Build Your Support Network Before Fundraising

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

Fundraising can be challenging both mentally and emotionally.

Before launching your fundraiser, build your support network.

In addition to building your investment documents, put in place people who can support you.

Here's a list of support to consider:

Advisors -- identify two to three people who can advise about fundraising.

This is an informal position of those who have raised funding and can give guidance.

Team -- set up your team to help you with the logistics and mechanics of fundraising.

This includes email marketing, document preparation, and diligence work.

Connectors -- those who have broad networks and are good at making connections.

This includes investors who know other investors in the community.

Legal -- this includes startup-friendly attorneys who can advise on terms sheets and other legal aspects of the fundraise.

Emotional -- this includes people with whom you are comfortable.

They tell you what you need to hear rather than what you may want to hear.

Consider building this support network before launching your fundraiser.

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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How To Pay the Bills While Launching a Startup

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

Launching a startup is hard work.

It takes time to build up the revenue to pay a living wage to the founders.

So how does a founder pay the bills while launching a startup?

Here's one solution:

Provide consulting and training services in the domain of the startup you are building.

For example, if the startup is building a software application in the HR space, start by providing training and consulting on HR software.

Here are the benefits:

It fosters contacts and networking with those in the target market.

It engages the founder with the current products.

It provides hands-on interaction with customers.

It highlights the challenges customers face in their work.

It shows how the current solutions are positioned in the market and what price they charge.

It shows how the current companies in the market make money.

It's okay to have a day job while launching a startup.

It's even better to have one that helps educate and inform about the startup's target market.

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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The Value of Regular Investor Updates

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

Founders who have raised funding should give their investors regular updates.

Here's the value of regular updates to the investor:

It reminds the investor what you do and what progress you have made.

This becomes useful later when the founder goes to raise the next round.

It maintains the relationship between the founder and the investor.

This becomes useful later when key decisions are made and both sides must come together.

It keeps the conversation going so no single meeting becomes a make-or-break event.

This takes the pressure off.

It informs the investor of how the founder thinks and works.

This helps the investor understand the strengths and weaknesses of the founder.

It provides the backstory of how the startup reached its current position.

This helps the investor understand what has worked and what has not.

Investors should press the founder for updates if they are not receiving it.

Founders should find a way to provide regular updates to their investors.

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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Pre-Sell Your Product To Raise Funding

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

Startups raise funding outside of family and friends after they have a product with some revenue.

Founders who have a track record of building and selling startups can raise on an idea.

Everyone else must validate the business before investors will consider funding it.

Pre-selling the product is one path to funding a startup.

This is commonly used in the crowdfunding space, where a founder raises funding to build and sell a product.

The same concept can be applied to venture-level businesses.

One can sign up customers with a $1K prepayment to be part of the product-building process.

This works well for funding software startups.

This creates a list of interested customers who paid something to engage with the process.

In addition to a small investment, the founder could also ask for a half day each week to build the product specification and gain feedback on the results.

Just as in crowdfunding, where the average investment ranges from $15 to $100, so in the tech space, one can sign up customers with a nominal amount of $1k to $5K.

Consider pre-selling your next product to engage a customer base.

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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For Feedback please contact info@tencapital.group

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Revenue First, Salaries Second

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

In launching a startup, the first goal is to generate revenue.

Salaries come later and in some cases much later.

Some founders look to the startup as a source of income.

Fundraising from investors is not the answer to the salary question.

Investors will not fund a startup that can't generate enough revenue to prove the market wants it.

Fundraising comes into play when there's product and market validation.

The product works, and customers will pay for it.

Founders often take second jobs to pay their bills while the revenue ramps up.

Once revenue is established and growing, then salaries come into the picture. It's often the case that the second job becomes a part-time job.

Later, those part-time jobs will go away.

Building a startup is hard work.

Before launching, identify the path to revenue generation through an initial product.

Selling will be the primary goal of everyone on the team every day.

As a founder, consider how you can reduce your cost of living for a period of time while you ramp up the business.

Investors look for commitment in founders who can make this situation work.

It's tough, but it's doable.

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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In this episode of Investor Connect, Hall T. Martin sits down with Brett Striker, founder of Traction with Brett and a certified implementer of the Entrepreneurial Operating System (EOS). Brett shares his journey from building and selling two companies to helping other leaders gain traction in their businesses through EOS. He delves into the challenges founders face in scaling operations and how the EOS framework addresses these issues by driving clarity, accountability, and alignment across teams.

Brett also discusses the benefits investors see when their portfolio companies adopt EOS, from improved execution to better valuation and reduced risk. For those interested in how EOS can transform their business, Brett offers insights and advice based on his extensive experience and success in implementing this powerful system.

Reach out to at brett.striker@eosworldwide.com

_______________________________________________________

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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Drawing Fundraising Skills From Other Areas

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

Fundraising requires a set of skills.

Those skills can be found in other areas.

Here's a list of skills and where to find them:

Sales.

Fundraising is fundamentally a sales process.

One can transfer selling skills to fundraising.

Marketing.

Fundraising requires the ability to reach out to the investors to convey a message.

One can use their marketing skills in promoting the fundraising campaign.

Financial.

Fundraising requires a basic knowledge of finances.

One can use financial literacy from other areas and apply it to fundraising.

Communications.

Fundraising requires the ability to communicate with others.

One can use communication skills in pitching to investors.

People management.

Fundraising can leverage a team effort.

One can use the human resources to enable fundraising.

Consider these skills for your 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.

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Valid Reasons for Raising Funding

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

There are many valid reasons for raising funding.

Here's a list of reasons to consider for your fundraiser:

The business is growing and is now ready to scale.

It can be hard to bootstrap a scaling effort.

There's a clear need for a minimum viable product to establish the product and market validation.

It takes some funding to build an MVP.

The startup is seeking to prepare for a Series A raise, and the metrics are not yet aligned with the target investor's fund requirements.

It can take additional funding to prepare to raise a Series A with an institutional investor.

Here are some reasons that are not valid:

The founder needs a salary to pay rent.

The founder wants to hire a number of people, but doesn't know exactly what they will do.

The founder wants to quit their day job to work full-time on the startup.

The founder doesn't want to spend time on sales and wants to hire someone else to do it for them.

A valid reason to raise funding comes down to building a key deliverable for the 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

Please follow, share, and leave a review.

Music courtesy of Bensound.