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The Benefits of a Family Office

The Benefits of a Family Office

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Fundraising, Investing

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    Team Due Diligence

    November 26, 2023

    1 min read No one wants to invest in a startup that is doomed to fail; enter Team Due Diligence. “What we hope ever to do with ease, we must learn first to do with diligence.” – Samuel Johnson Performing the proper Team Due Diligence is an essential part of the investing process. The most critical factor in that process is understanding the startup’s team. Since a startup has only a developing product and perhaps some intellectual property, digging into the team is an excellent indicator of its potential success. It can be your number one key to understanding if the business is worth your investment. Here are some things to look for when doing your team’s due diligence: Team Resumes. Look at the resumes of those who are prospected to join the team when funding becomes available. The CEO should know who they are planning to bring on once they have the funding. Domain Knowledge. Who has the expertise, and how current is it? Complementary Skills. Do they have a team member with sales skills? Is there someone who is going to develop the product? Is there a member with people management skills who can grow the team? How long has the team worked together? Ideally, the team has some experience working with each other. The more time they’ve had together, the better. Read More TEN Capital Education Here 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

    Team Is the Only Thing

    May 10, 2021

    1 min read  Team Is the Only Thing Vince Lombardi once said, “Winning isn’t everything, it’s the only thing”. In startup investing, “Team isn’t everything, it’s the only thing”. All problems will ultimately be solved by the team. If they can’t solve it, then the business will fail. In many years of angel investing, almost all failures trace back to the team not being up to the task. In reviewing a deal, the investor often makes the mistake of matching the team to the current problem but not future problems. In the earliest stages, one looks for a team that can build and sell the product, but will they be able to grow the business and later scale it? These are the future problems that must be solved. Hopefully, the CEO will change the team to match the needs of the business. Character Confidence Coachability In evaluating a team, there are elements to look for in a CEO for early-stage companies. The first is character. The CEO must have integrity and demonstrate character. Over time, the company will adopt the character of the CEO. If the CEO cuts corners, so will the rest of the company. The second is confidence. The CEO must have enough confidence in their vision, plan, and team that they can execute. Starting up brings challenges that require confidence to succeed. The third is coachability. This is especially true for first-time CEOs in that they don’t know what it is they don’t know. Experienced CEOs understand this better and recognize their limitations. CEOs who shun advice or forego coaching will run into problems later. Read more from TEN Capital: https://staging.startupfundingespresso.com/education/ 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

    What is the Real Due Diligence Process?

    November 1, 2020

    2 min read, I’m always surprised by how many investors say the team is the most important element of a startup, but how little the due diligence process focuses on the team. I can look back on successes and failures in my startup investing career, and almost all failures can be traced back to the “team wasn’t up to the task.” I recognize that I often underestimated the challenge at hand, but in all cases, failure was due to the team lacking skills or focused commitment. In running the due diligence process, it’s not about the product; it’s about the team. There are standard checklists, and the investor should verify the basics such as legal entities, tax filings, patent filings, etc., but the real due diligence comes when you go to the startup’s office and meet the team. I had a new angel investor ask me the other day how he should diligence a startup. I encouraged him to set up a meeting in the startups’ office and meet the team and interview each one. The first person you want to meet if you haven’t already is the CEO. You are assessing leadership, communication, strategy, and other key skills. If this interaction isn’t stellar, there’s no need to continue further with the potential investment. In reviewing the rest of the team, you want to check to see those on the team’s skill levels. If there are advisors or mentors, you want to meet with them to see how much time commitment they have for the project. In the end, time, skills, and focus will need to be applied, and you are looking to see if the team can do that. You can learn a great deal about a company when you go to their workplace. I had a friend who worked for IBM and considered investing in a startup by some of his former coworkers and set up a meeting at their office. When he followed the address, it led him to a skyscraper in the downtown area. There he found the team had rented out the entire 12th floor of the building. Needless to say, the startup ran out of cash in just 6 months. Walking through their office, you’ll get a much deeper sense of who they are and what they are doing. Products come and go, markets shift, and change, but the team is a constant. Read more: https://staging.startupfundingespresso.com/education/ 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

    Investing in People

    June 8, 2020

    1 min read When you invest in a startup, you are investing in people. Starting a business isn’t easy. It often consists of long days, stress, frustration, and never-ending challenges. As an investor, one of the most significant impacts you can make is being mindful that you’re dealing with people who are working under enormous amounts of pressure. Keep in mind that you are investing in people. Without the team, there would be nothing for you to invest in. Learn to get comfortable, not just with the company, the technology, and the business plan, but with the people as well. Get to know the founders. Get to know the entrepreneurs. Try to understand them on a personal level, and don’t be afraid to spend time with them. Make an effort to go out with them for dinner, have a coffee with them and catch up. Focus on building a relationship and thoroughly getting to know the people you are working with. Pay attention to how they operate under various circumstances because, no matter what, you’re investing in them and not the company or the product. If the technology doesn’t work out or the market changes, you’re banking on these people to move with that change. You want to have faith that the team can pivot the business in another way. You’ll go through many ups and downs with these individuals. The key to making each up and down successful is having a strong relationship with the entrepreneur and never forgetting that they are what you are investing in. Continue reading in our latest eGuide: How We Invest Vol. VII 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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