Mistakes in Synthesizing Answers

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

In providing synthesized answers to the investor, here’s a list of key mistakes to avoid.

The most common mistake is summarizing instead of synthesizing.

Summarizing is not synthesis.

In this case, one recounts what was said but doesn’t create any new information.

The second most common mistake is citing facts, telling stories, and recounting general information without any particular point.

Synthesis creates a new concept from the facts and contextual stories that was not known before.

The third most common mistake is reciting the history of the startup rather than giving a synthesized answer.

The founder mistakenly believes that telling the backstory provides enough information to let the listener draw what conclusions they want.

Stories take a great deal of time and don’t answer the questions directly.

In a fundraise the main point is to show the company solves a significant problem with a meaningful solution and the founder has built a fundable company to deliver it.

Instead of summarizing, focus on the main point and show the support for it.

Instead of citing facts, combine them into a coherent case that supports the main point.

Investors look for short and to the point answers to their questions.

Finally, avoid using the story form for most answers.

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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On this episode of Investor Connect, Hall welcomes the CEO of Vimers. Located in San Jose, California, Vimers is a Y Combinator-backed startup focused on transforming static images into engaging animated videos. The company aims to help brands, creators, and designers connect better with their target audiences by providing an innovative solution that enhances storytelling through visually dynamic content. Vimers allows users to animate their photos effortlessly, thus improving engagement across social media platforms and reaching potential customers in a more compelling way.

Basil is an ambitious entrepreneur with a strong background in technology and digital content creation. He has been pivotal in leading Vimers since its inception, focusing on product development and market fit while ensuring the company meets the growing demand for more interactive digital media. His leadership has helped Vimers achieve significant milestones, such as generating over 100,000 videos monthly and securing partnerships with major platforms like Canva, Adobe Express, and Shopify. These integrations position Vimers to be a leader in the animated content space for both B2C and B2B markets.

In this episode, Basil discusses Vimers' innovative approach to animation and its competitive advantages over rivals in the industry. With an attractive pricing model and unique features like batch processing capabilities and API integration, Vimers differentiates itself by offering customized motion controls that cater specifically to the needs of B2B clients. Basil also shares insights into the current funding round, aiming to raise $3 million to support the company’s growth and marketing efforts, and discusses the valuation criteria that potential investors should consider.

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.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

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Synthesizing the Components for a Fundraising Pitch

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

In formulating a pitch for a fundraise, you must synthesize several sources of information.

Here are the steps to synthesizing the components for a fundraise pitch:

Start with the topic stating you have a fundable startup.

State the problem you are solving.

The problem must be big and compelling. Small problems don’t justify funding.

State the solution.

The solution is what the company will use to solve the problem. This is often the basic technology or approach to solving the problem.

Show the product you will bring to market.

The product shows the solution in action.

Show the team you have assembled and why each of the top level people are the right ones for the task at hand.

Outline the business model showing how the business makes money.

Show the current traction with customers.

It helps to state a customer ROI with the product.

List the nearest competitors and how the startup's solution is superior.

Show the financial projections at a high level, showing revenue, cost, and profits.

Show the fundraise amount with the deal terms.

Finally, show the proposed path to an exit.

Use synthesis to combine the information from several sources to show the startup is fundable.

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.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
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More Best Practices in Answering Questions

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

Here are more best practices to consider in answering investor questions

Take a moment before answering the question to show you are giving a proactive response.

Watch your body language and make sure you are not giving non-verbal cues.

Repeat the question back so you confirm you heard the question correctly.

Offer to find the answer if you don’t have it already.

If you can’t answer the entire question, then break it down into parts and answer what you can.

Ask for clarification on words that can have multiple meanings.

Keep your answers short and to the point so they can ask more questions.

Inject some humor into the response to lighten the mood.

Prepare answers to commonly asked questions so you have those ready to go.

Ask questions in return to help guide the conversation such as

“What is your primary concern about the deal?”

“What do you like best about this deal?”

The more information you can gather the better you can answer the questions.

Use these best practices to respond to investors.

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.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
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Best Practices in Answering Questions

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

Founders answer many questions during the fundraise process.

Here are some best practices in answering the investors questions.

Answer the question asked directly and to the point.

Avoid long winded stories.

Anticipate what questions will be asked and have a response ready.

If the question is unclear then rephrase the question to see if that’s what they are looking for.

For example, “When you ask about margin are you asking about gross margin?”

Find out what they already know.

For example, “How familiar are you with AI generation systems?”

Avoid using acronyms in answering questions but rather spell out all the terms.

Ask if your response answered their question giving them an opportunity to refine their question.

Turn weak questions into good ones by expanding the answer to provide new and relevant information.

Adjust the answer for the skill level of those asking.

For example, if the investor is not a technical person, then provide a non-technical answer to questions using plain English.

Use these best practices in answering investors questions.

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.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
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Good vs Bad Answers to Questions

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

In fundraising the investor will ask the startup many questions.

The investor is often limited in their time and must go through a series of questions quickly.

It’s best to answer the question directly and only the question asked.

It’s not a good idea to give the full story to every question as that takes time and limits the number of questions the investor can ask.

Use the PREP model in answering investors questions.

PREP stands for Point, Reason, Example, and Point

Here’s an example:

Point: Our startup is the first to market with a product to solve the throughput problem in data analytics.

Reason: We have a superior team that has been working on this problem for five years.

Example: Our algorithm increases data throughput by a factor of 10X.

Point: We’re able to provide answers to queries at an order of magnitude faster than the competition.

This answers the question directly and provides not only the answer but why it’s valuable.

Consider using the PREP model in your pitch to investors.

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.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
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How To Answer Questions Using Synthesis

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

Synthesis can help in answering questions.

Here are some key steps to answer questions:

First, understand the question.

If you don’t understand it, ask for clarification.

Try paraphrasing what was asked to ensure you understand the question.

Determine what form the answer will take.

For example, if the question starts with “How many”, then the answer will be a number

If the question starts with “Why”, then the answer will be a reason starting with “because”.

If you don’t know the answer, then admit to the limitations of your knowledge and give what information you can.

When you finish answering the question, then stop and wait for the next question.

Don’t start your answer until the question is completed.

In fundraising, keep your answers short and to the point.

Avoid telling a story for every question as this form takes a great deal of time.

If an investor asks how much revenue you have, then give the number, $10K MRR, $100K since inception, or we are pre-revenue.

Don’t tell the story about how you started the business.

Synthesis helps you tune your answers to the questions asked.

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.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
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On this episode of Investor Connect, Hall welcomes Dr. Ronald Berenson, CEO of KitoTech Medical. Located in Seattle, Washington, KitoTech Medical specializes in developing innovative solutions for chronic pain management and wound care. The company has created a transformative technology based on micro-point devices approved for clinical use that not only addresses chronic pain but also offers effective wound closure options. With the current market opportunity expanding, KitoTech Medical is raising $3 million in a convertible note to further drive commercialization and scale production.

Dr. Ronald Berenson is a Yale and Stanford-trained medical oncologist with extensive experience in healthcare entrepreneurship. He has founded several successful biotech and medical device companies, many of which have gone public on NASDAQ. After serving as an entrepreneur in residence at the University of Washington, Dr. Berenson leveraged his medical expertise to develop KitoTech Medical's pioneering product, which has shown promising results in treating chronic pain—a prevalent medical issue affecting millions. His commitment to clinical trials and thorough testing underscores the efficacy of KitoTech’s products in providing pain relief.

In this episode, Dr. Berenson discusses the innovative technology behind KitoTech Medical's micro-point devices, particularly their dual use in wound closure and chronic pain management. He emphasizes the product's unique ability to provide long-lasting pain relief without the side effects associated with traditional pharmaceuticals, making it a viable option for consumers. Dr. Berenson also shares insights into the marketing strategy and partnerships essential for driving growth, aiming to capture a significant share of the estimated $600 billion chronic pain management market in the U.S.

Visit KitoTech Medical at https://www.micromendskinclosure.com/, LinkedIn, and on Twitter. Reach out to Dr. Ronald Berenson at www.linkedin.com/in/ronaldberenson and on Twitter.

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.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.