Sweet Secrets Fund Investors Don’t Want You to Know – Capital Raising – Investment Banking
Hi, everyone. What are some of the biggest secrets in raising the capital and reaching out to investors after you set up your private equity fund? So there are certain principles, and I’m going to go through the I guess reaching out to investors who you don’t even have a relationship with, because some people actually don’t believe can get introduced to investors or you can close millions of dollars from investors that you had no prior relationship with.
And what I’d say is for those who know anyone who thinks that, maybe just keep the secrets to yourself because it just decreases the competition for you. Because I’m going to walk through how capital raising platforms and how people get in touch with investors who they don’t even know millions of dollars into their private equity deals.
So when it comes to reaching out to investors who you don’t know, they’re probably four different camps that I’ll put everything into. And by the end of the video, you’ll have an understanding of how to apply it in your unique situation, because it’s really complex and it’s really nuanced. But basically when you’re reaching out to investors, you have to understand that there’s always like a middleman.
Usually there’s a middleman in between those investors because many of the times the investors, they won’t put themselves out there. They’re usually really private and the ones that have the money usually don’t like being on platforms like. Prequin or pitch book or and they’re really kept to themselves.
So one strategy that I applied actually got in touch with a billionaire in China who, set up a deal for an Australian client. This was years ago. This was about going on four years ago now. So the way that we reached out to him was focusing on the proxy. Basically, there’s somebody who knows somebody.
And so the idea is. If you’re reaching out to people who you don’t have a relationship with, you just have to look for win games to incentivize that person to introduce you to the right investor. If you look at companies called investment banks, they’re basically supposed to help people raise money in exchange for A part of the money that they raise.
So the incentive is for them to find money and also keep it secret who they’re finding money from, because if they tell you who to get the money from, then the biggest fear is if somebody circumvents them and gets the investor without paying their commission. The point I’m making is, we had a LinkedIn campaign, it was just on LinkedIn, we were just reaching out to people purely cold, and the message was something like, I have a multi million dollar solar project that has many, like hundreds of megawatts, that is ready to, that is shovel ready projects that are ready to handle hundreds of megawatts of solar energy would it be appropriate to discuss?
And we sent this message out to, I think, hundreds of people, and then I found, this is how I found my business partner, Andrew Damon, and Andrew Damon has been really monumental in connecting us with amazing, Contacts. And one of the contacts was somebody in Las Vegas who was directly associated with somebody who was a Chinese billionaire.
And just because of that one connection, I was able to get in touch with a Chinese billionaire who was, ready to commit to an Australian client. And so that’s how that connection happened. And the reason why it happened is not because I was reaching out to the investor, the Chinese, the billionaires directly, but I was reaching out to people who were incentivized.
to get me in touch with the investor. So it was somebody in a middleman, a proxy. So sometimes you have to move in zigzag as opposed to directly targeting what you want, because we just found a win game to get the attention of somebody who was direct to the billionaire by seeing that there’s this huge project and there’s mutual self interest.
Like we don’t force the success beyond people because some people hate it, but the right people will approach you. Once you put the message out, so that’s one way. So then the second way is when you just approaching the middleman or broker to do it. And obviously it has to be done legally and compliantly because that was a purchase order.
It wasn’t really an investment and the investment was structured as a purchase order. That’s why that one was different. So the second way. Is to directly reach out to investors. So if you look at capital raising platforms a lot of them, they have their own database of investors that they pay Facebook or Google for to run ads, and then they opt into the email newsletter of the capital raising platforms in exchange for investment opportunity.
And there are many people who we’re working with who they have their own capital raised platforms up, like just a simple portal that we create for people. And then they run their ads and then they do their, they hire their. Their appointments that are to do the outreach to reach out to the investors for their private placements, and they do this direct to the investors.
So this is different because instead of reaching out to brokers, they’re reaching out to investors directly. And this is usually best done for investors that are more small check investors that have a few tens of thousands of dollars to invest. And that’s how that works. So it’s pretty much in a nutshell.
It’s almost the same thing as the normal sales process if anyone is selling a product or a service. The only difference is you just usually deal with a more sophisticated market because there are some investors and there are some structures that allow investors to invest a minimum of 500, but that’s way smaller than a serious investor.
That’s called accredited, meaning that they make over 200, 000 per year. Or they have a million dollars in assets. So reaching out to those investors, you have to be more sophisticated. So basically it’s like a, in a nutshell, it’s like a business to business sale. So business to business sales are really the same as business to consumer sales.
Sweet Secrets Fund Investors Don’t Want You to Know – Capital Raising – Investment Banking
The only difference is they’re probably slower and you have to be. Smarter, you have to know more, but it’s pretty much the same thing. So you have to look at how the person gets aware of you and then how the person gets information about you, how the person gets sold onto what you’re doing and how the person closes the deal and then sends the money in exchange for the results and the benefit that they’re going to get that you promised them.
So the first step is making them aware of you by, either you use other people’s traffic or you use your own traffic. And when you use your own traffic, that just means that you set up your own. portal and your own landing page, and then you run ads or you hire some appointment setters to reach out to investors either on LinkedIn or otherwise.
The using other people’s traffic, that’s just using an existing capital raising platform to leverage the traffic or leverage the contacts to get them into your own, your own funnel, your own. And pretty much what you’re usually doing is the ideal thing is to try to get them on a phone call and to get them to see your deal because the way to see what your best results are is just to track how many calls did you have with investors and how many investors saw your deal who were able to see your deal because without an investor And without you talking to them, you’re not going to be able to close your deal.
So then those are the only two things that matter. So that’s pretty much what you have to focus on is just reaching out to those investors by running ads or by hiring a sales team to reach out. So those people have calls with them, have really good call scripts so that you sell them through the process and then help them see your deal and have the instructions to wire.
And that’s. That’s the core focus. So then that’s how you can get investors without them knowing you before you just treat it like a normal business to business sale. The third way would be getting introductions, like using your existing network to tap into new networks. So some people say, okay, like some people, depending on your age and their stage and where they are in their career and how affluent they are, they may be able to just continue expanding their existing network because the best results we’ve seen are from people that have an existing network and then keep on asking for introductions within their existing network.
Unless you get tapped out in doing that, then start looking at external traffic, but make sure that you tap out your existing investor network that is personal before you start going to external investor network. I’m going to walk through three main things that you can apply right now. When it comes to finding investors that you don’t know.
And so those are the three ways. So I guess number one, find people who are called quote unquote proxy to the investor, people that are directly incentivized by introducing you to the investors. People that are not, maybe they’re not investors themselves, but people who, come to you saying that, Hey, I want to be introduced or I want you to introduce me.
Make sure that you use your own traffic or other people’s traffic to reach out to investors directly. This is the same thing as business to business sales, but the only difference is you are taking them through the process to invest into your deal and then they’re believing in the deal that you have to offer them.
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