No, when it comes to raising capital there is no magic bullet to load into your mystical Colt 45. Something like that just simply doesn’t exist. And, when you have a properly underwritten deal under contract, boldly and broadly hosted on a syndication platform, there’s just not a guarantee the capital will come. There aren’t shortcuts or magic bullets, but it’s the consistent, smart participation YOU bring every day. Every Single Day.
So, first things first. Have you done your homework, really done your homework? Have you appropriately underwritten the offering with real world assumptions, market viability, downside risk adjustments and reasonable upside probabilities? If so, it’s time for the next best step!
Understanding your role and experience as a Sponsor is as important as the offered asset itself. Why? Well, Investors must feel comfortable with and believe in your capabilities and historic successes. When you carefully craft your biography, bear in mind that strangers will review it with a most critical eye looking to find a reason not to invest. The fewer reasons you provide for an Investor to walk away, the better your opportunity to secure Investors. Pretty simple, right? Your role and how you present it to your prospective and current Investors is of upmost, critical importance
Once you’re clear and have a plan to communicate your role and experience, it’s time to balance the risk of your offering compared with its reasonably expected reward. How does your particular life, business and industry experience, track record and past roles offer a solid proposition with little foreseeable downside, or is your offering something new like a cannabis start-up? When you understand the disparity, you can methodically adjust your ROI metrics to balance the risk of the offering with the security of the capital investment. How to best approach this possible hurdle? Research what others are doing that makes sense to you, that resonates as a good deal. Review other similar offerings in the same or similar industry and with similar terms. Visit hosting platforms such as evestmarketplace.com to review similar sponsors’ underwriting, marketing messaging and other communications.
With your role and offering strategically considered and down pat in your messaging, now you’re ready to begin raising capital. Find a reliable and highly rated platform, looking for testimonials from clients, like eVest Technology (evesttech.com) to host your digital presentation (PPM). Don’t neglect advertising to target an audience of suitable and interested Investors, being sure you are Reg D 506 c compliant. Placing your offering in front of the eyes and minds of those Investors who have the capital you want is the best way to find your funding.
Incorporating these steps above is the most efficient, effective, fastest, easiest and least expensive way to market your offering. Finally, your digital Landing Page needs to be the destination for your prospective investors, typically a 90-day process for most new offerings. Budget accordingly, remembering that advertising doesn’t cost you money — advertising *makes* you money. Here are some best practices that help Sponsors secure the most investor interest and capital the fastest:
- Understand we live in a digital world, so take full advantage of it. You can cover months of traditional marketing in a single day if you know where to go. Maximize social media far beyond posting on Facebook. There are sites like BigLinker, for example, that can fill your investor pipeline. A simple inexpensive app that maximizes your LinkedIn contacts with drip campaigns. There are dozens of force-multipliers out there. Find one that works for you.
- Use resources like Upwork to hire a content writer. They’re quick, experienced and inexpensive. Have a blog written about your specific industry or geo-centric deal with a live url leading readers to your Landing Page. Make sure the Landing Page has a way to capture their contact info.
- Find a credible emailing resource to “rent” a list of High-Net-Worth prospective investors geo-centric to your offering. Investors who recognize your offering and its future location are more likely to invest in your proposition than an outsider. For example, renting a list minimizes Spam issues and puts that responsibility squarely on the shoulders of the emailing company, however the company needs to be highly competent and accountable for Opt-Ins.
- Use video whenever possible. Put a face with a name. The more dynamic the better. Make yourself always available to discuss the deal one-on-one. Zoom is a great tool. Offer live chat boxes, direct mail addresses or phone numbers. Field these calls yourself. Everyone wants to speak with the Principal.
- Follow-up, follow-up, follow-up. Hot, cold, warm leads. Follow-up. There are apps like Clickback, Zoho or Active Campaign that follow-up cold leads for you with digital marketing drip campaigns. Take advantage of these tools.
- Join Family Office Groups. They have hundreds of institutional-style investors that they make available to their members. These are Golden lists that are there for the taking.
- Start conducting conferencing calls to gain interests from investors. The goal is to get potential investors to join the call to become educated about your offering. You can use Zoom.us or Meet.Google.com to conduct your calls.
- Create and use a Facebook Business page and boost your posts for as little as $50 to reach a specific demographic using Facebook Advertising Boosting tool. This is a powerful low-cost way to gain interests of investors in your city, state or nationally. Consider the same for LinkedIn.
The above is just a fraction of what you could and should be doing to successfully close your next deal. No magic, no high priced NYC PR firm, no glitz and glamor. Just a conservative marketing budget and reasonable expectations. Just remember ”YOU MAKE YOUR MONEY ON THE BUY” and sophisticated investors watch for those opportunities. Your job is to get your deal in front of them.