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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

Everything You Need to Know About Deal Flow

2 min read Deal flow is critical to successful startup investing as it gives you experience with founders, valuations, exits, and many other aspects of the startup process. It teaches you a great deal about the market, current technology, and the startup ecosystem. So, how do you know which startup investment offers the best deal flow? Read on below to find out. Best Practices When it comes to deal flow, quality over quantity is key. The better the deal flow, the better your investment outcome. Here are some practices you can consider to help ensure better deal flow, and therefore better investment: Automate your deal flow process as much as possible by capturing consistent information into one application. Track deal flow sources and analyze on a regular basis. This shows where the best deals are coming from and where to spend time. Use online data sources to augment your deal flow information. This step helps make follow-up decisions easier to figure out. Monitor your deal flow activity for changes. This shows the impact of the market and conditions and signals for a change in follow-up. Set up workflow processes so the deal goes to the right people in the proper sequence. Flag your most important deals to make sure they don’t fall through the cracks. Optimize your system for your deal flow by gathering only the relevant information. Connect your deal flow system to your email and other systems to integrate into the overall workflow Remember that deal flow can be expensive in time and money, so it’s important to apply these steps to reduce the end cost. Finding Deal Flow It’s important to set up sources to provide quality deal flow on a consistent basis. Here are the steps to set up your deal flow sources: Map out the entrepreneurship and funding groups in your geographic area or sector. Use the web and social media searches for an initial pass. Check out universities for their entrepreneurship programs, including business plan competitions and accelerators. Review the Chamber of Commerce for the trade associations for your area or sector to find programs related to startups. Meet with venture capitalists, angel groups, and other investors in your sector or area. Map out the accelerators, incubators, makers markets, and other groups that support aspiring startups. Identify lenders such as banks, factoring companies, and equipment leasing companies, and more who may have deal flow. Create and maintain a calendar of events to track their activities. Reach out to those groups on a regular basis to offer support such as education, mentorship, and coaching. Consider creating a newsletter to share with those in your sector or community to foster the relationship. Start with those in your network to gain access to their deals and offer to return the favor. Seek out quality accelerator programs to find more resources. Consider joining an angel network for deal flow, as you can share the feedback with others. Join online portals with the deal flow so you can learn the current state of valuations, technologies, and sectors. Reach out to venture capital, family offices, and other investors to join as a syndicate partner in their deals. After following these steps, be sure to follow up in order to support the best sources of deal flow and increase your engagement with those groups. Never fall into the trap of thinking that you have enough deals under your belt- the greater number of deals you review the more choices you have, and the more you know about the market. Feel free to try out our calculators and contact us if you would like to discuss your fundraise: http://staging.startupfundingespresso.com/calculators/ 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

Deal-Flow is Crucial, but Where to Get it?

1 min read When starting as an Angel investor, it’s essential to set up several sources to consistently find deals that fit your thesis and track those that meet your requirements; this is called “Deal-Flow”. It’s helpful to network with lead investors and build relationships with investors in general so you can share information about deals and provide/receive referrals.  Here are some sources to consider: Ping the members of the group regularly for deals they recommend. Avoid the ones in which they say, “I’m not interested but perhaps others are.” Look for the deals that members want to invest in. Identify investors outside the group who fund quality deals in the same sector and stage as your group and set up a relationship to share deal-flow. Follow up with your portfolio companies about deals they recommend. Consider other angel networks in the geographic area or sector area to provide deal-flow. Talk with service providers such as attorneys and accountants about deals they see needing capital. Join community groups that foster the sectors your group is interested in and have the members attend those group meetings. Review online portals for deals raising funding. Finally, establish a reputation for providing mentorship, feedback, and support to position the group as the go-to resource for startups. Find out how TEN Capital can help you source the right deals: http://staging.startupfundingespresso.com/investor-landing/ 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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