Discussion Topics

Startup founders are successful because they execute. Many founders have ideas, but the execution separates the winners from the losers. Here are the core skills of a startup founder: They pick an idea and drive it all the way through to successful completion. They launch the startup and then proceed…

What makes for a great angel investor is a great fit for the startup. An angel is a great fit for the startup if they meet the following criteria: They have knowledge of your industry and can explain the insights into how it works. They have run or invested in…

In the startup funding world, there’s an SEC registration called a FormD. A FormD is an SEC filing for those who raised funding under Regulation D rules. It’s a public notice indicating an investment has been made. For companies receiving the funding, it lists the names or entities that made…

Running an angel network requires a source of revenue just like a startup. Here are some ways to fund an angel network: Charge membership dues. This is the most common form of revenue for an angel group. Charging the members generates more participation. This helps generate more funding for the…

In raising funding, startup founders must identify and contact many investors. Here are some key steps to getting a meeting with an investor. Research the target investor to identify what they are interested in. This could be a specific industry or sector. For general investors, focus on the top three…

Investors vary in the quality of the startup. There are some investors who bring gravitas to the deal that attracts other investors. Other investors are good, solid players in the market and can add value to the startup. Then there are the average Joe investors who are nice guys and…

The quality of the team, in particular the startup founder, is one of the most important factors of startup success. Here are some key qualities to look for in a founder.  Integrity is the most important quality, as this must be someone you can trust. Passion for solving the problem…

Valuation is a negotiation, not a formula. Before negotiating valuation with the investor, prepare for the discussion. Consider these points of preparation: Know the current market and what other companies are selling for. This is known as comps or comparables.   Have two to three examples of other company exits. Know…

There are certain phrases used in startup pitches that kill the credibility of the presenter. Here’s a list of phrases to remove from your pitch: “We have no competition.” If you have no competition, then you have no market.   This basically shows a lack of understanding of the current market…

Most angel investors focus on one of two strategies. They can be called Moneyball and Powerball. The Moneyball strategy invests the same amount of money in each deal. Each sector gets one investment. There are no follow-on rounds. Funds are considered in addition to startups. The powerball strategy invests a…

The key to a successful pitch is to articulate all the values in the deal. This doesn’t mean explaining how the product works in great detail This also doesn’t mean spending half your allotted pitch time trying to convince the audience that diabetes is a problem. It does mean, however,…

In launching a startup, consider adding a consulting program. New products and services often require additional training and services to help the customer achieve success. Over time, the product improves to the point that the customer can install and run it on their own. In the early days, use consulting…

Artificial intelligence brings a new type of startup to the investor for funding. Here is how to evaluate AI startups for investment. Market opportunity. For new applications that have never been done before, AI offers a greenfield opportunity. Estimate the current size of the target market and the value of…

Fundraising can be challenging both mentally and emotionally. Before launching your fundraiser, build your support network. In addition to building your investment documents, put in place people who can support you. Here’s a list of support to consider: Advisors — identify two to three people who can advise about fundraising….

Launching a startup is hard work. It takes time to build up the revenue to pay a living wage to the founders. So how does a founder pay the bills while launching a startup? Here’s one solution: Provide consulting and training services in the domain of the startup you are…

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…

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…

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…

Fundraising requires a set of skills. Those skills can be found in other areas. Here’s a list of skills and where to find them: Sales. Fundraising is fundamentally a sales process. One can transfer selling skills to fundraising. Marketing. Fundraising requires the ability to reach out to the investors to…

There are many valid reasons for raising funding. Here’s a list of reasons to consider for your fundraiser: The business is growing and is now ready to scale. It can be hard to bootstrap a scaling effort. There’s a clear need for a minimum viable product to establish the product…

Some startups seem to raise funding quickly and with great ease. The press coverage of startups often leads the reader to believe that the round closed in a short amount of time. In most cases, the startup spent substantial time planning and then campaigning to raise the funding.   It appeared…

Raising funding for a unicorn seems like a mystical art. The funding rounds are outsized compared to the norm. Here are the key components to raising funding to be a unicorn: The team has exits. If your team doesn’t have a history of successful startups, then build out your team…

Before launching a fundraiser, the founder should first develop a fundraising strategy. This is the plan for how to prepare and then launch a fundraiser campaign. Here are the key components of a fundraising strategy: Identify the problem to solve and ensure it is a substantial problem that will attract…

Startup investors look for revenue traction and momentum in the deal. Those with an idea only can struggle to raise funding, but it can be done.  Here are some key points to consider: Focus on the team, the problem, and the size of the market. Show the strength of the…

In startup fundraising, the discussion focuses on what the investor is looking for. This often comes down to a strong team, traction with the customer, a product with a moat, and momentum in the deal. A key component in raising funding is building a relationship with the investor. There are…

What Investors Are Looking for in Your Startup Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Investors funding startups look for key factors that point to the success of the…

Sales for a Biotherapeutic Startup Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In a tech startup, the customer is the one who buys the product. In a biotherapeutic startup, the…

Tools for Fundraising Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Before launching a fundraising campaign, set up the tools you’ll need. Here’s a list of key tools to support…

The Four T’s of Startup Investing Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. There are many ways to evaluate a startup. For investors funding SaaS startups, here are the four…

How To Pitch in a Down Market Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Down markets change the care abouts of the investor. The investor wants to know whether the business…

Prepping Your Website and Social Media for Fundraising Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Before launching a fundraiser campaign, make sure your website and social media…

Startup Metrics in a Down Market Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In an upmarket, startup metrics focus on growth rates, cost of customer acquisition, and scalability…

How To Tell When the Startup Doesn’t Have Anything Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Startups raising funding should bring customer engagement, if not traction, to…

LP Investing Mistakes Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Limited partners are referred to as LPs.  They invest in venture capital funds. Just as angel investors…

Tips for the Startup Financial Pro Forma Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Part of the fundraising documentation is the financial pro forma. Investors want to know what…

Mistakes VCs Make Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Venture capitalists make mistakes just like every other investor. Here’s a list of mistakes VCs make: Not…

The Dark Side of Venture Capital Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. While venture capital brings many benefits to the startup ecosystem, it also has drawbacks. Here’s…

The Introductory Version of the Pitch Deck Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. For the first pitch to an investor, build an introductory pitch deck. The introductory…

The Role of Venture Capital Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Venture capital brings innovation and growth to many industries. The VC model provides funding to startups…

Key Factors Investors Use To Evaluate a Startup Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Investors review the startup founder’s pitch to determine if it’s worth pursuing or…

How To Organize Your Pitch Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The pitch deck is the key communication tool in startup fundraising. Here are the key steps on  how to…

Start With a Fractional CTO Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In launching a startup, the watchword is minimal. Minimum fund raise, minimum team, minimum viable…

The Benefit of Short-Term Returns Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In startup investing, many investors swing for the fences.   The goal is to make each…

When the Investor Won’t Sign an NDA Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. During the diligence phase, startups may ask investors to sign an NDA. If the information is…

It’s Not Your Fault, but It Is Your Responsibility Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In fundraising, the ultimate responsibility lies with the CEO. The CEO must know…

Always Have a Customer Update Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In raising funding, it’s important to show progress with customers. In each interaction with an…

Ideal Size of a Due Diligence Team Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Due diligence works best when it’s a shared endeavor. It can take a substantial amount of time to…

Good Design Techniques for the Pitch Deck Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The pitch deck is the primary tool in fundraising. It’s important to develop a pitch deck…

How To Invest in Vertical SaaS Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Vertical SaaS is a recurring revenue business that focuses on a specific application or a narrow…

Advisor Shares Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Startup founders can find additional support through advisors. Advisors are typically experienced operators who…

Impact of VC on the Entrepreneur Ecosystem Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Venture capital plays a key role in entrepreneur ecosystems. The VC sits at the nexus of…

How To Write Concise Investor Updates Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Founders should keep their investors up to date on the business.  Investor updates on a…

The Challenge With Solo-Founder Startups Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Many investors avoid investing in startups with a solo founder. Here are some reasons why:…

Incentives for Investors Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Closing the fundraiser can sometimes be a challenge. In down markets and uncertain economic conditions,…

How To Answer Questions You Don’t Know Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Investors ask many questions of startup founders. Founders should know their business and, in…

How To Perform Technical Due Diligence Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Investors perform diligence on a startup before investing. Most of the diligence focuses on the…

Benefits of Family Office Funding Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Family offices bring many benefits over other investor types as a funding source. Here’s a list of…

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…

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…

Under Promise, Over Deliver Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In fundraising, the startup founder should underpromise and overdeliver to the investor. Here are some key…

How To Use Framing in Your Pitch Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In pitching investors, framing can be used to position the startup as a successful business. Framing…

The Myths of Biotech Investing Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Biotech investing differs from tech investing. There’s often no revenue traction to assess. The…

How To Close a Strategic Investor Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Strategic investors are large companies that use startup investments to further their business…

Tips on How To Follow Up Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In raising funding, investor follow-up is the critical work of the campaign. Timeliness is a key factor. Each…

Best Practices in Raising a microVC Fund Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In raising a microVC fund, consider the following: It takes 12 to 18 months to raise an…

Investors Want To Know How the Business Will Be Successful Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Most first-time startups pitch their product to the investor rather than…

What LPs Look for in First-Time Fundraisers Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Limited Partners investing in venture capital funds are similar to startups raising funds…

How To Perform Investor Diligence Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Startup founders raising funding should ask as many questions of the investor as the investor asks…

The Cost of a Fundraise Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Fundraising will take time and money to complete. For the early stage, it’s primarily the time spent. …

Trigger Words To Show a Value Proposition Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Investors look for the startup’s value proposition to make an investment decision. In…

Taking VC Funding Means Taking the VC’s Business Model Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In taking venture funding, the startup is also taking the VC’s business…

Show How Your Startup Is Scalable Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Many startup fundraising pitches focus on the product.  It’s important for the investor to…