Who Controls the Board

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

Founders who take on funding start the process of transferring control of the company to the investors.

As the funding moves from Seed to Series A, the investors increase their control.

Most seed-stage companies have no board of directors.

Instead, they often have a board of advisors who can provide advice and direction.

At the Series A, the board of directors is often formalized with two from the investor side, two from the company side, and one independent who brings industry knowledge.

As the company takes on additional funding, it brings new investors onto the board.

Most board positions last two to three years.

As new investors come on the cap table, they take the place of previous investors on the board.

There are exceptions, as some founders are able to maintain control of their board.

This is rare, as most founders lose their influence as their strength lies in establishing and growing the startup.

At some point, the influence shifts to board members who bring new skills, such as scaling and working towards an exit.

Founders should know that funding brings a change of control, even if it's a little bit at a time.

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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Bringing an International Company Into the US Market

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

There are several reasons international companies expand into the US market.

The US market is the largest market in the world and provides the most opportunities to the company to sell its products.

Funding in the US is more available than in most other countries.

Startups moving to the US should locate near current customers or in cities with a concentration of startups in the sector.

Those coming from Europe focus on New York City, as it gives the most time overlap with Europe.

Most companies hire a sales or business development manager to build revenue in the US market, which is the initial work to be done.

Once established in the US, the company can start to raise funding from US investors.

It's difficult to raise funds from US investors without a US presence.

This is due to the timezone issues and the ability to meet with investors for follow-ups.

International startups should consider establishing a presence in the US for not only sales growth but also fundraising.

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.

How To Foster the Startup Community

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

Investors should foster the local startup community.

The more vibrant the community, the better the deal flow.

Here are some key ways investors can foster it:

Provide events and activities that connect and network startup founders with co-founders.

It takes a complete team to make a startup successful, so it's best to foster team building.

Connect startup founders with business owners who can use the startups' solution.

This fosters more funding for the startup through customer revenue.

Connect startup founders with startup-friendly service providers.

These include attorneys, fractional CFOs, and accountants.

Those with startup-friendly services can help the startup community grow.

Finally, change the community's perception of startup founders as looking for something to do while between jobs.

Some communities look down on startups as the unemployed.

Foster the perception that startup founders are doing important work and need the support of the community.

Consider these steps in fostering the startup community in your area.

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.