How To Get Your Fundraise Started

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

Starting a fundraise can be a daunting task for the first-time founder.

Here are some key steps on how to get your fundraise started.

Research the market by talking with other founders who are raising funding.

Check the current climate for fundraising.

Look at their fundraise documents, including the pitch deck and terms sheet.

After reviewing four to five fundraises, the content and format of the documents will be clear.

Break the fundraise campaign into manageable tasks.

Start with investor document preparation, then build a list of potential investors, and finally, set up a timeline for meeting the investors.

Look for advisors who know the fundraising process and can give guidance.

Spend time with other founders raising funding to learn from their experience.

Practice your pitch and watch other founders pitching to hone your presentation skills.

Start pitching to family and friends and then draw the circle wider to friends of friends and finally seek out investors who you don't know.

Consider these steps in launching your fundraise.

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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Return on Mission

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

Startups generate a return on investment for their investors by measuring how much their business generated funds returned compared to investment.

For the impact space, one can calculate the return on mission.

Here is how to measure the return on mission for your impact startup.

Calculate the overhead-to-program expense ratio.

See how much of the program cost goes to overhead.

Overhead is anything that does not directly drive the cost to produce the product or service.

This should be less than 10% in most cases.

One can calculate return on mission by dividing a financial investment by the amount of producing the product or service.

For example, if an expense is $10K, and the cost of producing a product or service is $1K, then the cost of the expense is 10X.

The objective is to determine how much a business expense compares to the cost of providing a service or product.

This casts expenses in terms of producing the product or service, which frames the expense in mission terms.

Consider calculating the return on mission for your impact 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

Please follow, share, and leave a review.

Music courtesy of Bensound.

How To Connect With Investors in Your Pitch

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

In pitching investors, founders should strive to connect with them.

Here are some key steps to connect with investors:

Fit the startup fundraising standards.

Too many out-of-standard details such as fundraise amount, terms, and valuation will put off the investor.

For example, traditional first rounds are $500K to $1M.

Asking for $4M in the first round will have the investor wondering why this is different.

Provide the standard information investors look for, including problem, solution, and how it works.

A good practice is to say what you do in five words or less so the investor knows what the startup does.

Without context, the investor will have a hard time connecting to your deal.

Many founders talk about how the product works without first identifying what problem they are solving.

Avoid long-winded stories and get to the point.

Include the fundraising ask with a clear use of funds.

Investors want to know where the business stands today.

Show current traction and avoid rosy projections as the investor knows those rarely come true.

Finally, demonstrate the team's capabilities.

Since there's little revenue at this stage, the investor will make the investment decision on the team.

Consider these steps in connecting with investors in your pitch.

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.