Tips on How To Follow Up

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

In raising funding, investor follow-up is the critical work of the campaign.

Timeliness is a key factor.

Each day that passes without the follow-up degrades the value of the interaction.

Here are some tips on how to follow up with investors:

After a pitch, set up a follow-up schedule starting with the day after the pitch.

Then repeat the follow-up three days later, one week later, and two weeks later.

This keeps the founder top of mind.

Each follow-up provides new information about the business and how it is doing.

Use the follow-up process to build a relationship with the investor.

Set up a system to track investors and plan out updates.

Take casual conversations with investors and turn them into coffee meetings to discuss further.

Take investor questions seriously and answer the next day.

Send a thank-you note to those who made an introduction and the results that came from it.

Timeliness of follow-up is as important as the content provided.

Consider these tips on how to follow up with an 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

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Best Practices in Raising a microVC Fund

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

In raising a microVC fund, consider the following:

It takes 12 to 18 months to raise an initial fund.

Most funds start off in the $10M to $25M range.

With a successful funding record, one can move up to the $35M to $50M range.

Limited partners will be family offices and high-net-worth individuals.

In raising funds, consider these best practices:

Show how your fund is unique and differentiated from other funds.

Make clear the vision for the fund and what it will accomplish beyond the return to the investor.

Show the competitive advantage of the team and its network.

Highlight the track record of the team in deploying capital.

Look for an anchor investor who will lead the fund and place a sizable amount to start.

Build out the team so the fund is not a solopreneur endeavor.

Fund closings range from 3 to 5 rounds over the course of the raise.

Give incentives to investors to join the fund, such as access to direct investments that are doing well.

Consider these best practices for your microVC fund.

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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Investors Want To Know How the Business Will Be Successful

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

Most first-time startups pitch their product to the investor rather than their business.

They often spend a great deal of time on how the product works.

Investors want to know how the business will be successful, not how the product works.

Shift the focus on the product from how it works to how it enables business success.

Describe how the business will create the product at a reasonable cost.

Show how customers will discover it and what steps the business will take to make them successful with it.

Discuss how the product impacts the customer, such as saving them time, money, or effort.

Show the monetization model and how customers will pay for it.

Show why the customer will continue using it over time.

All of these elements point to a successful business.

Focusing on how the product works misses the point the investor seeks.

Instead, show how the business will be successful.

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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What LPs Look for in First-Time Fundraisers

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

Limited Partners investing in venture capital funds are similar to startups raising funds from venture capitalists.

In pitching LPs to invest in a fund, include the following:

They need to know the basic context of the fund.

Show the sector, stage, investment thesis, and the target fund amount.

Summarize this information so it’s clear and easy to find.

Show why the target sector is ripe for investment today.

Investors want to know the track record of the team.

While the team may not have raised funds before, they must have experience with funding startups, such as angel investing.

Show the track record from this work.

Showcase the team’s diligence process and how they screen and analyze startups.

Articulate the team’s competitive advantage.

This is most often from their network of who they know.

Include the cost of the investment, such as management fees and carried interest.

Note the payback terms to the VC and when it starts.

This is often after the investor receives their initial investment back.

Showcase this information in summary form on the first slide of the deck, as investors will want to know more before digging into the details.

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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In this episode of Investor Connect, Hall Martin sits down with Tien Wong, CEO and Chairman of Opus8, a private investment advisory firm focused on life sciences, health tech, and marketing tech. Tian shares his extensive experience in leading and funding high-growth technology ventures and discusses the evolution of the Connect Preneur networking event, which has become the world's largest virtual pitch event and hosts eight in-person events annually across the East coast and Mid-Atlantic region.

He highlights the current 'funding winter' and offers advice to entrepreneurs on surviving this challenging time by staying focused on building traction and maintaining profitability. Tien also emphasizes the importance of building authentic relationships with investors and shares insights into how diverse founders and investors enhance better outcomes and innovation. He outlines Opus8's strategy in expanding nationally and internationally, focusing on high-quality companies and investor relations.

Visit Opus8 at www.opus8.com/

Reach out to at https://www.linkedin.com/in/tienwong/ or twong@opus8.com

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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How To Perform Investor Diligence

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

Startup founders raising funding should ask as many questions of the investor as the investor asks the founder.

Here are some key points in the founders' diligence on a prospective investor:

Before engaging investors, research them online regarding their portfolio, investment thesis, and investment team.

The more one knows about the investor, the better one can approach and engage them.

Review the investors' online content.

Research the investors’ social media, blogs, and other postings to learn more about their position in the market.

Evaluate the investor's reputation.

Ask other startup founders about the investor and how they work with founders.

Talk with the investor's portfolio companies about their experience.

This may give a somewhat biased viewpoint since the founder received funding.

Assess the investor's operational capabilities and how they can help the startup.

The investor team often indicates what support they can offer the startup.

Understand the investors' values and what they prioritize in a startup.

For example, impact investors will look for a social benefit in addition to a financial return.

Consider these points in diligencing a potential investor 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/
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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The Cost of a Fundraise

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

Fundraising will take time and money to complete.

For the early stage, it’s primarily the time spent.

Later-stage fundraising will cost money as well.

Here are some key costs to consider when planning a fundraiser campaign:

For those using a broker to raise funding, they take 5 to 8% of the raise and an additional 2-3% for expenses, often in the form of a retainer.

Short-term loans in the venture space cost around 25% of the funds raised.

A portion of this is paid in cash, and some in equity.

Those who use factoring to fund product builds will pay around 15% of the funds raised.

For crowdfunding raises, the cost of social media and email marketing ranges from 10-20% of funds raised.

Legal fees for papering the deal cost around 1% of the funds raised.

A $2M funding will cost around $20K in fees.

While in the past, the investors may have paid the legal fees to paper a deal, it’s more common today that the startup will pay for it.

A savvy investor will also know that the startup is paying for the fees out of the funds raised.

Consider these costs in raising funds 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/
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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Trigger Words To Show a Value Proposition

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

Investors look for the startup's value proposition to make an investment decision.

In pitching, investors use these trigger words to show a value proposition:

High growth.

Note the growth rate of the company and the speed at which things happen in the startup.

Scalability.

Show how the business model and the virality of the product position the company to scale.

Traction.

Show the current revenue run rate and how it is increasing.

Track record.

Show the team’s track record in starting, growing, and exiting businesses.

Pain point.

Show how the product is a painkiller and not just a vitamin.

Disruption.

Show how the company is disrupting the industry with new technology or business models.

Inflection point.

Show how the growth story has hit an inflection point and is trending higher.

Milestone.

Show how the growth of the business has reached a milestone event, triggering the fundraiser.

Use these trigger words to show a value proposition.

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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