When Investors Turn You Down

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

Investors say no to most of the deals they see.

Founders should take 'no' in stride and do the following:

Review the deal for the risks the investors see.

Some investors worry about risks that don't exist, as they are not familiar enough with the company or the market.

Founders should show how they mitigate those risks anyway.

Founders can also review the valuation to see if it's out of market.

If only some investors have a problem with the valuation, then the founder can use warrants with those investors to help close the gap.

Founders can also review the business to see if all the values in the business are coming through on the pitch deck.

Finally, the founder should review the positioning of the startup.

There are many ways to position the deal so it is attractive to the investor.

Potential positionings include financial.

This shows how the business makes money and can scale to make a great deal of money.

Other positionings include impact.

This shows how the business is providing a community benefit.

Another position is the low-risk option.

This shows how the business is running a known business model, with a proven team that has already exhibited significant success.

Consider the valuation, the values in the business, and the positioning of your startup when the investors say no.

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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Why Brokers Are Not a Fit for Startup Fundraising

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

Fundraising is a time-consuming challenge for founders.

Some consider outsourcing the fundraising process to brokers who will take a success fee for what they raise.

This works well in later-stage funding but is not a fit for startup fundraising.

Portions of the fundraising process can be outsourced, such as the following:

Outbound marketing to prospective investors to generate initial interest.

Investment document preparation, including the pitch deck and financial forecasts.

Advisory work on how to raise funding.

But the actual fundraise needs to be done by the CEO.

The investor will lean heavily on the qualities of the CEO in making an investment.

The founder must build a relationship with the investor to achieve funding.

Brokers try to gloss over the relationship aspect of the fundraise.

For later-stage rounds where there's ample financial data to show traction and product market fit, a broker can be effective.

For the early stage, building a relationship with the CEO is a must.

The broker is not a fit.

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.

Challenges in Running a Startup

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

Running a startup brings many challenges.

Here's a list of key challenges to overcome:

The startup is a rollercoaster ride from the highs to the lows.

Be prepared to have your emotions go through turmoil.

The founder must move everything.

There's no corporate flywheel behind you.

There's no brand that attracts customers.

Every single customer must be won with hand-to-hand sales combat by the founder.

Sales is filled with many no's and a smattering of yes's here and there.

Hiring people is a challenge.

There's an infinite number of prospective employees and contractors, but only a few that fit.

It's a full-time and a half job.

The hours are long and intense.

The founder must build the culture from the start and carry it through to all new hires.

Building culture takes time, as nothing is won quickly.

Investors should take this into account when considering funding the startup.

Going from nothing to something is one of the biggest challenges in the business world.

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.