How To Hone Your Deal Selection Process

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

Investors funding startups go through a great number of deals to find the ones to fund.

The investor won’t know for several months or years if the deal is going to work out or not.

The startup’s fundraising is typically over after six months or a year.

The investor often brings their personal business experience to the selection process.

For startups, this may or may not be the best way to screen startup deals.

Markets and technologies change over time, so it’s important to keep up to date with one's selection process.

Here’s how to hone your deal selection process:

For the next twenty-five startups, write out which ones you would invest in and why.

Do the same for those you would not invest in and state why.

Revisit those twenty-five startups three to six months later to find out what happened to them.

Compare their outcomes with your written projections.

This will tune your selection process by giving you more factors to consider.

From time to time, hone your selection process to find out what’s working in the startup world and what is not.

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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In this episode of Investor Connect, Hall Martin welcomes Abe Kwon, a partner at Lowenstein Sandler, LLP, a renowned national law firm with a strong focus on emerging companies, venture capital funds, and investors. Abe Kwon shares his extensive experience as a startup venture capital lawyer and provides key insights into the critical legal considerations for early-stage fundraising, especially regarding venture capital, SPACs, and alternative capital vehicles.

The conversation delves into best practices for governance and board structuring as companies grow, emphasizing the importance of trusted legal counsel in navigating these complex waters. Abe Kwon discusses the growing trend of cross-border investments and the complexities early-stage startups face when hiring contractors or employees abroad. He highlights the resurgence of crypto and digital securities, providing his perspective on evolving legal requirements and the importance of staying updated with regulations. The episode also covers strategies for preparing for M&A and IPO events, stressing the importance of having a solid legal framework from day one to ensure smooth exits.

Abe Kwon shares lessons learned from challenging deals and offers practical advice for founders in choosing the right legal partner and preparing for due diligence. The discussion wraps up with an exploration of trends in the ESG and impact investing space and how legal frameworks are adapting to sustainability-based capital. Abe Kwon also touches on his involvement in national innovation ecosystems and the impact on local startup communities.

Visit Lowenstein Sandler LLP at www.lowenstein.com/

Reach out to at www.linkedin.com/in/abekwon/; akwon@lowenstein.com

_______________________________________________________

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.

The KISS Note

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

KISS in the startup world stands for Keep It Simple Security.

It’s similar to a convertible note.

Here are the differences between a KISS and a convertible note:

The KISS gives the holder the right to participate in future funding rounds.

Convertible notes only convert the current debt into equity.

The KISS gives the holder a “most favored nation” clause, which means the holder gets the best terms of any investor in the round.

The KISS gives the holder additional liquidation preference rights.

Convertible notes give no liquidation preferences.

The KISS note is more investor-friendly than a convertible note.

In addition, the KISS note provides representation and warranties, which means the founder has disclosed all relevant information and is liable if not.

The KISS can be transferred to others without permission from the founder.

The KISS, like convertible notes and SAFE notes, is easy to use and simple to apply.

Consider a KISS note for your fundraiser.

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.