Key Qualities of a Startup Founder

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

The quality of the team, in particular the startup founder, is one of the most important factors of startup success.

Here are some key qualities to look for in a founder.

Integrity is the most important quality, as this must be someone you can trust.

Passion for solving the problem is a key factor in the success of the business, which often hinges on a resolve to find a solution.

Experience is a key factor as launching and running a successful startup requires it for success.

Domain knowledge is another factor to look for. How well do they know the space?

Basic business skills, including sales, marketing, and finance, are needed.

Leadership skills are important as well as they must galvanize their team to reach the goal.

Vision for the business and where it will go is an important quality. Without it, the startup can wander.

Emotional intelligence is a key factor as well as those who can empathize with others often find the path to success.

In funding a startup, look for these qualities in the startup founder.

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 Prepare for a Valuation Negotiation

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

Valuation is a negotiation, not a formula.

Before negotiating valuation with the investor, prepare for the discussion.

Consider these points of preparation:

Know the current market and what other companies are selling for.

This is known as comps or comparables.

Have two to three examples of other company exits.

Know what other startups are proposing for their valuation.

Investors will have seen numerous valuations prior to yours, so it's best to know how you will compare.

Decide on your floor valuation below which you will not go.

This helps set the decision to walk away when the time comes.

Determine your ideal valuation.

This is not necessarily the highest valuation but rather the one that fits your overall valuation trajectory for the startup.

It's best to map out your valuation from launch to exit so you know where you are trying to go.

Finally, prepare to negotiate in good faith with all investors.

Avoid the games and work to identify and articulate the values in the 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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In this episode of Investor Connect, Hall Martin speaks with Dan Delmar, founder and president of Virtual Angels Network. Dan sheds light on the fully virtual national angel investor network that connects early-stage startups with investors across North America. With over a decade of experience in the innovation ecosystem, Dan draws from his background with the Harvard Business School Alumni Angels of New York and discusses the inspiration behind establishing Virtual Angels Network during the pandemic. Highlights include the organization's emphasis on good financial terms, the secret sauce of their successful deal flow vetting process, and trends in online angel group syndication.

Dan also offers valuable advice for founders pitching virtually and insights into the growth trajectory of virtual investing over the next five years. For those interested in connecting with Virtual Angels Network as an investor or entrepreneur, Dan provides his contact details and application instructions.

Visit Virtual Angels Network at virtualangels.net/

Reach out to at dan@virtualangels.net , and on www.linkedin.com/in/dandelmar/

_________________________________________________________

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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Phrases To Remove From Your Pitch

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

There are certain phrases used in startup pitches that kill the credibility of the presenter.

Here's a list of phrases to remove from your pitch:

"We have no competition."

If you have no competition, then you have no market.

This basically shows a lack of understanding of the current market landscape.

"We only need 1% of a billion-dollar market to make this successful."

This is basically a meaningless statement as it conveys no information.

This shows a lack of a strategy for entering the market.

"This is a conservative forecast."

No forecast is ever completely accurate, so it makes no sense to say it's conservative.

"Our customers love our product."

This doesn't give any solid information about product usage.

It's better to show the customers' actual engagement with the product to convince investors.

"We'll be profitable in the first year."

It's almost mathematically impossible to be profitable in the first year if you are investing for growth.

Consider replacing these phrases with more meaningful statements about the 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

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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Angel Investing Strategies

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

Most angel investors focus on one of two strategies.

They can be called Moneyball and Powerball.

The Moneyball strategy invests the same amount of money in each deal.

Each sector gets one investment.

There are no follow-on rounds.

Funds are considered in addition to startups.

The powerball strategy invests a different amount on each deal based on the strength of the team.

Specific sectors are chosen based on market outlook.

Half the allocation is reserved for a follow-on round.

No funds are considered, only startups.

Moneyball spreads the money out to find a hit.

Powerball looks to find the winners and double down on those.

Both strategies can work.

Consider which of these strategies you are trying to play for your 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

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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Say It Out Loud With Words

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

The key to a successful pitch is to articulate all the values in the deal.

This doesn't mean explaining how the product works in great detail

This also doesn't mean spending half your allotted pitch time trying to convince the audience that diabetes is a problem.

It does mean, however, that every value that has come into the startup is noted in the pitch deck with at least a logo or a bullet point.

The rule of pitching is that if you don't mention it, then it doesn't exist.

Here's a list to consider adding to the pitch deck:

All funding sources to date, including angels, angel groups, grants, VC funds, and more.

All partners, team members, and others who have contributed to building the startup.

Any exits and positive outcomes for startups led by the team.

All customers who have bought the product or given feedback.

Include a logo for each one somewhere in the pitch deck.

Investors look for evidence that investors, customers, and partners are supporting you.

For each value, say it out loud with words.

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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Add Consulting to Your Startup Launch

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

In launching a startup, consider adding a consulting program.

New products and services often require additional training and services to help the customer achieve success.

Over time, the product improves to the point that the customer can install and run it on their own.

In the early days, use consulting to help customers become successful.

The startup raising venture capital will need to be scalable to receive funding.

Consulting is not scalable.

Investors will downgrade the company for funding if a substantial amount of revenue comes from consulting services.

Use a second company to provide the consulting.

It can form a partnership with the main startup to provide consulting services.

If consulting proves valuable to the startup, then it can be bought by the startup and rolled into the main company later.

Many startups find that their product is not ready for prime time at the launch.

By providing consulting services, one can overcome the initial product weaknesses and potentially make additional revenue to pay the bills.

Consider adding consulting to your startup launch.

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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How To Evaluate AI Startups for Investment

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

Artificial intelligence brings a new type of startup to the investor for funding.

Here is how to evaluate AI startups for investment.

Market opportunity.

For new applications that have never been done before, AI offers a greenfield opportunity.

Estimate the current size of the target market and the value of selling to each one.

This often generates an outsized total available market as one solution could cover the entire market.

For existing applications that AI enhances, use the existing sales figures for products sold into the market and add the incremental value of the AI-enabled product.

Product opportunity.

Review how AI-enablement will enhance the capabilities of the product.

Will this be a major or minor productivity improvement?

Moat.

How much of a moat will AI bring to the product?

The more algorithm tuning and training data used, the stronger the moat.

Deployment.

What will it take to deploy the solution?

The broader the go-to-market strategy, the more valuable the product.

Consider these elements in evaluating an AI startup 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.

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