In this episode of Venture Declassified, hosts Mike Kelly and Ben Pidgeon explore the complexities of managing angel syndicate groups and the art of curating investment opportunities.

Both Mike and Ben run angel syndicates, creating SPVs (Special Purpose Vehicles) for investments, and they highlight the challenge of recommending numerous deals each year without overwhelming their investors.

Ben elaborates on his group's approach of working on multiple deals simultaneously, often over a two to three-month window. He stresses the importance of maintaining investor interest through a strategic marketing campaign—using compelling headlines and consistent updates. Mike, on the other hand, details his group's shorter, two-week window for deals and contemplates adopting more aggressive marketing tactics.

The hosts emphasize the significance of transparency and thorough due diligence in maintaining investor trust. They also discuss the benefits for individual investors of joining an angel group, which helps filter out less favorable opportunities and ensures more efficient use of their time.

Towards the end, Mike and Ben talk about the delicate balancing act in angel investing, such as assessing the idea's potential, valuation, and the founder's quality. They agree that perfection across all dimensions is rare, making trade-offs inevitable.

Listeners gain valuable insights into the behind-the-scenes efforts of managing angel syndicates and the strategies involved in balancing deal flow with investor engagement.

Key Topics

• Challenges in Angel Groups
• Balancing Attracting Attention and Managing Multiple Deals
• The Role of Marketing in Angel Investment
• Building Trust and Conviction in Deals
• The Competitive Nature of Deal Filtering
• Benefits of Joining Angel Groups
• Evaluating ‘Best Opportunities’
• Handling Interest Levels and Commitments

Connect

Mike Kelly
LinkedIn - Website - Developer Town

Ben Pidgeon
LinkedIn - VisionTech

Jacob Schpok
LinkedIn - Elevate Ventures

Hear more interviews and stories like this one at www.VentureDeclassified.com

The information provided on the show is not intended to be investment advice and should not be relied upon as such. The investors on today’s episode are providing their opinions based on their own assessment of the businesses or topics presented. Those opinions should not be considered professional investment advice. If they start up pitched as a part of this episode, it is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell, subscribe for or buy any securities.

Episode Summary

Welcome back to Venture Declassified. In this episode, we continue our conversation into the nuances of creating an influential pitch. Jacob and Ben share their insights on the significance of active listening to evaluate a team effectively. We then pivot to tackle the challenging topic of setting valuations and discuss vital metrics including revenue, customer acquisition costs, and churn rates.

Expect to hear candid conversations about founders' narratives, why presentation skills can trump slide content, and our biggest pet peeves in investment pitches. Plus, we suggest how founders enhance their narrative, run experiments, and adapt based on market feedback – all crucial for capturing investor interest.

Later, we unpack the art of negotiating investment terms and the nuances of valuations, term sheets, and understanding current market conditions. But it's not all terms and numbers; we also explore traction indicators before revenue, stressing the importance of a committed founding team and setting realistic milestones.

Stay with us as we declassify the fine print of startup investment, question conventional wisdom, and strive to empower founders and investors alike with actionable insights. Let's get started.

Key Topics

• Techniques for quickly evaluating teams
• Importance of Team Dynamics
• Avoiding unrelated metrics
• Mike's Experience Raising Funds
• Runway evaluation and financial management
• Investor Intuition vs. Presented Information
• Viability of ambitious plans with limited resources
• Key figures in generating investor confidence

Connect

Mike Kelly
LinkedIn - Website - Developer Town

Ben Pidgeon
LinkedIn - VisionTech

Jacob Schpok
LinkedIn - Elevate Ventures

Hear more interviews and stories like this one at www.VentureDeclassified.com

The information provided on the show is not intended to be investment advice and should not be relied upon as such. The investors on today’s episode are providing their opinions based on their own assessment of the businesses or topics presented. Those opinions should not be considered professional investment advice. If they start up pitched as a part of this episode, it is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell, subscribe for or buy any securities.

Episode Summary

In this episode of Venture Declassified, hosts Mike Kelly, Jacob Schpok, and Ben Pidgeon come together to talk about the fundamentals of an influential pitch. This episode promises to strip away the misconceptions and focus on what truly matters during investor presentations.

As the hosts delve into the narrative aspect of pitch decks, they emphasize clarity and accuracy in communicating the startup's vision and potential. The episode also explores the strategic presentation of competition, underscoring that a well-researched landscape can significantly bolster a pitch.

Venture Declassified's episode is not just about the content—it's a masterclass in fine-tuning the pitch to align with the investor mindset. Listeners can expect to gain valuable insights on constructing a pitch that not only resonates with investors but also positions their startup as a beacon of focus and potential.

Key Topics

• The Art of Crafting the Perfect Pitch Deck
• Understanding the Pitch Process
• Prioritizing technical aspects and demos for due diligence
• Highlighting the need to present benefits over features
• How UX reflects the company's professionalism and competency
• Expectations from companies concerning utilization of funds and delivering results
• Leveraging Competitive Advantages

Connect

Mike Kelly
LinkedIn - Website - Developer Town

Ben Pidgeon
LinkedIn - VisionTech

Jacob Schpok
LinkedIn - Elevate Ventures

Hear more interviews and stories like this one at www.VentureDeclassified.com

The information provided on the show is not intended to be investment advice and should not be relied upon as such. The investors on today’s episode are providing their opinions based on their own assessment of the businesses or topics presented. Those opinions should not be considered professional investment advice. If they start up pitched as a part of this episode, it is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell, subscribe for or buy any securities.

In this engaging episode of "Venture Declassified," hosts Mike Kelly, Ben Pidgeon, and Jacob Schpok dive into the pivotal role of technology, specifically AI and chat GPT, in revolutionizing the world of investing and due diligence. The episode is packed with insights on how these cutting-edge tools can streamline and enhance the investment decision-making process.

The hosts kick things off by discussing the importance of validating business ideas, assessing the competitiveness and innovativeness of solutions, and determining market size to attract investment. Ben shares his experience using chat GPT for due diligence and market research, suggesting it might even score pitch decks. Mike also leverages chat GPT for deal filtering and understanding healthcare deals' competitive landscape. Jacob adds a practical tip: including "please" in prompts can make chat GPT results 3% better!

They delve into utilizing chat GPT for pre-screening companies and creating targeted question sets. The hosts explore using AI to analyze assumptions behind projected revenues, which could be a game-changer for angel investors spread across multiple deals.

Throughout the episode, the trio underscores the importance of AI in gathering information, detecting market trends, and mitigating bias from historical data. They discuss AI's potential in forecasting future technologies and market opportunities. Emphasizing the founding team's importance, they argue that focusing on the founders is often more crucial than the market or industry itself.

Tune in to hear their insightful discussion on AI's transformative impact on investment strategies, and why it's a missed opportunity for angel investors not to leverage these powerful tools.

Key Topics

• Validating a Business Idea and Attracting Investment
• Use of AI and Chat GPT for Due Diligence and Market Research
• Practical Applications of Chat GPT in Investment Activities: Pre-screening companies, creating a question set for analysis, scoring pitch decks
• Chat GPT’s ability to gather and analyze information from various platforms
• AI’s role in predicting future technologies and market opportunities
• Practical Experiences Using Chat GPT
• The Cost-Effectiveness and Accessibility of AI Tools
• Technological Advancements and AI Utilization in Investing

Connect

Mike Kelly
LinkedIn - Website - Developer Town

Ben Pidgeon
LinkedIn - VisionTech

Jacob Schpok
LinkedIn - Elevate Ventures

Hear more interviews and stories like this one at www.VentureDeclassified.com

The information provided on the show is not intended to be investment advice and should not be relied upon as such. The investors on today’s episode are providing their opinions based on their own assessment of the businesses or topics presented. Those opinions should not be considered professional investment advice. If they start up pitched as a part of this episode, it is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell, subscribe for or buy any securities.

In this episode of Venture Declassified, hosts Ben Pidgeon, Jacob Schpok, and Mike Kelly dive deep into the intricate world of board hygiene and governance, shedding light on the critical aspects that can make or break early-stage companies.

Jacob Schpok and Mike Kelly explore into the nuances of good board hygiene. They underscore the significance of managing personal biases and relationships in boardroom decision-making. The conversation also touches on the value of board observer rights and the strategic use of 1099 contractors as operating partners to enhance board insights without compromising control.

Ben Pidgeon brings a gritty reality check by discussing the pitfalls of passive boards, emphasizing the necessity for boards to be active and scrutinizing. He asserts that boards should hold the CEO accountable and ensure the company remains financially viable. The trio also underscores the importance of transparent communication to prevent surprises during board meetings—a theme echoed throughout their discussion.

Jacob discusses the importance of CEOs managing their boards effectively, setting clear expectations, and retaining control and equity to attract Series A investment. The importance of robust, diverse boards for better scrutiny and decision-making is also highlighted, with differing viewpoints seen as a strength in navigating complex business landscapes.

This episode is packed with insightful discussions and practical advice for anyone navigating or considering board roles in early-stage companies. As always, the hosts remind listeners that the information shared is not investment advice but an exploration of best practices and experiences in the venture capital world.

Tune in for an enlightening conversation that blends real-world anecdotes with strategic insights, ensuring you're well-equipped to handle the challenges of board governance.

Key Topics

• Challenges in Communication with the Board: Importance of over-communicating during both good and bad times.
• Pros and cons of inviting investors to board meetings.
• Discussing good board hygiene, including personal biases and decision-making relationships.
• Need for professionalism in board behavior, especially in early-stage companies.
• The necessity of active, scrutinizing boards in order to ensure success.
• Board Members' Responsibilities: Value of quarterly board meetings and tracking minutes for transparency and strategic insights
• Effective management of board members, setting expectations, and avoiding surprises in meetings.
• The value of a diversified board for robust decision-making and accountability.

Connect

Mike Kelly
LinkedIn - Website - Developer Town

Ben Pidgeon
LinkedIn - VisionTech

Jacob Schpok
LinkedIn - Elevate Ventures

Hear more interviews and stories like this one at www.VentureDeclassified.com

The information provided on the show is not intended to be investment advice and should not be relied upon as such. The investors on today’s episode are providing their opinions based on their own assessment of the businesses or topics presented. Those opinions should not be considered professional investment advice. If they start up pitched as a part of this episode, it is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell, subscribe for or buy any securities.

In this episode of Venture Declassified, hosts Jacob Schpok, Mike Kelly, and Ben Pidgeon look into the world of early-stage startup funding, particularly focusing on pre-seed investments. They discuss a $3 million pre-seed fund that evaluates startups at the ideation through pre-seed stage, offering checks as small as $20K. The hosts highlight the importance of founders clearly articulating the use of funds and demonstrating a strategic approach to utilizing investment capital.

Throughout the lively discussion, the hosts share insights on the mindset of early-stage startups, the significance of revenue growth, and the potential role of warrants in incentivizing partnerships and aligning interests. They also touch on the necessity for founders to have a realistic valuation and available growth strategy to attract further investment.

The hosts reflect on the distinction between stock options for employees and warrants for partners, presenting various scenarios on how warrants can be used creatively in different business contexts. They share examples of motivating partners with warrants tied to revenue milestones, incentivizing investors to retain capital in ETFs, and fostering strategic alliances through warrant agreements.

In their candid and insightful exchange, Jacob, Mike, and Ben provide valuable perspectives on the intricacies of fundraising in the startup ecosystem, emphasizing the importance of founders' adeptness in utilizing funds efficiently and strategic partnerships in fostering growth. Their engaging conversation offers listeners a deeper understanding of the nuances of early-stage investing and the strategic dynamics at play in the startup landscape.

Key Topics

• Venture Capital Fund Strategy: Learning about ideation and pre-seed stage startups
• Moving away from pitch competition-based decision-making
• Investing in multiple companies instead of a winner-take-all approach
• Startup Funding and Investment Considerations: Providing funds for early customer discovery and product validation
• Goal of getting business model to attract external investors
• Importance of sustainable growth and increasing revenue over time: Revenue and valuation growth expectations for startups
• Distinction between stock options for employees and warrants for partners
• Investment Strategies and Deal Structures: Negotiating terms and creating incentives for investors

Connect
Mike Kelly
LinkedIn - Website - Developer Town

Ben Pidgeon
LinkedIn - VisionTech

Jacob Schpok
LinkedIn - Elevate Ventures

Hear more interviews and stories like this one at www.VentureDeclassified.com

The information provided on the show is not intended to be investment advice and should not be relied upon as such. The investors on today’s episode are providing their opinions based on their own assessment of the businesses or topics presented. Those opinions should not be considered professional investment advice. If they start up pitched as a part of this episode, it is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell, subscribe for or buy any securities.

In this insightful episode of Venture Declassified, hosts Mike Kelly, Jacob Schpok, and Ben Pidgeon deive into a range of compelling topics surrounding investment scenarios and the intricate dynamics of startups.

The hosts first navigate a complex situation involving dissolving a preferred stock arrangement within a company and the potential repercussions of allowing private sales of shares post-funding on a company's growth trajectory. They stress the importance of positive metrics like pitch quality, revenue, and retention rates in their investment decisions, highlighting the impact of overvaluation and the potential for renegotiation if founders feel the deal was too rich.

The discussion then goes into founder loans and deferred compensation, dissecting their implications on a company's financial health and capital deployment. The hosts distinguish between founder loans and traditional debt, emphasizing how debt structures can influence a startup's growth opportunities.

Jacob Schpok passionately addresses the unintentional hindrance early investors may pose to startups, sparking a conversation about liquidation preferences and the repercussions of investors seeking early exits. The hosts analyze the intricacies of investor liquidity needs, ethical considerations surrounding financial decisions, and the ways in which employment and bankruptcy laws can influence debt obligations in startup environments.

The hosts also reflect on their diverse startup portfolios, sharing updates and insights garnered from their experiences navigating the unpredictable terrain of venture capital. Through their nuanced discussions and candid exchanges, listeners gain valuable perspectives on the multifaceted world of startup investments and the myriad intricacies that shape entrepreneurial ventures.

Key Topics

• Investment Scenario Analysis
• Implications of allowing a private sale of shares post-funding
• Criteria for investing based on positive metrics
• Exploration of overvaluation and renegotiation strategies
• Introduction to liquidation preference and its impact on startups
• Challenges of handling early investors seeking liquidity events
• Handling Founder Debt and Institutional Lender Debt
• Legal and Ethical Considerations in Startup Management
• Importance of transparency, shareholder votes, and professional advice for liabilities accumulation

Connect
Mike Kelly
LinkedIn - Website - Developer Town

Ben Pidgeon
LinkedIn - VisionTech

Jacob Schpok
LinkedIn - Elevate Ventures

Hear more interviews and stories like this one at www.VentureDeclassified.com

The information provided on the show is not intended to be investment advice and should not be relied upon as such. The investors on today’s episode are providing their opinions based on their own assessment of the businesses or topics presented. Those opinions should not be considered professional investment advice. If they start up pitched as a part of this episode, it is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell, subscribe for or buy any securities.

Welcome to another intriguing episode of Venture Declassified. Today, we delved into the captivating world of starting a distillery, as entrepreneur Mike Kelly shared his in-depth plans and strategies for establishing a distillery business in Indianapolis.

The conversation unfolded as Mike discussed the intricacies of the go-to-market strategy, the role of a key partner, and the initial focus on commodity alcohol production. Alongside Jacob and Ben, the discussion explored the financial aspects, capital raising strategies, and the dynamics of engaging potential investors in a non-traditional venture like a distillery business.

The dialogue revealed thought-provoking insights into the complexities of aligning investor expectations, managing risk, and carving a niche in the spirits market. Join us as we unravel the fascinating world of distillery entrepreneurship and investment strategies in this engaging and informative episode.

Key Topics

• Business Strategy and Funding for a Distillery Venture
• Focus on producing spirits with a good price point and positive cash flow without heavy branding investment
• Structuring of the funding round, including potential valuations and investor participation preferences
• Discussion of potential minimum investment amounts and the impact on investor relationships
• Strategies for creating a sense of exclusivity and leveraging FOMO in investment opportunities
• Comparison with traditional investment vehicles and risk vs. reward analysis
• Potential timeline for profitability and distribution of dividends

Connect
Mike Kelly
LinkedIn - Website - Developer Town

Ben Pidgeon
LinkedIn - VisionTech

Jacob Schpok
LinkedIn - Elevate Ventures

Hear more interviews and stories like this one at www.VentureDeclassified.com

The information provided on the show is not intended to be investment advice and should not be relied upon as such. The investors on today’s episode are providing their opinions based on their own assessment of the businesses or topics presented. Those opinions should not be considered professional investment advice. If they start up pitched as a part of this episode, it is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell, subscribe for or buy any securities.