Angel Investing Strategies

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

Most angel investors focus on one of two strategies.

They can be called Moneyball and Powerball.

The Moneyball strategy invests the same amount of money in each deal.

Each sector gets one investment.

There are no follow-on rounds.

Funds are considered in addition to startups.

The powerball strategy invests a different amount on each deal based on the strength of the team.

Specific sectors are chosen based on market outlook.

Half the allocation is reserved for a follow-on round.

No funds are considered, only startups.

Moneyball spreads the money out to find a hit.

Powerball looks to find the winners and double down on those.

Both strategies can work.

Consider which of these strategies you are trying to play for your angel 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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Say It Out Loud With Words

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

The key to a successful pitch is to articulate all the values in the deal.

This doesn't mean explaining how the product works in great detail

This also doesn't mean spending half your allotted pitch time trying to convince the audience that diabetes is a problem.

It does mean, however, that every value that has come into the startup is noted in the pitch deck with at least a logo or a bullet point.

The rule of pitching is that if you don't mention it, then it doesn't exist.

Here's a list to consider adding to the pitch deck:

All funding sources to date, including angels, angel groups, grants, VC funds, and more.

All partners, team members, and others who have contributed to building the startup.

Any exits and positive outcomes for startups led by the team.

All customers who have bought the product or given feedback.

Include a logo for each one somewhere in the pitch deck.

Investors look for evidence that investors, customers, and partners are supporting you.

For each value, say it out loud with words.

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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Add Consulting to Your Startup Launch

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

In launching a startup, consider adding a consulting program.

New products and services often require additional training and services to help the customer achieve success.

Over time, the product improves to the point that the customer can install and run it on their own.

In the early days, use consulting to help customers become successful.

The startup raising venture capital will need to be scalable to receive funding.

Consulting is not scalable.

Investors will downgrade the company for funding if a substantial amount of revenue comes from consulting services.

Use a second company to provide the consulting.

It can form a partnership with the main startup to provide consulting services.

If consulting proves valuable to the startup, then it can be bought by the startup and rolled into the main company later.

Many startups find that their product is not ready for prime time at the launch.

By providing consulting services, one can overcome the initial product weaknesses and potentially make additional revenue to pay the bills.

Consider adding consulting to your startup launch.

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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How To Evaluate AI Startups for Investment

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

Artificial intelligence brings a new type of startup to the investor for funding.

Here is how to evaluate AI startups for investment.

Market opportunity.

For new applications that have never been done before, AI offers a greenfield opportunity.

Estimate the current size of the target market and the value of selling to each one.

This often generates an outsized total available market as one solution could cover the entire market.

For existing applications that AI enhances, use the existing sales figures for products sold into the market and add the incremental value of the AI-enabled product.

Product opportunity.

Review how AI-enablement will enhance the capabilities of the product.

Will this be a major or minor productivity improvement?

Moat.

How much of a moat will AI bring to the product?

The more algorithm tuning and training data used, the stronger the moat.

Deployment.

What will it take to deploy the solution?

The broader the go-to-market strategy, the more valuable the product.

Consider these elements in evaluating an AI startup for 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

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In this episode of Investor Connect, Hall Martin speaks with Iga Hallberg, Business Development Lead at EV Realty, which develops, deploys, and operates grid-ready charging hubs for commercial fleets. The discussion encompasses Hallberg's extensive experience in electrification and renewable energy, focusing on the creation of sophisticated commercial vehicle charging hubs. Backed by significant private equity investments, EV Realty aims to develop a national network of these sites, primarily in regions like California, Washington, New York, and New Jersey.

The conversation shifts to the investable thesis for charging infrastructure, highlighting substantial trends in commercial fleet electrification, particularly within major ports and urban centers. Hallberg elaborates on the criticality of power access, grid constraints, and the strategic partnerships forming to support large-scale infrastructure projects. Hallberg delves into the main business models in the charging hub market, explaining how different sectors like last mile delivery, ride-share, and school buses influence infrastructure design and financing. She notes the growing involvement of real estate developers and utility companies in providing charging solutions and discusses the importance of de-risking projects through solid customer contracts. With the sector witnessing the transition from pilot projects to fully-financed infrastructure assets, Hallberg emphasizes the transformative impact of this shift on the broader energy and mobility landscape. The podcast also touches on the current challenges and opportunities in the industry, such as navigating federal and state policies, adapting to changes in the incentive landscape, and optimizing returns through strategic site selection.

The episode concludes with a look at successful past projects and insights into optimal partnership structures between developers, utilities, real estate owners, and fleet operators. Hallberg highlights the significance of energy as a service and its potential to revolutionize various segments, from heavy-duty commercial vehicles to light-duty passenger electric vehicles. Listeners are encouraged to consider the evolving dynamics of the electric vehicle charging market and the compelling investment opportunities it presents.

Visit EV Realty at evrealtyus.com/

Reach out to at leadiq.com/c/ev-realty/6373ca42d4454f2aa30473c2 and on mobile.x.com/evrealtyus

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For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

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Build Your Support Network Before Fundraising

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

Fundraising can be challenging both mentally and emotionally.

Before launching your fundraiser, build your support network.

In addition to building your investment documents, put in place people who can support you.

Here's a list of support to consider:

Advisors -- identify two to three people who can advise about fundraising.

This is an informal position of those who have raised funding and can give guidance.

Team -- set up your team to help you with the logistics and mechanics of fundraising.

This includes email marketing, document preparation, and diligence work.

Connectors -- those who have broad networks and are good at making connections.

This includes investors who know other investors in the community.

Legal -- this includes startup-friendly attorneys who can advise on terms sheets and other legal aspects of the fundraise.

Emotional -- this includes people with whom you are comfortable.

They tell you what you need to hear rather than what you may want to hear.

Consider building this support network before launching your fundraiser.

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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For Investors check out: https://tencapital.group/investor-landing/
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How To Pay the Bills While Launching a Startup

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

Launching a startup is hard work.

It takes time to build up the revenue to pay a living wage to the founders.

So how does a founder pay the bills while launching a startup?

Here's one solution:

Provide consulting and training services in the domain of the startup you are building.

For example, if the startup is building a software application in the HR space, start by providing training and consulting on HR software.

Here are the benefits:

It fosters contacts and networking with those in the target market.

It engages the founder with the current products.

It provides hands-on interaction with customers.

It highlights the challenges customers face in their work.

It shows how the current solutions are positioned in the market and what price they charge.

It shows how the current companies in the market make money.

It's okay to have a day job while launching a startup.

It's even better to have one that helps educate and inform about the startup's target market.

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/
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The Value of Regular Investor Updates

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

Founders who have raised funding should give their investors regular updates.

Here's the value of regular updates to the investor:

It reminds the investor what you do and what progress you have made.

This becomes useful later when the founder goes to raise the next round.

It maintains the relationship between the founder and the investor.

This becomes useful later when key decisions are made and both sides must come together.

It keeps the conversation going so no single meeting becomes a make-or-break event.

This takes the pressure off.

It informs the investor of how the founder thinks and works.

This helps the investor understand the strengths and weaknesses of the founder.

It provides the backstory of how the startup reached its current position.

This helps the investor understand what has worked and what has not.

Investors should press the founder for updates if they are not receiving it.

Founders should find a way to provide regular updates to their 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 info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.