Startup Funding Espresso – Control Points in Vertical SaaS
[audio src="https://traffic.libsyn.com/secure/angelconnect/05.control_points_in_vertical_saas.mp3"][/audio]Control Points 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 great business model for startups to use. It focuses the product on one specific sector. This brings many advantages in…
Why Invest in Vertical SaaS
Vertical SaaS is a venture sector in the tech space. It narrows the scope of the startup to a single application. Vertical SaaS has many advantages as follows: It's easier to position in the market and message to the customer. By narrowing the scope, the startup can dive deeper into…
Raising an Inside Round
Most startup fundraisers seek capital from outside investors who are new to the round. This brings new investors into the cap table. There are rounds in which the existing investors fund the startup. This is often done for bridge rounds. Instead of raising the next major round, the startup raises…
Using Rule 701 To Issue Equity to Employees
In a startup, it's helpful to compensate employees with company stock. Most companies use stock options. Rule 701 gives the startup the ability to issue equity to its employees. This works even if they are not accredited investors. The limit is $10M or 15% of the outstanding shares in a…
Create a Sense of Urgency
In running a fundraiser, it's important to build a sense of urgency into the campaign. Here are some key steps to create that sense of urgency: Break your fundraising into smaller rounds or tranches. Demonstrate this by showing the fundraising plan that has more funding to come, but at a…
