The art of raising Capital???

Question

Hello all,

I'm trying to better market myself to raise capital.  Next month I have an investor(s) luncheon to talk about my business and raising capital.   But I am not a sales guy.  I would like to know some techniques that people use to successfully raise capital.  So far, for me, it's just showing the numbers.

But I would like to have other techniques/methodology or approach when it come to raising capital.

Let me know

- Jai

Nick C. · Answer

I don't think you need to be a sales guy to do this. I speak from experience as I am a not a good sales guy.

What will be important to them is your track record of success, how they will make money investing with you, and most importantly why investing with you is safe and won't lose them money. I'm sorry if this isn't specific enough, but remember you're raising money from people and everyone is different. I'm not a believer in cookie cutter scripts.

Frank Wong · Answer

Hi Jaison,

I have never raised capital but I have dealt with a lot of high-net-worth clients.  Here are some tips.

1. Be authentic and don't be a pushy sales guy.  Be yourself that is so important.

2. You need to earn their trust. In some way, you already have a little bit of it.  You wouldn't be meeting with them if there was none.  So start building off of that.

3. They want to know what they will be investing in. What are my returns? What is the risk? How long have you done this? Do you have any proven investments?  How much capital do I need to invest with you? Have you ever lost any investor money?  What's the time frame for the investment? Who is part of your team?  You need to be prepared for these questions.  It's not just like hey guys here are my numbers you guys ready.

4. Now here are some sales technique you can use.  You take control of the meeting, you dictate everything and guide them down the path you want. Can ask them. How much are you looking to invest? What time of returns are you looking for? Are you a long term short term investor?  What you are doing is qualifying them and making them feel like you are the boss and they are working with the right guy.

In sales its all about asking the questions and framing the mind of the clients.  That's how a pro does it.  An amateur pushes and pushes while the pro controls the entire sales call and makes the client feel at ease.  Remember they are meeting with you for a reason, you have something they want or they wouldn't waste their time.  Find out their need and their wants and you become the solution.  Once you do that. Boom you made a sale.

Alina Trigub · Answer

@Jaison Emmanuel

I looked up your profile and it sounds like you have been RE investor for a few years already. Have you used other people money yet? Do you have any past investors? If so, it would help if you could get some sort of attestation from them. If that's not the case and you solely had relied on your own funds, then put up on your portfolio on the paper and show your potential investors what you have been doing so far and how you have been making money. As @Nick C. has mentioned, you don't need to be the sales guy. In fact, I urge you against it. You simply need

1) to have a proven track records that indicates how successful you have been so far.

2) to be in front of the right audience

3) to be in the right place (good setting). F.e. if it's a group of people, gather them for drinks and appetizers, if it's a single HNW individual meet them over a meal if possible

4) to be at the right time - to meet with your potential investors

Bottom line, just like it takes a while to build a track record, it takes as much time if not longer to build the relationships with your investors. Once they know and trust you, the world it yours!

My best!

Bill Plymouth · Answer

I just had the privilege to hear Dan Zikovsky speak.  He raised over 30 milllion of private money for his investment ventures.  I would suggest looking him up.

Scott Mac · Answer

Hi Jaison,

It's not just what you know, it's who you know.

You have to make sure your getting in front of people with enough liquid cash money.

And people have to trust YOU with their money, and trust that you will not lose their money.

You have to seem trustable to them.

Just my thoughts on this.

Good Luck!

And as a side question--What's on the lunch menu?

The art of raising Capital???

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