Startup Funding Espresso – How To Raise a First-Time VC Fund
Release Date: 06/13/2025
Startup Funding Espresso – Why Invest in Vertical SaaS
Investor Connect Podcast
Why Invest in Vertical SaaS Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Vertical SaaS is a venture sector in the tech space. It narrows the scope of the startup to a single application. Vertical SaaS has many advantages as follows: It’s easier to position in the market and message to the customer. By narrowing the scope, the startup can dive deeper into the application, providing a better solution. Distribution can be easier as it focuses on one vertical. Vertical SaaS is highly specialized for the customer’s needs....
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Startup Funding Espresso – Raising an Inside Round
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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Startup Funding Espresso – Using Rule 701 To Issue Equity to Employees
Investor Connect Podcast
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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Startup Funding Espresso – Create a Sense of Urgency
Investor Connect Podcast
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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Startup Funding Espresso – The Role of AI and Data in Fundraising
Investor Connect Podcast
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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Investor Connect 835: Family Office Roundtable - April 2025 Part 03
Investor Connect Podcast
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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Startup Funding Espresso – Bring Three Stats for Your Startup Fundraising
Investor Connect Podcast
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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Startup Funding Espresso – Bring Three Stats for Your LP Fundraise
Investor Connect Podcast
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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Startup Funding Espresso – Raising Funding in Downtimes
Investor Connect Podcast
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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Startup Funding Espresso – Show How Your Valuation Is Already Achieved
Investor Connect Podcast
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...
info_outlineHow To Raise a First-Time VC Fund
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Raising a first-time venture capital fund is hard work.
Here are some key steps in raising a VC fund for the first time.
Build a track record of successful investing by joining an angel network and making small but profitable investments.
Share the deal flow with prospective Limited Partners so they learn your investment thesis.
Show the deal flow on a regular basis so they understand the consistency of your network.
Share your due diligence with those investors so they see the quality of work you do.
Perform market research on an area of interest and share the results with the prospective Limited Partners.
Build an investment thesis for how to invest in the area of interest.
Showcase the investment thesis in your investing so the Limited Partners understand your methodology.
Present a few successful investments to the Limited Partners.
By showing them your market research, investment thesis, and track record, the Limited Partners can better understand the value of your work.
Ask for an initial investment from the Limited Partners to continue the process already underway.
Consider these steps for raising a first-time VC fund.
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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