Investor Questions and What They Mean

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

Founders pitching investors can learn a great deal about an investor by the questions they ask.

Investors apply the founders' pitch to their investment thesis.

They work through the pitch to see how it does or does not fit.

For example, questions focused on the financials show the investor makes decisions based on the numbers.

Questions focused on the team show the investor makes decisions based on the skills of the founder.

After assessing the interest of the investor, the founder can position the deal as a good fit by focusing on the investor's area of interest.

For investors focused on financials, the founder can showcase the other numbers in the deal that are relevant, such as growth rate, gross margins, and the time to break even.

For investors focused on the team, the founder can discuss further the experience and skills of the team.

Consider the interests of the investor and reposition the discussion to focus on that area.

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.

How Angels Are Different From VCs

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

Both angels and venture capitalists invest in early-stage companies.

Here are the key differences between the two:

Angels invest their own money while VCs invest other people's money.

This makes the angel investor more risk-averse, while the VC often takes bigger risks.

Most angels hold down a day job while most VCs are full-time in that role.

Angels don't get paid to invest while VCs charge a management fee on the funds they deploy.

Angels typically invest small amounts on their own unless they gather into groups and make a joint investment.

VCs employ larger sums of money because they collected funds from many Limited Partners during their own fundraise.

Most VCs lead the round if there isn't one, while most angel investors join party rounds rather than lead the deal, as it takes a great amount of time.

Angel groups can bring some of the angel investors closer to some of the benefits of the venture capitalist.

In pitching angels and VCs, keep these points in mind.

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.

Gaining Sales Traction for Fundraising

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

In raising funding, revenue traction is a key driver in attracting investors.

Here are some key steps to gain sales traction for your fundraise.

Early-stage companies don't have a large number of users, as that will take time.

Instead, start with a small but dedicated set of users.

Engagement with the product comes before revenue.

Bring a strong story of initial users engaging with the product.

Show how they are daily, weekly, and monthly active users.

Calculate a customer ROI for the initial cohort of users and share that number with the investors.

Large numbers of users who rarely use the product will fail to convince investors.

A small group of users who can't live without the product will attract investors.

Show how customer acquisition is a repeatable and predictable process.

This shows the investor that you can increase sales as needed.

Consider these steps in gaining sales traction for fundraising.

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.