Cost Of Capital - What Are Investor Relationships Worth?
We're working on some marketing features for our crowdfunding platform and I was hoping some of the syndicators and deal sponsors could help out a bit.
Sourcing investors costs money in the real world. There are two primary ways to do this painting with a very large brush:
1. Do digital ads and more traditional local networking/meetings to find investors
2. Hire a professional to raise money for your projects that is licensed
Item 2 is really more suitable for "bursty" capital supply needs when your existing investors can't or won't fund your project.
Questions:
-How much of a premium would you pay for controlling your investor relationships such that they can be used for future deals? For instance, if you would pay a broker-dealer or RIA to source equity for 3% would you be willing to pay 5% to control the investor leads yourself?
-How much is the lifetime value of the investor relationships worth to you?
-How would you work investor leads as they come in when you're busy working deal flow?
Thanks for any insight you can provide. I have my own opinions, but socializing this with BP should help us build better products to help out more.