Investor Focus at Each Stage of the Startup

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

Startup investors invest across all stages of startups.

For each stage, the investor should focus on a key point.

Here's a list of the investor focus at each stage of the startup:

Pre-seed -- focus on the team.

At this stage, there's little else to review.

It's about the team's insight into solving the problem.

Seed -- focus on the product.

At this stage, the product has been built.

It's about how well the product solves the problem.

Series A -- focus on the traction.

At this stage, customer adoption should be picking up.

It's about organic growth proving the product fits the market.

Series B -- focus on the revenue.

At this stage, the revenue should be growing well.

It's about revenue growth quarter over quarter.

Series C - focus on unit economics.

At this stage, the business should be profitable at the unit economics level.

It's about low cost of customer acquisition and high lifetime value.

Consider the stage of the startup for your investor 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.

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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/
For Investors check out: https://tencapital.group/investor-landing/
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Advantage of Sending the Pitch Deck in Advance

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

Investors often ask for a pitch deck in advance of the meeting.

Here are the advantages of sending the pitch deck ahead of time.

The investor has time to review the deck and prepare for the meeting.

If the deal is completely out of scope for the investor, then canceling the meeting saves everyone time.

It creates another touchpoint for the founder with the investor.

It's an opportunity to engage with the investor even if it's only on email.

Increases the productivity of the meeting as the investor comes prepared, knowing the basics.

The investor has time to research the market or the technology space to understand how the startup fits within it.

The meeting brings additional elements to the pitch as follows:

It shows the enthusiasm of the founder.

It highlights the skill of the team through answers to the investors' questions.

Consider sending the pitch deck in advance for your next investor meeting.

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.

Making Money as an Angel Investor

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

Angel investors are high-net-worth individuals who invest in startups for a profit.

They make money when the startup exits by selling the business to another company or going public.

The vast majority of exits are through sales to another company.

The challenge for the angel investor is that most startups will fail or turn into lifestyle businesses.

A lifestyle business means the founders make a nice salary, but there's no exit for the investors.

Angels come in early on the business and so must wait the longest to receive a return.

Angel investors look for startups that are just entering the market, as the valuation is still fairly low.

They come in when the startup initially gains traction.

They look for product and market validation.

The product works, and customers will pay for it.

With this information, they fund startups with the hopes that the company will see an exit in five to seven years.

They suffer dilution when additional capital comes in.

Consider these points as an angel investor on how to make money from it.

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.