Morrison & Foerster LLP, with a transaction-focused practice involving both emerging biotechnology and high technology companies. Shawn earned a B.A. degree, with honors, from the University of California, Berkeley, and a J.D. degree from the University of Maryland School of Law. He is a member of the State Bar of California. Shawn explains this domain in great detail and the work he and his team do, which is focusing on medications that address both neuropsychiatric and neurological disorders. He describes the current standard of care in this industry and how it can be improved. Shawn also shares with Hall a benefit of the COVID-19 pandemic, in that it has helped lessen the stigma attached to mental health illnesses. You can visit VistaGen Therapeutics at www.vistagen.com/, or via their LinkedIn page at www.linkedin.com/company/vistagen-therapeutics, or on Twitter at https://twitter.com/vistagen. Shawn can be contacted via LinkedIn at https://in/shawnsingh/, and via email at ir@vistagen.com or ssingh@vistagen.com.
Direct download: Shawn_Singh_of_VistaGen_Therapeutics_Inc.__guests.mp3
Category:general -- posted at: 7:00am CDT |
Wed, 16 September 2020
In this episode, Hall welcomes back Shawn Flynn, Head of Incubation and Managing Director of Business Development at TechCode Accelerator - U.S. Shawn is also the host of The Silicon Valley Podcast. Located in Sunnyvale, California, TechCode Accelerator - U.S. is a global innovation service operator focusing on helping technology startups scale up, and integrating global innovation resources. Shawn spent over 4 years living and conducting business in Beijing, China. After successfully founding and growing a profitable education company, he has since moved back to San Francisco to invest his experience, connections, and resources back into the startup ecosystem. He regularly works with incubators, accelerators, angel groups, VCs, local governments, and institutions to promote economic growth. Shawn has helped several companies through his work with TechCode Accelerator and has set up operations in Silicon Valley. He has also set up offices, partnerships, and funding relationships overseas. Shawn is the founder of Silicon Valley Successes a television show that features entrepreneurs and the people that work with them and is the host of The Silicon Valley Podcast where he has interviewed some of the biggest names in tech. He is passionate about building a bridge that connects Silicon Valley and the rest of the world. Shawn lives in San Francisco and practices Brazilian Jujitsu, Salsa Dancing, and has a passion for learning about languages and cultures. Shawn updates Hall on what he’s been doing since they last spoke. He shares his thoughts on the impact of COVID-19 on healthcare and EdTech, what the future of manufacturing looks like, new opportunities for entrepreneurs, and the multiple facets of the growing cannabis market. You can visit TechCode Accelerator - U.S. at https://us.techcode.com/. Check out The Silicon Valley Podcast at www.theinvestorspodcast.com/silicon-valley/. Shawn can be contacted via LinkedIn at https://in/shawnpflynn/, via Twitter at https://twitter.com/shawnflynnsv, and via email at shawnpflynn@gmail.com.
Direct download: Shawn_Flynn_of_TechCode_Accelerator__The_Silicon_Valley_Podcast_Follow_Up.mp3
Category:general -- posted at: 8:41am CDT |
Wed, 16 September 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Your financial statements will generate a wealth of metrics on your business. Investors want to know these metrics - also called KPIs - which stands for Key Performance Indicators. You can use the metrics to also manage the business and identify new opportunities for growing your sales and reducing costs. Metrics also help you focus your efforts on the important things. Key metrics for the overall health of the business include sales growth, gross margin, and profitability. For cash flow, you’ll find burn rate, runway, and fundraise requirements will be useful. For recurring revenue, businesses measure cost of customer acquisition and track lifetime value of a customer, as well as churn rate.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Key_metrics_to_capture.mp3
Category:general -- posted at: 7:31am CDT |
Tue, 15 September 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In preparing your financial projections, you’ll need to account for investments into assets, also called capital expenditures. These include real estate, intellectual property, equipment, facilities, and buildings. Assets also include computers, servers, and office equipment. Assets are listed separately, as you depreciate the cost over a period of time in the profit and loss statement. The IRS has specific rules as to how you can depreciate each type of asset so you’ll need to check to see how to list the equipment in your financial projections.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Financial_Projections_-_Capital_Expenditures.mp3
Category:general -- posted at: 8:00am CDT |
Mon, 14 September 2020
In this episode, Hall welcomes back Jef Sharp, CEO of Qnect. Located in Hadley, Massachusetts, Qnect is an intelligent, cloud-based connection app that gives fabricators, detailers, and engineers fast and flexible connections with significant cost and schedule savings. In minutes, users can connect most steel buildings without capital cost and with minimal initial training. Two important benefits of Qnect include Preference Optimization and Bolt Optimization. Jef has over 35 years of experience leading and growing tech companies. He has a passion for value creation. Jef is a serial entrepreneur and has co-founded and led many innovative businesses: Qnect (SAAS), Panève (Big Data), Qteros (bio-fuels), Xfinit, (intrusion detection software), XSCapacity (online exchange for excess capacity), TechCavalry (IT service), and Gravity Graphics (Inc. 500 co) Jef served on the Qteros Board for 5 years, the Panève BoD for 4 years, and is an advisor to PeopleHedge and 5 yr. advisor to Oakridge National Lab. Jef updates Hall on the company's growth since they last spoke to include a few of their new projects. He explains Qnect’s technology and some of the exciting plans in the pipeline. You can visit Qnect at www.qnect.com. Qnect currently has financing that is closing soon and Jef welcomes persons to contact him via LinkedIn at https://in/jef-sharp-721b7/, via email at jsharp@qnect.com, and via telephone at (413) 896-1367. |
Mon, 14 September 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Working capital is the capital you need to run the daily operations of the business and includes anything that can be converted to cash. This includes cash, accounts receivables, and inventory. Accounts payable reduces your working capital as you must pay it out each month. Payment terms and timing of cash inflows and outflows impact your working capital. There’s typically a delay between the time you build and deliver a product/service and when payment of funds arrive. As we discussed before, cash is king, and running out of cash can shut down a business. It’s important to know your working capital position at all times. Working capital is calculated as the number of days your sales and payables are outstanding. To calculate your current working capital, take your annual revenue and divide by your payment terms. Place this on the balance sheet. Also include the number of days you hold inventory before using it. If your working capital is insufficient, there are numerous financing options to fill the gap.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Financial_Projections_-_Working_Capital.mp3
Category:general -- posted at: 8:00am CDT |
Fri, 11 September 2020
In today’s show, you’ll hear investor perspectives on the COVID-19 impact on the chronic pain market. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It’s the time of COVID-19. The healthcare industry is overwhelmed with patients from the pandemic. Medical conditions such as chronic pain continue to grow due to the opioid crisis. We recently held an interview with experts and investors in the area of chronic pain. Our host is Ashley Matthysse. Our featured guests are: Brett Lanuti, CEO & President of Nocimed: www.nocimed.com I hope you enjoy this episode. ————————————————————————————————————————————————————— For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: IP_Aug._Show__1__Impact_of_COVID-19_on_Chronic_Pain_Market_Featuring_Brett_Lanuti.mp3
Category: -- posted at: 8:52am CDT |
Thu, 10 September 2020
In this episode, Hall welcomes Dr. Amit Mehta, Partner at Builders VC. With headquarters in both the U.S.A. and Canada, Builders VC believes it takes more than great technology to fix an antiquated industry. To truly make lasting and impactful change, Builders VC backs entrepreneurs who combine courage, technical acumen, and operational expertise. Builders VC is looking to work with founders focused on the intersection of great technology, antiquated industries, and operational excellence. Amit strives to modernize the world around him by guiding founders of antiquated industries through growth challenges and seed to series B funding opportunities. He combines practical knowledge across the value-chain with entrepreneurial experience to lead the health-IT investment practice as Partner at Builders VC. Additionally, he has led Intrinsic Imaging to operate clinical trials in 64 countries globally for both pharma and biotech sponsors as Founder and Chief Medical Officer. Amit’s successful strategies in go-to-market launches and interest in market validation of new technologies have led to his global influence in areas of venture capitalism, clinical trials, imaging, device development, artificial intelligence, real estate, and sports marketing. His passion for leadership excellence has led to his service to various start-up boards and non-profits. Amit is the previous recipient of the George Brown Radiological Society of North America award, the Joseph E Whitley award, and was named on the “40 under 40” list by the San Antonio Business Journal. Amit shares with Hall how he sees the healthcare industry evolving in these COVID times. He discusses Builder’s investment thesis and their $200-million fund, and also identifies some of the challenges entrepreneurs and investors face. You can visit Builders VC at www.builders.vc and via Twitter at https://twitter.com/BuildersVC. Amit can be reached via LinkedIn at https://in/dramehta/ and via email at amit@builders.vc. |
Wed, 9 September 2020
In this episode, Hall welcomes Nathan Beckord, Founder & CEO of Foundersuite. Foundersuite is a collection of tools, wizards, and templates that help startup founders execute more efficiently and effectively. Their goal is to streamline corporate housekeeping, finance, hiring, planning, and investor tasks so persons can focus more on product, sales, and team activities. Their core product line includes: i) a searchable database of 120k+ investors for building your funnel; ii) a "kanban style" CRM for managing your investor pipeline; iii) pitch deck hosting with view tracking; iv) a collection of templates such as pitch decks, models, cap tables, term sheets, etc; and, v) an Investor Update tool for reporting and relations. Foundersuite also contains over 80 docs and templates and over 25 deals and discounts on other great products. Since launching in 2016, users have raised over $2 Bln in seed and venture capital. Prior to starting Foundersuite, Nathan spent ten years working with over 150 startups as interim CFO, Business Developer, and Advisor. Nathan has an MBA in Entrepreneurship, a BSC in Finance, and is a Chartered Financial Analyst (CFA). In his free time, he enjoys sailing, traveling, and riding motorcycles. Nathan shares with Hall what excites him, how he sees the industry evolving, and some of the challenges startups and investors face. You can visit Foundersuite at www.Foundersuite.com. Nathan can be reached via LinkedIn at https://in/nathanbeckord/ and via email at nathan@foundersuite.com. |
Tue, 8 September 2020
In this episode, Hall welcomes Ziad Moukheiber, President & CEO of Boston Harbor Angels. Founded around 2005, Boston Harbor Angels, like a lighthouse, helps entrepreneurs navigate and grow their startup businesses through the treacherous waters of an increasingly competitive environment in our global economy. Boston Harbor Angels is a group of proven business leaders interested in investing a portion of their assets in high-growth, early-stage companies. Since 2004, they have made investments in companies in medical devices, IT, consumer products, business products, specialty materials, Internet, aviation, etc. They believe they contribute more than money to the companies they fund and welcome the opportunity to work with entrepreneurs who are open to taking advice, yet have the smarts and determination to make their company successful. Ziad is the President and CEO of Boston Harbor Angels and is also Managing Partner at EQX Fund LLC, an angel and early-stage investment fund based in Boston, Massachusetts, focusing on Life Sciences and IT. A business leader with over two decades of experience in building scalable organizations and advising companies in sales, marketing, operations, IT, service delivery, and customer service, Ziad founded SilverSword in 1998. He and his team built SilverSword into a leading IT consulting company that provides an outstanding customer service experience for their New England area clients. Silversword was acquired in 2015 by NSK Inc. Ziad is an active angel investor and is on the board of businesses and nonprofit organizations with a special interest in technology. Ziad is also a mentor with BUILD, a nonprofit organization using entrepreneurship to help at-risk students in the Boston area. Ziad earned his BA at the American University of Beirut (1992) and his Master's degree at the Interactive Telecommunications Program at the Tisch School of the Arts at New York University (1996). Founded in 1979 as the first graduate education program in alternative media, ITP is internationally recognized as a unique and vital contributor of new ideas and talented individuals to the professional world of multimedia and interactivity. Ziad speaks with Hall about how he sees the industry evolving for angel groups and angel networks, the biggest challenge he faces, and he shares some beneficial criteria for entrepreneurs. He explains the investment thesis of Boston Harbor Angels and cites some companies which fit their thesis. You can visit Boston Harbor Angels at www.bostonharborangels.com/. Ziad can be reached via LinkedIn at https://in/ziad-henry-moukheiber-5b27b7/ and via email at ziad@bostonharborangels.com.
Direct download: Ziad_Moukheiber_of_Boston_Harbor_Angels.mp3
Category:general -- posted at: 7:00am CDT |
Mon, 7 September 2020
In today’s show you’ll hear investor perspectives on the COVID-19 impact on the Future of Work. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. COVID-19 has changed the landscape for startups giving us a new normal. We have joining us today, Mireya Manigault of Foundation LLC/WeDemption, an investor in the future-of-work space talking about the impact. 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. 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: IP_July_2020_-_Mireya_Manigault_of_Foundation_LLC__WeDemption.mp3
Category:general -- posted at: 12:00am CDT |
Thu, 3 September 2020
In this episode, Hall welcomes Robert Tushinsky, Founder and CEO of 2XL Swagger Brands. Founded in 2012, 2XL Swagger Brands is a spirit and lifestyle brand that produces herb-infused spirits for him and her with highly-differentiated branding. 2XL’s vodka-based liqueurs are infused with a blend of herbs with known benefits in the libido and mood-boosting department. Robert is an innovative, high performance, serial entrepreneur with exceptional marketing, management, and communication skills. He has 30+ years of experience in marketing and executive management. Robert shares with Hall the rather amusing story of how, as a child, he used to steal sips of his father’s alcoholic “Fruitka” concoction, not knowing at the time what is was infused with, nor why his father was taking it. Fast forward to 2012, when Robert had his “a-ha” moment! He details how 2XL was born and the huge part his late father played. He advises fellow entrepreneurs and investors interested in the space and shares some of the challenges he has faced in the sector. You can visit 2XL Swagger Brands at www.2xlswagger.com/. Robert can be reached via LinkedIn at /in/robert-tushinsky-19a952109/ and via email at robert@2xlswagger.com. |
Tue, 1 September 2020
In today’s show, you’ll hear investor perspectives on the COVID-19 impact on the cannabis market. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It’s the time of COVID-19. Cannabis is currently gaining regulatory approval across the U.S. and is gaining rapid adoption. The lockdown has declared certain sectors, including cannabis, to be an essential service. Cannabis investors and startup founders describe their outlook on the cannabis market. Our featured guests are: Tiby Erdely - 0:42 - https://in/tiby-erdely-iii-ba4ab332/ I hope you enjoy this episode. Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Show_12_--_July_IP_Shows_--_Future_outlook_on_the_Cannabis_Market.mp3
Category: -- posted at: 8:09am CDT |
Mon, 31 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. All businesses must pay taxes, including startups. Taxes include payroll and social security taxes which are based on the salary of employees and paid monthly. Even if your business is not yet profitable you still must pay these taxes. Contractors pay their own payroll taxes and receive a 1099 Form from you at the end of the year. Income taxes are taken from the results on your profit and loss statement. You can check with the IRS on the current tax rates. You can carry forward losses from one year to the next. You’ll need to set up a separate tab in your spreadsheet to track carryforwards. Check with your accountant about setting up quarterly tax payments if you are running profits. If you file as an LLC and take an S-Corp designation, then your business taxes will be transferred to your personal taxes.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Financial_Projections_-_Taxes.mp3
Category: -- posted at: 1:46pm CDT |
Mon, 31 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Any financing you have must also be accounted for in the financial statements. You’ll need to set up a tab in your spreadsheet to capture the details of a loan, or other types of financing such as accounts receivable financing. This includes the terms of the loan, the principal, and the interest to be paid. Include in your profit and loss statement the payments of the loan under operating expenses. For revenue-based funding, set the payback calculation off of the monthly revenue. For line of credit financing, calculate the amount needed from the profit and loss row and add that into your monthly payments. Equity investments will go into the cap table and will not show up on the profit and loss statement. It’s not unusual to have several forms of short-term debt financing and it’s important to review each to see which one fits your business needs.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Financial_Projections_-_Financing.mp3
Category: -- posted at: 1:03pm CDT |
Mon, 31 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. For sales forecasting, begin with your current sales funnel and revenue history. The more you know about your sales process -- lead generation, conversion, and time in funnel, the more accurate the forecast will be. Use your current sales process for the first two years and then switch to your growth initiatives in years three to five. If you are in a space with competitors with similar businesses, you can look at the ramp rates for those businesses to find the ballpark of sales growth you may achieve. If your business has a core driver such as number of design-ins, then you can use this to drive the sales forecast. If you have multiple products, you can list each product separately with its own revenue stream.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Financial_Projections_-_Revenues.mp3
Category: -- posted at: 12:55pm CDT |
Mon, 31 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In setting up for your financial projections model, personnel is straightforward to forecast. Each employee has a salary, benefits, and payroll taxes. Payroll taxes are a calculation off of the salary. Commissions need to be included but are variable expenses related to sales. Benefits include things such as healthcare, retirement plans, and the like, and are defined by your providers. As you grow headcount, it’s clear how much the budget will increase. Those related to the product production and delivery will go into the COGS section. Those related to sales, marketing, research and development, and administration, will go into the operating expenses. You may want to divide the personnel into divisions such as sales, marketing, and product development. You can keep the contractors in a separate category as well. For part-time employees, compile them into an FTE or full-time equivalent employee for the calculation. A key metric is revenue to number of employees. Check your number against your industry standard.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Financial_Projections_-_Personnel.mp3
Category: -- posted at: 12:48pm CDT |
Mon, 31 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Cost of Goods Sold, called COGS forecasting, represents the cost to build and deliver your product or service. This includes the cost to build the product or hours to deliver the service. In most cases, COGS is a function of sales. The more sales, the more COGS. If you have a unit that drives your sales forecasts such as a physical product or service program, then you can calculate what it costs to deliver on each one. An interesting KPI will be Gross Margin which is the amount of revenue left over after subtracting out the COGS. This is often expressed as a percentage. For recurring revenue businesses, there are hard costs such as hosting, customer support, online payment, and other related costs. These costs must be incurred to deliver the product or service. For consumer product goods, a healthy gross margin is 40% or greater. For recurring revenue, a healthy gross margin is 70% or greater. For businesses with multiple products, you may want to split out the COGS by product line. For businesses with one product, you may want to forecast COGS on the total revenue level.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Financial_Projections_--_COGS.mp3
Category: -- posted at: 10:58am CDT |
Fri, 28 August 2020
In today’s show, you’ll hear investor perspectives on the COVID-19 impact on the cannabis market. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It’s the time of COVID-19. Cannabis is currently gaining regulatory approval across the U.S. and is gaining rapid adoption. The lockdown has declared certain sectors, including cannabis, to be an essential service. Cannabis investors and startup founders describe COVID-19-proofing the cannabis market. Tiby Erdely - 00:43 - https://in/tiby-erdely-iii-ba4ab332/ I hope you enjoy this episode. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Show_11_--_July_IP_Shows_--_Covid-proofing_the_Cannabis_Market.mp3
Category: -- posted at: 4:10pm CDT |
Fri, 28 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Financial projections also called the pro forma, is a key document you’ll need for your fundraise. Investors will want to see detailed, five-year financial projections as it shows you’ve thought through the financial side of the business. Financial projections are not about predicting the future with great accuracy, instead it shows the causality and interdependencies of your business. It answers questions such as: If sales increase by 2X, what is the impact on costs? If sales drop by 50%, what happens to cash flow? A quality financial projection shows investors you know your business and have a good idea about what things cost and what customers will pay. Investors also glean from the financials how you are going to use the funds. Financial projections typically go out 3 to 5 years and contain substantial detail on the spreadsheet portion. It’s not a good idea to copy and paste the spreadsheet into your pitchdeck as it comes out unreadable. Instead, show a graph of revenue, costs, and profits and call out 3 key metrics such as time to cash flow positive, gross margins, and growth rates.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Purpose_of_Financial_Projections_2.mp3
Category: -- posted at: 3:12pm CDT |
Fri, 28 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are two approaches to financial forecasting for startups. The first is top-down forecasting. The second is bottom-up forecasting. Bottom-up forecasting uses the company’s historical data for cost and sales. It takes a micro view and focuses on the core drivers in the business. Through experimentation, the startup learns the cost of sales and marketing through various channels. Having sold some units of the product will guide the revenue forecast based on the sales funnel and the sales resources available. The bottom-up approach may generate a forecast that looks weak to an investor. You may add your growth initiatives in to show what will drive the growth upwards past the organic growth rate. The initial growth (say 1-2 years out), comes from the current state of the business, while the future growth (say 3-5 years out), comes from your growth initiatives. Make clear your assumptions in the spreadsheet. Your thought process and approach will weigh more heavily than the numbers themselves. Include attributions for market research such as websites, news articles, and market reports.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Bottom_up_Forecasting_2.mp3
Category: -- posted at: 3:02pm CDT |
Fri, 28 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are two approaches to financial forecasting for startups. The first is top-down forecasting. Top down takes a macro perspective by using the overall market sizes and industry estimates for your type of business. The top-down approach uses market share. Market share is divided into three segments: Total Available Market -- anyone you can sell to. Serviceable market -- your target market. Beachhead market -- your initial segment to pursue. Base your financials as a percent of market share. Look at similar companies in the space to identify the COGS, gross margin, and operating expenses. Give yourself three years to ramp to profitability.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Top_Down_forecasting_2.mp3
Category:general -- posted at: 2:56pm CDT |
Fri, 28 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. A financial model provides three outputs. Key financial statements, an operational cash-flow forecast, and key metrics for the business. Key financial statements include the profit and loss statement (called P&L), the balance sheet (BS), and the cash-flow statement (CF). The P&L shows revenue matched with costs and indicates whether or not you are profitable over a period of time. It can be used to compare different time periods such as this year versus last year or this quarter versus last quarter. It’s often used to compare the actual results with the budget. The balance sheet shows the company’s assets -- what it owns and liabilities -- what it owes. This is a snapshot in time. The balance sheet must always be in balance so the difference between assets and liabilities is shareholder equity (assets = liabilities + equity). The cash-flow statement shows cash inflows and outflows over a period of time. Key metrics include gross margin, profit margin, cash runway, and more. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Outputs_of_the_Financial_Model_2.mp3
Category: -- posted at: 2:52pm CDT |
Fri, 28 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The most important financial statement is the cash flow statement because cash is the most important financial metric for the business. If you run out of cash then you most likely will have to put the business on hold or shut it down entirely. There are two ways to account for cash: cash-based accounting and accrual-based accounting. As a startup, you’ll want to focus on cash-based accounting as it matches expenses with cash more tightly. The cash flow statement will give a runway number of months of operation. Run what-if scenarios based on different outcomes of the sales funnel. If your runway falls to six months or less, you must take steps such as launching a round of fundraising. It’s also helpful to understand your costs -- you have variable and fixed expenses. Variable expenses rise and fall with sales activity, while fixed expenses stay the same regardless of activity. In the early days of the startup you want to push as many expenses into the variable side as you can. As you grow larger, you’ll want to move from variable to fixed expenses as the overall cost will be lower.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Cash_Flow_is_King_of_the_financial_statements_2.mp3
Category: -- posted at: 2:39pm CDT |
Fri, 28 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. After completing the financial projections, you may want to create various scenarios of your financial model. Startups are often optimistic, while investors are pessimistic. You may want to create a best-case scenario and a worst-case scenario. For the worst-case scenario, keep your revenue at the current level or only with small increases. Check your cash position and runway and adjust the expenses and fundraise plan accordingly. For the best-case scenario, use the revenue targets you have in mind. Check your cash position and runway and adjust the expenses and fundraise plan accordingly. Here are several common errors:
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Direct download: EG_July_2020_Startup_Funding_Espresso_-_Financial_Projections_-_Best_case_Worst_case.mp3
Category:general -- posted at: 2:36pm CDT |
Thu, 27 August 2020
In today’s show, you’ll hear investor perspectives on the COVID-19 impact on the cannabis market. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It’s the time of COVID-19. Cannabis is currently gaining regulatory approval across the U.S. and is gaining rapid adoption. The lockdown has declared certain sectors, including cannabis, to be an essential service. Cannabis investors and startup founders describe the status of regulatory approval for cannabis. Our featured guests are: Tiby Erdely - 00:42 - https://in/tiby-erdely-iii-ba4ab332/ I hope you enjoy this episode. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Show_10_--_July_IP_Shows_--_Regulatory_Trends_in_the_Cannabis_Market.mp3
Category: -- posted at: 1:39pm CDT |
Wed, 26 August 2020
In this episode, Hall welcomes Chris Willis, Managing Director, Government Advisory & Programme Delivery, and Will Garner, U.S. Immigration Lawyer and Strategic Partner at Latitude Consultancy Limited. Latitude's team of specialists offers leading insight and expertise to investors who are prepared to make an important economic contribution to gain residency or citizenship privileges in a selected country. They also provide government advisory services, helping nations to create residency and citizenship-by-investment programs that attract this privileged segment of the world population to their shores. Their internationally recognized team have over 100 years of combined experience in the Investment Migration industry. An unrivaled international network of clients and institutional relationships, combined with complementary ancillary services from their global financial services partner, provides a uniquely compelling proposition for their clients. Chris has been involved in the immigration industry since 1995 and is a member of the Immigration Consultants of Canada Regulatory Council (ICCRC), the Canadian Association of Professional Immigration Consultants (CAPIC) and the Investment Migration Council (IMC). His office is the Regional Representative Office (RRO) for the Investment Migration Council in the Caribbean. He is a regular contributor to immigration specific newspapers and magazines as well as a speaker at immigration and industry conferences. Chris has been educated in the United Kingdom and Canada and has owned and managed immigration firms in London, Montreal and the Caribbean. He is fluent in English and French and is involved in fundraising for philanthropic causes. Will Garner is a U.S. immigration attorney and strategic partner with Latitude. Will also serves as a senior advisor to Vulpes Investment Management based in Singapore and is a strategic advisor to GreenWing Ventures based in Vancouver, BC. Will has over ten years of ‘boots on the ground’ experience across Hong Kong, Singapore, China, Vietnam, Cambodia, and New Zealand as a lawyer, entrepreneur and business development professional. Chris and Will discuss the benefits with Hall of having secondary citizenship, taking into consideration taxes, COVID-19 and the current travel ban to certain countries, the cost involved, the waiting periods, and the criteria that need to be met. You can visit Latitude Consultancy Ltd. at www.latitudeworld.com, on their LinkedIn page at https://in/latitude-world/, and on Twitter at http://twitter.com/latitudeworld. Chris can be contacted via LinkedIn at https://in/chrisnwillis/, and via email at christopher.willis@latitudeworld.com. Will can be contacted via email at will.garner@latitudeworld.com.
Direct download: Chris_Willis__Will_Garner_of_Latitude.mp3
Category:general -- posted at: 12:18pm CDT |
Wed, 26 August 2020
In today’s show, you’ll hear investor perspectives on the COVID-19 impact on the cannabis market. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It’s the time of COVID-19. Cannabis is currently gaining regulatory approval across the U.S. and is gaining rapid adoption. The lockdown has declared certain sectors, including cannabis, to be an essential service. Investors and startup founders discuss product and technology trends in the cannabis market. Our featured guests are: Kim Rael - 0:51 - https://company/azuca/ I hope you enjoy this episode. ————————————————————————————————————————————————————— For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Show_9_--_July_IP_Shows_--_Products_and_Technology_Trends_in_the_Cannabis_Market.mp3
Category: -- posted at: 10:18am CDT |
Mon, 24 August 2020
In today’s show, you’ll hear investor perspectives on the COVID-19 impact on the cannabis market. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It’s the time of COVID-19. Cannabis is currently gaining regulatory approval across the U.S. and is gaining rapid adoption. The lockdown has declared certain sectors, including cannabis, to be an essential service. Cannabis investors and startup founders give an update on the sectors in the cannabis market. Our featured guests are: Tiby Erdely - 0:42 - https://in/tiby-erdely-iii-ba4ab332/ I hope you enjoy this episode. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Show_8_--_July_IP_--__Sectors_in_the_Cannabis_Market_2.mp3
Category: -- posted at: 3:08pm CDT |
Mon, 24 August 2020
In today’s show, you’ll hear investor perspectives on the COVID-19 impact on the cannabis market. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It’s the time of COVID-19. Cannabis is currently gaining regulatory approval across the U.S. The lockdown has declared certain sectors, including cannabis, to be an essential service. We have investors and startup founders describe the impact of COVID-19 on the cannabis market. Our featured guests are: Tiby Erdely - 0:42 - https://in/tiby-erdely-iii-ba4ab332/
For Feedback please contact info@tencapital.group
Direct download: Show_7_--_July_IP_--_Covid_Impact_on_Cannabis_Market_2.mp3
Category: -- posted at: 2:59pm CDT |
Mon, 24 August 2020
In today’s show, you’ll hear investor perspectives on the COVID-19 impact on the cannabis market. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It’s the time of COVID-19. Cannabis is currently gaining regulatory approval across the U.S. and is gaining rapid adoption. The lockdown has declared certain sectors, including cannabis, to be an essential service. Cannabis investors and startup founders describe their outlook on the cannabis market. Our featured guests are: Matthew Nordgren - 00:44 - https://in/mattnordgren/ I hope you enjoy this episode. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Show_6_--_July_IP_Shows_--_Future_outlook_on_the_Cannabis_Market_2.mp3
Category: -- posted at: 2:47pm CDT |
Mon, 24 August 2020
In today’s show, you’ll hear investor perspectives on the COVID-19 impact on the cannabis market. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It’s the time of COVID-19. Cannabis is currently gaining regulatory approval across the U.S. and is gaining rapid adoption. The lockdown has declared certain sectors, including cannabis, to be an essential service. Cannabis investors and startup founders describe COVID-19-proofing the cannabis market. Our featured guests are: Davis Hess - 00:42 - https://in/david-hess-tress/ I hope you enjoy this episode. Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Show_5_--_July_IP_Shows_--_Covid-proofing_the_Cannabis_Market_24_aug.mp3
Category: -- posted at: 2:42pm CDT |
Mon, 24 August 2020
In this episode, Hall welcomes Brendan Manley, Co-Founder of iCAMP. iCAMP is a STEAM (approach to learning that uses Science, Technology, Engineering, the Arts and Mathematics as access points for guiding student inquiry, dialogue, and critical thinking) program that focuses on transforming students from consumers to creators. Since launching in 2018, they have had thousands of students between the ages of 5-13 attend their programs both in-person and online. They leverage project-based learning to ensure students have fun and remain thoroughly engaged, while completing tasks and activities designed to build proficiency in the technologies that are posed to transform society. Brendan’s background is in software development. He holds a BA in Philosophy, Marketing and Creative Writing from the University of Miami and he also attended the Flatiron School, which is a coding bootcamp with software engineering, data science, and cybersecurity courses, offered both online and on-campus. Brendan is an advisor to Rise Media Inc., and a board member of Cobbler Concierge. Brendan speaks with Hall about the “birth” of iCAMP, the services they offer, some of the challenges in the ed-tech space, and how COVID-19 is changing the landscape of the industry. You can visit iCAMP at https://icamp.com/. Brendan can be contacted via LinkedIn at www.in/bcmanley/, and via email at brendan@icamp.com and info@icamp.com. |
Mon, 24 August 2020
In this episode, Hall welcomes Dick Blanc, Chairman of Beyond Angel Network and Fund and Executive Director of the Beyond Entrepreneurial Accelerator at Cedarville University. Located in Cedarville, Ohio, Cedarville University is forming a Cedarville University Angel Network, comprised of alumni and friends of the University. The Cedarville Angel Network is an investor network providing early-stage capital to strong entrepreneurial teams with developed products or services and early customer traction. The Angel Network will operate as an annual renewable membership platform with confidential access to curated investable startup companies and related due diligence information on each company. The Beyond Entrepreneurial Accelerator is an invitation-only program for students and alumni looking to scale their business. This experience mentors student-generated businesses through a self-guided series of digital materials and expert mentorship with our Entrepreneurs in Residence (EiRs). Students enrolled in the entrepreneurship minor will automatically take part in the first installment of the accelerator experience, with validated student startups continuing on through the remainder of the program. Student-founders can earn course credit toward the entrepreneurship minor. Dick is an advisor to multiple Fortune 500 and early-stage startup companies. Previously, he was managing partner with Accenture, LLP. Dick shares his thoughts about the evolution of angel investing, the most significant changes he sees coming up, the faith-driven investment thesis of the network, and examples of companies that fit the thesis. You can visit the Cedarville University Beyond Angel Network and Beyond Entrepreneurial Accelerator at www.cedarville.edu/beyond. Dick can be contacted via LinkedIn at www.in/dick-blanc-bb23802/, and via email at dblanc@cedarville.edu.
Direct download: Dick_Blanc_of_Beyond_Angel_Network_and_Fund_at_Cedarville_University_2.mp3
Category: -- posted at: 1:59pm CDT |
Mon, 24 August 2020
In today’s show, you’ll hear investor perspectives on the COVID-19 impact on the cannabis market. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It’s the time of COVID-19. Cannabis is currently gaining regulatory approval across the U.S. and is gaining rapid adoption. The lockdown has declared certain sectors, including cannabis, to be an essential service. Cannabis investors and startup founders describe the status of regulatory approval for cannabis. Our featured guests are: Matthew Nordgren of Arcadian Capital - 0:44 - https://in/mattnordgren/ I hope you enjoy this episode. ---------------------------------------------------------------------------------------------------------------------------------------------------------------- For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Show_4_--_July_IP_Shows_--_Regulatory_Trends_in_the_Cannabis_Market_2.mp3
Category: -- posted at: 1:54pm CDT |
Mon, 24 August 2020
In this episode, Hall welcomes David Weaver, Partner & Chief Investment Officer at City Side Ventures. With its headquarters in Birmingham, Michigan, City Side Ventures is a venture group that manages various venture funds and represents investor syndications across the U.S. Their group is committed to being a catalyst in growing the startup ecosystem in Michigan, and in connecting Israeli early-stage companies to U.S. investors. David is a highly-accomplished business executive, results-driven leader, and innovative problem solver with an entrepreneurial spirit and sense of urgency. He has over 35 years of diversified management experience, including global profit/loss responsibility (Johnson & Johnson), turning around troubled business operations (Warner-Lambert), and directing major market shift for clients to achieve new growth. He is an expert at building management teams and setting and exceeding milestones. David has also helped raise private (angel), venture (VC) and public (IPO) capital of over $35 million. He is a former Captain in the USAF and a founding member of the Michigan Venture Capital Association and the Angel Capital Association. David shares his advice with Hall about running and investing in startups. He speaks about the state of angel investing, how he sees it evolving, and the investment thesis of the company. You can visit City Side Ventures at www.citysideventures.com/. David can be contacted via LinkedIn at www.linkedin.com/in/davidpweaver/, and via email at dweaver@citysideventures.com. |
Mon, 24 August 2020
In today’s show, you’ll hear investor perspectives on the COVID-19 impact on the cannabis market. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It’s the time of COVID-19. Cannabis is currently gaining regulatory approval across the U.S. and is gaining rapid adoption. The lockdown has declared certain sectors, including cannabis, to be an essential service. Investors and startup founders discuss product and technology trends in the cannabis market. Our featured guests are: Ben Larson http://in.blarson.com/ - 0:49 I hope you enjoy this episode. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Show_3_--_July_IP_Shows_--_Products_and_Technology_Trends_in_the_Cannabis_Market_2.mp3
Category: -- posted at: 1:26pm CDT |
Thu, 20 August 2020
In today’s show, you’ll hear investor perspectives on the COVID-19 impact on the cannabis market. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It’s the time of COVID-19. Cannabis is currently gaining regulatory approval across the U.S. and is gaining rapid adoption. The lockdown has declared certain sectors, including cannabis, to be an essential service. Cannabis investors and startup founders give an update on the sectors in the cannabis market. Our featured guests are: Tiby Erdely - 0:42 - https://in/tiby-erdely-iii-ba4ab332/ I hope you enjoy this episode. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Show_8_--_July_IP_--__Sectors_in_the_Cannabis_Market.mp3
Category: -- posted at: 2:35pm CDT |
Wed, 19 August 2020
In today’s show, you’ll hear investor perspectives on the COVID-19 impact on the cannabis market. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It’s the time of COVID-19. Cannabis is currently gaining regulatory approval across the U.S. The lockdown has declared certain sectors, including cannabis, to be an essential service. We have investors and startup founders describe the impact of COVID-19 on the cannabis market. Our featured guests are: Tiby Erdely - 0:42 - https://in/tiby-erdely-iii-ba4ab332/
For Feedback please contact info@tencapital.group
Direct download: Show_7_--_July_IP_--_Covid_Impact_on_Cannabis_Market.mp3
Category: -- posted at: 9:32am CDT |
Thu, 6 August 2020
In this episode, Hall welcomes Spencer Graff, Co-founder and CEO of NFuzed. With its headquarters in Boulder, Colorado, NFuzed is a cannabis manufacturer with licenses in Colorado and California specializing in value and innovative products. In the first ten months of production, NFuzed has grown to over $1.7M in total revenue, $300K in March 2020 alone, with products available in over 260 dispensaries in two states while achieving EBITDA breakeven. NFuzed has shifted their focus from water-soluble powder to a tincture. By changing the platform from powder to a small amount of liquid, they are able to bring the same technology to market with significantly less capital. With NFuzed’s advanced operations producing high-quality, consistent products while minimizing inefficiencies, NFuzed will continue to lead the pack as an innovator and dependable company. The low-cost, value structure is re-establishing the edible retail price floor for the end-consumer, providing products at 40-50% less than current market rates. NFuzed is the first company to offer a cannabis inhaler along with gummies and soluble powder, whereas others only offer one type of product. Spencer is a finance executive with over 20 years of financial and operational management experience in public mid-cap companies. Spencer streamlined processes that reduced COGS by 20% in a 12-month period and developed and oversaw multi-million dollar M&A deals. He also managed a full-scale accounting department as well as their regulatory and internal audits. Spencer holds an MBA from the University of Colorado. Spencer shares his thoughts with Hall on the sector's growth rate and how COVID-19 affected it, the challenges the cannabis industry faces, what is 280E, how a company can COVID-19-proof their business and shares some of the new applications for cannabis that he sees coming up in the next 6-12 months. You can visit NFuzed at www.nfuzed.com. Spencer can be contacted via LinkedIn at www.linkedin.com/in/spencer-graff/, via Twitter at www.twitter.com/n_fuzed?lang=en, and via email at spencer@nfuzed.com. |
Wed, 5 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. After funding, you need to keep your family and friends investors informed on the status of the startup. Consider the following: Be transparent about the results and share both bad news as well as good news. Stick to facts about the current state of the business and not just forecasts and plans. Provide an update in writing on the following: Lead off with short status updates about major initiatives, milestones missed or hit, and major customers or partnership opportunities. Share the status of product development including test results, beta tests, and setbacks or breakthroughs. Cover the key financial metrics, including actual versus forecasted revenues, cash on hand, current burn rate, and monthly and year-to-date revenues. If additional fundraising rounds are underway, provide the status of fundraising goals. Share details about new employees, finding a great co-founder, or securing an experienced advisor. Detail key customers landed, important opportunities, and major marketing initiatives.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Direct download: Startup_Funding_Espresso_--_How_to_keep_your_family_friends_informed.mp3
Category: -- posted at: 1:35pm CDT |
Wed, 5 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funds from family and friends, you could take it in the form of a gift. Most family and friends want to help you out rather than make a return. A gift is an ideal way of taking the funds without going through valuations, loans, and other funding mechanics. The tax laws allow anyone to gift up to $15,000 per year, without triggering the gift tax which can be as much as 40%. While the IRS has established the $15,000 basic limit per person, wealthy gift givers can choose to exceed the annual limits and gift even more money to anyone up to a total of $5.3 million. It’s not a good idea to gift the funds directly to the startup. The IRS expects that in exchange for the money, the gift donor would normally receive stock in the corporation. You may want to return the favor someday to those who provide the funds as a gift.
Direct download: Startup_Funding_Espresso_--_Gifts_from_Family_and_Friends_1.mp3
Category: -- posted at: 1:27pm CDT |
Tue, 4 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The elevator pitch is the short-form version of your presentation for investor opportunities that give you a limited amount of time. The key to an elevator pitch is not to talk faster, but rather to choose your words more carefully. In sixty seconds you can cover the same number of topics as you do in a full ten-minute presentation with a pitch deck. The key is to reduce your pitch to key words and phrases. For the problem, say it in five words or less. For example, “diabetes will afflict one out of three people.” For the solution say, “we help cure diabetes.” For financials, draw a key number from your financials slide such as, “we’ll be cash-flow positive in 18 months.” For the target market say, “our total available market is $1.2B”. To create your elevator pitch, write out what you are going to say and then replace filler words with more descriptive ones. By crafting short phrases and using keywords you can cover the same topics but with less detail. After some practice you should be able to deliver your elevator pitch and adjust it to the time you are given.
Direct download: EG_June_2020_Startup_Funding_Espresso_--_Elevator_Pitch.mp3
Category: -- posted at: 8:44am CDT |
Mon, 3 August 2020
In this episode, Hall welcomes Smoke Wallin, CEO of Vertical Wellness. Vertical Wellness is a leading, vertically integrated, consumer-focused health and wellness brand company with innovative hemp cannabinoid solutions. Their mission is to help people by bringing the most innovative and effective portfolio of cannabinoid (CBD and others) brands to the market. Initial VWEL brands include Kathy Ireland Health & Wellness, Taos, Lap Dog, Par5, Halogenix, Wingra Farms, Neutrate, USMCC, and Hemp-Moji. VWEL Services leverages their extensive investment and team knowledge by helping the entire industry with strategic, financial, branding, sales and hemp processing solutions. Vertical Wellness has operations in California and Kentucky and has cultivated over 1,800 acres of hemp on partner farms in 2019. The Company is one of the largest processors of Hemp globally with over 20 million lbs processed or contracted in 2020. Smoke is a chairman and multifaceted CEO and industry leader in beverage, distribution, hemp and technology. He built >$1 billion alcohol beverage distribution company before merging into now $11+billion company. Smoke was the Chairman & President of Wine & Spirits Wholesalers of America, industries. 25+ acquisitions, multiple successful turn-around situations, and startups with successful exits. Successfully raised $500+ million in debt & equity for direct ventures. Served(s) on multiple public and private boards. YPO, EY Entrepreneur of Year, Distinguished Alum Award Vanderbilt, MBA Vanderbilt University, BS Agricultural Economics Cornell University. Smoke shares with Hall how he sees the cannabis industry evolving, the sector’s current growth rate - despite COVID-19 - the challenges in the space, what accelerated and decelerated during COVID-19, and much more. You can visit Vertical Wellness at www.vertical-wellness.com. Smoke can be contacted via LinkedIn at www.linkedin.com/in/smokewallin/, via Twitter at www.twitter.com/smokewallin?lang=en, and via email at swallin@vertical-wellness.com. |
Mon, 3 August 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 tenth slide is the Value Proposition slide. The Value Proposition slide shows what value your product/service brings to the customer. It should answer the question, ‘what benefits does it offer’ and ‘why customers will choose you over competitors’. If you haven’t already identified your value proposition, then make a list of key benefits your product offers. Prioritize them from the most important to the least. Take the top one or two benefits and write out a simple statement that describes how your product is better and why someone would use it. The value proposition can focus on the product, the service, the brand, or the team. Over time, you can tighten it into a 5 to 7 word tagline. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Direct download: EG_June_2020_Startup_Funding_Espresso_-_10_Pitch_Deck_-_The_Value_Proposition_Slide.mp3
Category: -- posted at: 10:13am CDT |
Mon, 3 August 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 fifth slide is the monetization slide. Show the business model you are using such as recurring revenue, transaction fees, or other. Highlight recurring or repeat revenue where used in your business. Show the average revenue per customer as well as the CAC/LTV ratio if relevant. Show the last four months of revenue and highlight Quarter over Quarter growth rates. The goal is to show you have predictable revenue from your operations.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Direct download: EG_June_2020_Startup_Funding_Espresso_--_5_Pitchdeck_-Monetization_slide.mp3
Category: -- posted at: 9:51am CDT |
Fri, 31 July 2020
In this episode, Hall welcomes Stephen Rice, President and CEO of Upskill Enterprise. Located in Belfast, United Kingdom, Upskill Enterprise helps companies overcome the inertia of traditional HR processes with TalentSensus, an online, intuitive and multidimensional talent management tool for visualizing current and future skills beyond the conventional organizational chart. Stephen is a pioneer and innovator of unique and modern workforce solutions. He is the inventor of TalentSensus and has been working in workforce and skills development for over 10 years in challenging commercial business environments internationally. Stephen has extensive experience in design, development, sales and delivery of various restructuring solutions. With a global outlook on life, he is constantly learning about new ways to use skills and slowly support the education and skills revolution from the grass roots up. Stephen shares with Hall what led him to start working in this space, how important it is for equality and fairness to exist in the workplace, some effects COVID-19 has had on the sector, how he sees the industry evolving, and how Upskill Enterprise fits into the landscape of the sector. You can visit Upskill Enterprise at www.upskillenterprise.com and TalentSensus at www.talentsensus.com. Stephen can be contacted via LinkedIn at www.linkedin.com/in/stephenupskill/, and via email at stephen@upskillenterprise.com. |
Wed, 29 July 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In launching your startup you must consider your intellectual property strategy. Intellectual property or IP includes patents, trademarks, copyrights, and trade secrets. You should trademark your company name. For your technology, you can either file patents or keep it as a trade secret. If you file patents, you first file a provisional patent which gives you one year to decide if you want to file a full patent. Half the value of a patent is in raising funding, as investors give you credit for having technology that is substantial enough to protect. It’s common to file multiple provisional patents and then for the following twelve months consider which patents are going to provide protection against competitors. Before the patents expire, you then file for a full patent on the ones you want to keep and you let the others go. The alternative to patents is keeping trade secrets, in which case there’s no filing required. If you have trade secrets make clear to prospective investors what value those trade secrets bring to your business. Those who want to know the trade secrets must sign an NDA or non-disclosure agreement to learn more. In discussing with prospective investors who have not signed an NDA, talk about the benefits of your trade secrets rather than how they work. For example, our trade secrets reduce the cost of product build by 3X. That way you receive credit without having to reveal them.
Direct download: CEG_May_2020_Startup_Funding_Espresso_--_Legal_--_Intellectual_Property.mp3
Category: -- posted at: 12:15pm CDT |
Wed, 29 July 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising equity funding, you can only raise from investors who are accredited. The Securities and Exchange Commission (SEC) establishes the criteria for those who are accredited. You can see the specific requirements on the SEC website. Just search online for ‘sec accredited investor’ and it will come up. The rules were set in 1968 and have changed only once since then. In short, it’s anyone who has a net worth of $1M dollars, not counting the house they live in. There’s also an exemption that allows up to 35 non-accredited investors to invest in your startup. This allows for family and friends funding. There’s no formal process for achieving accreditation, as most angel groups and startups raising funding require you to ‘self-declare’ accreditation. There are two ways non-accredited investors can invest in startups: Title III crowdfunding platforms and Reg A+ offerings. These require specific requirements such as licensing for the crowdfunding platform, and registration for Reg A+ fundraise. They provide compliance work to allow for anyone to invest in a startup.
Direct download: C_EG_May_2020_Startup_Funding_Espresso_--_Legal_--_Investor_Accreditation.mp3
Category: -- posted at: 12:06pm CDT |
Wed, 29 July 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In launching your startup you must consider employment law. You should check to see what contracts your prospective employee may have signed with a former employer around non-competes, non-solicitation agreements, and assignment of inventions. A non-compete means the employee cannot work for another company that competes with their former employer. If they signed one with a previous employer who is a competitor, then this may be an issue. A non-solicitation agreement prevents an employer from approaching your employees to hire them away. Assignment of inventions means the prospective employee must sign over their right to inventions during their work at your company. All employees should sign a non-disclosure agreement regarding their work at the company. All employees should have a contract that defines they are working ‘at will’, which means either the employer or the employee can terminate the relationship at any time. Also, if offering stock options, this should be documented as well. Classification of employees is a key issue as the taxing authorities will see if you have misclassified an employee as a contractor to avoid paying payroll taxes, and meeting minimum wage requirements. There are also wage payment laws that require payment for hourly workers at a certain frequency such as biweekly. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org
Direct download: C_EG_May_2020_Startup_Funding_Espresso_--_Legal_--_Employment_Law.mp3
Category: -- posted at: 12:00pm CDT |
Wed, 29 July 2020
In this episode, Hall welcomes back Jake Moilanen, Austin General Partner at Seraph Group. Located in Austin, Texas, Seraph Group brings together successful individuals who share a passion for investing in technology startups. Opportunists join Seraph for a managed and curated portfolio of 20+ companies, for the ability to co-invest on a deal-by-deal basis, and for the opportunity to work with entrepreneurs. Seraph Group is an established investment firm providing qualified investors with an effective and economically efficient model to access a strategically-curated portfolio of early-stage companies in high-growth sectors in the U.S. They are currently fundraising and are focused on the Austin environment. Jake is a serial technology entrepreneur turned investor. A technologist at heart, he has decades of experience from low-level hardware, to machine learning, to scaling super computers. He has used this experience to run all of product at multiple organizations. Additionally, he is a quantitative trader of the public markets, writing fully automated trading algorithms. Jake completed a BS from the University of Michigan in Computer Science as well as a Masters in Business Administration (MBA) from the University of Texas where he specialized in New Venture Creation. Since his last interview with Hall, Jake explains that the company has been spending a lot of time on quant. He also goes into some detail about the exciting discovery the company has recently made. Jake shares what he is passionate about and on the flip side, the sectors he avoids. You can visit Seraph Group at www.seraphgroup.net. Jake can be contacted via LinkedIn at www.linkedin.com/in/jakemoilanen/, via Twitter at www.twitter.com/moilanen?lang=en, and via email at jake@seraphgroup.net. |
Wed, 29 July 2020
In today’s show you’ll hear investor perspectives on the COVID-19 impact on the cannabis market. This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. It’s the time of COVID-19, cannabis is currently gaining regulatory approval across the U.S. The lockdown has declared certain sectors, including cannabis, to be an essential service. We have investors and startup founders describe the impact of COVID-19 on the cannabis market. Our featured guests are: Matthew Nordgren - 0:44 I hope you enjoy this episode. ----------------------------------------------------------------------------------------- For more episodes from Investor Connect, please visit the site at: http://investorconnect.org
Direct download: Show_2_--_July_IP_Shows_--_Sectors_in_the_Cannabis_Market.mp3
Category: -- posted at: 9:05am CDT |
Wed, 29 July 2020
In this episode, Hall welcomes back Mark Peter Davis, Founder and Managing Partner of Interplay. Interplay co-founds, incubates and invests in companies. The firm is sector, geo and stage agnostic focusing on disrupting industries through the use of technology and design. Interplay is located in New York City with offices across the U.S., the Philippines and South America. Mark is a venture capitalist, serial entrepreneur, author and community organizer. Through Interplay Mark has built a platform of service companies that support thousands of venture-backed companies. These companies include Chelsea Capital, Firon Marketing, Founder Shield, Greenparc, Spark Digital, Spoke, Truman James and Venwise. He is also the author of The Fundraising Rules, a handbook designed to help entrepreneurs raise capital, and the founder of both the Columbia Venture Community and the New York Venture Community. Mark also serves as a mentor to numerous accelerators in NYC. Mark updates Hall on what he has been doing since the last time they spoke. He shares what he is currently excited about and which companies he has had good experiences with. Mark explains some of the challenges startups face and how he evaluates a team in the very early stages. You can visit Interplay at www.interplay.vc. Mark can be contacted via LinkedIn at www.linkedin.com/in/markpeterdavis, via Twitter at http://twitter.com/mpd, and via email at m@interplay.vc. Check out his blog at www.mpd.me, and his book, “The Fundraising Rules” at http://fundraisingrules.com. |
Mon, 27 July 2020
In this episode, Hall welcomes back Graham Forman, Managing Director and Founder of Edovate Capital. Edovate Capital is a seed and early-stage venture capital company investing in early-stage companies that are innovating in K12 education. They look for outstanding people to partner with for the long term who have products or services that will transform education. Graham spent his career in education, entrepreneurship, and investing. The first phase of his career was in education policy where he worked for U.S. Senator Paul Simon and former California State Assemblyman, Senator, and Community College Chancellor Jack Scott. He worked with school leaders addressing some of their biggest challenges in leading large school systems. The second phase of his career was as a startup operator serving as head of sales, marketing, business development, and customer success in impact-focused SaaS companies serving education. His last role included leading sales and business development for Netchemia. During his tenure the company grew to serve more than 2,400 school districts and 20,000 schools in the U.S. with a best-in-class talent management suite. Netchemia was acquired by People Admin (backed by Vista Equity Partners) in 2015, which kicked off Graham’s third career phase where he founded Edovate. In this role, he backs impact-focused seed stage K12 companies with investment and advisory support. Graham updates Hall on new happenings at Edovate Capital since his last interview. He shares his thoughts on what new investment theses - if any - may arise due to COVID-19, regulatory changes, and the teacher shortage and how technology can help with this widespread problem. You can visit Edovate Capital at www.edovatecapital.com/. Graham can be contacted via LinkedIn at www.linkedin.com/in/grahamforman/, via Twitter at https://twitter.com/grahamforman?lang=en, and via email at graham@edovatecapital.com. |
Sun, 26 July 2020
In this episode, Hall welcomes back Eric Bielke, Investment Director at GE Ventures. GE Ventures is committed to identifying, scaling and accelerating ideas that will make the world work better. Focused on the areas of software and analytics, advanced manufacturing, energy and healthcare, GE Ventures helps entrepreneurs and start-ups succeed by providing access to GE's technical expertise, capital and opportunities for commercialization through GE's global network of business, customers and partners. Eric is an investment partner with GE Ventures and leads investments at the intersection of digital and physical systems. His technology interests include marketplaces, robotics, computer vision, geospatial intelligence, and the internet of things (IoT). Prior to GE Ventures, Eric was an investor at Next47 focused on cybersecurity and enterprise infrastructure where he was responsible for the firm’s investments in CounterTack, TOA Technologies, Electric Cloud, and PowerIT Solutions. Eric is also a co-founder of SoCore Energy, a software-enabled solar energy developer later acquired by Edison International. Early in his career, Eric worked with McKinsey & Co. as a management consultant. He holds a BA from Dartmouth College and an MBA from the Booth School of Business where he was a George Schultz Fellow. Eric updates Hall on what’s happened since his last interview, the sector he is passionate about and why, his best experience with a startup, and he suggests some possible long-term effects COVID will have on startups. You can visit GE Ventures at www.ge.com/licensing. Eric can be contacted via LinkedIn at www.linkedin.com/in/ericbielke/, via Twitter at www.twitter.com/ericbielke?lang=en, and via email at eric.bielke@ge.com. |
Thu, 23 July 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In launching your startup you must have a legal entity to raise funding. Start with an LLC or Limited Liability Company. This can be filed with your Secretary of State at your state government. The cost is low and it will serve well for the early days of the business. For family and friends funding this is sufficient. In the early days, you can use an S-Corp designation with an LLC to defer taxes to your personal filing. As you move to raise funding from angel investors and venture capital, some will want to invest in a Delaware Corp. It’s easy to move from an LLC to a C-Corporation. It’s more difficult to move from a C-Corp. back to an LLC. In most cases, investors will ask for a Delaware Corporation as it’s the gold standard for legal entities in the U.S. as it provides the best protection for investors. Most venture capital funds have set up their investment documents to invest in a Delaware Corporation entity and they are not going to change it for your business. When you are ready to raise funding beyond family and friends, make clear to investors you will convert to a Delaware Corporation. Entity conversion does come at a cost, so make the conversion contingent on fund closing.
Direct download: C_EG_May_2020_Startup_Funding_Espresso_--_Legal_--_Legal_Entity.mp3
Category: -- posted at: 9:27am CDT |
Thu, 23 July 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. All startups need to have a legal entity. Before you launch your fundraise make sure you have a legal entity filed as you’ll need it for accepting investment funds. Start with an LLC which is a Limited Liability Corporation. It’s low-cost and easy to file with your Secretary of State. This should be sufficient for family and friends funding. Continue with the LLC till later rounds of funding, in which case the investors may want to see a Delaware C-Corporation entity. Venture Capital and other investors want this structure as their investment documents are set up for such and they are not going to change it. Tell your investors you will convert to a Delaware C-Corporation and then do so, contingent on the funding.
Direct download: EG_May_2020_Startup_Funding_Espresso_--_Entity_filing.mp3
Category: -- posted at: 9:21am CDT |
Wed, 22 July 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. If you want to raise venture capital funding, then check these points to see if you are venture fundable: Do you have the following:
The more check marks you have on this list the more fundable you are with VCs.
Direct download: EG_May_2020_Startup_Funding_Espresso_--_What_is_Venture_Fundable--Are_you_venture_fundable.mp3
Category: -- posted at: 12:57pm CDT |
Wed, 22 July 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Raising funding requires document and business preparation as well as pitching and extensive followup. Throughout the process there’s one thing you need to do before you can raise the funding. You need to build a relationship with the investor. If you are raising funding through a crowdfunding portal you can call that interaction a relationship, but only if you’re raising $500. If you’re raising $50,000, then you’ll need to build a deeper relationship. As you go through the process of gaining introductions, contacting investors, setting up meetings, pitching, and so forth, remember the fundamental goal is to come away with a deeper relationship. From each interaction, the investor knows more about you and you know more about the investor. Even if the pitch doesn’t go as planned and the meeting didn’t stay on track, you still grew the relationship.
Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.
Direct download: EG_May_2020_Startup_Funding_Espresso_--_What_you_need_to_do_before_you_raise_funding.mp3
Category: -- posted at: 12:47pm CDT |
Wed, 22 July 2020
This is Investor Perspectives, I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. In today’s show, you’ll hear investor perspectives on the COVID-19 impact on the cannabis market. It’s the time of COVID-19. Cannabis is currently gaining regulatory approval across the U.S. The lockdown has declared certain sectors, including cannabis, to be an essential service. We have investors and startup founders describe the impact of COVID-19 on the cannabis market. Our featured guests are: Matthew Nordgren - 0:42 I hope you enjoy this episode. _____________________________________________________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group
Direct download: Show_1_--_July_IP_Shows_--_Impact_of_Covid_on_Cannabis_Market.mp3
Category: -- posted at: 11:16am CDT |
Wed, 22 July 2020
In this episode, Hall welcomes back Christian Kameir, Managing Partner at Sustany Capital. Sustany Capital is a blockchain venture fund headquartered in Newport Beach, CA. Aside from investing in blockchain-related projects, the firm lends its expertise to existing companies interested in 'security token offerings'. Christian has been a technology investor for the past 20+ years. He was a software engineer in the 1980s, and then studied and became a lawyer some years later. In the 1990s, he was Counsel to the first web-based unified messaging software startup (Callas). He then moved on to Tiscali where he lead the merger of Germany's first private Internet Service Provider with Europe’s largest telecom company. In the early 2000s, he was managing partner at a venture fund focused on gaming platforms and voice over IP solutions. In the late 2000s, he founded Clizer Inc, the first decentralized web-based rating system, and pay-per-call solution. Between 2010 and 2017, Christian was an adjunct professor at California International Business University and guest lecturer at University of California, San Diego, Rady School of Management. Between 2018 to the present, he has been a freelancer for the Forbes Finance Council writing on the impact of technology on finance and society. Christian gives Hall an update on the investments the company has made since they last spoke, the sectors he sees growing well and those which are not, one of the startups he had a very good experience with, an update on the blockchain space and much more. You can visit Sustany Capital at www.Sustany.co. Christian can be contacted via LinkedIn at www.linkedin.com/in/kameir/, and via email at chris@sustany.co. See his Forbes page at https://www.forbes.com/sites/forbesfinancecouncil/people/christiankameir1/#10e934265b08.
Direct download: Christian_Kameir_of_Sustany_Capital_-_FOLLOW_UP.mp3
Category: -- posted at: 10:00am CDT |
Mon, 20 July 2020
In this episode, Hall welcomes Deepak Gupta, Managing Partner at Blue Bear Ventures. Blue Bear Ventures (BBV) engages founders working on the frontiers of science and technology with the potential to solve some of the most pressing challenges we face in the world today. Their founders are scientists and engineers from the top research institutions in the world. They have founded some of the most promising deep technology startups in deep software & AI, synthetic biology, energy and gene therapy. BBV is comprised of a team of investors, entrepreneurs and technologists, who are driven to help entrepreneurs build world-changing companies from their ground-breaking discoveries. Building on their success from operating the CITRIS Foundry startup accelerator at UC Berkeley since 2013, they’ve moved to found BBV because of the incredible technology and talent they have seen in the UC Berkeley community. Through their unique relationship with the University, they’re excited to provide a smoother startup path and expert guidance to deep tech entrepreneurs. Deepak advises entrepreneurs at the UC Berkeley Haas Business school and is a mentor at various accelerators in Silicon Valley. He has 10 years of venture investing experience across 3 institutional funds. Prior to investing, he was part of 4 medical startups as either an entrepreneur or in management roles, having an exit with Cepheid (NASDAQ:CHPD), a molecular diagnostic company. Deepak discusses some of the challenges startups face and the company’s investment thesis. He speaks about the state of investing, particularly during this COVID era, and mentions some current opportunities in the sector. You can visit Blue Bear Ventures at www.bbv.io/. Deepak can be contacted via LinkedIn at www.linkedin.com/in/deepaksgupta/, via Twitter at www.twitter.com/DGuptaSF, and via email at info@bbv.io. |
Thu, 16 July 2020
In this episode, Hall welcomes Jens Lapinski, angel investor and Co-Founder of Angel Invest Ventures. Based in Berlin, Germany, Angel Invest Ventures is one of Europe's most active angel investors, making 10-20 investments per year. Their initial check size is €50k, and they can make follow-on investments in later rounds. Angel Invest Ventures has made investments in 50+ startups that have raised in excess of €200m in follow-on funding. They actively coach the founders they back and give them access to their networks. Jens was a Managing Director at Techstars, where he managed four programs and invested in 40 companies, which have raised $200m+ in funding. In 2015 he launched the Berlin office, which in 2017 became the most active location of the global Techstars Network. Before Techstars, Jens was a partner at Forward Labs (now Forward Partners), which he co-founded in January 2012. Forward Labs built profitable startups at high speed using lean startup principles. Out of over 100 businesses tested, four businesses were built/invested in during his tenure, raising over $25m in aggregate. Before Labs, Jens co-founded and was CEO of aiHit, a provider of automated company data to the business information industry. aiHit was backed by Amadeus and VTB Capital and sold to some of the world's largest information players including Dun & Bradstreet, Experian, and Equifax. The company was acquired by MatchDeck. Prior to this, he was the VP Analysis & Consulting at Library House (now Dow Jones), a business information and research company, which he helped grow from seven to over 50 employees within four years. During his PhD at Cambridge University, he developed, patented and licensed new water technology. Jens speaks with Hall about his background, what excites him, and he advises investors what to do before writing that first check. He explains the company’s investment thesis and advises entrepreneurs on what to do before launching their startup. You can visit Angel Invest Ventures at www.angelinvest.ventures/. Jens can be contacted via LinkedIn at www.linkedin.com/in/jenslapinski/, via Twitter at www.twitter.com/jenslapinski, and via email at jl@angelinvest.ventures. |
Wed, 15 July 2020
In this episode, Hall welcomes Joel Brightfield, Principal at SixThirty Ventures. Located in St. Louis, Missouri, SixThirty Ventures is a venture fund that invests in early-stage enterprise technology companies from around the world building FinTech, InsurTech, and Cybersecurity solutions, and connects them with corporate incumbents through its Go-To-Market Program. SixThirty has built a deep and curated network of leaders across financial services, reinsurance, insurance, information security, and enterprise technology standing ready to engage with startups in the SixThirty portfolio. SixThirty initially invests up to $250k in a handful of early-stage FinTech, InsurTech, and Cybersecurity startups each year. Joel has over 8 years of financial services experience. Prior to joining the SixThirty team 4 years ago, he worked for Aon Hewitt Investment Consulting where he advised institutional investors on a wide range of topics. Joel speaks about what excites him, the state of investing in startups - particularly in this COVID-19 era - how he sees the industry evolving, and what changes he sees coming up. He also gives insight into the company’s investment thesis and advises entrepreneurs and investors. You can visit SixThirty Ventures at www.sixthirty.co/. Joel can be contacted via LinkedIn at www.linkedin.com/in/joel-brightfield-69b84724/, and via email at joel@sixthirty.co. |
Wed, 15 July 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 anchor clients. Anchor clients are those who prepay for a custom version of your product. They are typically larger companies who have special needs. If you are building an enterprise or consumer software product, consider looking for an anchor client to pay you to build a custom version of it. Anchor clients provide not only funding but also a clear specification of what they want. They are often in a hurry and want the solution yesterday, which means they will pay the best price. Anchor clients also give you information about the market as they have researched it and not found the solution they want. They often share such information with you. Also, anchor clients become good references to use when you launch your standard product into the market. To fully fund a version, one of your platforms may require more than one anchor client. Take the funding you need to build your platform and divide it by three and look for three anchor clients to cover it.
Direct download: EG_Apr_2020_Startup_Funding_Espresso_--_Anchor_Clients.mp3
Category: -- posted at: 10:04am CDT |
Wed, 15 July 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 consultation funding. Consultation funding is using consultation work to pay the bills and salaries while you are building out your product. Many customers need additional help and will pay consulting fees for it in addition to the basic product. Consider looking for consultation work in addition to selling the product as some customers want more assistance in installing and using the product than in just buying the product itself. Consultation also brings new insight into how the customer intends to use the product and what problem they are trying to solve. This is useful information to guide your product roadmap. Consulting work also gives you more information about the market and the competition as you’ll encounter competitive solutions. Finally, consulting work for clients generates good references to use when you launch your standard product into the market. While consulting may not be your ultimate goal, it can be a useful way to fund a portion of your product development.
Direct download: EG_Apr_2020_Startup_Funding_Espresso_--_Consultation_Funding.mp3
Category: -- posted at: 9:56am CDT |
Wed, 15 July 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. In general, equity funding is for launching and growing a business and is the most expensive form of funding. Each source of funding brings a specific support to the business and can reduce the amount of funding taken through equity. In reviewing your fundraise plan, consider how these may fit in: Grants - mostly government-based grants that are one-time offerings and need not be paid back. Loans - debt funding which must be repaid at some point in time. Factoring/AR Funding - selling your invoices and accounts receivable in return for cash. Equipment Leasing - leasing equipment instead of buying it reduces cash burn and spreads out the payments. Line of credit - short-term debt used for smoothing out the cash-flow cycles. Crowdfunding - prepayment for products. Accelerators and incubators - mentorship programs that provide grant funding. Bootstrapping - keeping costs low and using revenue to fund the business. Barter - exchanging services with another company instead of paying cash. Anchor clients - a client who pays for a custom version of your product. Consultation funding - extending your product to include consultation services. Supplier funding - contract manufacturing or software developers who provide upfront cash injections in return for a contract to build or design your product.
Direct download: EG_Apr_2020_Startup_Funding_Espresso_--_Other_funding_sources_and_their_purpose.mp3
Category: -- posted at: 9:48am CDT |
Wed, 15 July 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 grants. Grants are typically provided by government organizations to spur research and make a small contribution to the business. Commonly used grants include SBIR, Small Business Innovation Research, which provides phase 1, 2, and 3 grants that add up to $1M. You can search for grants at www.grants.gov. Grant funding is mostly one-time offerings and need not be paid back. They are non-dilutive which means they don’t take any space on the cap table. Use grants to cover costs that customers will not. For example, customers will not pay for basic research but only for finished products. Grants often come with rules on how it can be spent. Be careful in spending too much time with grants. I once worked with a company that had raised over $4M from grants over a five-year period. The team became experts at writing grant proposals but no one could sell, market, or do much of anything for a customer because for five years they focused on writing and winning government grants.
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_--_Grants.mp3
Category: -- posted at: 9:38am CDT |
Wed, 15 July 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 crowdfunding. There are several forms of crowdfunding such as crowdfunding with prepayment, crowdfunding from non-accredited investors, and crowdfunding from accredited investors. Crowdfunding prepayment lets you pre-sell your product before you build it. This works best for physical products that require funding for the design and manufacturing of the product. It’s a great way to test the market for a new product as it provides customer feedback on the product, price, and promotion. There are several platforms available for showcasing your product. There’s also crowdfunding from non-accredited investors. On these platforms, anyone can invest in your startup. It is for equity, so you need to understand the implications of it on your cap table. Finally, there’s crowdfunding from accredited investors which is no different than raising funding through angel investors and venture capitalists. The only difference is using a crowdfunding platform to find and engage the investors. There are a growing number of crowdfunding portals offering both general and specialized sites. Crowdfunding works well for startups with a product that is clear to grasp and easy to understand.
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_-_Crowdfunding.mp3
Category: -- posted at: 9:32am CDT |
Tue, 14 July 2020
In this episode, Hall welcomes Minnie Ingersoll, Partner at TenOneTen Ventures. Located in the Greater Los Angeles Area, TenOneTen Ventures is an early-stage venture capital firm. They invest in entrepreneurs that apply data and technology to disrupt existing industries, or create new categories entirely. Prior to joining TenOneTen, Minnie was the COO and co-founder of $100M+ Shift.com, an online marketplace for used cars. She started her career as an early product manager at Google. Minnie studied Computer Science at Stanford and has an MBA from HBS. She is also a host of the LA Venture podcast. Minnie speaks about the state of investing in startups, how the industry is evolving, the investment thesis for TenOneTen Ventures’ fund, and some of the challenges startups and investors face. You can visit TenOneTen Ventures at www.Tenoneten.net and listen to their podcast at www.tenoneten.net/podcast/. Minnie can be contacted via LinkedIn at www.linkedin.com/in/mingersoll/, via Twitter at www.twitter.com/himinnie?lang=en, and via email at minnie@tenoneten.net. |
Mon, 13 July 2020
In this episode, Hall welcomes Chelsea Burns, angel investor, Founder of Escaladora Ventures, a member of Pipeline Angels, and an avid rock climber. Chelsea was left with an inheritance following the passing of her father. She decided to use her wealth to become a sustainable angel investor, investing in impactful early-stage companies. She is currently part-owner of Pura Roca, an indoor climbing gym in San Pedro, Costa Rica. In addition to climbing, Chelsea’s main passion focuses on natural resource management. She has a decade of experience working in the water and energy efficiency space. Previously she was the COO of Urban Energy Group, an ESCO that finances and installs LED lighting projects across Washington State. Chelsea holds dual BAs in International Relations and Anthropology and dual MAs in International Relations and Natural Resources & Sustainable Development. Chelsea speaks about the state of angel investing, two of the companies she has invested in, the challenges startups face, and what excites her. You can visit Pipeline Angels here: www.pipelineangels.com/ Chelsea can be contacted via LinkedIn at www.linkedin.com/in/chelsea-burns1987/, and via email at chelseatburns@gmail.com. You can also check out her blog at www.Accreditedovernight.com. |
Mon, 13 July 2020
This is Investor Perspectives. I’m the host of Investor Connect, Hall T Martin, where we connect startups and investors for funding. In today’s show, you’ll hear investor perspectives on automation and robotics and its impact on startups. COVID-19 has changed the landscape for startups giving us a new normal. During the pandemic, it became clear the need for automation and robotics to deliver necessary goods and services -- especially when workers are in lockdown. We have joining us Drew Tulchin of Upspring Associates - an investor in the robotics space. Drew is an experienced C-Suite Manager with a demonstrated history of working with others. He is skilled with startups, especially in New Mexico. Drew’s expertise includes capital raising, business development, building relationships, sales, setting up systems, and government funding. Drew has his eyes on social enterprise, corporate social responsibility, B corps and sustainable businesses. His MBA is focused on Marketing and Finance and he graduated from the University of Washington and Michael G. Foster School of Business. You can visit UpSpring at www.upspringassociates.com/. Drew can be contacted via LinkedIn at www.linkedin.com/in/drewtulchin/, via Twitter at www.twitter.com/drewtulchin, and via email at drew@socialenterprise.net.
----------------------------------------------------------------------------------------------------------------------- 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 |
Fri, 10 July 2020
In this episode, Hall welcomes Heidi Ellenberger Jones, Founder and Principal Broker of ModernJones. Located in North Arlington, Virginia, and established in 2018, ModernJones breaks boundaries to offer clients a partnership that goes well beyond a traditional realtor relationship. Instead, ModernJones stays by your side when navigating all the ups and downs, what-ifs, and whirlwinds when selling or buying and owning a home. This creates a unique experience that is “home made, for you”– perfectly crafted to each individual and the home they are looking to buy or sell. ModernJones, the brand, started while Heidi was an agent at Keller Williams Real Estate (KW). Heidi dreamed of creating something larger than herself. Although the new name carried her married surname Jones, she felt like it was an alias (especially being an Ellenberger all her life). Plus with references like ‘keeping up with the Joneses,’ she thought it would resonate with those looking for their dream home. Prior to becoming a real estate agent, Heidi served as Vice President at Citibank in their e-citi division. She leveraged her work in technology at Citibank to transition to Reciprocal, a cloud-based content encryption start up in New York. When the company wasn’t able to stay afloat during the technology downturn in 2001, Heidi leveraged her business skills and entrepreneurial spirit to launch her real estate career. Over the past 18 years Heidi has affiliated with national, local and boutique firms. She’s consistently been awarded ‘Multi-Millionaire in Sales’ from NVAR and recognized as a Top Real Estate agent by the Washingtonian and Northern Virginia Magazine. Heidi is passionate about helping fellow women business owners thrive, which she does as both an angel investor and mentor. She’s a part of Pipeline Angels and as a graduate of Georgetown University, Heidi gives back to her alma mater by mentoring students as part of the Georgetown Scholarship Program, which helps those first in their families to go to college. A big believer in the importance of giving back, Heidi also donates her time to a number of nonprofit organizations and the local schools including COMPASS, Doorways for Women and Families and Bridges to Independence. She also serves on the Host Committee of Women Making History – DC. Heidi speaks about the unique offering of her company and some of the challenges it has faced. She shares her thoughts on how COVID-19 has affected the industry and then tells Hall a very personal story that changed her entire family. You can visit ModernJones at www.modernjones.com/. Heidi can be contacted via LinkedIn at www.linkedin.com/in/modernjones/, via Twitter at www.twitter.com/modernjones, and via email at heidi.jones@modernjonesexperience.com.
Direct download: Heidi_Ellenberger_Jones_of_Modern_Jones_LLC.mp3
Category: -- posted at: 11:32am CDT |
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| 1 | 2 | 3 | 4 | |||
| 5 | 6 | 7 | 8 | 9 | 10 | 11 |
| 12 | 13 | 14 | 15 | 16 | 17 | 18 |
| 19 | 20 | 21 | 22 | 23 | 24 | 25 |
| 26 | 27 | 28 | 29 | 30 | ||
Syndication
