Fundraising Tips Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Most founders are raising funding for the first time. They often miss the nuances that come from experience. For the…

Conversion of a Convertible Note Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. There are three ways a Convertible Note converts to equity. The note matures and converts to equity…

How a VC Fund May Shut Down Early Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Venture Capital funds typically run on ten-year cycles. There are some conditions in which the VC…

Lifecycle of the VC Fund Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Venture Capital funds typically run on ten-year cycles. At a high level, the VC fund takes in capital from…

How To Answer “What’s Your Timeline?” Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Investors often ask startups raising funding, “What’s your timeline?” They want to…

How To Optimize for Efficiency Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In startup fundraising, capital efficiency is a key criteria for investors. They look to see how…

Choosing an AI Model for Your Startup Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Artificial intelligence, or AI, is becoming a standard part of every startup’s business. It can…

The Burn Multiple Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The burn rate is a key metric for high-growth startups. This is the amount of cash being spent over and above the…

The Benefit of Investing in Tranches Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Tranching the investment means breaking it down into tranches or rounds.  Tranche comes from…

Aviate, Navigate, Communicate Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In flying an aircraft, there’s a saying regarding priorities: “Aviate, Navigate, Communicate.”…

Sell Your Business Instead of Shutting It Down Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Many startups fail to achieve product-market fit or breakout growth. Founders who…

State the Purpose Behind the Startup Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In pitching, start with the Why of the business. Why does this business exist? It’s important…

The Downside of SAFE Notes Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. SAFE Notes were designed to simplify the investment process. By removing many of the terms found in equity…

How To Raise a First-Time VC Fund Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Raising a first-time venture capital fund is hard work. Here are some key steps in raising a VC fund…

Fundraising Hones the Founder’s Skills Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Fundraising brings not only capital to the startup, but it also hones the founder’s skills….

Negotiating the Valuation Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Negotiating the valuation is a key step in the fundraising process.  Here are some helpful strategies…

Put the Why Before the How Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In pitching, it’s important to start with the why before diving into the how. The founder often dives…

How To Build a Relationship With a VC 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 make contact and build a relationship with a venture…

Use Angels for the Initial Fundraise Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In the earliest stages of the fundraise, angels are often a better fit than venture capitalists….

Key Series A Metrics Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Series A fundraises focus on growth. The goal of the fundraising pitch is not to show that you can sell the…

Uncapped SAFE Notes Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. SAFE notes are commonly used in startup fundraises. They most often come with a valuation cap. This means the…

Fundraising Requires a Process Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Fundraising is a complex problem that requires ongoing focus and effort over a period of time. It is…

Investor Introductions – the Good, the Bad, and the Ugly Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Investor introductions can be helpful in connecting with new investors….

Showing Traction at the Seed Level Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. At the seed stage, the product is just going into the market. The customer engagement is beginning….

The MicroVC Pitchdeck Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. MicroVCs need to raise funding to invest in startups, just as startups need to raise funding for their own…

Investor Access to Customers Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In the diligence process, investors may want to talk with the startups’ customers. Their goal is to…

The CEO Leads the Fundraise Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In a fundraiser, the CEO should lead it by setting the strategy and engaging investors. This doesn’t…

Non-Dilutive Funding Options Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Startup funding comes in two forms: dilutive and non-dilutive. Equity funding is dilutive in that the…

When To Consider Venture Debt Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In startup funding, there is venture capital and venture debt. Venture capital takes an equity stake in…

How To Stand Out From the Crowd Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In raising funding, it helps to stand out from the crowd of other startups pitching. Most founders…

Show the Business Model Unit Economics Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Early-stage companies pitching investors often have little revenue traction. In place of…

Raising Funding in a Down Market Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The best time to start a new business is during a down market. Labor is plentiful. The competition is…

What Angels Look For Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Angel investors are not professional investors in the same way as venture capitalists. Angel investors are…

First Meeting With an Investor Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. After a number of calls with a prospective investor, there comes the first meeting in person. Here are…

Early Stage Traction Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In the very early stage of the life of a company, traction can be more than just revenue growth Here are some key…

Why Now? 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 instill a sense of urgency in the fundraiser. One of the key elements is describing…

Build Your Presence With a VC Fund Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In raising funding from a VC fund, it’s important to understand the partner team. Each VC fund…

How To Say No to a Startup Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Investors receive pitches from startups almost every day. Many of these startups simply don’t match the…

Don’t Play the Scenario Game in the Pitch Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Founders are confronted with many options for their fundraising. If they raise more, they…

Raising a Series B Round Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In raising a seed or Series A round, the story carries the fundraising pitch. Investors in those rounds are…

European Waterfall Model Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Venture capital funds use different payback structures. Each varies the structure for how the Limited…

How Performance-Based Valuations Work Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In startup funding, the valuation is often fixed and does not change. Performance-based…

Roadmap for Medical Device Startups Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The path for a medical device startup is clearly defined. In building a medical device startup or…

Building the Competition Slide Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The startup pitch deck should contain a competition slide. Some founders start the pitch with, ‘we…

Party Rounds – Going Without a Lead Investor Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In raising funding, many founders believe they can’t raise funding without a lead…

SaaS Growth Metrics Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. There are several key SaaS metrics to know in evaluating a startup. Here’s a summary of the key metrics: SaaS…

How To Build Momentum in Your Fundraise Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Fundraising has its ups and downs, including long patches of slow-paced activity. Here are…

How To Show Your Market Size Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The market slide in the startup fundraise pitch shows the total available market opportunity. Here are…

Best Practices in Telling Your Story Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Storytelling is a key skill in fundraising. Use these best practices in telling your story in the…

How Much Funding To Raise Based on Valuation Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In planning the fundraiser, the amount of funding is a key factor to determine. The…

How To Wrap Up a Pitch Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In a pitch to an investor, there’s no need for an agenda slide or a summary slide.  The investor knows…

Basic Mistakes in Fundraising Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In the startup world, there are mistakes founders make in their fundraisers. Avoid these basic mistakes…

Basic Due Diligence Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Investors pursuing an investment in a startup should perform due diligence on the business. The purpose is to…

Key Slides in Your Pitch Deck Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In the pitch, there are specific slides that are key to the investor. Here’s a list of key slides to…

Burn Multiple Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Burn rate is the amount of cash spent over and above the revenue received. It’s typically calculated on a monthly…

Pre Seed Seed Seed+ Seed++ Series A Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In startup funding, the raises come in rounds.   The startup can raise a pre-seed round…

The First Raise Is a Minimum Round Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In startup fundraising, many founders try to raise too much funding in the first round. This causes…

Valuation Is the Primary Factor Impacting Returns Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. There are many terms in a startup fundraising terms sheet. Valuation is the primary…

Consider Dilution in Setting Your Fundraise Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In startup fundraising dilution is a key issue for founders. At each stage of funding…

Diligencing AI Startups Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Artificial intelligence or AI brings new capabilities and applications. Many startups launch their business…

Medical Device Milestones Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The medical device startup has a well-defined list of milestones to achieve to bring a product to market….

Overcoming the Investors’ Hesitancy Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In fundraising, there comes a time when the investor must decide to join or pass on the round….

How Private Equity Differs From Venture Capital Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Private equity and venture capital are different types of investment. Here are the key…

The Gap Between Seed and Series A Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In startup funding, we talk about preseed, seed, Series A, Series B, and so forth. It sounds like…

The Startups Advantage Over Big Companies Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. While big companies have size, resources, and reach, the startup holds advantages of their…

Startup Stages Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The startup goes through several stages before it achieves product market fit and then scaling. Here are the key steps…

No NDAs Before the Investor Pitch Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In startup fundraising, the NDA comes near the end of the process, not at the beginning. An NDA…

Fundraising – Important but Not Urgent Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Fundraising can be hard for startups because it falls into the important but not urgent…

What Angels Can Do for Your Startup Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Angels can bring more value than just funding to your startup. Here’s a list of what angels can…

Comparing Funding Sources Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In startup fundraising, there are four distinct groups to consider for funding. The list includes venture…

How To Fundraise in Down Markets Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The venture world cycles up and down based on technology breakthroughs, stock market gyrations, and…

Core Slides in the Pitchdeck Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The pitch deck tells the startup’s story and provides key information about the investment opportunity to…

Startup Business Models Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Businesses sell to consumers, which is called B2C, or to businesses called B2B. Startups aggregate users,…

The Pre-Seed Pitch Deck Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. The pre-seed company raising funding faces a challenge. There are no revenue, traction, or performance metrics…

Help the Investor Understand Your Pitch Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Investors hear a great number of pitches. In each pitch, the investor must figure out what the…

Negotiating the Valuation Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Negotiating the valuation is a key step in the fundraising process.  Here are some helpful strategies…

Best Practices for Series A Fundraising Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Fundraising for Series A is fundamentally different from fundraising for a seed round. In the…

Matching Risk To Reward Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In choosing an investment, the investor matches risk to reward. A public stock may go down but most likely…

The Secret Is in the Iterations Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Many founders try to tell everything to the investor in the first pitch. This is not possible as…

What Not To Say in a Fundraise Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In raising funding, startups should avoid these statements to investors. “We have no competition.”…

What Is a Value Proposition Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. A value proposition is a feature that makes the startup valuable to the customer. It’s not your mission…

Don’t Overhype It 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 articulate all the values in the deal. If you don’t mention it, then it…

How To Enhance an Investor Update Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In writing an investor update, include the status of the business, key milestones achieved, and…

Add Investor Relations to Your Website Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In raising funding, prospective investors use your website to learn more about the business….

The Importance of Your Website in a Fundraise Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Your website plays a key role in your fundraising. The first place an investor goes…

How To Use Round Closings Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In planning out a fundraise, it’s best to break the raise into a series of round closings. Communicate the…

Steps To Plan Your Fundraise Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Before you launch a fundraise, first plan out your investor engagement: Follow these steps to prepare:…

Building the Fundraise Funnel 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 build a funnel into your fundraising. Just as you have a funnel…

Milestone Your Valuation Caps Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In strategizing your fundraising, it’s best to break your raise into tranches. Most raises start with…

You’re Too Early for Us Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Startup founders raising funding will often hear an investor say ‘You’re too early for us.’ Many…

Keep Going Till the Money Is in the Bank Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In fundraising, the deal is not done till the money is in the bank. Many founders stop their…

Fundraise Closing Rate Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In sales, the average close rate of prospects is 5% to 10%. This often seems low to first-time salespeople who…

Research Your Investors Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. Just as investors do research on the startup so the founder should do research on the investors. Research…

Demonstrate Credibility With Investors Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In raising funding either as a startup looking for investors or a VC fund manager looking for…

Identify a Champion in the Group Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In raising funding look for those who believe in your project and believe in you. Don’t spend too…

You Need To Have Thick Skin Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In the fundraising process, the startup founder will hear ‘no’ many times from investors. For the…

It Takes Seven Touches Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. It takes seven touches to close a sale. So it takes seven touches to close an investor. In the selling process,…

Recruit an Expert To Help With the Fundraise Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In the fundraising process, the first-time founder is at a great disadvantage. Investors…

Highlight the Investors Who Are Already in the Deal Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In a fundraising round, many investors do not want to go first.   In…

In raising funding, founders should show investors that they are thinking about the exit. While no one can predict the outcome the investors want to know you are building a company that can be sold for a high price. This means the business will have facets that generate high returns….