The Ideal Investor Profile of a VC Fund

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

To find the ideal investors for your VC fund, consider the following:

Value proposition

What is the value proposition of the fund?

Answering this question will narrow the field of investors dramatically.

What is the solution your fund offers?

This could be funding women-led businesses, startups using the latest technology or others.

What community do you have?

Investors that fit your fund are looking to join a like-minded community.

Return expectations

The fund's return will determine which type of investor will consider it.

Competitive advantage

What advantage does your fund have over other funds in the space?

Uniqueness

Does your fund stand out or does it get lost in the crowd of many others?

Consider how to communicate these characteristics of your fund to prospective investors.

Use this criteria to guide your search for Limited Partners for your VC fund

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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In this episode of Investor Connect, Hall Martin speaks with Robert Tucci, Managing Director of Texas Halo Fund. With a career spanning life sciences, technology, and capital, Robert provides insights into the fund's investment thesis, which has evolved since its inception in 2012 as a spin-out from the Houston Angel Network.

The discussion delves into the critical factors that make a deal fundable, highlighting the importance of de-risked, short-term investments, particularly in the current climate of uncertainty in private equity and venture capital markets. Robert also offers a detailed overview of how Texas Halo Fund's due diligence process differentiates opportunities and addresses common failure points, particularly in life sciences versus digital and other sectors. He stresses the significance of management quality and the potential pitfalls of overvaluation in startups.

The conversation further explores the innovation ecosystem in Texas, particularly the strengths of regions like Houston in life sciences and Austin in digital technologies. Robert underscores the value of co-investors and strong leadership in syndication and the benefits of programs like CPRIT. He also hints at potential opportunities for new funds and collaborations with interested investors.

Visit Texas HALO Fund at /www.texashalofund.com/

Reach out to at rob.tucci@texashalofund.com.com , and on www.linkedin.com/company/texashalofund/

_________________________________________________________

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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VC Fund References

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

Limited partners considering an investment in a VC fund should check the references.

Here's a list of references to consider:

Other funds the VC has worked with before.

This could be in the form of a syndicate for funding startups.

Entrepreneur network.

This is the list of startup founders the fund has in their network.

Limited partner references.

This is the list of current and previous investors the fund has worked with before

Community leaders.

This is the list of community leaders the fund has interacted with before.

Followers.

This includes the social media followers of the fund.

The fund is more than just an investment vehicle.

Include these in the VC fund investor documents.

The VC fund is a network of people, a brand with a promise, and a community of followers.

Consider how to build these elements into your fund.

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

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VC Fund Track Record

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

Limited Partners in VC funds look at the team's track record and also that of previous funds.

Here's a list of key metrics to disclose about your track record:

Total Value to Paid in (TVPI)

Compares the value of realized gains and the estimated value of remaining assets to the total amount of capital raised.

Net IRR.

Calculates the Internal Rate of Return on the funds distributed, which is the net present value of all cash flows.

Graduation rate.

The number of investments that raised a follow-on round of funding.

Follow on investors.

The existence of investors who followed up with additional funding.

Key investments.

A list of standout investments showcasing the strength of the investment thesis.

Write-offs.

The number of investments that have been written off. The fewer, the better

Value distribution.

The number of investments making a return for the fund. The more the better.

Include these numbers in your VC 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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How LPs Test the VC Fund

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

Limited Partners test VC funds before investing.

Here's a list of the criteria LPs use to test the fund:

Does the fund have a track record that is compelling?

Does the fund fit an open slot in the LPs asset allocation?

Does the fund manager have access to deals the LP does not?

Does the fund manager have the ability to construct a better portfolio than the LP?

Can the fund manager better support the startup than the LP?

Does the fund bring access to other LPs who can provide value to the portfolio?

Does the fund have LPs that bring credibility to the fund itself?

Does the fund require a high minimum investment?

Does the fund's minimum investment require the LP to take on debt?

Does the fund charge below, above, or standard fees?

There are many funds available to the Limited Partner.

Consider these points in preparing a pitch to an LP for your fund.

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.

Types of Limited Partners for a VC Fund

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

In raising a VC fund, there are several types of limited partners.

Here's a list to consider:

High networth individual

This is a person who has a net worth of over a million dollars available for investment.

They often participate as an active investor.

Ultra high net worth individual.

This is a person who has a net worth of over $5M available for investment.

They can make higher levels of investment and often want a controlling position in the management of the fund.

Single-family office.

This is a family office entity representing one family.

They invest along a more specific investment thesis, but can be patient money.

Multi-family office.

This is a family office entity that represents several families.

They invest in a more risk-averse manner.

Corporate

This is a larger company that makes investments for strategic purposes.

They invest to gain access to new technologies and industries.

Institutions.

These are pension funds, endowments, and foundations.

They invest along a more strict governance structure.

Consider these types of limited partners for your VC fund.

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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Shutting Down a Startup 2

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

Not all startups succeed.

For those that don't, there may come a time to shut it down.

Here are some key points to consider in shutting down a startup:

Before announcing the shutdown, collect all accounts receivable.

Sell any inventory left on hand.

Notify investors first so they are aware.

Notify employees and give them their last pay date.

Notify your customers of the transition to a new service or program.

Liquidate all assets.

Pay taxes and payroll withholding.

Pay off outstanding debt as much as possible.

File IRS forms related to employment tax.

Close the bank account.

Dispose of any remaining assets.

This may include patents, trademarks, and other intellectual property, as well as physical assets.

Finally, dissolve the legal entity.

The shutdown process can take some time as each of the steps above requires time to complete.

Consider these steps in shutting down a 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/
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 Martin speaks with Henning Schwinum, the co-founder and managing partner of Vendux, a company specializing in connecting businesses with fractional, interim, and full-time sales leaders. Henning shares his journey from a 25-year career in global sales and leadership roles to identifying a gap in the market for senior sales leadership in fast-growing companies that aren't ready for a full-time executive. This led to the creation of Vendux, a specialized marketplace for fractional sales leaders. Henning explains the concept of 'sales leadership capital' and the importance of investing in the talent, processes, and technology needed to build a successful sales function. He also discusses the 'perfect match system,' a proprietary technology used by Vendex to match businesses with the right sales leaders based on detailed criteria.

The conversation delves into the state of fractional sales leadership, touching upon trends, compensation, and the growing acceptance of fractional roles across various industries. Henning highlights the benefits of fractional executives in de-risking go-to-market strategies for startups and scaling efforts that are often out of reach for small sales teams. The discussion includes real-world examples, emphasizing the impact of fractional sales leaders on pipeline quality, win rates, and accelerated growth. Henning also shares his insights on the evolving ecosystem supporting fractional executives, which includes agencies, marketplaces, and education platforms.

As the episode wraps up, Henning offers advice for founders considering the fractional route, emphasizing the importance of finding the right match for specific problems and growth stages. He also highlights the role of the Fractional Leadership Alliance, an industry association that amplifies the voice of the fractional executive community.

Visit Vendux at www.vendux.org/

Reach out to at www.linkedin.com/company/vendux-sales-leadership-capital/ , and on henning.schwinum@vendux.org

_________________________________________________________

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.