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.

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For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

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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/
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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/
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In this episode of Investor Connect, we hear from Dr. Swarna Balasubramaniam, a surgeon-turned-founder, who presents Noleus Leaf, a perioperative therapeutic device designed to restart bowel function and shorten the long, complication-prone recovery after major abdominal surgery, where patients often remain hospitalized 2 to 14 days waiting for intestines to "wake up."

She explains how excess IV fluids swell the intestines, contributing to ileus, and how Noleus Leaf uses negative pressure (vacuum) therapy placed at the end of surgery for six hours and then removed at the bedside to remove fluid and help patients eat and drink sooner, supporting healing. Dr. Balasubramaniam shares first-in-human study results conducted outside the US showing patients tolerated internal negative pressure therapy and bedside removal, and recovered bowel function two days earlier than supportive care. She outlines the market opportunity, citing about 2.9 million patients affected, additional use cases in inflammatory or infectious GI conditions, and economics including a device cost under $300 at scale and potential pricing tied to saving roughly two hospital days.

The discussion also covers regulatory and commercialization plans, including pursuing a 510(k) pathway leveraging negative pressure wound therapy predicates rather than a De Novo approach, targeting large tertiary and quaternary surgical centers first, and building a sales motion that requires both surgeon champions and hospital value analysis approval. Dr. Balas notes the company has been capital efficient (under $4 million to date), is raising $1.4 million to support a 10–15 patient trial and verification/validation work for FDA clearance, and anticipates commercialization in about two and a half years, with potential exit paths to large medical device or wound care companies.

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For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
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How To Maintain Presence With a Prospective Investor

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

In raising funding, it takes several touches to close an investor.

It's best to create additional interactions with the investor beyond asking, 'are you ready to invest yet?'

Here are some key steps to maintain presence with a prospective investor:

Offer to provide a special discount on your product or service to the investor's portfolio companies.

This expands the relationship beyond the fundraise and provides value to the investor.

Engaging with the investor's portfolio company generates many new interactions.

As you encounter the portfolio companies, new conversations with the investor will arise.

Ask for advice in a different way that goes beyond the startup.

This adds a new dimension to the relationship and brings another set of touch points.

Interact with mutual contacts who may then mention you in their own conversations with the investor.

The unbiased third-party source of information is the most valuable.

It shows others trust and believe in you.

Look for ways to generate additional interactions with the prospective investor.

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/
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When the Investor Says No

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

In raising funding, the founder hears the response 'no' many times.

Here's what to do when the investor says 'no'.

Show gratitude.

Thank them for their time and attention.

Ask for feedback.

Find out more about what they like about your deal and what they don't.

Connect on social media.

Use the interaction to make a connection.

Add the investor to the future prospective investor list.Some investors are risk-averse and want to see the outcome of the current round.

If the founder does well, the investor may come in on the next round.

Ask for other investors to contact.

Investors know many other investors and may know someone that is a better fit.

It's often the case that the investor will fund a founder's second venture because they are now more familiar with him.

The objective is to use the short-term interaction to build a long-term relationship.

Consider these steps for when the investor says no.

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/
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Fundraising Is Project Management

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

Fundraising is project management.

In launching a fundraise, treat it like a series of projects.

Here are the key steps:

Start with investor documentation and build out the materials needed.

Build a list of potential investors.

Gain introductions to those investors.

Set up meetings with each one.

Follow up on the investor meetings for next steps.

Negotiate the terms of the deal when working with a lead investor.

Finally, close the investor.

As with all project management, it's best to plan out each step.

Communicate the plan to others on the team.

Use project management tools to keep track of each stage, such as a CRM and a scheduler.

Each project takes time and focus to build.

Apply project management skills such as delegation and prioritization of tasks.

Consider these project management steps and tools for your fundraise.

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.

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Starting a Relationship With an Investor

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

In raising funding from an early-stage investor, the founder must build a relationship with that investor.

Here are some key steps to starting a relationship with an investor.

Learn their background and experiences from online sources.

It's important to know their education and work experience.

Research the investor by talking to their portfolio companies.

Talk with mutual connections to learn more.

Broach the discussion about the level of support the investor can provide.

Adjust the expectations you have for the investor.

Check their interest in joining an advisory board.

In the early stages, this is often an informal board that meets from time to time to discuss key issues.

Actively solicit feedback from the investor and make clear it's always invited.

Set up a time to meet on a regular basis in person.

Finally, find a mutual interest outside of work so the discussion can focus on other things from time to time.

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.