Fundraising Takes Time and Focus

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

Fundraising is a full-time job.

It takes time and focus to do it properly.

For some founders, it's a job within a job.

In running a fundraise campaign, the founder should consider it their full-time job.

Their startup duties should be handled by someone else for the time it takes to raise the round.

Some investors will come in more easily than others.

For those investors who want to be in the deal and are ready to join, have them sign the investment documents.

This is often done with a convertible note in which the valuation is not set.

Most investors will require time and attention to close.

The lead investor, in particular, will take time to negotiate the valuation and other deal terms.

Be sure to budget time and attention for the lead investor negotiation.

These often take up to two months to complete.

In engaging investors, identify the type of investor you are talking to and understand how much time it will take to close the investment.

Always continue the fundraising process till the money is in the bank.

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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In this episode of Investor Connect, Hall Martin speaks with Nader Fathi, CEO of Enlil Technology, about the innovative strides his company is making in the MedTech industry. Based in Campbell, California, Enlil Technology emerged from the Shifa Fame Innovation Hub. Their AI-powered platform brings compliance, product lifecycle, and regulatory traceability into one unified system for medical device and digital health companies. Designed to reduce complexity and enhance operational efficiency, Enlil's platform streamlines processes from concept to commercialization, empowering MedTech companies to navigate FDA and other regulatory pathways efficiently.

Nader delves into the genesis of Enlil, explaining how it spun out from the internal needs of Shifa MedTech's portfolio companies. Initially developed to aid in internal compliance and process management, Enlil was commercialized in early 2022 and has rapidly gained traction, adding over 34 companies to its user base. The platform leverages a proprietary AI called Lilly, which aids in search functionalities, report generation, and even automates critical tasks such as FDA submissions, significantly accelerating product development timelines and reducing costs.

The conversation also highlights Enlil's go-to-market strategy, including their expansion efforts on the global stage. Despite focusing primarily on the U.S. market in 2022, Enlil has garnered international interest from countries like India, Singapore, and Japan. Nader emphasizes the necessity for startups to implement robust systems early to avoid scalability issues and successfully navigate the complex regulatory environment.

Reach out to at nader@enlil.com

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

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Why Use Special Purpose Vehicles (SPVs)

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

Special Purpose Vehicles or SPVs are the use of a legal entity to gather investors into a startup investment, which takes one place on the cap table.

This works well when there are many investors with small-dollar investments.

SPVs bring many advantages to the founder, the VC fund, and the angel group leader.

Here's a list of advantages:

For the VC fund, the SPV allows for the investment into a deal outside of its fund.

This works well for follow-on rounds, in which case the VC does not want to add more of their fund into it.

For example, the fund can only invest in seed deals, but a portfolio company is now at a later stage and needs more funding.

This also works for the angel group that wants to bring investors into the deal with check sizes below the minimum amount.

Angels often use the SPV to create syndicates for specific deals that fall outside the investment thesis of the group.

Founders find SPVs useful to keep their cap table clean of numerous small investors.

Founders often use SPVs to bring in additional investors after other groups have finalized their investment.

Consider using an SPV in 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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Advantages of a Venture Studio Model

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

There are several models for running a VC fund.

The venture studio model is one of them.

It brings additional support to the startup.

The venture studio creates a set of startups in a sector with various skills and capabilities.

As the startups progress, some raise funding while others do not.

Some startups are able to sell their product while others are not.

As startups stall or shut down, the team members can move to other startups in the group that are succeeding.

Here are the advantages of a venture studio model:

The venture studio model brings an advantage to startups in finding talent.

The venture studio is able to leverage the skills of the entire cohort into a few successful startups that succeed.

The studio is able to share experience from one startup with the others.

The venture fund is able to take on earlier-stage deals as it has the ability to test, filter, and build successful ones.

Consider the venture studio model for your startup.

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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Are You Ready To Be a Public Company?

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

Successful startups have several exit options.

Going public on the exchange is one of them.

Here is the test to know if your startup is ready to be a public company:

Can you provide a 20% annual growth rate for the next five years?

This typically requires a stable customer base that is locked in.

This often shows up in high customer retention rates.

It can be seen in the use of the product with high daily active use rates.

Do you have an operations level that is consistent with other public companies in your sector?

Expenses growing at 85% of the rate of revenue or less is a good indicator.

This improves margins over the course of time.

Can you accurately predict your sales revenue over the next twelve months?

Public investors expect the company to beat its forecast by 5% each quarter.

To do so, the company needs to have a stable revenue stream.

Consider these points before taking your startup public.

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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The Challenge of Startup Investing

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

Startup investing is one of the most difficult asset classes to pursue.

Information about the potential of the startup is often scarce and always opaque.

Some information is available, but the early signs provide only scant information.

Investors are torn between the fear of missing out on a good deal and the fear of getting caught up into a bad one.

One must make an investment choice before all the information becomes available.

Otherwise, other investors will come and take it over.

Startup investing is unique among investment options because the upside is truly unlimited.

Almost all other investments have limits.

Startups do not, and this is what fuels the investors' fear of missing out.

Most investors know that they can't afford to miss the home runs.

The losses from the others will be too great unless one has a home run hit.

To resolve this dilemma, investors look for additional information.

They look for every piece of information they can to find evidence that it will be a success.

Startup founders should take note of this dilemma and provide updates to assuage their fear.

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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For Feedback please contact info@tencapital.group

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Understand Why the Investor Said 'No'

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

In pitching investors, the founder will hear 'no' many times.

Without understanding why, the fundraising process can turn into a slog.

By understanding why the investor said 'no', the founder can turn it into an educational experience.

Here are some common reasons why investors say 'no'.

There's no momentum or traction.

If all you have is an idea, it can be hard for the investor to share your vision.

The team is not complete and sufficient for the task at hand.

Take a hard look at the team to see what the investor sees.

Would you invest in a company with this team?

There are too many missing pieces.

There may be no shipping product, clearly defined customer, or target market.

Make sure you have a clear focus on these factors, as the investor will consider these to be table stakes.

The pitch may not convey all the values in the startup.

Make sure the pitch is complete and communicates the value proposition well.

Go to the next step to figure out why the investor said 'no'.

Then use it to improve your pitch.

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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In this episode of Investor Connect, Hall T. Martin delves into the intricacies of venture capital in Middle America with Triet Nguyen, a principal at Render Capital. Based in Louisville, Kentucky, Triet discusses Render Capital's focus on high agency founders who are driving essential infrastructure and innovative technologies in often overlooked markets.

Triet elaborates on how Render Capital remains competitive by fostering strong regional relationships and emphasizing less-tapped markets away from the coastal regions. He also highlights Render's distinctive approach to deal selection, emphasizing the importance of high agency in founders, along with strategies for navigating and thriving in the unique venture landscapes of the South and Midwest.

The conversation covers the tactics Render employs to support underrepresented entrepreneurs and insights into effective portfolio construction for emerging ecosystems. Triet also provides a detailed look into how Render Capital backs its investments with meaningful post-investment support and innovative funding vehicles tailored to the nuanced needs of Middle American startups.

Reach out to at www.linkedin.com/company/render-capital/ , and on triet@render.capital

_________________________________________________________

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.