How Not To Follow Up With an Investor

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

Founders raising funding should consider their approach to following up with an investor.

Here's a list of ways not to do it:

Have an admin send out the email follow-ups.

At this stage, the founder should be building a relationship with the investor and should send all correspondence.

Sending a formal email.

The founder should make the email warm and friendly.

Passing a new entrepreneur to the investor.

It's best to focus on your own deal at this stage.

Introducing others may come later.

Fill the email with buzzwords and cliches.

The email should be informative and not a brochure website.

Jumping straight to the ask in the first sentence.

It's best to set the context of the email, such as new information about customers.

Skipping the updates about the business.

Never send an email without some new information about the startup.

It's best to continually inform and educate the investor.

Consider these steps when following up with an investor.

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/
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Investor Questions and What They Mean

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

Founders pitching investors can learn a great deal about an investor by the questions they ask.

Investors apply the founders' pitch to their investment thesis.

They work through the pitch to see how it does or does not fit.

For example, questions focused on the financials show the investor makes decisions based on the numbers.

Questions focused on the team show the investor makes decisions based on the skills of the founder.

After assessing the interest of the investor, the founder can position the deal as a good fit by focusing on the investor's area of interest.

For investors focused on financials, the founder can showcase the other numbers in the deal that are relevant, such as growth rate, gross margins, and the time to break even.

For investors focused on the team, the founder can discuss further the experience and skills of the team.

Consider the interests of the investor and reposition the discussion to focus on that 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.

How Angels Are Different From VCs

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

Both angels and venture capitalists invest in early-stage companies.

Here are the key differences between the two:

Angels invest their own money while VCs invest other people's money.

This makes the angel investor more risk-averse, while the VC often takes bigger risks.

Most angels hold down a day job while most VCs are full-time in that role.

Angels don't get paid to invest while VCs charge a management fee on the funds they deploy.

Angels typically invest small amounts on their own unless they gather into groups and make a joint investment.

VCs employ larger sums of money because they collected funds from many Limited Partners during their own fundraise.

Most VCs lead the round if there isn't one, while most angel investors join party rounds rather than lead the deal, as it takes a great amount of time.

Angel groups can bring some of the angel investors closer to some of the benefits of the venture capitalist.

In pitching angels and VCs, keep these points in mind.

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.