Startup Funding Espresso – Party Rounds – Going Without a Lead Investor
Release Date: 05/01/2025
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Startup Funding Espresso – How To Say No to a Startup
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Startup Funding Espresso – Don’t Play the Scenario Game in the Pitch
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Investor Connect 826: Family Office Roundtable Part 03
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Startup Funding Espresso – Raising a Series B Round
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Raising a Series B Round Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising a seed or Series A round, the story carries the fundraising pitch. Investors in those rounds are looking at a seven to ten-year trek to the exit. In Series B, the time to exit is much shorter. The fundraising pitch here focuses on the numbers. The Series B deck shows the repeatable, predictable process that generates money. Investors expect all the systems to be up and running and the bugs to be worked out. This means putting a process on...
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Startup Funding Espresso – European Waterfall Model
Investor Connect Podcast
European Waterfall Model Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Venture capital funds use different payback structures. Each varies the structure for how the Limited Partners receive their returns. The European waterfall model does not pay back the carried interest to the general partners until the limited partners have received all their capital and return. The American waterfall model pays the general partners on a deal-by-deal basis. This spreads the risk over several deals and throughout the life of the fund. The...
info_outlineParty Rounds – Going Without a Lead Investor
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
In raising funding, many founders believe they can’t raise funding without a lead investor.
At the seed level, this is not necessarily the case.
Founders should launch their fundraising campaign with a convertible note so it’s easy for the investor to join the round.
Since valuation is not set, there’s no need for a lead investor to start it.
There is a valuation cap, but this means the valuation will be set later.
At the seed level, it can be hard to agree upon valuation, so it’s best to set it when there’s more information available.
Founders can fund their early rounds without a lead investor.
At the seed level, founders can find enough funding to close the round.
This is called a party round.
Many but not all investors will provide support to the startup.
In launching a Series A raise, one should start with a convertible note to pick up funding from investors while in pursuit of a lead investor.
Consider a party round for your seed 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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