How To Find a Cofounder

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

A founding team includes someone who is building it and someone who is selling it.

It's important that the startup has two founders.

Here are some steps to find a cofounder for your startup.

Figure out which role the founder is taking and look for a cofounder to fill the other.

The key to finding and recruiting the co-founder is to show how the business will be successful.

This typically starts with a customer or market ready to pay for the product to be produced.

Show the key insight you have into the market and how you can use it to create a successful business.

Validate with customers who are ready to buy the product and place them on a waitlist.

Sign up customers who are ready to pay and provide the service manually till you have an automated solution.

Gain agreement on the goals of the company for the coming three years.

Negotiate compensation based on what each founder is bringing to the table.

Use the negotiation process to test out the other's skills.

Go on joint sales calls to see how each performs.

Work on the product development to see what progress can be made.

Consider these steps in finding a cofounder.

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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Key Attributes of a Good Angel Investor

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

Anyone with an accredited investor status can become an angel investor.

Here's a list of key attributes of a good one:

They know their industry well and how to invest in it.

They know people and can size up a founder to determine if they are a fit for a successful startup.

They have actually run a startup before and know what it takes to launch and build a successful one.

They take an active role in the startup and help the founders along the way.

They add value to the startup.

They also add value to other angel investors through coaching and mentoring.

They look for startups to fund and not to provide consulting.

They know how to screen through a volume of deals to find the viable ones quickly.

They provide quality feedback to the founder, raising funding.

They know how to perform diligence and where to focus the time spent on it.

They reserve funds for a follow-on round.

Look for these qualities in an angel 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/
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 Calculate Warrant Coverage

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

A warrant is the right to buy a company's stock at a specific price or range over a certain time period.

The warrant acts like an option, but it issues stock, which dilutes the cap table.

Founders raising funding offer warrants to incentivize investors to fund the company.

Warrant coverage is the number of warrants an investor receives based on the size of their investment.

It's typically stated as a percentage such as 5% or 10%.

Here's how to calculate warrant coverage:

Take the number of shares at a specific price per share as the initial investment.

Take the number of shares to be provided as warrants.

Divide the number of warrants by the number of shares of the initial investment to reach a warrant coverage amount.

Here's an example.

The founder offers 50,000 additional shares to those who invest in 500,000 shares at $3 per share.

The warrant coverage is 50,000 divided by 500,000 at $3 per share, generating a 10% warrant coverage.

Consider these calculations in offering warrants in 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.

_______________________________________________________

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.