Hello everyone, when do you raise capital? Before or after finding a deal? My thinking is if I raise money after the deal I might lose the deal because I’m taking too long, and if I raise money before finding the deal the investor might pull his/her money out because his/her money is not working for him/her yet.
Any help on this issue is highly appreciated.
You cannot raise capital for a deal you don't have. However, you should start having conversations with your potential investors and sharing the details of your successful previous track record. Also you can show them a sample deal. This will give investors an ideas as to what kind of deal to expect from you. You will also be able to gauge their interest. Note, as I mentioned earlier, a successful track record is needed to find investors. If you don't have one, I suggest partnering up with someone experienced to leverage their track record. In addition,
@Alina Trigub thank you. Great info!