100 episodes

Hall T Martin interviews angel and venture capital investors on how they invest and talks with CEOs who discuss their sector and what to look for. Hall T Martin also leads the Startup Funding Espresso series in which you can learn about startup funding and investing in the time it takes to have an espresso.
https://investorconnect.org/

Investor Connect Podcast Hall T Martin

    • Investing

Hall T Martin interviews angel and venture capital investors on how they invest and talks with CEOs who discuss their sector and what to look for. Hall T Martin also leads the Startup Funding Espresso series in which you can learn about startup funding and investing in the time it takes to have an espresso.
https://investorconnect.org/

    Warrants

    Warrants

    You may come across the term warrants in a terms sheet. Warrants are a type of security that gives investors the option to buy more stock over a designated time frame, at a specific price.   Three parameters define the details of a typical warrant clause: the term, the coverage, and the price.   The term sets the window of time the investor has the option to exercise the warrant.   The coverage sets the number of shares the investor is entitled to buy.   The price sets the price at which an investor can purchase the shares. This is typically the same as the current price.   Warrants are used to ‘sweeten’ the deal by enabling an investor to buy more shares later.   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.

    • 1 min
    Investor Connect - Episode 237 - Jason Todd of Thinker Ventures

    Investor Connect - Episode 237 - Jason Todd of Thinker Ventures

    In this episode, Hall is joined by Jason Todd of Thinker Ventures, business development and consulting firm specializing in startups and small to mid-size growth companies. An entrepreneur with a background in sales/marketing, programming, and eCommerce, Jason uses his expertise to grow and develop small companies and startups. Jason gravitates to companies that have a good idea where they are at and can articulate where they want to be. Jason advises investors to get a good grasp of the space they're investing in before committing. For entrepreneurs, he emphasizes the importance of objective market validation and a flexible approach to development. Jason talks about the startup scene in the Midwest region and the particular challenges and advantages that come with it. Jason also discusses his investment thesis and highlights some companies he's had success with. Jason stresses the importance of a compelling growth story and responsiveness to feedback. Finally, Jason talks about one of the sectors he finds particularly promising - Artificial Intelligence - and provides some advice for investors looking into that space.

    • 19 min
    Pay to Play

    Pay to Play

    Pay to play is often used in terms sheets.    A pay to play clause is intended to create an incentive for existing preferred share investors to invest on a pro rata basis in future financing rounds. The clause spells out that, if the existing investors choose not to participate in future rounds, they will lose some or all of their preferential rights.   For example, if a preferred investor in a down round chooses to invest then he maintains his anti-dilution rights. If he chooses not to invest, then he loses those rights.   Other disincentives for not participating include - Losing some preferred rights. - Losing all preferred rights and protections, such as forcing the investor into common stock. If you fail to pay, then you can’t play.   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!

    • 1 min
    Investor Connect - Episode 236 - Daniel Hallawi of KapVista

    Investor Connect - Episode 236 - Daniel Hallawi of KapVista

    In this episode, Hall welcomes Daniel Hallawi of KapVista, a global platform showcasing emerging companies across 15+ countries to over 15,000 high net worth, professional, and international investors. Through an investor-focused website and tailored matchmaking, private companies can present their company to potential investors, advisors and board members. As a natural by-product, KapVista also provides a marketplace to find potential co-founders, team members, advisors, board members and individuals who can help grow the start-up ecosystem. After leaving a successful career in the corporate world, Daniel became fascinated with the startup world. Daniel created KapVista as his response to the massive disconnect between founders and investors. He found that there was nowhere to go for founders to connect to the resources they needed to grow. Daniel talks about what he looks for in a founder. He encourages startups to be laser-focused on investors from day one–and realize that the little things such as punctuality and follow-through matter. Daniel highlights the evolution of the VC and Private Equity space, as well as the increased competition both for investors and startups. Finally, Hall and Daniel discuss some of the hot sectors, both in the U.S. and Asia.

    • 10 min
    Anti-Dilution

    Anti-Dilution

    Terms sheets use anti-dilution clauses to protect the investors. Anti-dilution comes into play during down rounds in which the founders raise funding at a lower valuation than a previous round. There are three scenarios: No Anti-Dilution Protection - Investors and founders share in dilution from any follow on rounds funding. Full Ratchet Anti-Dilution - With full ratchet, the investor’s share price is adjusted all the way down to the level needed so that two things happen: a. The new investor gets their percentage. b. The current preferred share investor with full ratchet anti-dilution protection maintains their ownership percentage in the startup, A full-ratchet scenario dilutes founders ownership dramatically, so this method is unfavorable to founders. Weighted Average Anti-Dilution - The Weighted Average method takes into account the total number of shares outstanding. The more shares owned by an investor, the less dilution they receive. This method is favorable to founders. Founders get diluted, but not as much as in a full ratchet scenario. Preferred share investors get diluted a little bit, as opposed to not at all in a full ratchet scenario. 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!

    • 1 min
    Investor Connect - Episode 335 - Matt Johnson of Johnson Venture Partners

    Investor Connect - Episode 335 - Matt Johnson of Johnson Venture Partners

    In this episode, Hall welcomes Matt Johnson of Johnson Venture Partners, a micro VC fund investing in high-growth startups in the Southeast. Matt's curiosity about the founding stories of successful companies led to a passion for early-stage investing. While JVP is sector agnostic, Matt points to his particular interest in machine learning, cognitive computing technology, and early-stage innovation in general. Matt also emphasizes the opportunities in using network effects to build teams of investors to source deal flow. For startups, Matt advises that founders get to know the investor and understand their goals, regardless of the type of funding you're after. Matt also talks about some of the platforms and tools available to assist investors to unlock crucial data. Matt discusses his fund's thesis and highlights some of the companies he's worked with. Finally, Matt talks about the importance of discipline and focus, whether you are an investor or an entrepreneur.

    • 16 min

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