The Value of Regular Investor Updates

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

Founders who have raised funding should give their investors regular updates.

Here's the value of regular updates to the investor:

It reminds the investor what you do and what progress you have made.

This becomes useful later when the founder goes to raise the next round.

It maintains the relationship between the founder and the investor.

This becomes useful later when key decisions are made and both sides must come together.

It keeps the conversation going so no single meeting becomes a make-or-break event.

This takes the pressure off.

It informs the investor of how the founder thinks and works.

This helps the investor understand the strengths and weaknesses of the founder.

It provides the backstory of how the startup reached its current position.

This helps the investor understand what has worked and what has not.

Investors should press the founder for updates if they are not receiving it.

Founders should find a way to provide regular updates to their investors.

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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Pre-Sell Your Product To Raise Funding

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

Startups raise funding outside of family and friends after they have a product with some revenue.

Founders who have a track record of building and selling startups can raise on an idea.

Everyone else must validate the business before investors will consider funding it.

Pre-selling the product is one path to funding a startup.

This is commonly used in the crowdfunding space, where a founder raises funding to build and sell a product.

The same concept can be applied to venture-level businesses.

One can sign up customers with a $1K prepayment to be part of the product-building process.

This works well for funding software startups.

This creates a list of interested customers who paid something to engage with the process.

In addition to a small investment, the founder could also ask for a half day each week to build the product specification and gain feedback on the results.

Just as in crowdfunding, where the average investment ranges from $15 to $100, so in the tech space, one can sign up customers with a nominal amount of $1k to $5K.

Consider pre-selling your next product to engage a customer base.

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.

Revenue First, Salaries Second

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

In launching a startup, the first goal is to generate revenue.

Salaries come later and in some cases much later.

Some founders look to the startup as a source of income.

Fundraising from investors is not the answer to the salary question.

Investors will not fund a startup that can't generate enough revenue to prove the market wants it.

Fundraising comes into play when there's product and market validation.

The product works, and customers will pay for it.

Founders often take second jobs to pay their bills while the revenue ramps up.

Once revenue is established and growing, then salaries come into the picture. It's often the case that the second job becomes a part-time job.

Later, those part-time jobs will go away.

Building a startup is hard work.

Before launching, identify the path to revenue generation through an initial product.

Selling will be the primary goal of everyone on the team every day.

As a founder, consider how you can reduce your cost of living for a period of time while you ramp up the business.

Investors look for commitment in founders who can make this situation work.

It's tough, but it's doable.

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.