Signs an Investor Is Not Interested in Your Pitch

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

In pitching for funding, look for signs of interest from the investor.

Here’s a list of signs indicating the investor is not interested:

The investor doesn’t ask probing questions but only superficial ones.

The investor doesn’t put their funding out as an option for the deal.

The first question is about valuation, indicating the investor sees this only as a financial transaction.

The investor doesn’t discuss next steps unless the founder asks.

The investor gives little or no feedback on the pitch or the startup.

The investor doesn’t appear to be doing any research into your company or space beforehand.

The investor fails to introduce the founder to other investors or customers.

The investor asks for more information but doesn’t actually do anything with it.

The investor failed to prepare for the pitch and doesn’t have any initial questions.

In many cases, the founder can spark interest with a great pitch.

In some cases, the founder will need to follow up to show progress and traction to gain interest.

Look for these signs that indicate the investor needs warming up.

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.

_________________________________________________________

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Common Mistakes in Fundraising

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

Successful fundraising comes from preparation, focus, and experience.

Here are some common mistakes founders make in fundraising:

Not having a business plan.

This should include what product or service you will provide and how you will sell it.

Not knowing your market

Your pitch deck should include an analysis of the market and its composition.

Not knowing your competition

Your pitch deck should include a competitive analysis showing how you will succeed.

Unrealistic fundraising goals

You simply won’t raise $1M in the next sixty days.

Break the raise into smaller rounds and identify networks of investors to pursue it.

Not understanding the financial side of the business

Build a financial model to determine how much capital you need and when.

Failing to follow up with investors

Make sure you reach out to investors to build a relationship and close the funding.

Maintaining a relationship with existing investors

Keep current investors up to date, as they can help with your raise.

Consider these points for your fundraiser campaign.

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

Let’s go startup something today.

_______________________________________________________

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

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
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In this episode of Investor Connect, Hall T. Martin chats with Vishal Arora, a tech executive and managing partner at VDO capital. Vishal explains how VDO invests in early-stage deep tech startups with a unique approach that leverages a network of over 70 channel partners including incubators, accelerators, and universities to source deals. He highlights the importance of human capital in evaluating startups, focusing on team dynamics, technology, market potential, traction, and revenue prospects. Vishal also discusses the company's phased due diligence process and the lessons learned from working with both first-time founders and serial entrepreneurs.

Additionally, Hall and Vishal explore the role of VDO in collaborating with incubators and accelerators, mentoring founders, and supporting startups post-investment by leveraging industry connections and expertise.

The discussion concludes with Vishal's insights on macroeconomic shifts impacting early-stage venture investing and the transformative potential of AI and other emerging technologies.

Reach out to at www.linkedin.com/in/vishalbarora/, and on vishal.arora@vdosh.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

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Key Elements of a Successful Fundraise

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

Fundraising takes time, effort, and attention.

The startup founder faces many demands from the business, including hiring employees, building products, and signing customers.

Here are the key elements of the fundraising process to focus on:

An extensive network of potential investors.

This includes family and friends, angel investors, venture capitalists, and family offices.

Identify key contacts for your investor network

An ongoing sales-like process of reaching out to prospective investors.

This requires a database, an email program, and a tracking system.

Set up a system for tracking prospective investors.

Proper documentation, including a pitch deck, terms sheet, and a data room.

Build these documents before launching the campaign.

A compelling story.

Your pitch needs to resonate with investors, showcasing the problem, the solution, and why your startup will succeed.

Craft a compelling narrative that captivates the investor audience.

Finally, contact experienced founders and advisors for their input on what to expect.

Before launching your fundraise, line up these key elements to ensure a successful campaign.

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

Let’s go startup something today.

_______________________________________________________

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

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
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For Feedback please contact info@tencapital.group

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Key Duties of the CFO

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

The CFO plays a key role in the early stages of the startup.

Here are the key duties of the CFO:

The CFO develops and maintains the financial model for the business.

This often comes out in the form of a financial pro forma for the pitch deck and data room.

Investors want to know the startup's proposed forecast.

They will review the financial pro forma to see if it’s a bottom-up model or a top-down.

The model also tells the investor how much the startup knows about their revenues and costs.

The financial pro forma should be complete enough to help make strategic decisions.

Also, the CFO manages risk in the business by tracking the cash runway, obtaining access to credit lines, and holding the right amount of insurance.

The CFO oversees the tax reports and compliance requirements.

Finally, the CFO can help management by providing key metrics on the business.

The CFO doesn’t necessarily have to be a full-time employee but could be a fractional one.

Consider how a CFO fits into your startup.

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

Let’s go startup something today.

_______________________________________________________

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

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

For Feedback please contact info@tencapital.group

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Feedback From VCs

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

Investors hear many pitches and often give feedback to the startup.

Some investors avoid giving feedback for the following reasons:

Argumentative-- the founder argues their way out of the feedback.

Instead of accepting the feedback, the founder shows how it is not valid.

Reputation risk -- some founders retaliate when they hear feedback they don’t like.

Instead of working on the feedback, the founder spends time getting even.

Getting personal -- some feedback has to do with the team.

It can be awkward to share personal feedback on the founder, so many investors avoid it.

Founders can gain more feedback from investors by doing the following:

Indicate respect for the VC's opinion and show a willingness to learn.

Ask for specific feedback rather than general.

Ask about areas of weakness and show you are open to the response.

Skip the rebuttal and accept what is given.

Avoid getting angry about feedback you feel is not right or unfair.

Consider these points in encouraging more feedback from the investor.

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

Let’s go startup something today.

_______________________________________________________

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

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
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Negotiating Valuation With an Investor

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

The valuation is a negotiation, not a formula.

Startup founders negotiating valuation should consider the following points:

Know the current market rate for valuations for your stage and type of business.

Investors will see many deals like yours and will know the current rate.

Consider how to position your startup so it achieves the highest valuation.

Run the valuation through several different formulas to see which one provides the best result.

This is where you want to start your valuation discussion.

It helps to show how the assets of the business meet or exceed the proposed valuation.

This shows the investor that there’s no speculation it.

Find comps that show the valuation of other businesses at a fundraise or exit.

This helps prove the case that your business is worth what you say it is.

Articulate all the values in the business.

This is the most important part of the negotiation process.

Highlight the team, the intellectual property, the revenue, and the product at the very least.

Show the value of each for today and not tomorrow.

Today’s valuation is for today’s fundraise.

Tomorrow’s valuation is for tomorrow’s fundraise.

Investors are not interested in forecasts, but rather in what you have today.

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

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Founder Experience and Traction

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

In raising funding, there are two key drivers to how much a startup can ask for funding.

The first is traction.

The greater the traction, the more the startup can ask in a fundraise.

Traction includes current revenue run rate, quarter-over-quarter growth, and recurring revenue.

The second is founder experience.

Successful serial entrepreneurs with exits can use their reputation to raise more funding than the traction indicates.

At the preseed level, successful founders can raise several million dollars more.

This works particularly well if the founder is running a proven business model with a team that has done well previously.

Experienced founders can also raise additional funds based on their reputation.

This may be more in the order of $500K to one million dollars of funding.

Consider using your team’s startup experience and track record to make the case for a greater fundraise.

This can be most helpful in the very early stages of the fundraising process, where there’s little to no traction to reference.

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.

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