Investor Connect: Investor Education January – Part 03
On this episode of Investor Connect, Hall welcomes Barry, who presents a medical device focused on improving treatment for hydrocephalus, a condition caused by excess fluid in the brain. Barry describes the current standard approach—ventricular-peritoneal shunts that drain fluid from the brain to the abdomen using a long rubber tube—and…
Start by Looking for Your First Investor, Not Your Lead Investor
In raising funding, some founders focus solely on finding their lead investor. In most cases, it's better to find investors to join the round even if they are not leading. By using convertible notes and SAFE notes, investors can join the raise. Start with investors who are most likely to…
Track Interest, Committed, and Invested
In raising a round of funding, most founders focus on the invested funds so far. When asked about the progress, the founder quotes the invested amount and the amount left in the raise. This undersells the traction the founder has. In addition to the invested, also track the interest and…
Prioritize Investor Follow-Up
Startup founders raising funding will encounter a range of investors with varying levels of interest. Founders should prioritize their follow-up and focus on the investors with the greatest likelihood of making an investment with the least amount of work. A lead investor can be quite helpful but will require substantial…
Investors Want Optionality
Investors follow many startups before investing. They stall in making an investment to be certain it's a good one. They look for additional information about the startup, its product, and market before making a final decision. Investors want optionality. They want to have as many options available as possible. This…