The Benefit of Investing in Tranches Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Tranching the investment means breaking it down into tranches or rounds. Tranche comes from the French word meaning slice. Investors find it advantageous to break their investment into rounds. In …

On this episode of Investor Connect, Hall welcomes Lance Tkach, Co-Founder of Printed Technologies. Located in Dallas, Texas, Printed Technologies is leading the charge to revolutionize the home construction industry through the integration of automation, AI, and large-scale 3D printing. With the U.S. facing a shortage of over 7 million affordable …

Aviate, Navigate, Communicate Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In flying an aircraft, there’s a saying regarding priorities: “Aviate, Navigate, Communicate.” First, fly the plane. Second, navigate to where you want to go. Third, communicate with others. This priorit…

Sell Your Business Instead of Shutting It Down Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Many startups fail to achieve product-market fit or breakout growth. Founders who decide to move on most often shut down the business. Instead of shutting it down, consider selling your …

State the Purpose Behind the Startup Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In pitching, start with the Why of the business. Why does this business exist? It’s important to state up front the purpose. This is different from the problem to be solved. The purpose is similar…

The Downside of SAFE Notes Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. SAFE Notes were designed to simplify the investment process. By removing many of the terms found in equity agreements, SAFE Notes reduce the complexity of startup fundraising. SAFE notes are similar to a wa…

How To Raise a First-Time VC Fund Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Raising a first-time venture capital fund is hard work. Here are some key steps in raising a VC fund for the first time. Build a track record of successful investing by joining an angel network and m…

In this episode of Investor Connect, we engage with Nathan Monty, co-founder and CEO of Enamel Pure, a company pioneering advancements in dental hygiene through novel laser technology. Nathan walks us through the development of their innovative product, 'Loon,' which uses a laser for non-contact teeth cleaning, hardening, and whitening, paired with…

Fundraising Hones the Founder's Skills Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Fundraising brings not only capital to the startup, but it also hones the founder’s skills. Here are the skills the founder will improve: Relationship building -- the founder learns how to build…

Negotiating the Valuation Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Negotiating the valuation is a key step in the fundraising process. Here are some helpful strategies to consider in negotiating the valuation: Understand the comparable valuations in your space. These are ca…

Put the Why Before the How Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In pitching, it’s important to start with the why before diving into the how. The founder often dives straight into how things are going to work. In a biotech startup, the founder will jump to how their the…

How To Build a Relationship With a VC Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funding, it’s important to make contact and build a relationship with a venture capitalist. Here are some key steps in building that relationship before you need to raise funding: Make…

Use Angels for the Initial Fundraise Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In the earliest stages of the fundraise, angels are often a better fit than venture capitalists. VCs come into the round when there’s strong traction and the business is well-formed. Angels are go…

In this episode of Investor Connect, we welcome Ken from Synaptically, who introduces a groundbreaking personalized therapy for Alzheimer's disease. He discusses their innovative use of Transcranial Magnetic Stimulation (TMS) paired with Electroencephalograms (EEG) to achieve unprecedented results in slowing down disease progression. With two succe…

Key Series A Metrics Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Series A fundraises focus on growth. The goal of the fundraising pitch is not to show that you can sell the product to someone, but rather that you can grow the business. Here are some key metrics to evaluate the…

Uncapped SAFE Notes Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. SAFE notes are commonly used in startup fundraises. They most often come with a valuation cap. This means the valuation will not rise above that cap no matter what the priced round that follows. For an investor, a…

Fundraising Requires a Process Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Fundraising is a complex problem that requires ongoing focus and effort over a period of time. It is not just one check or milestone but rather many. Fundraising requires a process Here are some key ste…

Investor Introductions – the Good, the Bad, and the Ugly Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Investor introductions can be helpful in connecting with new investors. Here is an example of a good introduction: I notice this investor funded a company with the same busines…

In this episode of Investor Connect, Hall T. Martin welcomes Brian to discuss emerging opportunities in deep tech spaces. Brian emphasizes life sciences and healthcare technologies, highlighting investments needed to innovate and control costs. He points out the inefficiencies in the current healthcare system and the potential for AI-driven remote …

Showing Traction at the Seed Level Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. At the seed stage, the product is just going into the market. The customer engagement is beginning. Here are some steps to show traction at the seed level: Show signs of repeatability. This can come…

The MicroVC Pitchdeck Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. MicroVCs need to raise funding to invest in startups, just as startups need to raise funding for their own business. For MicroVCs raising funding, consider these points in building the pitch deck: Call out two t…

Investor Access to Customers Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In the diligence process, investors may want to talk with the startups' customers. Their goal is to determine how well the product works and how committed they are to the startup's solution. This can be a…

The CEO Leads the Fundraise Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In a fundraiser, the CEO should lead it by setting the strategy and engaging investors. This doesn’t mean the CEO must do everything by themselves. It does mean that the CEO does the pitching and investor …

Non-Dilutive Funding Options Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Startup funding comes in two forms: dilutive and non-dilutive. Equity funding is dilutive in that the fundraising reduces the ownership of the founders. Debt is non-dilutive in that the fundraise doesn’t …

When To Consider Venture Debt Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In startup funding, there is venture capital and venture debt. Venture capital takes an equity stake in a startup in return for funding. Venture debt makes a loan to the startup for that funding. Both ha…

In this episode of Investor Connect, Hall T. Martin, CEO of 10 Capital, introduces co-host Kat DeLillo and special guest Brian Wood of Wave Ventures. Brian delves into the innovative approach of Wave Ventures in partnering with universities to commercialize intellectual property. He shares the backstory of Wave Ventures' collaboration with Baylor U…

How To Stand Out From the Crowd Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funding, it helps to stand out from the crowd of other startups pitching. Most founders will give the standard pitch, often with slides in the same order. Here are some key pointers to make …

Show the Business Model Unit Economics Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Early-stage companies pitching investors often have little revenue traction. In place of traction, show how the business model performs on the unit economic level. Calculate the cost of acquirin…

Raising Funding in a Down Market Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The best time to start a new business is during a down market. Labor is plentiful. The competition is on their heels. Yet, customers are still looking for a solution to their problem. In a down market…

What Angels Look For Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Angel investors are not professional investors in the same way as venture capitalists. Angel investors are typically successful business people who want to invest in startups. The old angel saying is, they want t…

In this episode of Investor Connect, we welcome Alan Foreman, the CEO of Be Secure, who discusses the transformative journey of his company in the realm of heart health. Alan shares that he founded Be Secure nine years ago after a lengthy career in Accenture's Life Sciences division. Currently, the company is on a $12 million growth raise to commer…

First Meeting With an Investor Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. After a number of calls with a prospective investor, there comes the first meeting in person. Here are some key steps in running that meeting: Introduce yourself and your team. Show the market you are p…

Early Stage Traction Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In the very early stage of the life of a company, traction can be more than just revenue growth Here are some key traction points to look for. The founder has an idea. The founder has an idea and a pitch deck. Th…

Why Now? Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funding, it’s important to instill a sense of urgency in the fundraiser. One of the key elements is describing why now is the right time for this fundraiser. Follow these steps to show how everything is aligned fo…

Build Your Presence With a VC Fund Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funding from a VC fund, it’s important to understand the partner team. Each VC fund has a number of senior partners, junior partners, and others such as analysts and scouts. One of the pa…

How To Say No to a Startup Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Investors receive pitches from startups almost every day. Many of these startups simply don’t match the investment thesis of the investor. Here’s how to say no to a startup. Respond with the same level of e…

Don’t Play the Scenario Game in the Pitch Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Founders are confronted with many options for their fundraising. If they raise more, they can achieve more milestones. If they raise less, they can achieve fewer milestones. Some founders pla…

In this episode of Investor Connect, Hall T. Martin talks with Mike Sloan, CEO and founder of Simple Labs, about their groundbreaking product, Cogni. Mike shares insights from his background in both bourbon and wine country, emphasizing the industry's challenges such as significant losses from evaporation and spoilage. Cogni offers a comprehensive …

Raising a Series B Round Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising a seed or Series A round, the story carries the fundraising pitch. Investors in those rounds are looking at a seven to ten-year trek to the exit. In Series B, the time to exit is much shorter. The …

European Waterfall Model Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Venture capital funds use different payback structures. Each varies the structure for how the Limited Partners receive their returns. The European waterfall model does not pay back the carried interest to the…

How Performance-Based Valuations Work Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In startup funding, the valuation is often fixed and does not change. Performance-based valuation changes the valuation if certain conditions are not met. Here’s how performance-based valuations …

Roadmap for Medical Device Startups Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The path for a medical device startup is clearly defined. In building a medical device startup or diligencing one, consider this roadmap. Market requirements -- establish the current state of the m…

In this episode of Investor Connect, Hall Martin chats with Christopher Ezold, a partner at the Pennsylvania-based law firm Wisler Pearlstine, which specializes in business, employment, and corporate law. Christopher dives deep into the fiduciary duties of board members, emphasizing the duty of care, loyalty, obedience, and confidentiality. He expl…

Building the Competition Slide Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The startup pitch deck should contain a competition slide. Some founders start the pitch with, ‘we have no competition’. Avoid this, as investors will interpret this as if there is no market. The purpos…

Party Rounds – Going Without a Lead Investor Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funding, many founders believe they can’t raise funding without a lead investor. At the seed level, this is not necessarily the case. Founders should launch their fundraising ca…

SaaS Growth Metrics Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are several key SaaS metrics to know in evaluating a startup. Here’s a summary of the key metrics: SaaS Quick Ratio -- New MRR divided by the churned MRR. This measures how efficient your growth is. Low effi…

How To Build Momentum in Your Fundraise Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Fundraising has its ups and downs, including long patches of slow-paced activity. Here are some key steps in building momentum for your fundraiser. Always break the total fundraising into small…

How To Show Your Market Size Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The market slide in the startup fundraise pitch shows the total available market opportunity. Here are some key steps in showing your market size. Show the components of your market, including the number …

In this episode of Investor Connect, Hall T. Martin welcomes Herbert to discuss the pivotal role family offices play within the entrepreneurial ecosystem. Herbert highlights the importance of understanding local accelerators, venture capitalists (VCs), and other funding sources in the community during the investment due diligence process. He emphas…

Best Practices in Telling Your Story Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Storytelling is a key skill in fundraising. Use these best practices in telling your story in the pitch to investors: Declare the problem as the villain in your story. This sets up a conflict. Rai…