Demonstrate Credibility With Investors

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

In raising funding either as a startup looking for investors or a VC fund manager looking for Limited Partners, it’s important to demonstrate credibility.

Investors love to be educated on a market segment.

There are over 200 market segments in the venture space so it’s difficult to keep up with them all.

One way to demonstrate credibility is to take your market research and showcase it to investors.

In launching a startup or fund, one typically does a deep dive on a market segment and generates an array of charts and graphs showing the trends and status of the segment.

Take that market research and build a 15 slide presentation showing the state of the market including trends that are increasing and areas that are decreasing.

Offer a briefing on the sector and go through the slides showing the status.

Call out the insights to be gained such as where value will accrue.

Show who will be the winners and the losers in the next five years.

This provides the foundation for a startup or an investment thesis for a fund.

By educating the investor on the market you are now positioned to discuss how your startup or fund will take advantage of those trends.

Offer the market brief as a standalone meeting with no ask of the investor.

It’s important to build credibility first.

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

In this episode of Investor Connect, Hall T. Martin is joined by Christopher Ezold, a partner at Wisler Pearlstine, a law firm based in Pennsylvania that specializes in business, employment, and corporate law. Christopher shares insights into the complexities surrounding non-compete agreements and non-disclosure agreements (NDAs), especially as they pertain to startups and the investment landscape. He discusses the evolving legal landscape regarding non-competes, the importance of tailoring these agreements to specific roles and states, and the critical factors investors need to consider when evaluating a startup's legal safeguards. Christopher also touches on the broader changes in employment law, the impact of generational shifts on the workforce, and offers practical advice for ensuring legal agreements are enforceable to protect intellectual property and competitive advantage.

Reach out to at cesl@wispearl.com or 610-825-8400. Keep only www.wispearl.com

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Identify a Champion in the Group

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

In raising funding look for those who believe in your project and believe in you.

Don’t spend too much time with those who don’t.

In a group identify a champion who can galvanize others to action.

This is sometimes a lead investor and other times it’s just someone who knows everyone.

In working with a VC group, identify a champion for your deal.

In a VC fund, a partner brings a deal to the fund and works to convince others that this will be a great investment.

It’s their job to sell it to their group.

It’s your job to arm that champion with enough information to win the investment.

This includes updates about the progress of the company.

Updates include progress in sales such as leads generated, prospects moving through the funnel, and closed opportunities.

Updates also include experienced people you are bringing on board as core team members or advisors.

Finally, updates showcase other investors joining the round.

Keep your champion informed so they can convince others to join the fundraise.

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

You Need To Have Thick Skin

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

In the fundraising process, the startup founder will hear ‘no’ many times from investors.

For the founder, this can be painful as the startup is their baby.

Investors will say ‘no’ often and in many different ways.

Some articulate it in words while others demonstrate it in their actions.

The founder needs to have a thick skin because not everyone will get it.

Consider these points when hearing a no:

Never take the investor feedback personally -- it’s business.

After each interaction, ask yourself why the investor said no.

Look at the pitch from their point of view.

It’s often the case the investment doesn’t fit their criteria or thesis.

Some investors have finished their funds and cannot take on any more investments.

Other investors don’t understand the space or how that part of the industry works.

Still, others are unsure of the technology behind the startup and want to see more proof.

Each interaction with an investor provides a lesson to learn.

Having a thick skin helps.

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

It Takes Seven Touches

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

It takes seven touches to close a sale.

So it takes seven touches to close an investor.

In the selling process, one starts by generating awareness of their solution with the prospective customer.

So in fundraising, one generates awareness with the investor that an investment opportunity exists.

In selling, one pitches the solution.

So in fundraising, one pitches the investment.

In selling one follows up to answer questions about the product.

So in fundraising, one follows up to answer questions about the startup.

In selling one reminds the customer that the product is still available.

So in fundraising, one reminds the prospective investor that the fundraise is still open.

It takes several touches to close a customer as they need to convince themselves that this will work.

Fundraising is no different.

The investor needs to work out in their mind that this will be a successful investment.

Consider how you will execute seven touches for each investor on your fundraise.

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Recruit an Expert To Help With the Fundraise

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

In the fundraising process, the first-time founder is at a great disadvantage.

Investors and other startup founders have experience raising funding.

The investors have seen many startups, founders, and deal structures.

They have the experience from those prior engagements.

The first-time founder does not.

It’s important to recruit an expert to help with the fundraising.

This is someone who has seen many deals before and can coach the first-time founder.

Here are some key areas of expertise they can provide:

Deal structure -- there are several ways to set up an investment including type of structure, terms, and conditions.

Positioning -- an investment can be positioned in many different ways. Choosing the correct positioning for the investor is important.

Pitching -- an expert can help the founder with pitching the deal so it appears polished and professional.

Pitch deck - an expert knows what information the investors want to see and can help raise the quality of the deck.

Diligence -- an expert knows what information the founder needs to prepare.

There are standard practices in the fundraising process.

The first-time founder should look for an expert to help with the fundraising.

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Highlight the Investors Who Are Already in the Deal

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

In a fundraising round, many investors do not want to go first.

In fact, most investors want to be the last one to join the round as the risk of not closing is very low.

In raising funding, highlight the investors who are already in the deal.

Some investors have a reputation for successful funding.

Other investors look to the current investors in the deal as a proxy for joining.

Ask your current investors if you can use their names in the fundraising process.

Invite current investors to give a testimonial about why they invested in the company.

This could be recorded and shared with others.

In the recording have the investor talk about what they like about the startup as well as the risks they see.

This gives potential investors insight into the diligence the current investors found.

Emphasize the diligence work done by the current investors in the deal and show the prospective investors any diligence done so far.

Most startup investors are follow-on investors and will look to others for confirmation.

When you reach the halfway point of the raise, the signup rate often accelerates.

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

In this episode of Investor Connect, Hall Martin hosts Angela Lee, founder of 37 Angels, a community designed to activate investors through comprehensive training with a mission to diversify angel investing. Angela shares her background as a former entrepreneur and a Columbia Business School professor, highlighting that 37 Angels seeks to bridge the gap for those transitioning from entrepreneurs to investors. The organization offers boot camps that teach budding investors the intricacies of deal flow, due diligence, term sheet negotiations, and startup valuation. They examine around 2,000 companies annually but only invest in 10, maintaining a clear focus on efficiency, transparency, and empathy towards founders, drawing from their own entrepreneurial experiences.

The discussion further explores how 37 Angels navigates the post-pandemic investment landscape, emphasizing the extended distance between founders and lead investors and the increasing interest in liquidity. Despite such challenges, the network boasts a high success rate with multiple IPOs and acquisitions from their investment portfolio. Angela underscores the importance of their commitment to realistic and humane dealings with entrepreneurs, as evidenced by testimonials, with 75% coming from founders they did not fund. The group aims to guarantee a funding decision within four weeks, a timeline rare in the angel investing space. Angela also addresses the broader role of diversity within angel investing, specifically noting that 37 Angels was created to tackle the gender disparity in the sector. Although there's been progress, Angela acknowledges the ongoing need for improvement, as only a small percentage of VC and angel funding currently goes to women founders. She stresses that while their investment criteria are neutral, the investor community within 37 Angels predominantly consists of women, further bolstering diversity on the investor's side.

Looking towards the future, the episode delves into evolving investment models and the integration of AI in streamlining the investment process. Angela mentions how AI can assist in initial screenings and sorting of potential deals, saving significant time for investors. She highlights the growing trend of alternative financing methods like venture debt and revenue-based financing, which offer viable options beyond traditional equity investments. This innovative spirit aligns with 37 Angels' mission to support diverse pathways in the startup ecosystem. Tune in to gain insights from Angela Lee on the dynamic, collaborative, and forward-thinking environment that 37 Angels fosters.

Visit 37 Angels at www.37angels.com. Reach out to at www.linkedin.com/company/37-angels, and on Twitter www.x.com/37angelsny.

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.