Key Drivers for Startup Investing Returns

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

Startup investing returns vary greatly from one investor to the next.

Here's a list of key drivers that provide startup investors with a return.

High-quality dealflow.

Many startups seek to raise funding, but only the top 15 to 20% will provide a good return.

Rigorous due diligence.

It's easy to write a check, but difficult to diligence the startup.

Those with a rigorous diligence process achieve greater returns.

Active investing.

Investors who take an active role with the startup will achieve better returns.

Domain knowledge.

Those with a knowledge of the industry in which the startup operates will achieve greater returns.

Access to follow-on investors.

Those who know follow-on stage investors will achieve greater returns by facilitating introductions to additional capital.

Deal structuring.

Those who apply investor protections to the business will find better returns.

Follow-on funding

Those investors who can apply their own follow-on funding will do better.

Diversification

Investors who diversify across industry segments and stages of a company will have better returns.

Consider these drivers for your startup investing.

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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