Innovation Looks Trivial in the Early Days

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

In the early days of a startup, innovation can look trivial.

Innovation is often applied to the lower end of the market.

New technologies often start as simple devices or applications.

These devices have minimal functionality and lack robust features.

In vetting startups, look past the minimal functionality to the rate of change of the technology.

While today it may seem trivial, a fast growth rate can move it into a more competitive position.

Look at the underlying growth driver.

For example, semiconductors double their density every eighteen months.

Genomics brings an even higher growth rate.

It's these drivers that determine the trajectory of a startup's product.

Startups that leverage growth drivers are positioned to succeed over time.

The incumbents often dismiss startups because their initial solution underperforms the current competition.

Over time, the startup's product will outperform.

Consider this in evaluating startups for investment.

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

Let's go startup something today.

_________________________________________________________

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

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.

Hiring a Professional CEO

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

Startup founders take the CEO position because they bring the vision and passion to launch the company.

They know the domain and are building the core product and go-to-market strategy.

They are the ultimate authority at the company.

As the company grows and then scales, there comes a time for a professional CEO.

Here's a list of key characteristics to look for in a professional CEO:

One who has experience managing a large company.

They've grown and exited companies in the past.

They bring a network to the process for growing the company and finding an exit.

They know how to transition the company from the founding CEO.

They are good at processes and programs.

They understand the product development process and can manage it in the company.

Founders are often at their best in innovating and launching startups.

They often do better by turning over the reins of the business to a professional CEO when the company no longer needs the founder's skills.

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.

How Startups Can Make Better Forecasts

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

Forecasting is a key skill founders need for raising funding.

Investors want to know the founders' expectations for the business with the funds raised.

Here are some key steps to make better forecasts:

Start with a baseline.

If the startup has revenue, then use that as the starting point.

If the startup is pre-revenue, then look to similar startups to set a baseline.

Determine the drivers behind the revenue.

This could be leads generated, clients viewing a demonstration, or other.

Determine how much can be done with the team proposed.

Focus on the customers signed up rather than a percentage of the available market.

Use the sales cycle for the product to determine lead times.

The more you know about your customer buying cycles, the more accurate your forecasts.

This is called a bottom-up analysis.

For predicting explosive growth, look for trends in the market that can drive hyper sales growth.

Look to other startups for their sales forecast to calibrate your own.

Consider these points in making better forecasts.

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.