The elevator pitch is the short form of your startup pitch. It introduces the deal to an investor and gives the key highlights. The goal is not to tell them everything but rather to intrigue them to learn more about it. Here’s how to build an elevator pitch: State in…

In pitching investors, there are key nuances that can make or break the pitch. Here is a list of nuances to consider when pitching: Use the pitch to build a collaboration. Funding is a part of it, but not the only thing. Start your pitch with your core value proposition….

Successful startup founders share several key skills. Here are the key skills for a startup founder to have: They have access to the networks that are vital to their startup success. This includes investor networks for funding and customer networks for buying the product. They are flexible. They can pivot…

Markets shift and change, creating new startup opportunities. Founders seek new markets in which to launch a startup. For those launching a startup in a new domain, here are some key steps: Read several books describing the domain and how it works. Talk to domain experts in the space to…

In a startup, revenue solves all problems. Funding can help, but only for so long. As long as you have cash, you can run the startup. When you run out of money, then it’s over. Revenue can fix any problem. If you need more sales support, you can hire them….

Anyone can be a founder of a startup. Here are signs of a good one: They have an innovative mindset. They look for how to innovate on the product, the business model, and more. They are self-aware. They know their strengths and weaknesses. They have a vision for their business….

A founding team includes someone who is building it and someone who is selling it. It’s important that the startup has two founders.  Here are some steps to find a cofounder for your startup. Figure out which role the founder is taking and look for a cofounder to fill the…

Anyone with an accredited investor status can become an angel investor. Here’s a list of key attributes of a good one: They know their industry well and how to invest in it. They know people and can size up a founder to determine if they are a fit for a…

A warrant is the right to buy a company’s stock at a specific price or range over a certain time period. The warrant acts like an option, but it issues stock, which dilutes the cap table. Founders raising funding offer warrants to incentivize investors to fund the company. Warrant coverage…

Venture capital can enable a startup to reach the next level through funding. There are downsides to VC funding. Here’s a list: The founders’ ownership goes down by 20-25% on each fundraising round. The VC model promotes growth over all other strategies. Taking VC money means taking the VC’s business…

The failure rate for startups is high at almost 90%. Here’s a list of reasons why startups fail: The founders underestimate how long it will take to gain traction in the market. The startup runs out of cash. The product fails to find product-market fit. The competition wins the market….

Building a minimum viable product or MVP is a key step in a startup launch. After some market research, there’s an ideation step on what to build. The rule of MVPs is that it should take no longer than six months to build and no longer than six months to…

Founders raising funding incur dilution. Their ownership stake goes down as they raise more funding. Founders start with 100% ownership. Each round of funding dilutes them by 25% or more. On average, founders own 60% after the pre-seed and seed rounds. After a Series A, they own 45%. After a…

In raising a VC fund, the size of the fund is a key component. Here are the factors that impact the size: The stage of startup. The later the stage, the larger the fund size. Sectors targeted. Some sectors, such as life science, will require larger check sizes. Percent ownership…

Startups seek out investors not only for funding but also mentorship. Most pitch sessions are valuable not because they raised funding, but because they provided feedback to the founder. The challenge for investors providing feedback is that it most often comes in a one-on-one format. For investors to be effective…

Artificial intelligence-based startups continue to grow and increase. Investors funding AI companies should look for the following: Market size.   New markets can be difficult to measure. For brand new categories, calculate the number of users in the market and how much they will spend on an AI solution. For existing…

The unit economics of a startup determine its success. The stronger the unit economic case, the higher the margins, the faster the company grows. In analyzing a startup, measure the unit economics regarding customer acquisition cost and lifetime value. Calculate it at the unit level to understand the health of…

Unlike most venture capital funds that invest in startups, a fund of funds invests in other funds that invest in startups. Instead of investing in multiple funds, an investor can gain diversification by investing in a fund of funds. As with all good VC funds, there’s limited availability for investors…

Startups often choose to stay in stealth mode in the early days to protect their idea. In most cases, stealth mode doesn’t help the startup and can actually hurt it. Here’s the downside of going into stealth mode: It’s difficult for others to help the startup because they don’t know…

Limited partners consist of pension funds, university endowments, family offices, and high-net-worth individuals. Here’s how LPs select VC funds for investment. Track record. The VC must have a track record in the form of an IRR, TVPI, or MOIC metric. Ability to deploy capital. The VC must be able to…

Pitching is a key skill in startup fundraising. Here are some key steps to learn how to pitch: Consider taking classes and tutorials. There are many tools now available online. Consider signing up for a Toastmasters class. This gives you the opportunity to speak to a group and then gain…

Launching a startup is hard work. The hours are long, and there are many obstacles to overcome. The key to a successful startup is not funding from investors, but rather founders who stick with it. Losing faith in the business is the first step toward shutting down. To avoid this,…

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…

Key Elements of a Seed Pitch Deck Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The goal of the pitch is to bring the investor up to speed on the deal in a short amount of time….

How To Make a Persuasive Pitch Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The goal of the pitch is to persuade investors to support your startup. Here are some key techniques to…

Personalizing Investor Email Outreach Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Email outreach is a key component of fundraising. It’s an efficient way to reach out to…

Sharing Your Pitchdeck Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The pitch deck is the initial document investors want to see. It’s important to have your pitch deck ready to…

Signs an Investor Is Not Interested in Your Pitch Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In pitching for funding, look for signs of interest from the investor. Here’s a…

Common Mistakes in Fundraising Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Successful fundraising comes from preparation, focus, and experience. Here are some common mistakes…