Be Founder-Friendly To Gain More Dealflow

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

Founders live in the center of the startup world and thus see many companies raising funding.

A startup investor will do well to tap into the knowledge of founders about other startups raising funding.

An investor who treats founders well will find they are often amenable to making referrals.

Here are some key steps on how to be founder-friendly.

Be timely with founders' requests for information such as signed term sheets and invested funds.

Make life easier on the founder, as they have plenty of other investors who will end up taking their time for special questions and unique situations.

Follow up investor updates with helpful information and words of encouragement.

As often as possible, try to help with founder asks including introductions.

Update the founder on what you are looking for in startups.

Ask for introductions to other founders where they fit the investment criteria.

Develop an expertise or skill that founders need and build a reputation for providing some level of it at no cost to founders.

This will give founders an easy way to introduce the investor to other startups.

Consider these steps for being founder-friendly.

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/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
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Founderflow vs Dealflow

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

Startup investors spend their day looking for quality deals.

There are business plan competitions, demo days, and other formats where founders pitch.

Then there's warm introductions and referrals.

The quality of these deals tends to be higher.

Most investors don't take time to refer a low-quality deal.

Instead of looking for dealflow, search for founders

Look for successful founders and track their progress.

Here are several reasons to track founders:

They often know how to find good ideas for startups.

They know other founders who have found a good idea and are now raising funding.

They can help screen startups raising funding with more incisive questions.

They can help coach funded startups in the investors' portfolio.

They often know where to find quality deals.

They can make referrals to the ones that pass muster.

Build a network of experienced founders and check in with them often.

This is called Founderflow.

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 Qualify an Investor for Your Startup

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

Founders searching for investors need to qualify the investors for their deal.

Here are key questions to ask an investor before pursuing your fundraise:

Are they currently investing?

What was the most recent investment made?

How many of your funded companies achieved an exit?

How many of those exits were positive?

Do you make follow-on investments?

Do you lead fundraising rounds or only follow?

What operating experience do you have?

What do their portfolio companies say about the investor?

In most cases, the investor's money will be helpful.

The purpose of diligence is to understand what position the investor will take in the round.

In some cases, it's best to look elsewhere.

Consider these questions for qualifying an investor for your 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.