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 investment a homerun.

In most cases, home runs will take a substantial amount of time to complete.

There are benefits to short-term investments in which the returns are smaller.

Here are some benefits to consider:

There’s a psychological boost that comes from knowing you’ve had a return of capital.

The returned cash can be recycled into a follow-on investment in a home run deal.

Short-term returns are easier to fund.

Home run deals are often difficult to get into due to investor demand.

Short-term returns are easier to find.

There are many startups that can return capital in three years or less.

This can boost one’s investment metric, such as an IRR, which includes time to return as part of the calculation.

Consider both short and long-term return startups for your investment strategy.

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.

On this episode of Investor Connect, Hall welcomes Ivor Stratford, co-founder and CEO of Morpheus Group, a leading consultancy specializing in talent solutions and executive recruitment. Located in London, Morpheus Group works with organizations across the globe, particularly in the U.S., to help founders and executives align their culture, values, and growth strategy with the right talent. With a focus on venture-backed startups from pre-seed to IPO, Ivor and his team provide a unique vantage point into the world of early-stage investing, emphasizing that at the earliest stages, the real investment is in people. Morpheus Group combines deep experience in recruitment, strategic advisory, and hands-on mentorship to ensure founders not only hire effectively but also build high-performing teams that can scale.

Morpheus Group has carved out a niche in the AI and machine learning space, guiding founders who are hyper-focused on specific applications rather than broad, generalized solutions. From conversational AI in drive-through technology to other emerging use cases, Ivor and his team help identify opportunities where technology meets real-world demand, all while keeping founders disciplined on what truly drives their business forward. Beyond advisory and recruitment, Morpheus Group actively builds in-person ecosystems through curated events, dinners, and conferences, particularly in New York and San Francisco, establishing long-term trust and relationships in the startup community. Their approach emphasizes real-world engagement over tech gimmicks, proving that sometimes the most cutting-edge work starts with a handshake—or a coffee machine conversation.

Throughout the conversation, Ivor shares insights on evaluating founders, spotting conviction versus potential, and the advantages of maintaining small, agile teams in a rapidly evolving market. He also reflects on lessons learned from expansion into the U.S., emphasizing the value of being physically present to truly understand client businesses.

Visit Morpheus Group at www.morpheus-group.com/

Reach out to at ivor.stratford@morpheus-group.com

_______________________________________________________

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.

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 truly confidential and proprietary, then it may make sense to ask for it.

Some investors may choose not to sign an NDA.

In this event, do the following:

Remove any information from the diligence that is considered highly confidential.

Provide the diligence box without this information and check to see if the investor is satisfied.

If not, then identify the specific information the investor is looking for.

This could be customer names and contact information.

In this case, come to an agreement on how the investor will use that information.

Set safeguards against cold calling the customer.

Perhaps set up a joint call with the customer for the investor to ask questions.

In summary, find out what information the investor is seeking specifically and then try to facilitate that piece of information.

General perusal may not be necessary to complete the investors’ diligence.

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.

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 their numbers, how their operations work, and exactly how the product performs.

From time to time, there will be problems in the business.

While it’s not the fault of the CEO, it is their responsibility.

Investors want to know that the CEO is taking responsibility for the problem.

CEOs should avoid blaming others in the startup.

When challenged by an investor for an issue in the company, it’s best that the CEO “owns” the problem and discusses how it will be resolved.

Never abdicate responsibility, but always have a plan.

Investors will look to see how CEOs fix problems during the diligence phase.

For key issues, it’s best that the CEO brings up the issue and shows the progress made on the topic.

Investors avoid those who avoid the problems, knowing that eventually the problems will drag down the startup.

Take responsibility for any and all problems and own them.

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.

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 investor, bring up new information about a customer.

Investors care less about how the product works and more about how the customer is engaging with the product.

In each update, show new information about the customer interaction.

Here’s a list of customer updates to consider:

A list of care abouts from the customer for a solution.

A product specification.

The customer’s test results of the startup's product.

The startup’s pitch to the customer to buy the product.

The price negotiation for buying the product.

The customer’s buy rate and retention rate.

The customer’s comparison of the startup's product with a competitor's product.

Additional features the customer wants from the product.

How the product fits into the customer’s workflow.

Investors want to know how well the product works for the customer to understand product-market fit.

Always have a customer update when talking to an 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/
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.

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 diligence a startup.

The ideal size of a due diligence team is six people.

Here are the key roles and responsibilities of the team:

The lead.

Takes responsibility for the overall diligence process and typically recruits the others on the diligence team.

Sales, marketing, and competition.

Investigate the sales of the startup, as well as the marketing strategy and the current competitors.

Financials.

Reviews the financial pro forma, income statement, and balance sheet to understand the financial health of the business.

Product and technology.

Reviews the status of the product and the technology underlying it.

Team.

Reviews the skills of the team and the commitment of each one to see if it meets the needs of the business objectives.

Terms sheet.

Builds and negotiates the terms sheet, including the valuation.

Consider joining an angel network to find others to help with due diligence.

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.

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 that’s clear and engaging.

Here are some key techniques to improve the design of your pitch deck:

Use graphs and charts to show numbers and data.

Increase the impact of the data through charts with bold lines and colors that stand out.

Use colors and contrast to highlight key points.

The colors should be consistent with the color theme of the deck, which should complement the startup's logo.

Choose a font that’s clear and legible.

Avoid big blocks of text and break paragraphs down into bullet points.

Align the style of the pitch deck with the startup and its mission.

Use glyphs and other design elements to communicate the message.

Add background images to create additional effects.

Show how the product works using a 3 to 4-step sequence.

Create a flow in the deck to tell the startup story in a seamless fashion.

Consider these steps in adding good design to your pitch deck.

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.

In this episode of Investor Connect, host Hall Martin engages with Ron Ondechek Jr., a seasoned investment executive and the founding managing director of South Highland Ventures LLC.

With over 15 years of experience and a track record of leading more than 100 transactions totaling over 1 billion dollars, Ron shares insights on South Highland Ventures' investment mandate, deal sourcing, and diligence processes. He discusses the firm's strategic partnerships, including collaborations with family offices like Nova Stone Capital Advisors, to secure proprietary deal flows in the low mid-market acquisition fund sector. Ron emphasizes the importance of aligning motivations, communication, and the ability of entrepreneurs to navigate markets and work effectively as a team to ensure successful investments and growth. Drawing from his extensive experience,

Ron also highlights key factors that contribute to consistent value creation and pitfalls that destroy value in venture capital and private equity spaces. The conversation delves into specific strategies for working with under-recognized markets and mid-market companies, the importance of operational improvements, and the structure of search fund acquisitions. Ron also touches on the balance necessary in structuring deals, ensuring fair compensation and alignment of interests among all parties involved. For more insights and to connect with Ron, you can reach him via email or phone as provided in the show notes.

Visit South Highland Ventures LLC at shvllc.com/

Reach out to at www.linkedin.com/in/rondechek/

_______________________________________________________

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.