When To Consider Venture Debt

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

In startup funding, there is venture capital and venture debt.

Venture capital takes an equity stake in a startup in return for funding.

Venture debt makes a loan to the startup for that funding.

Both have their place in the startup ecosystem.

Venture capital comes in at the early stage of the business as the startup needs funding but has no revenue to pay it back.

Venture debt comes in at the later stage of the startup because the business has revenue with which to repay the funding.

Venture capital launches the business, but venture debt continues the growth.

As the startup grows from the early stage to the later stage, equity becomes worth a great deal more.

At the later stages, the founders calculate the value of their equity and compare that to the cost of a loan.

Dilution in the form of equity funding becomes expensive to the founders.

Founders turn to venture debt when the dilution from the funding costs more than the loan repayment.

Consider the use of venture debt in replacement of equity funding from venture capital for 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.

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In this episode of Investor Connect, Hall T. Martin, CEO of 10 Capital, introduces co-host Kat DeLillo and special guest Brian Wood of Wave Ventures. Brian delves into the innovative approach of Wave Ventures in partnering with universities to commercialize intellectual property. He shares the backstory of Wave Ventures' collaboration with Baylor University and how this partnership successfully accelerated the university's research status to R1 in record time. Brian outlines their unique model which allows Wave Ventures to hold over 80% equity in their startups, and how they strategically place business experts to guide these deep tech innovations from conception to market.

The discussion covers various successful projects, including advances in digital display technology, novel ventilator systems, and significant improvements in propeller design for drones and aircraft, all sourced from university partnerships. Brian also shares personal anecdotes about his unexpected journey into the venture capital space, highlighting his background in medicine and previous success in the entrepreneurial world.

This episode provides a comprehensive view of how Wave Ventures is not only financing the next generation of deep tech startups but also de-risking these investments to secure substantial returns. For more information on Wave Ventures' projects and their innovative investment strategies, stay tuned to Investor Connect. To engage with Wave Ventures and learn more about their upcoming initiatives, please visit their website and explore their wide range of high-potential startups transforming deep tech landscapes.

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.

How To Stand Out From the Crowd

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

In raising funding, it helps to stand out from the crowd of other startups pitching.

Most founders will give the standard pitch, often with slides in the same order.

Here are some key pointers to make your startup stand out.

Show your business model in unit economic terms.

Show your growth story with a chart that goes up and to the right at a 45-degree angle.

This demonstrates there’s a growth story happening in your business.

Point out the recurring and repeating revenue streams you already have.

Show the skill set in its entirety that your team brings to the table.

List the team's exits and other performance wins.

Show your business with numbers that the investor can digest.

Choose three compelling metrics and show them in the presentation.

The investor will have a hard time remembering more than three, so choose the best.

Show the customer engagement with your product in terms of daily, weekly, and monthly active users.

Show how you have figured out customer acquisition and its repeatability.

Show your ideal customer profile. Make it clear you know who you want.

Consider adding these points to your 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

Please follow, share, and leave a review.

Music courtesy of Bensound.