Startup Funding Espresso – The Fallacy of Stealth Mode
Release Date: 12/08/2025
Startup Funding Espresso – VC Fund References
Investor Connect Podcast
VC Fund References Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Limited partners considering an investment in a VC fund should check the references. Here’s a list of references to consider: Other funds the VC has worked with before. This could be in the form of a syndicate for funding startups. Entrepreneur network. This is the list of startup founders the fund has in their network. Limited partner references. This is the list of current and previous investors the fund has worked with before Community leaders. This is...
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Startup Funding Espresso – VC Fund Track Record
Investor Connect Podcast
VC Fund Track Record Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Limited Partners in VC funds look at the team’s track record and also that of previous funds. Here’s a list of key metrics to disclose about your track record: Total Value to Paid in (TVPI) Compares the value of realized gains and the estimated value of remaining assets to the total amount of capital raised. Net IRR. Calculates the Internal Rate of Return on the funds distributed, which is the net present value of all cash flows. Graduation rate....
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Startup Funding Espresso – How LPs Test the VC Fund
Investor Connect Podcast
How LPs Test the VC Fund Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Limited Partners test VC funds before investing. Here’s a list of the criteria LPs use to test the fund: Does the fund have a track record that is compelling? Does the fund fit an open slot in the LPs asset allocation? Does the fund manager have access to deals the LP does not? Does the fund manager have the ability to construct a better portfolio than the LP? Can the fund manager better support the startup than the LP? Does the fund bring access to...
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Startup Funding Espresso – Types of Limited Partners for a VC Fund
Investor Connect Podcast
Types of Limited Partners for a VC Fund Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In raising a VC fund, there are several types of limited partners. Here’s a list to consider: High networth individual This is a person who has a net worth of over a million dollars available for investment. They often participate as an active investor. Ultra high net worth individual. This is a person who has a net worth of over $5M available for investment. They can make higher levels of investment and often want a controlling position...
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Startup Funding Espresso – Shutting Down a Startup 2
Investor Connect Podcast
Shutting Down a Startup 2 Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Not all startups succeed. For those that don’t, there may come a time to shut it down. Here are some key points to consider in shutting down a startup: Before announcing the shutdown, collect all accounts receivable. Sell any inventory left on hand. Notify investors first so they are aware. Notify employees and give them their last pay date. Notify your customers of the transition to a new service or program. Liquidate all assets. Pay taxes and...
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Investor Connect 861: Unlocking Sales Leadership Capital with Fractional Executives
Investor Connect Podcast
In this episode of Investor Connect, Hall Martin speaks with Henning Schwinum, the co-founder and managing partner of Vendux, a company specializing in connecting businesses with fractional, interim, and full-time sales leaders. Henning shares his journey from a 25-year career in global sales and leadership roles to identifying a gap in the market for senior sales leadership in fast-growing companies that aren't ready for a full-time executive. This led to the creation of Vendux, a specialized marketplace for fractional sales leaders. Henning explains the concept of 'sales leadership...
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Startup Funding Espresso – Best Practices for Launching a Startup
Investor Connect Podcast
Best Practices for Launching a Startup Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Many founders have unrealistic expectations and misguided notions about how startups work. Here’s a list of best practices to consider for launching a startup: Don’t bank on the idea alone. Startups need more than a great idea; they need execution. Launch as soon as you can. Delaying the launch means delaying customer interaction, which is the key driver in the early days. Build momentum into the business. Investors will look for...
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Startup Funding Espresso – The Value of LTV:CAC
Investor Connect Podcast
The Value of LTV:CAC Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The Lifetime Value to Cost of Customer Acquisition ratio is called LTV:CAC and is a useful ratio in determining the health of a startup. To calculate the Lifetime value, take the monthly revenue and divide by the churn rate. To calculate the Cost of Customer Acquisition, take the number of new customers for a month and divide by the cost of sales and marketing for that month. Compare the LTV to CAC to determine the ratio. The ratio must be at least 3:1...
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Startup Funding Espresso – When To Sell Your Business
Investor Connect Podcast
When To Sell Your Business Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Startup founders receive buyout offers throughout the life of the business. Even in the early days of the startup, they have the opportunity to sell the company. At each round of funding, the founder has the choice to raise more funding or sell it. Here’s a list of reasons to sell the business: The founder no longer wants to run or own the business. The business no longer appears to have a future due to changes in the market or competition. The offer...
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Startup Funding Espresso – The Challenge of Regulation
Investor Connect Podcast
The Challenge of Regulation Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Regulation by the government of an industry is meant to protect customers and provide a level playing field for the companies. The downside to regulation is that it inhibits innovation. It often favors the incumbents in an industry and makes it difficult for startups to succeed. It makes market entry for new players more expensive. The existing players form advocacy groups that lobby the government for their point of view. Regulation often snuffs out...
info_outlineThe Fallacy of Stealth Mode
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Startups often choose to stay in stealth mode in the early days to protect their idea.
In most cases, stealth mode doesn’t help the startup and can actually hurt it.
Here’s the downside of going into stealth mode:
It’s difficult for others to help the startup because they don’t know what is going on.
It’s harder to hire for the startup because it’s a secret.
You can't tell customers about it because you may reveal too much.
It’s difficult to talk to investors because the startup wants everyone to sign an NDA.
Startups that commit fraud are often in stealth mode to hide their activities.
Instead of going into stealth mode, be open about what you are doing.
Refrain from explaining to everyone how you are doing it.
This gives exposure to the startup for investors and customers.
Consider keeping certain functions as a trade secret.
Investors will appreciate the fact that you have intellectual property in the form of a trade secret.
They will be less impressed by your stealth mode.
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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