Resources2024-05-14T08:50:41-07:00

Resource

Resources for those in the Funding, Founding or Vendor community

Resources for those seeking or deploying funds or providing services or products

Transform your business through meaningful connections

Transform your business through meaningful connections

THE INVESTORMATCH.AI BLOG

We have over 60+ years of experience in funding, founding, and exiting.
We’re thrilled to share what we’ve learned and make funding an efficient process for all parties.

We have over 60+ year of experience in funding,
we sharing what we’ve learned

We have over 60+ years of experience in funding, founding, and exiting.

We’re thrilled to share what we’ve learned and make funding an efficient process for all parties.

Is your cap table messy ?

How to Make a “clean” Cap Table:

A well-managed cap table is crucial for securing investment and ensuring the success of your startup. A cap table is a spreadsheet that outlines the ownership structure of a company, including the ownership percentage, equity value, and dilution of each investment round.

However, building a cap table can be a complex and time-consuming process, and founders must avoid common mistakes to ensure their startup’s success.

By following these essential tips, you can create a well-managed cap table that will help your startup succeed and attract potential investors. Remember, a well-managed cap table is crucial for securing investment and ensuring the success of your startup.

By avoiding common mistakes and implementing best practices, you can ensure that your cap table is a valuable tool in driving your company’s growth.

Tips to a Clean Cap Table:

Consolidate Investors:  Limit the number of investors by using Roll Up Vehicles (SPV’s) or angel syndicates to consolidate smaller checks into one bigger check. This approach simplifies the cap table and makes it easier for investors to understand the company’s ownership structure.

Implement Vesting Schedules:  Implement vesting schedules for all team members, including founders, to ensure equity is tied to their continued involvement. Vesting schedules ensure that equity is tied to active participation in the company, preventing dead equity.

Accurate Valuation:  Value your company properly and avoid inflated valuations to prevent giving away too much equity. It’s essential to have a realistic valuation to avoid over-dilution and ensure that investors receive a fair share of equity.

Be Selective: Be selective when adding investors and advisors to your cap table, and seek help from fellow founders and experts in the field. It’s crucial to choose investors who bring value beyond capital and have experience in your industry.

Allocate Equity Wisely: Ensure that equity is allocated fairly and wisely, taking into account each team member’s contribution, role, and experience. This will help to prevent misaligned incentives and ensure that everyone is motivated to drive the company’s success.

Set Vesting Periods: Implement vesting periods for equity grants to ensure that equity is tied to continued involvement and performance. This will help to prevent dead equity and ensure that equity is only held by active contributors.

Maintain a Founder-Friendly Cap Table: Ensure that founders maintain a majority stake in the company, and avoid diluting their equity too much. This will help to ensure that founders have the motivation and incentives to drive the company’s success.

Keep the Cap Table Simple: Avoid complicated ownership structures and multiple classes of shares. Instead, aim for a simple and easy-to-understand cap table that clearly outlines ownership percentages and equity values.

Plan for the Future: Consider the implications of future funding rounds and growth on your cap table. Plan for future equity grants and ensure that there is enough room for growth, without excessive dilution. Consider an ESOW or ESOP for your employees.

There are multiple software platforms that will dynamically show you the effect of adding members to a cap table. With the level of cap table complexity, with different types of notes, it’s highly recommended that you work with one of these platforms.

Ready for some direction ? Onboard with InvestorMatch.ai and let’s find you the funders and vendors who can accelerate your firm. There is no charge for founders !

Deal Flow that compatible with your thesis

Unlocking Business Potential: How a Tech Platform Filters Out Incompatible Deals. for Funders

In today’s rapidly evolving business landscape, professionals, funders, venture capitalists, and angels are constantly on the lookout for viable investment opportunities. However, the abundance of available deals can often lead to information overload, making it challenging to identify the most promising prospects. Did you know that Y-Combinator fielded >44,000 applications in 2023 ? Most funders are noting the increase in deal flow secondary to the explosion of AI-based companies that are transforming the way business is done in all fields.

Enter a cutting-edge tech platform that revolutionizes the way funders connect with potential investments. By leveraging advanced data processing techniques, machine learning algorithms, and a deep industry taxonomy approach, the InvestorMatch.ai platform efficiently filters out incompatible deals, saving valuable time and resources for both funders and startups. On average there is a 95-98% rejection rate between applications and actual funding in our industry.

Let’s explore how this innovative solution harnesses the power of clean comprehensive data coupled with sophisticated algorithms to provide funders with a curated selection of investment opportunities. By optimizing the deal screening process,  The IM platform helps unlock the true potential of businesses while ensuring a seamless and efficient matchmaking experience. Our onboarding for founders spans from ideation to IPO ready, from pre-seed to series D, is global in scope and includes all of the funding methods, private, public and commercial sources.

Join us as we delve into the world of data-driven deal filtering and discover how this tech platform is reshaping the landscape of funding, bridging the gap between funders and startups, and maximizing the chances of a successful investment. Our white-label offering allows you to eliminate less-than-optimal opportunities and focus on those that will potentially yield substantial returns.

Stay tuned for an insightful exploration of the key features, benefits, and real-world applications of this game-changing technology. Get ready to unlock new horizons and unleash the untapped potential of your business endeavors with less effort, cost and time.

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Should you consider a Venture Studio for your startup ?

Venture Studios 101

Venture studios, also known as startup studios or venture builders, are a relatively new breed of entrepreneurial support offering a unique approach for launching startups.

What’s a Venture Studio ?

  • Imagine a factory for startups. Venture studios can both generate business ideas internally, build teams around them, and provide resources and support to launch and scale these ventures or solicit from outsiders to take their ideas to fruition.
  • They take a hands-on approach, actively participating in all stages of development, from ideation, GTM strategy, funding, and scaling.
  • When are they a good fit ?

    • Aspiring entrepreneurs with strong ideas, but limited resources and experience.
    • Individuals seeking a supportive and structured environment to build and launch their venture.
    • Founders who want to leverage the expertise and network of a successful team and not learn all the aspects of establishing a business and bringing a product or service to market.

What advantages do they offer ?

  • Reduced risk: Venture studios provide financial backing, experienced teams, and a proven methodology, potentially increasing your chances of success compared to independent ventures.
  • Faster launch: Their streamlined processes and access to resources can expedite the journey from idea to market.
  • Expert guidance: You benefit from the expertise and mentorship of seasoned entrepreneurs and professionals within the studio.
  • Network & resources: Many studios have valuable connections to investors, partners, and talent, expanding your reach and opportunities.

What are the potential downsides ?

  • Equity dilution: Studios typically take a significant equity stake in the ventures they launch, impacting your future ownership and fundraising potential. Appreciate that the studios are taking an idea and adding all the necessary components to evaluate its potential, find the ideal vertical/s, create the product or service, and then commercialize and scale. Not a small set of tasks for any organization.
  • Less control: You may have less autonomy in decision-making compared to running your independent startup.  You’re dependent on the venture studio’s staff.
  • Cultural fit: The structured environment and team dynamics might not suit all founders and personalities. Think of the process as handing over your baby and hoping that it grows into adulthood and flourishes.
  • Limited industry focus: Some studios specialize in specific sectors, potentially restricting your options if your idea falls outside their scope.

Before joining a venture studio:

  • Do your research: Understand the studio’s track record, methodology, and investment terms. Will you be actively participating or a silent partner moving forward ? Have you taken time to speak to any of their past engagements ?
  • Align your values: Ensure the studio’s culture and approach resonate with your vision and working style. Did you interactions feel forced or were you comfortable and looking forward to working together ?
  • Ask questions: Get clarity on decision-making processes, equity split, and their expectations for you as a founder. Have your attorney look over the paperwork, remembering that the small print makes a difference

Venture studios can be a powerful springboard for startups, but careful consideration is crucial to ensure a successful partnership.

Make sure the studio’s strengths align with your needs and vision for your startup before jumping in.

Using the InvestorMatch.ai platform will make for aligned introductions to the ideal venture studio.

EBOOKS and BOOK REVIEW

Get the most from the Investormatch platform

Obtaining a Patent

Obtaining a Patent by Rich Goldstein JD

To start this review, I think it’s obvious after reading a few chapters that there is no way a lay person can write a cogent patent application, without the knowledge and input of a patent attorney. For both those of you who are considering or have been down the patent path this is worthwhile reading.

As an inventor or entrepreneur, obtaining a patent is a crucial step in protecting your intellectual property and securing your competitive advantage. In “Obtaining a Patent,” Rich Goldstein provides a comprehensive guide to the patent process, demystifying the often-complex world of patent law and offering practical advice for navigating the system.

Goldstein, a seasoned patent attorney with extensive experience in the field, has written a book that is both accessible and authoritative. He begins by explaining the basics of patent law, including the types of patents, the patent application process, and the importance of patent protection. He then delves into the specifics of the patent application process, covering topics such as patentability, novelty, and non-obviousness.

One of the strengths of the book is its focus on the practical aspects of obtaining a patent. Goldstein provides detailed guidance on how to prepare to meet with a patent attorney and begin the application process, including tips on how to draft some of the language to reduce the attorney application time. He covers the intricacies of the system from the almost inevitable rejections, your options and what the landscape looks like from an experienced attorney’s perspective.

Throughout the book, Goldstein uses real-life examples and case studies to illustrate key concepts and to provide context for the legal principles he is discussing. This makes the book engaging and easy to follow, even for those without a technical or legal background.

One of the highlight chapters everyone should read are number 10 and 11, “ Working  with a Patent Attorney” and “What is it going to Cost” . The chapters reinforce the understanding that the process is complex and only highly trained professionals will prevail and not at an inexpensive rate.

In conclusion, “Obtaining a Patent” is an essential resource for anyone seeking to protect their intellectual property. Goldstein’s comprehensive guide provides a clear and authoritative overview of the patent process, making it an invaluable resource for inventors, entrepreneurs, and businesses.

From Angel to LP

From Angel to LP; What you need to know to make better returns by Alan Kadish

This book is specifically written to address the accredited investor who is contemplating changing their investment strategy. It will explain the differences between the opportunities and how to consider them as part of a diversified portfolio. The chapters are to the point, with explanations regarding what to consider and how to formulate the best strategy for your next investment. Save

Title: A Comprehensive Guide to Navigating the Patent Process: A Review of “Obtaining a Patent” by Rich Goldstein

To start this review, I think it’s obvious after reading a few chapters that there is no way a lay person can write a cogent patent application, without the knowledge and input of a patent attorney. For both those of you who are considering or have been down the patent path this is worthwhile reading.

As an inventor or entrepreneur, obtaining a patent is a crucial step in protecting your intellectual property and securing your competitive advantage. In “Obtaining a Patent,” Rich Goldstein provides a comprehensive guide to the patent process, demystifying the often-complex world of patent law and offering practical advice for navigating the system.

Goldstein, a seasoned patent attorney with extensive experience in the field, has written a book that is both accessible and authoritative. He begins by explaining the basics of patent law, including the types of patents, the patent application process, and the importance of patent protection. He then delves into the specifics of the patent application process, covering topics such as patentability, novelty, and non-obviousness.

One of the strengths of the book is its focus on the practical aspects of obtaining a patent. Goldstein provides detailed guidance on how to prepare to meet with a patent attorney and begin the application process, including tips on how to draft some of the language to reduce the attorney application time. He covers the intricacies of the system from the almost inevitable rejections, your options and what the landscape looks like from an experienced attorney’s perspective.

Throughout the book, Goldstein uses real-life examples and case studies to illustrate key concepts and to provide context for the legal principles he is discussing. This makes the book engaging and easy to follow, even for those without a technical or legal background.

One of the highlight chapters everyone should read are number 10 and 11, “ Working  with a Patent Attorney” and “What is it going to Cost” . The chapters reinforce the understanding that the process is complex and only highly trained professionals will prevail and not at an inexpensive rate.

In conclusion, “Obtaining a Patent” is an essential resource for anyone seeking to protect their intellectual property. Goldstein’s comprehensive guide provides a clear and authoritative overview of the patent process, making it an invaluable resource for inventors, entrepreneurs, and businesses.

All In

All In by Mike Michalowicz

One of the most valuable aspects of “All In” is its comprehensive guide to building unstoppable teams. Michalowicz shares his expertise on how to assemble a team of high-performers who share a common vision and are committed to achieving their goals.

In the book, Michalowicz emphasizes the importance of building a team that is greater than the sum of its parts. As a note go to page 185 and start with his POM approach. This is a self-awareness methodology that creates a personal operating manual. You get to express succinctly how people who may not know you would be able to know your style of interaction and more with a brief read of 8 attributes. Not fancy but a great idea.

Actionable advice on how to:

Identify and recruit top talent who share your vision and values

Create a culture of accountability and ownership within the team

Foster open communication and constructive feedback

Develop a shared sense of purpose and direction

Overcome common team-building obstacles, such as conflict and resistance to change

Michalowicz also shares his own experiences of building and leading high-performing teams, providing real-world examples of how to apply these principles in practice.

Key takeaways:

Hiring for attitude and aptitude, rather than just skills and experience

The need to create a clear and compelling vision that inspires and motivates the team

The critical nature of empowering team members to take ownership and make decisions

The necessity to foster a culture of continuous learning and improvement

The importance of recognizing and rewarding team members for their contributions and achievements 

Overcoming common team-building challenges:

Dealing with conflict and disagreements within the team

Managing remote or distributed teams

Building trust and rapport with team members

Overcoming resistance to change and new initiatives

The essence:

Building an unstoppable team requires a clear vision, a strong culture, and a commitment to continuous improvement.

Hiring the right people is crucial, but it’s equally important to develop and empower them to achieve their full potential

Communication, trust, and open feedback are essential for building a high-performing team

Leaders must be willing to adapt and evolve to meet the changing needs of their team and organization

Rating: 5/5 stars

Recommendation: If you’re looking for a comprehensive guide to building unstoppable teams, “All In” is an essential read. Whether you’re an entrepreneur, manager, or leader, this book provides actionable advice and real-world examples to help you build a high-performing team that achieves remarkable results

Think First

Think First by Joe Natoli

If your ready for a no-nonsense book by someone in the know, Joe’s “Think First” is that book.  He is well known in the UI/UX circles and has courses and other materials available.

You would think the title of the book is obvious. How many times have you heard a pitch or seen a website and just wondered WT is going on ? Clutter or just a lack of thought out materials thrown your way with too much junk and you know  you’ll never want to return. And yes, making good UX for everyone is difficult.

User experience (UX) is the underlying basis of his writing. He lays out the foundational information that all businesses should be aware of and utilizing. His chapters are an easy read that will, as the entrepreneur, have you thinking and rethinking how your designing and deploying your project. His book although written in 2015 , is still very much a needed read, especially for those in the tech arena and your web presence team.

The pitch deck book

The Pitch Deck Book by Tim Cooley

Down to earth should be the take away along with some definite opinions of the deck order. To be clear there is no lack of opinions in the startup community about what a deck should or should not contain. It almost seems that every week someone weighs in. On the reality side of the park it’s clear, at least to me, that there are a group of absolutely necessary slides regardless of the intent of the deck.

Tim has had enough experiences on both sides of the alley, as an entrepreneur and investor. As the executive director of the Park City Angels for 4+ years he saw the wins and losses of entrepreneurs. By evaluating who and why some got funding while others failed, he puts into his book a step by step guild on pitch deck formation.

It’s heartening to see the level of many pitches on the currently circuit exceeding the prior decade however, occasionally some of the obvious components of a good pitch are still overlooked.

I would recommend this book to those who are starting the pitch deck journey as well as those who have been getting rejected. As a note the book is best oriented toward pre-seed and seed round pitching.

EBOOKS and BOOK REVIEW

2024 Angel Oregon Technology

March 19 @ 8:30 am - September 17 @ 10:00 am

2024 Oregon Angel Food

March 20 @ 8:30 am - September 18 @ 10:00 am

2024 Angel Oregon Life + Bioscience

March 21 @ 8:30 am - October 21 @ 5:00 pm

Bio International Convention

June 3 @ 8:00 am - June 6 @ 5:00 pm

New York Venture Summit

September 4 @ 8:00 am - September 5 @ 5:00 pm

New York Venture Summit

September 4 @ 8:00 am - September 5 @ 5:00 pm

Let’s share your passion and start making connections today.

Let’s share your passion  and start making connections today.

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