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Reducing the Fees in Startup Investing

Fundraising, Investing /

I’m a big fan of index investing as it’s a great way to reduce the cost of investing in publicly traded stocks and bonds. Index funds have less than 1% fees which compare favorably to some brokerages which charge 1% of assets under management or more. In the startup space the cost of investing is also a big factor. Investing in VC funds often come with hefty fees including 2% for management and 20% of the returns.  I’ve done revenue based funding but found the operational overhead can be expensive. Revenue-based funding requires monthly follow ups to calculate revenue and there’s the ongoing monitoring process.   At TEN we provide low cost tools for investing in early stage companies.  First, we’re not a broker so we don’t charge carry or other fees on the investment. We charge a monthly retainer fee to the company raising funding.   Instead of the traditional revenue-based fund model, TEN employs a redemption right in a convertible note as a means of providing a liquidity event for the investor. This alleviates the bank account monitoring and constant calculation of revenue. Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies

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How Fundraising is Like Fishing

Fundraising /

1 min read I meet a great number of entrepreneurs and have seen numerous approaches to raising funding. Some approach it as an opportunity to meet new people and explore another part of the entrepreneur ecosystem.  Others see it as a chore that distracts from the real business such as product development, selling customers, creating the next unicorn (take your pick).  Some bring their sales skills to the process and are quite good at meeting investors, listening to their concerns, and closing the deal. Others expect the investor to be bowled over by the idea, the pitch deck, the rock-star team (take your pick), or otherwise. When that doesn’t happen they look at it as a failed meeting. The key is to bring your best game to the meeting and treat it as you would fishing. In fishing, you have to set the bait and be patient for the right fish to come along. Just like you can’t rush a fish to take the hook so you can’t rush an investor. If you don’t get a bite in one place you can move to another location or you can stay where you are and change the bait. I see entrepreneurs setting specific time schedules for their raise. This is the same as casting the line and then saying “by 3:25 we will have our first fish”. The fish rarely work on your schedule. Investors won’t do so either. While a fisherman can throw a stick of dynamite into the waters to expedite the process, this is where the analogy ends as you can’t do that with investors, patience is still key. Read more in our TEN Capital eGuides: https://staging.startupfundingespresso.com/eguide/ Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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Chris Rawlings of JudoLaunch

Company Spotlight /

When Chris Rawlings started Judolaunch his goal was to find the best ways to sell more on Amazon. Since then, Chris and Judolaunch have grown to help a tribe of more than 250 companies and sellers launch more than 1,000 products on Amazon. Whether you are just starting your Amazon journey or you are an Amazon business veteran, Judolaunch is here to help you create the optimal product listings, automate seller account, boost product ranking – all in order to increase sales on every Amazon marketplace. Excerpts from the interview: Chris shares his background before JudoLaunch- Chris started his career in the technical field. Chris talks about his self-described obsession with the universe, math, and what things are made of. This led him to study physics in college. After completing his degree, Chris then went into the solar industry. From there he started an e-commerce business selling spinal health products direct to consumer. This essentially led him to Judolaunch, the platform that enables Amazon sellers to launch new products and increase sales for existing products in every major market. Chris also shares his thoughts on how we are headed towards e-commerce first or e-commerce only, not as a supplement to physical retail. Listen to the full episode with Chris Rawlings You can find JudoLaunch at https://judolaunch.com Chris can be reached on LinkedIn at https://www.linkedin.com/in/chrishanemannrawlings/

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How to Innovate and Manage Large Data Sets

Other /

At the Baylor Angel Network Analyst dinner, the student analysts asked the Angel members how they managed large, complex data sets. In my response, I explained that the solution to the large complex data set problem is to build models. In the startup world, there are many types of startups, but if you categorize them by type and stage you can create a manageable number.  This allows you to contrast and compare new businesses against the models. Each model has certain characteristics, dynamics, and risks. For example, a B2B enterprise software model has a CAC:LTV ratio which measures the strength of the business model. A consumer product goods company has a category growth rate and a gross margin which determines how much funding you will need to grow it. By organizing startups into a discrete number of models, you can manage large volumes of data. Another question focused on how to develop new innovations. In response, I described how applying convergence to the models can generate new innovations.  By merging two models together, you can create a third model that is new and unique. For instance, if you take B2B SaaS and merge it with the music industry, you’ll create a streaming category exemplified by startups such as Spotify. It is important to note that not all convergences make sense and lead to productive innovation. A key factor in achieving productive innovation is that it must solve a real problem. This dovetailed with another topic of discussion—solving a real problem.  It’s important to work on solving real problems and not “nice to haves.” It takes time and funding to bring innovation to the market, and that effort should be directed toward solving an actual need. Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies

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Top 5 Reasons You Should Join a TEN Capital Network Investor Reverse Pitch and Startup Pitch Event

Investing /

This year as TEN Capital Network turns 10 we’ve decided to branch out and hold events across the US. This year we’ve had events in Austin, New York City, San Francisco, Dallas, Houston and upcoming in Seattle and Chicago. We are passionate about what we do and these events are a great way to keep the startup community connected. INVEST: Find a great startup to back – all startups at TEN events are pre-screened for fundability. PITCH: Let the community know what makes you a valuable asset as an investor. Come out and speak about your fund, yourself or even what makes you tick as an investor! SHARE: Share your investing experience and give back to the community with your feedback. Use your voice to set out a challenge you’d like to see a startup overcome to be successful. LEARN: Learn the ins and outs of new industry sectors and expand your horizons. The industry is constantly moving and evolving- come out and learn more about the possibilities. NETWORK: Grow your network and meet investors and up-and-coming founders. There is nothing better than having an extensive network of peers and colleagues. Come out and meet and greet! View a full list of TEN Capital Events

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John Pope and James Walker of Welldog

Company Spotlight /

Founded in 1999, WellDog’s mission is to drive global sustainability through georesource innovation.  Welldog strives to achieve this mission by excelling in three areas: Technical Innovation Business Model Innovation World Class Customer Focus WellDog was founded on the premise that innovative technologies can facilitate a future of sustainable energy resource development. Responsible, efficient exploration and production of energy has become a highly technical undertaking. Innovative technical services offer an unparalleled opportunity to improve that process, thereby reducing environmental impact, increasing safety and improving producers’ speed and profitability. WellDog has built a reputation for adapting cutting-edge technology to create practical, easy-to-adopt technical solutions for key resource evaluation and production challenges. WellDog is an energy-focused technical services company that developed its own patented, proven Reservoir Raman chemical sensing systems to provide commercial reservoir analysis services for coal, gas, alternative and conventional resources. Building on the strength of those services and the company’s world-wide customer focus, WellDog now develops, sources, advances and manages a diverse set of innovative technical solutions. The company focuses on platform technologies that enable solutions to address the critical needs of today’s unconventional and alternative energy industries in a high volume, low cost manner. Excerpts from the interview: John and James talk briefly about their background before WellDog, and how they got into the unconventional oil and gas space. James explains how, as the oil and gas industry has plateaued, technology-driven companies like WellDog are providing critical tools for growth. John explains how WellDog has helped oil and gas companies deal with price challenges in two ways. New technologies can increase both supply chain and business operation efficiencies, together with exploration and production efficiencies. Listen to the full episode with John Pope and James Walker You can find Welldog at https://www.welldog.com/ John can be reached on LinkedIn at https://www.linkedin.com/in/jmpope/ James can be reached on LinkedIn at https://www.linkedin.com/in/james-walker-86433312/

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What We’ve Learned Over the Years: How to Tell if Your Investor is Really Invested

Fundraising, Investing /

In today’s startup world every fifth person is an investor in some form or fashion. Startup investors call to discuss deal structures, valuations, or serial entrepreneurs. I can tell the difference between a serious investor and  a not so serious investor. A pretend-startup-investor likes the title of startup investment but won’t commit the time or money to make it successful. An investor that is not serious can waste a startups time. Here are some telltale signs of a pretend-startup investor the investor is not interested enough to visit the team’s HQ or meet with the team. the investor asks about the price first and then figures out the values in the business later if at all. the investor wants reports but doesn’t read them. the investor talks about helping the business but never finds a way to contribute. the investor glances at the due diligence documents but doesn’t dive deep enough to understand the business. there’s no investment thesis or guiding criteria for their investment choices they have no network in the target industry or startup world and can do little to help the startup post-funding. Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies

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Mick Connors of Anytime Pediatrics

Company Spotlight /

Anytime Pediatrics is a part of Anytime Telehealth, a company committed to connecting patients to the healthcare providers they trust most – at any time and from anywhere – using its simple, affordable telehealth software solution. Anytime Pediatrics and Anytime Telehealth were founded in 2016 and 2018, respectively, by Dr. Mick Connors, MD, a long-time pediatrician and father of four. With more than 30 years in healthcare, including leadership roles at Connecticut Children’s Medical Center and East Tennessee Children’s Hospital, Mick has long understood the undeniable value of an individual’s relationship with his or her primary care physician, and a family’s relationship with their pediatrician. It was this understanding that inspired him to create a solution … a connector… to help ensure patients could access quality healthcare when they needed it, from their computer or mobile device, with their preferred physician, and at a price they understand and can afford. In this, Anytime Pediatrics and Anytime Telehealth were born. Excerpts from the interview: Mick was inspired to get into the medical field and pediatrics after his brother passed away from pediatric cancer before he was born. It’s been a lifelong passion. In his career in pediatric emergency medicine he is seeing more and more fragmentation of care, with children going into many different varieties of healthcare opportunities. When he developed the concept of Anytime pediatrics, he wanted to connect patients and families to the right care at the right time. Mick gives his advice on what investors should look at when going into and investing in healthcare.  Mick also discusses the growth rate of telemedicine technology and approximately how many companies are involved. As well as the challenges and risks that need to be overcome. Listen to the full episode with Mick Connors You can find Anytime Pediatrics at https://anytimepediatrics.com/ Mick can be reached on LinkedIn at https://www.linkedin.com/in/mick-connors-md-54a77437/

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What We’ve Learned Over the Years- How You Can Tell you are Talking to a Pretend-preneur

Fundraising, Investing /

The startup world is open to anybody, and it seems like everybody comes through it at some time or another. I receive calls daily from entrepreneurs seeking to start a business, raise funding, or hire a team member. I can always tell who is the serious entrepreneur and pretend-preneur – someone who likes the idea of running a startup but is not committed to the work required to make it a success. That’s important because a pretend-preneur who raises funding will ultimately waste it, and there are too many good startups to spend money on those who don’t see it through. Here are some telltale signs of a Pretendpreneur –They are more worried about job titles and credit for the work. –They don’t seem too focused on the customer and what it will take to make them happy with the product, as that’s a detail to be figured out later. –They focus on the superficialities of the business and not the core functions of building the product and selling it. –They look for ways around the hard work rather than working their way through it. — Problems are everyone else’s fault, and nothing can be done about it. –They don’t know who their customers are, and it doesn’t bother them. –They think funding will solve all problems and make life easier after the raise. –They don’t know their numbers, but someone else in their organization does, and that’s good enough. Everyone dreams of a successful startup and fundraise, but it takes more than a dream to be successful. Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies

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