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How to Make Your Pitch Deck AI-Ready

How to Make Your Pitch Deck AI-Ready

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    Investing in MedTech and HealthCare

    2 min read. The rapidly growing MedTech and HealthCare industries currently offer great investment opportunities. Before investing, take the time to prepare by learning more about the industry. Let’s discuss the current trends, how to diligence a MedTech organization, and common mistakes to be aware of. Trends in the Industry The MedTech space is growing rapidly as technology advances. Some trends we currently see in the industry include: There is a movement towards incorporating cutting-edge technology into healthcare, primarily artificial intelligence. This increases health equity, but also the reach of medical care. This is especially important in sectors such as the mental health sector where demand currently far outweighs supply. A lot of health companies are streamlining their payment systems and platforms. There is an increasing emphasis on security and how it relates to medical work in the biotech world and the flow of HIPPA requirements.  Diligencing MedTech What do investors need to analyze when considering investing in a MedTech organization? Old fashioned diligence, the same as with any startup, needs to come first. This includes: the team the vision the values the culture; is it entrepreneurial? management abilities as most MedTech teams are run solely by scientists lacking in this area In addition to the basics, you should pay attention to: intellectual property and patents regulatory pathways to bring products and services to market Common Mistakes in the MedTech Sector Below are some common red flags to be aware of when analyzing organizations in this space. These are red flags in any industry; however, they are especially common in MedTech due to the fact that teams typically consist of nonbusiness individuals who are scientists and IT personnel before they are managers and marketers. Mistakes to watch for include: unrealistic expectations exaggerating the numbers in their pitch deck presentations inability to accept feedback no line of sight through the regulatory pathway Read more on the TEN Capital blogs Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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    Starting a VC Fund: What You Need to Know to Succeed

    2 min read. If you have a track record for successfully investing, you may consider starting your own fund. At the time of writing, there are over 4,000 micro-VC funds in the US alone. Most of these are funds within the $25M to $50M range. These funds are led by those who ran sidecar angel funds and invested their own money into startups. Some did well, or are experienced VCs who set out to run their own fund. What do you need to know to successfully start your own VC fund? You need to be able to find and screen startups successfully. Let’s take a closer look at how to do this. Analyzing Market Segments In running a fund it’s important to analyze market segments. First, evaluate the leading companies in the market. Are there any leaders that stand out, or are all the companies competing head-to-head with the same approach? Highlight the supply chain to show who has control of the market; is it the producer or the consumer that drives the price? Discuss the introduction of new technology and its impact on the current market equilibrium. Will it shift control from the producer to the consumer, or vice versa? Review the number of companies playing in the segment and discuss the resulting fragmentation. Highlight the total available market for the companies in the segment. Identify companies within the market that stands out for competitive advantages such as network effects, virality, recurring revenue models, etc. Conclude with a proposal to pursue investment in a company in the market segment. Determine Market Size One of the key selling points for a startup is its potential market size. There are several ways to find it for your potential startup investment. The easiest way you can find market size is to buy a market research report. These typically run anywhere from $5K to $20K.  You can also contact the trade association related to your industry. These associations are most often located in Washington D.C. They are located in Washington D.C. as they provide government advocacy in addition to industry support. The association’s website typically provides stats on the industry, including market size and sector breakdowns. These sources require more digging but are often more reliable than market research reports. Analyzing Startups Here’s how to analyze a potential company for investment: First, identify a recent event for the target company, such as entering a new market. Discuss how the company can disrupt the newly-entered market with its expertise and business model. Talk about the positives you see in the company’s financials and market position. Express caution based on any concerns about the business including product/market fit, management team, or cost structures. Discuss macroeconomic issues, both positive and negative. Conclude with a recommendation to pursue an investment based on the positives outweighing the negatives, or to avoid an investment based on the negatives outweighing the positives. Read more on the TEN Capital eGuide: How to Raise a VC Fund Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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    Overlooked Areas of Investment

    1 min read.  There are a lot of opportunities to invest in early-stage companies, particularly in some of the areas of the country that have been overlooked in the past. We’ve seen areas such as New York City and San Francisco that have essentially turned into startup hubs. As more and more companies spring up in these hubs, investments get poured into these areas. However, we are starting to see a shift outside of these hubs as other, typically overlooked, areas begin to show more and more potential for both startups and investors.  For example, Houston is making tremendous progress in terms of building an ecosystem and creating an environment that will nurture and support startups. The Houston area has positioned itself to keep those startups in the city as they grow. Other cities are beginning to follow suit due to cheaper business costs compared to larger, more expensive cities like San Francisco. Examples of this are Charlotte, NC, and Columbus, OH. As more and more hubs begin to pop up, it’s important to build a culture of early-stage investing. An example of a city doing this today is Houston, TX. The more we continue to pay attention to these previously overlooked areas, the more investment opportunities will arise. Read more blogs at TEN Capital Network Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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    Aerospace Investing: All You Need to Know

    2 min read The aerospace sector is a rapidly growing and underfunded space. This makes for profitable investing. But proceed with caution. As always, you need to do your due diligence before diving in. In this article, we share a brief overview of the current aerospace industry and what you need to know before investing. What is the Aerospace Industry? The aerospace industry deals with companies that research, manufacture, and employ flight vehicles. This ranges from commercial use to military use to space travel. This space is currently on the rise in the investing realm due to the large part it plays in US exports and the increased interest in space exploration. Current Trends in the Aerospace Sector Sustainability is a huge area of interest. Two or three years ago the commercial aviation industry was trying to ask the question: “How do we be part of the wide solution space dealing with climate change?”  This refers to creating better outcomes in terms of their carbon footprint and increasing the efficiency and sustainability of their engines, operations, and fuels. Unique challenges exist in certifying aircraft and engines within the existing airspace construct. Being able to understand the nuances wherein small changes can actually yield significant benefits is what will set some manufacturers ahead in this space, making them a valuable investment opportunity.  Besides sustainability, digital twin and digital threat are most certainly areas in both manufacturings and in the maintenance space that are coming a lot more interesting. These concepts revolve around creating not just better safety outcomes in the production and maintenance of these systems, but also increasing efficiencies when it comes to sourcing and assembling these very complex machinery to perform their various transportation outcomes.  Deal Flow in Network VS. Proprietary Deal Flow  Whare are investors in the space currently doing? Do they rely mostly on deal flow based on their network, or do they also have proprietary deal flow? We talked with three experts in the field, and they all shared a similar answer. It turns out, they are engaging in both. Working within their networks, especially with universities, However, they are still incorporating proprietary deal flow. As said by expert Greet Carper- ” We’ll take deal flow where we can find it.” Investing in Aerospace When investing in aerospace, patience is fundamental. From an angel perspective, it’s not simple to make other networks or other partners in our common sport of investing. It can be seen to be difficult to invest in something that does not have that reversal beachhead market. It’s also important for investors to keep in mind when it comes to the space travel niche of the aero investing space that the challenges of space are extremely technically dense. Try to recommend the company you invest in to not go about their journey on their own, but rather to start looking at partnering up. If you see that in order for you to get some solutions out of space, you might need that infrastructure piece, or, you might need other components, or, you might need other things that create that ecosystem. If you can encourage the company to start thinking like a system, you’re more likely to find a way to succeed.  In essence, aerospace investors need patience, an open mind, and a willingness to go the extra mile. Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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    Are They Serious?

    1 min read The startup world is full of big ideas. Entrepreneurs have grand plans to make these big ideas a reality. It is the venture world, so you better have large ideas. However, the talk about the idea is often full of overstatements and amplification. It paints a picture of a future so bright that it’s blinding. So blinding that all they see are the possibilities, not how serious it is to follow through and do the work.  The problem is some entrepreneurs are full of big ideas and nothing more. The startup world is open to anybody. Since the space is so open, it seems like everybody comes through it at some point in time. Unfortunately, this leads to some individuals passing through who are not serious enough to propel a startup toward success.  What to Look For Here are a few signs that an entrepreneur may not take the business seriously enough to be successful: Job titles are overly important to them. They are generally more concerned with receiving titles and credit for the work than they are about the actual work. They are not focused on the customer. In fact, they may not even have a clear understanding of who their customer is or what that customer wants. They don’t take responsibility for problems the startup may have. They blame others for the issues and may claim there is nothing they can do to fix the problem.  Know your entrepreneur. An entrepreneur who isn’t committed to the cause will raise funding and ultimately waste it. You do not want to invest money in those who aren’t going to see it through. Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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    How do VCs Make Money?

    2 min read Many individuals looking to enter the investor realm will consider becoming a venture capitalist. This can be a profitable endeavor, however, it does come with unique challenges and obstacles to overcome. In this article, we discuss some of the challenges of being a VC as well as how VCs raise money and venture funding. Challenges of Being a VC Many people want to work for a VC especially those straight out of college. Most are not aware of the challenging dynamics that come with the VC life.  Here are a few: Raising Funding: Just like startups, the VC has to raise funds too.  LPs tend to be rear-view-mirror oriented and not focused on the cutting edge of new technologies and markets.  Working With Partners: You rarely make the decisions alone, but rather with the other partners.  Ego and other agendas are often at play. Getting Deals Done: You have to convince others you have a winner on deck and sell it all the way through the process.  Managing the Deal Flow: Untold numbers of startups want to talk with you and only a small fraction are meeting your funds’ criteria. Dealing with Co-Investors:  It’s rare for a fund to take the entire round. There’re usually other investors in the deal.  Who gets how much of the deal and what board seats, are often an issue.The rollercoaster ride that is the startup life- things often don’t go well at the portfolio companies and this weighs heavily on the VCs who invest in them. How VCs Make Money VCs charge the limited partners a management fee on the funds raised. This is traditionally 2% paid out every year for the life of the fund. Some funds stop the management fee around year six or seven as proceeds from the investments start coming in. MicroVCs often charge 2.5 or 3% of the funds raised since the number of funds is lower than standard.  The second source is called “carry” and is a percentage of any proceeds going back to the investor from the investments. This is traditionally 20%. Some funds start taking carry at the beginning of the investment returns, while other funds start this after the investor receives their initial investment. How VCs Raise Venture Funding VCs raise funding from limited partners which include family offices, high-net-worth individuals, foundations, pension funds, and other sources. Institutional investors, such as pension funds, require a track record. Due to this, first-time VCs tend to focus on family offices and high-net-worth individuals.  The VC develops an investment thesis which is a reason why their approach to selecting and funding deals will be successful. They build out their investment prospectus which includes the investment thesis, how it’s unique, the fees the limited partners will pay, and how the profits will be distributed. The VC then meets with limited partners to pitch the investment thesis, track record, and view of the market. Limited partners look to fund VCs who have a unique investment thesis and access to deal flow they do not. You can read more in our TEN Capital Network eGuide: How to Raise a VC Fund Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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    How do you know when to invest in a startup?

    2 min read As an investor, it helps to have a specified investment strategy. This helps narrow down investment decisions and ensures that you are making the right decisions for your specific circumstances. In this article, we discuss the difference between investing in funds and investing in startups. Investing in Funds Investing in a fund works best when you are not familiar with a sector or geography and don’t have the time to research and learn more about it.  Additionally, if access to deals is time-consuming or difficult, then a fund may be a better approach. If the funding requirements are greater than your resources, you may want to invest through a fund. For example, some sectors require several millions of dollars to participate in a deal so it’s a good strategy to pool your funds with others to participate. Finally, funds provide diversification that can be more difficult to achieve with direct investments.  Investing in Startups Startups are very risky, and managing a startup investment can be a lot harder than it looks. Here are the basic points to consider: How much should you invest in startups? Invest no more than 3% of your discretionary income.  There are many good deals out there but for the most part, the investment is illiquid for a long time.  Where do you find deals? There are many sources including angel groups, networks, syndicates, and MicroVC funds that let you invest directly in the startup as well as the fund. Should you invest alone or in a group? This depends on your investing style.  A group can give you access to more deal flow and due diligence support.  On the other hand, the group may pursue deals you are not interested in and vice versa.   How do you get started? Figure out what you want to invest in and then ask what resources you need to do so successfully.  Seek investors and groups that can help you achieve your goal.    Read more in our TEN Capital Network eGuide: How to Invest in a Startup Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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    What is Venture Debt?

    2 min read Venture debt is a form of debt financing for venture-backed companies that lack the assets for traditional debt funding. Venture debt has been around for as long as venture capital has been writing checks for equity investments in conjunction with equity fundraising. It typically runs for three years and is secured by the company’s assets. This article discusses what venture debt is and how to use it. What is Venture Debt? Venture debt can reduce dilution and give your startup more runway. Venture debt used with equity funding can go towards the purchase of equipment, make acquisitions, or make up for funding not acquired through the equity raise. The points below will help when deciding if venture debt is a good fit: If the company is in a difficult cash position, venture debt will come with higher interest rates. Also, the proposed debt payments are higher than 20% of operating expenses. If the company has stable revenue and predictable receivables, then a line of credit may be a better choice than venture debt. Some tie venture debt to the company’s cash or accounts receivable. Covenants around venture debt such as ‘material adverse change’ can trigger a recall of the debt early. It helps to understand how the lender performs. Check their history to find out more. How To Use Venture Debt Venture debt is not for every startup or all fundraises. It is best used in conjunction with an equity raise. The equity funding provides ongoing working capital that does not need to be repaid. It works well between equity raises from institutional investors. The business must be up and running with stable revenue. Those with recurring revenue are a good fit. Those with healthy gross margins also do well. Investors will look at the business’s cash flow, so it’s essential to have a beneficial cash flow statement. It doesn’t work well for seed startups that are still looking for product-market fit. Established businesses will find it easier to raise venture debt as the investor will look at the company’s traction, track record, business model, and previous fundraises. Venture debt raises are typically limited to 25% of the equity raises, so a $3M fundraise most likely will not exceed $750K of venture debt. Venture debt loans can last for four years and are used for specific projects, not working capital.    Read more in our TEN Capital Network eGuide: Alternate Investing. Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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    Fundraising with Wefunder: Everything You Need to Know

    2 min read  Wefunder is a platform used by startup founders to source and manage investors. The platform gives the startup visibility and provides ease of access to fundraising metrics and contacts. Read on below to learn the basics of fundraising with Wefunder.  What is the minimum investment on a Wefunder campaign? Investors can choose to invest any amount between ($100 unless set higher by the founder) and the investor limit per year set by the SEC ($2,200). The average investment on Wefunder is $250, so founders should anticipate pretty small investment amounts.  The investor you designate as the lead investor will typically invest 5% of the round. If you are raising 500K, hopefully, the lead investor is putting in at least 25K as that lead investor is voting for the shares of the investors to follow.  What is the fee structure at Wefunder? Founders pay a fixed fee of 7.5% of the amount raised. So, if you raise a million dollars, the platform keeps 75K and sends you 925K. There arent any additional fees, including no fixed fees to launch a campaign.  What deal structures can you use on Wefunder? There are several deal structures available to choose from on Wefunder priced rounds, straight equity price rounds, convertible notes, SAFEs, straight debt deals, and an instrument called a revenue share where companies are paying investors back in multiple on their investment as a percentage of their revenue.   Does Wefunder require exclusivity to a fundraise campaign? Wefunder does not require exclusivity to a fundraise campaign. The platform does recommend streamlining your fundraising through the platform as it is simpler for the founder to keep track of investors and incoming funds. As a result, this feeds into their algorithm which is looking at investment velocity. However, it is only the investments made through their platform. The more investment velocity you have, the higher you will list in their rankings which comes with many advantages. Note if you bring an outside funder to the platform, Wefunder will waive the 7.5% fee.  Read more on the  Wefunder:  Click Here Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group

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