Investor Connect Podcast

How To Launch B2B Marketplaces Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In addition to B2C marketplaces, there are B2B marketplaces that are gaining rapid adoption. To launch a B2B marketplace consider the following tactics: Find participants who are not monetizing their value and help them capture it through a marketplace...

On this episode of Investor Connect, Hall welcomes Jeffrey Kamys, CEO of Inherent Wealth Fund. Located in San Francisco, California, USA, Inherent Wealth Fund is a registered investment adviser focused on thematic and sector-specific investing. They implement innovative strategies and wealth management solutions for institutions. Inherent Wealth Fund fully understands how technological advances im...

Assessing a Marketplace Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In setting up a marketplace business here are some key points to consider in choosing a potential marketplace. The marketplace business model provides an advantage for the buyer, the seller, or both. The more often the buyers and sellers use the platform -- d...

Launching a Marketplace Business Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In launching your marketplace consider starting with a niche. Focus on what your team does best. Choose a niche in the sector that you can easily gain access to the supply side. This could be either by geography or by service offering. Offer above-av...

How To Start a Marketplace Business Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In starting a marketplace business you must consider how to structure it and then how to build the supply and demand sides of it. For the structure, you can target a specific vertical by focusing on one segment or go horizontal and cover the entir...

What Is a Marketplace Business Model? Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The marketplace business model is becoming increasingly popular among startups. A marketplace business connects buyers and sellers through a platform. The platform facilitates the transaction and does not produce or provide the product or servic...

Preparing for a Secondary Sale Transaction Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing A secondary sale is important to the founders and employees of a company. It gives them the opportunity to sell their shares to gain liquidity in advance of the company's exit. Here are some key issues to consider: Founders normally receive...

On this episode of Investor Connect, Hall welcomes Nitin Rai, Founder and Managing Partner at Elevate Capital. Located in Hillsboro, OR, USA, Elevate Capital is a Diversity, Equity, and Inclusion focused fund that invests in US-based early-stage startups led by underrepresented entrepreneurs, including women, BIPOC, LGBTQ+, and veterans. Launched in 2016, it is one of the US's first institutional...

What Companies Should Know Before Allowing Secondary Sales? Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Companies who want to give their employees the opportunity to sell their shares should consider the following: Set specific timeframes to allow for stock sales by the employees. This limits the distraction of employees and...

Valuation Method for a Secondary Sale Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In pricing a secondary sale here are some valuation techniques: Estimate the value of the equity by multiplying the revenue by the multiple for similar companies. For example, SaaS companies are sold for a multiple of 10X revenues. Reduce the va...

Types of Buyers of Secondary Shares Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are several types of buyers for secondary shares. Each has its own motivation for doing so. Here's a list to consider: Employees often want more shares of a startup that is doing well. They may also want to sell their shares to pay for expen...

Tax Issues With Secondaries Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are tax issues associated with a secondary sale. Here's a list of issues to consider: Gains on secondary sales are taxed based on the holding time of the shares. If less than one year, then ordinary income tax rates apply. If longer than one year th...

Pricing Secondary Shares Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In selling secondary shares a price must be set. Since the shares are in a private firm there's no market to review for a list price. Here are some factors to consider in pricing a secondary sale: Are the shares preferred stock or common stock? Preferred sto...

We are excited to announce a new segment for you, How to Invest Series. Where we will be revisiting some of the smart insights, tips, and advice from our past guests on the show. To start off the series we will be touching on the Biotech and life science subject. So, let's dive right in and hear the answers to the question I made to each of our guests back in 2021: What makes for a successful comp...

Type of Secondary Transactions Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are several types of secondary transactions as follows: Confidentially marketed public offerings -- these offerings go to institutional investors. These transactions use an S3 form to provide shares to known buyers. Bought deal -- these shares ar...

How Do Secondary Sales Work? Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Secondary sales typically occur with later-stage startups. Investors who want shares in a company will buy the shares from founders, employees, or other investors. The price is typically at a discount to the last priced round such as 15 to 30%. The selle...

Customize the Pitch for the Investor Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Customize the pitch for each investor. Research the investor before the pitch to learn more about their investment thesis. Review their portfolio of startups to see what is common about them and how your deal fits. For each investor choose three...

Challenges in Secondary Sales Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. There are several obstacles to overcome in completing a secondary sale. Here are some challenges to consider: Board approval -- In many cases, the company must approve any founder shares being sold. Right of First Refusal -- companies that have raised f...

Benefits of a Secondary Sale Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. A secondary sale brings several benefits to the stakeholders in a startup. Companies stay private much longer than before. Those in the company need access to capital. For founders, a secondary sale provides some liquidity in the near term giving them th...

On this episode of Investor Connect, Hall welcomes Zeke Trezise, Associate investor of New Stack Ventures and a member of the Full Ratchet podcast team. Located in Chicago, IL, USA, New Stack Ventures is specialized in pre-seed and seed funding for startups led by entrepreneurs outside the traditional Silicon Valley mold. With a mission to empower underrepresented talent, they invest in a diverse...

Why Do Investors Want Secondaries Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Secondaries stands for secondary sales which refers to selling privately held stock in startups to other buyers. Investors buy secondaries instead of waiting for the next fundraise round. By buying now rather than later the investor can lock in a lo...

Why Companies Delay IPOs Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Companies stay private much longer than they used to. Previously companies ran an Initial Public Offering to gain access to the public markets for financing. Companies delay their IPOs for any of the following reasons: Avoid the cost of going public which is...

What Are Secondaries Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Secondaries stands for secondary sales which refers to selling privately held stock in startups to other buyers. This arises from several sources such as investors who want to get into the deal after the fundraise is complete or employees who want to sell some o...

Preparing the Diligence Documents Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Investors interested in your startup will want to perform due diligence on the deal. Diligence is a standard process investors go through to review all the relevant documents and checkmark all the boxes before investing. In preparing your diligence...

Customize the Pitch for Your Investor Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In pitching investors, you'll find that each investor is unique. Customize the pitch for the investor by emphasizing the elements of your deal that intrigue the investor. If the investor focuses on the business model, then talk about how your bu...