The “One Size Fits All” Myth When it comes to first time investments, there’s a lot of information out there. More importantly, everyone has their own ideas and advice on how to get started as an investor. The problem is, a lot of times these ideas and advice are conflicting. As a new investor entering into an unfamiliar field, it can be confusing and overwhelming when figuring out where to begin with all of this conflicting information. The truth is:  There’s no right way and there’s no wrong way to do it. There is no “one size fits all” for investing. Different approaches work for different people and what it really comes down to is finding the best approach that works for you. However, the one thing that nearly all investors can agree on is, it all comes down to the teams.  There’s no bad idea at the beginning but there’s a lot of bad execution. The team you are investing in can make or break the execution.  A lot of times with early stages, people get too attached to a single idea and are less willing to evolve. Find a team that is willing and flexible enough to evolve with the idea and with the company. Be open to evolution and testing new ideas and make sure that team is just as open as you are. Otherwise you risk having that good idea fail because of poor execution. 

As an investor, it’s important to think about investing in human and social capital. Research suggests that investing in human capital and social capital, alongside traditional capital, is most predictive of any startup’s success. Data shows that having diversity on a team benefits a startup’s performance. An additional dataset from the likes of McKinsey, American Express, and the Kauffman Foundation shows that diversity makes for better financial outcomes with a company. Given the data, looking at diverse teams should be a priority for investors. Here are a few benefits of investing in team diversity: Superior decision making and problem solving Diverse backgrounds means diverse solutions being brought to the table. This leads to a more informed and well rounded decision-making process and improved results from the team. Increased innovation A diverse team is a melting pot of ideas. People with different backgrounds and views will bring different solutions to a problem. This, in turn, pushes innovation forward. More talent and skills Individuals from different backgrounds each bring in their own set of skills, talents, and experiences. Not only does this increase performance, it also creates a natural learning environment in which team members can learn from each other. A larger talent pool and long term employees Diversity means attracting more candidates. A progressive company is attractive to prospective employees who value equality and higher employee retention is likely with a more diverse team.

This year as TEN Capital Group turns 10 we’ve decided to branch out and hold events across the US. This year we’ve had events in Austin, New York City, San Francisco, Dallas, Houston, Seattle and upcoming in Chicago, Orange County, Sunnyvale and Washington DC. We’ll also be circling back to Houston, San Francisco, New York and Dallas before the year ends. We are passionate about what we do and these events are a great way to keep the startup community connected. Find out what’s new in the startup space Identify new business models that can help your business Meet great people who can join your team Learn new investment structures that can improve your IRR Remind the community that you are still there

Revenue-based funding provides a return from the revenue rather than from equity ownership. It works well for businesses where there’s no anticipated sale of the business and investors receive a return in the form of a revenue share. It works well for companies with uneven revenue as it provides a payout based on a monthly or quarterly revenues. It requires ongoing operations to calculate the revenue for payouts and monitor the business for progress. To reduce the cost of revenue-based funding, TEN Capital uses a 3X in 3 year redemption right at “Investor only  discretion”. The redemption right gives the investor the right to ask the company to buy them out at 3X their original investment at the 3 year mark. The investor can choose the redemption right or forego the right and become an equity investor and wait for the IPO or acquisition exit.   It removes the burden of ongoing monitoring and cash collections and leaves more cash in the business to help it grow. Hall T. Martin is the founder of TEN Capital and a builder of entrepreneur ecosystems by startup funding through angel networks, funding portals, syndicates, and more. Connect with him about fundraising, business growth, and emerging technologies

This year as TEN Capital Network turns 10 we’ve decided to branch out and hold events across the US. This year we’ve had events in Austin, New York City, San Francisco, Dallas, Houston and upcoming in Seattle and Chicago. We are passionate about what we do and these events are a great way to keep the startup community connected. INVEST: Find a great startup to back – all startups at TEN events are pre-screened for fundability. PITCH: Let the community know what makes you a valuable asset as an investor. Come out and speak about your fund, yourself or even what makes you tick as an investor! SHARE: Share your investing experience and give back to the community with your feedback. Use your voice to set out a challenge you’d like to see a startup overcome to be successful. LEARN: Learn the ins and outs of new industry sectors and expand your horizons. The industry is constantly moving and evolving- come out and learn more about the possibilities. NETWORK: Grow your network and meet investors and up-and-coming founders. There is nothing better than having an extensive network of peers and colleagues. Come out and meet and greet! View a full list of TEN Capital Events