How To Raise a First-Time VC Fund

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

Raising a first-time venture capital fund is hard work.

Here are some key steps in raising a VC fund for the first time.

Build a track record of successful investing by joining an angel network and making small but profitable investments.

Share the deal flow with prospective Limited Partners so they learn your investment thesis.

Show the deal flow on a regular basis so they understand the consistency of your network.

Share your due diligence with those investors so they see the quality of work you do.

Perform market research on an area of interest and share the results with the prospective Limited Partners.

Build an investment thesis for how to invest in the area of interest.

Showcase the investment thesis in your investing so the Limited Partners understand your methodology.

Present a few successful investments to the Limited Partners.

By showing them your market research, investment thesis, and track record, the Limited Partners can better understand the value of your work.

Ask for an initial investment from the Limited Partners to continue the process already underway.

Consider these steps for raising a first-time 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

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In this episode of Investor Connect, we engage with Nathan Monty, co-founder and CEO of Enamel Pure, a company pioneering advancements in dental hygiene through novel laser technology.

Nathan walks us through the development of their innovative product, 'Loon,' which uses a laser for non-contact teeth cleaning, hardening, and whitening, paired with advanced imaging to produce an annual oral health report. He emphasizes the inefficiencies and pain points in traditional dental cleaning methods and explains how Enamel Pure's technology not only improves the patient experience but also significantly enhances diagnostic accuracy with AI-driven analysis from a rich dataset of dental images.

The episode covers the company's business model, partnerships with major distributors like Henry Schein and Benko, and their robust intellectual property portfolio. Nathan also discusses their go-to-market strategy and plans for future AI integrations, aiming to create the most comprehensive dental health database. Finally, he shares insights into their successful FDA clearance and ongoing fundraising efforts to expand production and distribution, providing a comprehensive look at Enamel Pure's promising future in modernizing dental care.

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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Fundraising Hones the Founder's Skills

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

Fundraising brings not only capital to the startup, but it also hones the founder’s skills.

Here are the skills the founder will improve:

Relationship building -- the founder learns how to build a relationship.

Networking -- the founder learns how to grow a network and use it to connect with others.

Public speaking -- the founder learns how to read the room, adjust the presentation on the fly, and pitch to an audience.

Financing -- the founder learns how to read financial statements, financial contracts called terms sheets, as well as cap tables.

Board management -- the founder learns how to manage a board and report to those who oversee the business.

Evaluate people - the founder learns how to evaluate people to determine what they bring to the company. This is most often done with investors.

Delegation -- the founder learns how to delegate, which comes down to what to outsource and what must be done by the founder.

Look at how you can build your skills during the fundraising process.

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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Negotiating the Valuation

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

Negotiating the valuation is a key step in the fundraising process.

Here are some helpful strategies to consider in negotiating the valuation:

Understand the comparable valuations in your space.

These are called comps and give you a starting point for negotiating.

The founder should have a proposed valuation to show investors.

This could be renegotiated later, but it gives a starting point to the discussion.

The key to a successful negotiation is to articulate all the values in the business.

VCs will often throw out a lowball offer.

This, for the most part, is a negotiation tactic.

The VC is testing to see how much the founder believes in their own valuation.

Keep the terms on a pre-money valuation basis.

If you state the valuation in post-money terms, then any additional funding raised will eat into the founders' ownership stake.

Consider the options pool in the negotiation process and how that will be paid for by both the founder and the VC, rather than the founder alone.

Finally, don’t rush the process or be rushed by the VC.

Take your time and consider all the terms.

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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Put the Why Before the How

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

In pitching, it’s important to start with the why before diving into the how.

The founder often dives straight into how things are going to work.

In a biotech startup, the founder will jump to how their therapeutic interacts on a molecular level.

This often puzzles the investor who is not familiar with the science behind the project.

To solve this problem, first start with the why. Why is this important?

State up front the meaning of it.

For example, start with a challenge such as, “the common cold can't be defended against because it mutates too fast.”

State why the therapy can be effective, such as “our therapy prevents the common cold from mutating.”

Then dive into the details about how the therapy works.

Founders who go straight into the details without stating the challenge to be solved and what benefit the solution brings fail to communicate their value proposition.

State the challenge and solution at a high level in layman’s terms so everyone will understand it.

Consider these steps in your pitch presentation.

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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How To Build a Relationship With a VC

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

In raising funding, it’s important to make contact and build a relationship with a venture capitalist.

Here are some key steps in building that relationship before you need to raise funding:

Make contact with the VC.

Offer help to the VC in the form of introductions to key people who can help them.

Make referrals to other investors, in particular limited partner candidates.

Share market research and point out areas where value will accrue.

This works particularly well for VCs who want to enter a new market space.

Share what other investors are doing based on your research and experience.

Invite the VC to join panels and other networking activities as they want to build their brand and get their name out there.

Refer quality startups to the VC that actually meet their investment criteria.

Avoid wasting the VCs time as it’s limited and precious.

Make every interaction meaningful.

Follow through on your commitments.

Consider these steps in building a relationship with a VC.

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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Use Angels for the Initial Fundraise

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

In the earliest stages of the fundraise, angels are often a better fit than venture capitalists.

VCs come into the round when there’s strong traction and the business is well-formed.

Angels are go-to-market investors and like to come in early when the valuations are relatively low.

The terms sheet is typically a convertible note or SAFE note, where the valuation is not set.

Most angel investors are follow-on investors and are not going to take the time to set the terms and valuation of the deal.

They just want to be in the deal and will write a $25K or $50K check to do so.

They’ll let a lead investor set the valuation in a later round.

In the early stages, it can be hard to set the valuation since there are still many unknowns.

Valuation is more easily set when the revenue traction is clearly defined.

Start your fundraisers with family and friends.

As you draw the circle wider, go to angel investors.

Bring a solid growth story with some revenue.

Revenue demonstrates product and market validation.

The product works, and people will pay for it.

Delay pursuing VCs till there is more traction.

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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In this episode of Investor Connect, we welcome Ken from Synaptically, who introduces a groundbreaking personalized therapy for Alzheimer's disease. He discusses their innovative use of Transcranial Magnetic Stimulation (TMS) paired with Electroencephalograms (EEG) to achieve unprecedented results in slowing down disease progression.

With two successful phase two clinical trials and strong validation from scientific experts, the therapy shows significant improvements in cognition, function, and behavior in patients. Ken explains how their technology targets neuroplasticity, creating new brain connections and preserving brain microstructure and gray matter volume, with minimal side effects.

The discussion also touches on Synaptically's strong financials, market strategy, and future prospects, including potential FDA approval and investment opportunities for interested parties.

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.