Demonstrate Credibility With Investors

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In raising funding either as a startup looking for investors or a VC fund manager looking for Limited Partners, it’s important to demonstrate credibility.

Investors love to be educated on a market segment.

There are over 200 market segments in the venture space so it’s difficult to keep up with them all.

One way to demonstrate credibility is to take your market research and showcase it to investors.

In launching a startup or fund, one typically does a deep dive on a market segment and generates an array of charts and graphs showing the trends and status of the segment.

Take that market research and build a 15 slide presentation showing the state of the market including trends that are increasing and areas that are decreasing.

Offer a briefing on the sector and go through the slides showing the status.

Call out the insights to be gained such as where value will accrue.

Show who will be the winners and the losers in the next five years.

This provides the foundation for a startup or an investment thesis for a fund.

By educating the investor on the market you are now positioned to discuss how your startup or fund will take advantage of those trends.

Offer the market brief as a standalone meeting with no ask of the investor.

It’s important to build credibility first.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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