Startup Funding Espresso -- Investment Thesis
Startup Boards -- Investment Thesis Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In startup investing, you should have an investment thesis, which is what you invest in and why it will be successful. Here\u2019s how you build your investment thesis if you haven\u2019t done so already: Step one Look at 50 deals and write down what you like and don\u2019t about each one. This is not as hard as it sounds, given how many deals there are. Step two\xa0 Follow up one to three months later to see how it is working out. This will inform your investment thesis as you will see some deals progressing forward, some stall out, and others pivoting to something else. Step three Write out your investment thesis, which includes: Your observation about a macro trend in an area you care about Position of the company in the trend Characterization of the company that gives it a competitive advantage Conditions for investing based on price, revenue, and other factors Example investment theses include: Healthcare is moving to the home Companies providing technology-enabled services will succeed Companies with recurring revenue and a CAC:LTV ratio of 1:8 are preferred Companies with revenue above $500K and a pre-money valuation below $5M are preferred.\xa0 It\u2019s important to write out your investment thesis as you\u2019ll return to it often. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .