Investors Want Optionality

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

Investors follow many startups before investing.

They stall in making an investment to be certain it's a good one.

They look for additional information about the startup, its product, and market before making a final decision.

Investors want optionality.

They want to have as many options available as possible.

This gives them a better return on their investment.

Many investors drop out of a deal without telling the founder.

They want the option of coming back in if the deal turns out to gain traction or momentum later.

This leads many founders to chase investors who have basically said no to the deal.

Founders should ask for the investors' status on the deal.

Are you interested?

If so, how much are you considering investing?

Assuming an investor is interested without confirmation is a dangerous situation.

Once the investor decides on a deal to fund, they typically say no to other deals in the running.

Gain clarity with prospective investors about investing in 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.

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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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One and Done Is Not Going To Work

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

In raising funding, the founder will need to follow up with the investor to close.

After the pitch, some founders send one email to follow up.

The one-and-done approach to follow up will not work.

It takes multiple follow-ups and outreach to close an investor.

The investor is searching for more evidence that the startup will be successful.

This could be information around the growth of the market, the productivity of the technology, or the strength of the team, to name a few.

Continue to give regular updates to the investor with a focus on traction and market adoption.

It takes seven touches to close a sale, so it takes seven touches to close an investor.

Budget time and resources for the follow-up effort.

Set up systems such as a CRM to provide updates to the investors following the deal.

Set up follow-up calls and meetings to showcase the results of the business.

It takes time to follow up, but that's where the results come in.

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.

Fundraising Takes Time and Focus

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

Fundraising is a full-time job.

It takes time and focus to do it properly.

For some founders, it's a job within a job.

In running a fundraise campaign, the founder should consider it their full-time job.

Their startup duties should be handled by someone else for the time it takes to raise the round.

Some investors will come in more easily than others.

For those investors who want to be in the deal and are ready to join, have them sign the investment documents.

This is often done with a convertible note in which the valuation is not set.

Most investors will require time and attention to close.

The lead investor, in particular, will take time to negotiate the valuation and other deal terms.

Be sure to budget time and attention for the lead investor negotiation.

These often take up to two months to complete.

In engaging investors, identify the type of investor you are talking to and understand how much time it will take to close the investment.

Always continue the fundraising process till the money is in the bank.

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.