In this episode of Investor Connect, Hall Martin chats with Christopher Ezold, a partner at the Pennsylvania-based law firm Wisler Pearlstine, which specializes in business, employment, and corporate law. Christopher dives deep into the fiduciary duties of board members, emphasizing the duty of care, loyalty, obedience, and confidentiality. He explains that these duties are crucial at every stage of a company's lifecycle and discusses the complexities that arise when board members have conflicting interests, particularly in startups seeking venture capital investments. Christopher highlights the importance of having a diverse board, the significance of transparent documentation, and the hazards of self-interested decisions by board members. Additionally, he touches on the repercussions of failing to meet these duties, ranging from shareholder lawsuits to regulatory sanctions and loss of trust among stakeholders. Hall also brings up a personal anecdote about dealing with a CEO who manipulated the board for self-benefit, with Christopher offering actionable advice on handling such situations. For more information or to contact Christopher, visit www.wislerpearlstine.com or email him at [email protected]. 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 [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.

Party Rounds – Going Without a Lead Investor Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funding, many founders believe they can't raise funding without a lead investor. At the seed level, this is not necessarily the case. Founders should launch their fundraising campaign with a convertible note so it's easy for the investor to join the round. Since valuation is not set, there's no need for a lead investor to start it. There is a valuation cap, but this means the valuation will be set later. At the seed level, it can be hard to agree upon valuation, so it's best to set it when there's more information available. Founders can fund their early rounds without a lead investor. At the seed level, founders can find enough funding to close the round. This is called a party round. Many but not all investors will provide support to the startup. In launching a Series A raise, one should start with a convertible note to pick up funding from investors while in pursuit of a lead investor. Consider a party round for your seed fundraising. 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 [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.

SaaS Growth Metrics Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are several key SaaS metrics to know in evaluating a startup. Here's a summary of the key metrics: SaaS Quick Ratio -- New MRR divided by the churned MRR. This measures how efficient your growth is. Low efficiency will make scaling difficult. LTV: CAC -- Lifetime value to Cost of Customer Acquisition This measures how long customers continue to use the product and compares it to the cost of acquiring that customer. An early-stage company should see a 3:1 ratio. Over time, it should improve to 5:1 and later to 7:1 Churn Rate This measures how many customers drop off during a time period, such as a month. Segment the customers into groups to examine churn to see where the business is not succeeding. 40% Rule Growth and profitability should add up to 40% or more. There's a tradeoff between growth and profitability. The more invested in growth, the less profitability. This shows the viability of the business regardless of whether or not they focus on growth or profitability. Use these metrics to understand a potential startup investment. 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 [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.

How To Build Momentum in Your Fundraise Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Fundraising has its ups and downs, including long patches of slow-paced activity. Here are some key steps in building momentum for your fundraiser. Always break the total fundraising into smaller rounds. This makes the raise manageable from the start. Do the easy ones first. Investors who know you and believe in the deal will sign up the quickest. With those signups, you now have money in the deal. Use this to spur the momentum to other investors who are not yet ready to invest. Show why the other investors joined the round. Strive to reach the halfway point. From there, the optics on the deal will look better to the prospective investor. The risk of the deal not getting funded goes way down. Build a list of interested and committed investors. Assign an amount to each one and map them out on the remaining portion to be raised. Show all of them how this will close the round. For the remaining investors on the list, give them a deadline and push them to pass. This takes them off your list and lets you focus on closing the interested and committed investors. 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 [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.

How To Show Your Market Size Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The market slide in the startup fundraise pitch shows the total available market opportunity. Here are some key steps in showing your market size. Show the components of your market, including the number of buyers and average selling price. Include the source of the market research so others can retrace your reference. Define the market segments clearly so there's agreement about what part you are pursuing. Include serviceable and obtainable sizings as well. Avoid phrases such as "only 1% of the market gives us $10B in revenue". This means nothing to the investor. In fact, the investor is left wondering how you will enter the market. Instead, focus on the first twenty customers you'll pursue. Call this out as the beachhead market and show how you have already contacted the first twenty customers and have some traction with them. It's important to show the overall market as well as the initial segment you will pursue. 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 [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.

Best Practices in Telling Your Story Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Storytelling is a key skill in fundraising. Use these best practices in telling your story in the pitch to investors: Declare the problem as the villain in your story. This sets up a conflict. Raise the tension by creating a sense of urgency. Raise your product as the solution to the problem. Spark interest by noting the possibilities of what the solution can do. "What if we could cure cancer with this?" Show the benefits of your solution at a high level. Don't just predict your growth story, show it happening now. Build confidence in the team by showing what they have done so far. Talk about the solution and what it can do at scale. Describe the big picture about where this is going. Invite the investor to join you on the journey. Investors want to make a return, but they also want to be a part of something great. Use these best practices in telling your story to raise funding. 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 [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.

In this episode of Investor Connect, Hall T. Martin welcomes Herbert to discuss the pivotal role family offices play within the entrepreneurial ecosystem. Herbert highlights the importance of understanding local accelerators, venture capitalists (VCs), and other funding sources in the community during the investment due diligence process. He emphasizes that co-investment requests from family offices to VCs are typically more successful than those from individual entrepreneurs, as they signify a commitment and vested interest from the family offices, thus encouraging VCs to engage more readily. Herbert also notes the unique contributions of family offices in supporting emerging managers within the venture capital space, often stepping in to fund those who have yet to build the extensive track records required by larger institutional investors like pension funds or foundations. In the latter part of the episode, Hall introduces Mark Depa of BIO Oxo, a biotech company pioneering innovative treatments for conditions like stroke. Mark pitches their leading compound, BIO 01, which is in phase two clinical trials for treating intracerebral hemorrhage, a type of hemorrhagic stroke. He explains the compound's unique origins and mechanisms, derived from the saliva of ticks, and discusses its potential to address a significant unmet medical need. Mark also outlines the company's milestones, market potential, and funding strategy, emphasizing the strong backing and promising preliminary data that positions BIO Oxo for substantial growth and impact in the medical field. 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 [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.

How Much Funding To Raise Based on Valuation Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In planning the fundraiser, the amount of funding is a key factor to determine. The funding amount should take the company to the next major milestone. It should give the company 18 months of runway at a minimum. Investors expect the valuation to be around 3X to 4X that of the funds raised. Most investors want 20% to 25% of equity for each major round of funding. Therefore, the founder needs to see the valuation be at 3X to 4X the raise amount to account for the dilution. Each deal will vary based on the following factors: Growth rate of the sector -- some sectors are growing faster than others and can command a higher valuation. Location -- some regions offer higher valuations than others. Team -- strong teams with a great track record will command higher valuations than first-time teams. Traction -- those with stronger traction can command higher valuations. Use the 3 to 4x rule to set your valuation and fundraising goals. 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 [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.

How To Wrap Up a Pitch Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In a pitch to an investor, there's no need for an agenda slide or a summary slide. The investor knows the format of the pitch and what topics will be covered. There's little time for summarization of what was covered. To wrap up a pitch, consider the following: Show your contact information, including phone number and email address. Have a call to action so the investor knows what you expect from them. Potential calls to action include let's set up a call to discuss your questions or join our diligence meeting next week. Most startups end their pitch with a slide labeled "Questions" and little else. Use the space on the last slide to highlight a key value proposition. This could be a call out, such as "We're the A team working on the B project." It could be "Come join us in saving the planet from plastic." It could be a closed sale of a key account, such as "IBM is just the beginning of many companies we will win." Consider your most important value proposition and place a quote that highlights it. Give the investor something to remember your pitch. 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 [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.

Basic Mistakes in Fundraising Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In the startup world, there are mistakes founders make in their fundraisers. Avoid these basic mistakes in fundraising Raising less than $250K. In the venture world, $250K is the lowest amount of funding to raise. Below that level, it's not possible to do something meaningful with the startup. Raising funds from first-time investors. Those who have never invested in startups will require a great deal of education. The investor will need help on terms sheets, standard operating procedures, and more, taking the founder's time away from other investors. Not setting a minimum investment amount. In the angel world, $25K is a common floor for an investment. Too many investors with $5K and $10K checks can fill up the cap table. Not raising sufficient funding. The fundraising target should provide enough runway to take the company to the next level. Not performing diligence on your prospective investors. The investors will perform diligence on the startup, so the startup should do so with investors. Signing up the wrong investor can create headaches for the founder later. Avoid these mistakes in your fundraising. 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 [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.