https://tencapital.group/

Hall Martin from TEN Capital talks about Success Factors in Early Stage Diligence

Due Diligence for Startup Investors

Mary and Hall discussed the importance of due diligence for early-stage startups. Hall explained that investors examine pitch decks, legal structures, cap tables, financial projections, and revenue models to assess a company's potential. He emphasized the need for entrepreneurs to demonstrate knowledge of their business and to show evidence of support from others, such as family and previous customers. Hall also stressed the importance of being transparent about a startup's current stage to help investors draw a realistic five-year plan and make informed decisions.

Entrepreneur Investor Transparency Strategies

Mary emphasized the importance of honesty with investors, advising entrepreneurs to be transparent about their business's current state and future plans. Hall added that entrepreneurs should provide compelling answers to investors' questions, demonstrating their understanding of the market and their ability to make good decisions in challenging environments.

Customer Validation for Startup Success

Hall and Mary discussed the importance of customer validation and market fit for startups. Hall emphasized the need to show customer interest, even if there's no revenue yet, and advised founders to always have customer-related information when meeting investors. They also talked about the common mistake of startups focusing too much on product details and not enough on other crucial aspects like market size, competition, and team composition when presenting to investors.

Startup Exit Planning Strategies

Mary and Hall discussed the importance of calculating potential returns for investors over different timeframes, emphasizing the need for startups to plan for exits. Mary highlighted the significance of due diligence for startups and encouraged them to book a call with her for guidance.