Investor Connect - 787 - Ivan Maltsev of 3x Capital
Release Date: 10/20/2023
Investor Connect Podcast
Raising an Inside Round Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Most startup fundraisers seek capital from outside investors who are new to the round. This brings new investors into the cap table. There are rounds in which the existing investors fund the startup. This is often done for bridge rounds. Instead of raising the next major round, the startup raises additional capital to prepare for the next major round. This often happens between the seed and Series A, which is a bigger step compared to other rounds. An...
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Using Rule 701 To Issue Equity to Employees Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In a startup, it’s helpful to compensate employees with company stock. Most companies use stock options. Rule 701 gives the startup the ability to issue equity to its employees. This works even if they are not accredited investors. The limit is $10M or 15% of the outstanding shares in a 12-month period. Once you set the 12-month period, it must remain fixed. Rule 701 provides an alternative to the traditional stock option plan....
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Create a Sense of Urgency Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In running a fundraiser, it’s important to build a sense of urgency into the campaign. Here are some key steps to create that sense of urgency: Break your fundraising into smaller rounds or tranches. Demonstrate this by showing the fundraising plan that has more funding to come, but at a higher valuation. This lets you run deadlines at the end of each round, creating urgency with investors. Show how other investors are joining the round. Show the...
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The Role of AI and Data in Fundraising Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Startup fundraising begins with family and friends and then expands to the founders' network. In that part of the fundraising, founders will engage those they know well. Half the reason these investors join the round is to help the founder. After this group is exhausted, the founder draws the circle wider and starts to encounter investors they don’t know. These investors will be more difficult to close because they don’t have a...
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On this episode of Investor Connect, we are joined by Ron from South Highland Ventures for an enlightening presentation on search funds, touted as the best-performing asset class in the world. Ron dives deep into the 40-year-old model initially developed by Stanford and Harvard, highlighting its relevance and success today in addressing the $10 trillion succession challenge faced by businesses globally. He emphasizes the robust returns and lower risks associated with search funds compared to traditional venture capital or private equity, detailing how they capitalize on small, stable companies...
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Bring Three Stats for Your Startup Fundraising Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising funding, it’s important to showcase the key numbers behind your business. Here are three statistics for your startup fundraise: Revenue traction -- show what traction you have so far including the dollar amount and the growth rate. Customers need to know where you are on the revenue-generating path and how fast it’s going. A 50% annual growth rate is the minimum for a venture investment. Customer pain point --...
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Bring Three Stats for Your LP Fundraise Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Raising funds from Limited Partners requires a track record, an investment thesis, and a competitive advantage. It’s important to show you have a track record of successfully deploying capital. Investors want to know what you will be investing in, and is that space growing. Finally, they will look for your competitive advantage in finding and closing deals. In raising funds from Limited Partners, add these three statistics to your pitch:...
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Raising Funding in Downtimes Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Fundraising goes through the same cycles as the stock market, When the stock market is going up it’s easier to raise funding. When it’s going down it’s harder. Raising funding in down times requires more creativity. Here are some ideas on how to raise funding in a down market: Use more grant funding to fill in the gaps. The grant funding from the government continues regardless of the market. Consider crowdfunding. For smaller amounts of...
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Show How Your Valuation Is Already Achieved Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Valuation is a key factor in a startup's fundraising. Most startups show an aspirational valuation and then spend the pitch trying to convince investors it’s appropriate. Most use their forecasted revenues to justify their valuation. Forecasts hold little value to the investor and often leave them unconvinced about the proposed valuation. Instead of using revenue, articulate the values already in the business. Highlight the...
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The Four Phases of a Pitch Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The successful startup pitch goes through four phases. Start by capturing their imagination. This could be a bold statement, such as we can solve cancer within ten years. This sets the context for the problem to be solved. Next, show your solution and how it will achieve the goal just set forth. Show how the solution works at a high level. Highlight the value proposition you have. Next, make the case that shows how your business will be successful....
info_outlineOn this episode of Investor Connect, Hall welcomes Ivan Maltsev, General Partner at 3x Capital.
3x Capital is an investment and advisory firm focused on seed-stage web3 startups. Visit 3x Capital at www.3xcapital.fund.
Holding an MS in Business Law and being a PhD candidate in International Economy, Ivan transitioned into crypto investments in 2016, focusing primarily on BTC and ETH. Since 2017, he’s been actively managing his own crypto portfolio and investing in early-stage tokens.
Ivan shares the importance of education for both investors and founders in the blockchain space. Ivan highlights the challenges of talent acquisition and stresses the need for more experienced founders in the industry. That is why 3x Capital decided to launch 3x Education in order to help investors and founders to overcome challenges. Visit the website of the program: www.3xcapital.fund/education
Connect with them on LinkedIn at www.linkedin.com/company/
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