Desperation Is Not a Good Look for a Startup

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

Founders raising funding are often under the gun with a dwindling cash account.

Some founders mistakenly use this as part of their pitch.

They emphasize the need the founder has rather than the return the investor will receive if they fund the startup.

Investors look for fundable companies.

Those in desperation are not good candidates for investment.

It's best to come up with a backup plan.

Some startups turn to consultation work to pay the bills.

Others look for grant funding to keep the lights on.

Still others reorganize the company and move to a bare-bones expense plan.

It's best to do this six months before the cash runs out, as it gives the founder time to launch another plan.

Waiting till there's only 30 days of cash left in the bank gives the startup too few options.

Desperation is not a good look for a startup, so it's best to avoid the situation altogether.

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/
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Key Drivers for Startup Investing Returns

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

Startup investing returns vary greatly from one investor to the next.

Here's a list of key drivers that provide startup investors with a return.

High-quality dealflow.

Many startups seek to raise funding, but only the top 15 to 20% will provide a good return.

Rigorous due diligence.

It's easy to write a check, but difficult to diligence the startup.

Those with a rigorous diligence process achieve greater returns.

Active investing.

Investors who take an active role with the startup will achieve better returns.

Domain knowledge.

Those with a knowledge of the industry in which the startup operates will achieve greater returns.

Access to follow-on investors.

Those who know follow-on stage investors will achieve greater returns by facilitating introductions to additional capital.

Deal structuring.

Those who apply investor protections to the business will find better returns.

Follow-on funding

Those investors who can apply their own follow-on funding will do better.

Diversification

Investors who diversify across industry segments and stages of a company will have better returns.

Consider these drivers for your startup investing.

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 Keep Up With the Ever-Changing Startup World

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

The startup world is constantly changing.

It brings new technologies, applications, and business models.

The startup investor must keep up with the ever-changing startup world.

Here are some key tips on how to stay up:

Realize that one's beliefs about how the world works will at some point become obsolete.

Look for the drivers of change.

This could be breakthroughs in technology, new entrants into the startup space, or new ideas about how to run a business.

Avoid predicting the future.

Instead, look to solve problems.

New startups often look unworkable because they are nascent.

Test new ideas by how well it solves a problem.

Look for people who are good at solving problems.

Invest in those who have key insights into the solution.

Finally, hang out with those who traffic in new solutions.

It's okay to look to the future.

Just don't get set on any particular outcome, as it will almost always come out differently.

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.