How To Position Your Bridge Raise

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

In raising funding, bridge rounds fill the gap between the stage raises.

Startups use bridge raises for many reasons, such as preparing for the next round, increasing the runway, or covering a gap left by an unexpected event.

It’s best to position the fundraiser as a positive.

Show how the startup is doing well and is on track with the plan.

Position the bridge round as an opportunity to gain an even stronger position.

It could also be used in pursuit of an unexpected strategic opportunity that recently came up.

Avoid positioning it as a remedy for bad planning or missed forecasts.

The worst reason of all is the “we’ve run out of money”.

This shows a lack of planning and poor management of resources.

Investors will look at the cash runway of the company before investing.

If there’s less than four months of runway, they will often assume poor management to be the cause.

Make sure you launch a bridge raise in advance of a cash crunch situation.

In raising a bridge round, showcase the progress made with the previous investment.

Pursue investors who have made an initial investment but have not yet made a follow-up investment.

Consider these steps in positioning your bridge round.

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 Start Angel Investing

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

First-time investors often wonder where to begin in angel investing.

Some join angel groups or syndicate funds.

Others start looking for deals to invest in.

Either way, here are some key steps to start angel investing:

Figure out what type of deal you want to fund, including sector and stage.

Look for sources of dealflow that provide those leads.

Many join clubs and networking groups that attract those types of companies.

Identify a few key criteria in the startup that signal potential success.

This could be a large target market, an experienced team, a disruptive technology, or other.

Start with small investments to test the waters.

If the startup does well, then consider additional investments in those companies.

Look for patterns among the startups that point to success.

Once you have a process that works, set up a system for reviewing deals, diligence the ones that fit, and tracking the funded ones.

Consider setting up your own syndicate fund.

Invite other investors to join in the companies you are funding.

Consider these steps to start angel investing.

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

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Win, Expand, Extend in Vertical SaaS

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

In a vertical SaaS business model, there’s a strategy for growth called Win, Expand, and Extend.

In this model, the startup wins its initial customer application.

From there, the business expands into other areas of the company.

This includes other applications that use the same platform, data, or technology.

A platform-based approach provides an environment in which to plug in more applications.

A data-based approach means owning the core data and applying it to other applications.

A technology-based approach means applying the core engine to other applications.

An example technology would be Artificial Intelligence.

Extending the business model can go into suppliers and vendors.

The application could be moved into a supplier network to provide a more efficient and seamless process.

The user’s customers are potential targets.

Partners of the company could also be candidates

Finally, finance providers could be engaged.

In this case, the company can offer payment solutions to help customers purchase the product.

Consider the Win, Expand, and Extend strategy for your vertical SaaS business.

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

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For Investors check out: https://tencapital.group/investor-landing/
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More Control Points in Vertical SaaS

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

Vertical SaaS is a great business model for startups to use.

It focuses the product on one specific sector.

This brings many advantages in funding, competition, application development, and more.

A control point is a strategy for controlling the customer account.

Here are more control points for a vertical SaaS startup.

Drive demand by generating access to more customers.

Offer payment tools such as short-term loans to pay for the service.

If your solution drives enough business, you can take a percentage of revenue as payment for the service.

Network the customer with their vendors and suppliers to create a better experience.

Provide value-added products for customers, such as concierge services.

Provide an alternative network to the customer’s current system.

Many customers have outdated solutions.

Instead of replacing them, provide an alternative path for users to do their job.

Consider how to engage these control points for your vertical SaaS customer.

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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Control Points in Vertical SaaS

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

Vertical SaaS is a great business model for startups to use.

It focuses the product on one specific sector.

This brings many advantages in funding, competition, application development, and more.

A control point is a strategy for controlling the customer account.

This provides a hedge against competition.

In a vertical SaaS business, there are three control points.

The first is the workflow.

If your product provides the core workflow, you own the operations of the customer’s business.

This makes it harder for a competitor to displace your solution.

The more the customer uses your workflow, the stickier your product.

The second is the data.

If you own the core data set of the customer’s account, then others must go through your system to access that data.

This makes your solution stickier and harder to move to another solution.

The third is the level of account engagement.

The higher your account contact in the organization, the stronger your position against the competition.

Consider how to engage these three control points for your vertical SaaS customer.

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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On this episode of Investor Connect, we welcome Dr. Guy Cooper, MD, an orthopedic surgeon by training, who discusses his company's breakthrough treatment for bladder cancer, the world's most expensive cancer. Dr. Cooper explains that his company, Combat Medical, is seeking $2.3 million to close a $5 million investment round to further their innovative approach that utilizes heated chemotherapy. This method enhances the drug's effect, improves penetration into cancer cells, and significantly reduces recurrence and progression rates.

Combat Medical has already conducted over 100,000 procedures outside the US, generating $4.3 million in revenue last year and holding patents that cover their products globally. Dr. Cooper articulates the company's successful trials and their aggressive expansion plans that project a substantial market growth by 2032. He outlines the potential for significant exit opportunities through acquisition by major medical device companies or IPOs on the Nasdaq.

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 Invest in Vertical SaaS

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

Vertical SaaS is a venture sector in the tech space.

It narrows the scope of the startup to a single application.

Vertical SaaS has many advantages as follows:

It’s easier to position in the market and message to the customer.

By narrowing the scope, the startup can dive deeper into the application, providing a better solution.

Distribution can be easier as it focuses on one vertical.

Vertical SaaS is highly specialized for the customer’s needs.

There’s less competition because the overall space is smaller.

Vertical SaaS requires less capital to launch and scale the business.

The key to a successful vertical SaaS business is to ensure there’s a large enough market.

If the total available market is too small, it will be difficult to achieve a venture outcome.

The founder needs to be highly experienced in the sector.

For many applications, a vertical SaaS approach will yield a successful startup.

Consider focusing your startup on a specific sector.

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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Raising an Inside Round

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

Most startup fundraisers seek capital from outside investors who are new to the round.

This brings new investors into the cap table.

There are rounds in which the existing investors fund the startup.

This is often done for bridge rounds.

Instead of raising the next major round, the startup raises additional capital to prepare for the next major round.

This often happens between the seed and Series A, which is a bigger step compared to other rounds.

An inside round often occurs around an important milestone, such as reaching cash flow positive or achieving a specific metric.

They are often smaller fundraisers in terms of amount.

They focus on existing investors.

The goal is often a key metric needed to raise the next round.

They are often priced at the same valuation as the last one.

It’s easier to raise a small amount from the existing investors than from outside investors.

Inside rounds are common and don’t necessarily indicate the startup is in trouble.

Consider an inside round for 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/
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