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Using Warrants & Advisor Shares: Accelerating the Fundraising Process

In the video, I discuss strategies for accelerating fundraising by employing various incentives, including warrants and advisor shares. I explain how these incentives can pique the interest of potential investors and speed up the investment process.

I delve into the potential of offering warrants to prospective investors, highlighting that rewards can be structured around specific thresholds or discounts. For example, in a case with Thrive, we granted a significant discount when the investment target was exceeded. I emphasize that everyone has a bit of greed in them and that finding creative ways to cater to this can be beneficial in the fundraising process.

Apart from warrants, I also discuss the potential of advisor shares. I suggest that these aren’t distributed to every investor, but rather are used strategically. Typically, they are offered to individuals who are invited to join the company’s advisory board.

The advisory board should be composed of the industry’s best and brightest, acting as the company’s moral compass. While these individuals don’t possess any legal authority, they can contribute valuable advice and expertise. So, to persuade such individuals to join the advisory board, the company can offer them advisor shares. For example, I propose that if someone invests a million dollars, they could receive an additional 10,000 warrants as part of their advisor shares.

To sum it up, I recommend using incentives like warrants and advisor shares as powerful tools to stimulate and hasten the fundraising process.

Please like, comment and subscribe!

For a comprehensive guide, head to CallingTheCapital.com for a free download of “Calling The Capital: 20 Ways to Incorporate Urgency Into Your Capital Raise,” or grab it from Amazon.

Free PDF Version: https://bit.ly/3Ki1vaB
Amazon: https://amzn.to/3K8DFNI

Hall T. MartIn: https://www.linkedin.com/in/halltmartin/

Ten Capital Network: https://tencapital.group/

Creating Urgency: The Art of Accelerating Fundraising for Startups

In the video, I provide insights on how to create a sense of urgency during fundraising. As many founders, investment managers, and real estate syndicators often face delays in mobilizing interested parties, I share strategies to overcome this obstacle.

I explain that those who seek investment often overlook the fact that they are in control of the process and should be leading the dance. They have the power to define the terms and, importantly, the deadlines. I’ve noticed that many pitch books lack deadlines, which leads to a protracted process that seems to go on forever.

I strongly advocate for using deadlines to instill a sense of urgency. As I see it, the first rule of negotiation is to set a deadline, yet many individuals neglect this strategy. I underline the significance of a clear call to action in investment materials – clarifying what happens next and when.

Beyond setting deadlines, I recommend structuring the fundraising in tranches. Investors participating in the initial tranche can enjoy additional benefits, like warrants or discounts, or even non-financial incentives such as branded apparel. However, subsequent tranches offer fewer perks. This way of structuring rewards encourages people to invest earlier rather than later. If investors miss the first tranche, they miss out on these bonuses. This could push them to make decisions faster.

In conclusion, I emphasize the effectiveness of using deadlines and tiered rewards to expedite fundraising efforts. By setting deadlines and providing early-bird rewards, founders and fund managers can foster a sense of urgency that prompts potential investors to commit more promptly.

Please like, comment and subscribe!

For a comprehensive guide, head to CallingTheCapital.com for a free download of “Calling The Capital: 20 Ways to Incorporate Urgency Into Your Capital Raise,” or grab it from Amazon.

Free PDF Version: https://bit.ly/3Ki1vaB
Amazon: https://amzn.to/3K8DFNI

Hall T. MartIn: https://www.linkedin.com/in/halltmartin/

Investor Relations: Mastering the Art of Raising Capital in the Tech Ecosystem

In the video, I share my recent experiences after relocating to Miami and observing the emergence and subsequent downfall of the tech scene due to the collapse of Silicon Valley Bank. I highlight the massive influx of capital and the burgeoning crypto and technology bubbles, which sadly resulted in some of the less stable businesses being swept away.

I recount a valuable lesson I shared with an entrepreneur named Andrew SATs during an informal coffee chat: raising funds is all about relationships. Having wealthy investors isn’t enough; they need to genuinely connect with and see value in the investment. I critique the overly transactional approach prevalent today, which I attribute to the pervasive hustle culture pushed by personalities like Gary Vee.

I stress the significance of understanding the investor’s mindset. Those with high net worth are often careful about maintaining their wealth, whether inherited or self-earned. The allure of a potentially lucrative investment isn’t purely financial; the elements of status and pride play a crucial role. I firmly believe that if a company can make an investor feel proud of their investment, their chances of securing funding significantly increase.

As a demonstration, I share an example of my own successful tactic. I gifted my investors in Thrive Biosciences with branded Patagonia fleeces, effectively turning them into brand ambassadors. The prestige of wearing an item associated with their investment created a conversation starter and added an extra level of attraction.

In another instance, I narrate the story of securing investment for a company named AI Scout from the new owner of the Chelsea Football Club. To speed up the process, I offered each investor an autographed jersey from the Burnley Football Club, a strategy that resulted in oversubscription.

My key message: fundraising isn’t just about the numbers or potential return on investment. It’s about building relationships, understanding the motivations of investors, and making them feel proud to be part of the venture. With the right tactics, even the most sophisticated investor can be swayed by well-thought-out gestures tailored to their desires and requirements.

Please like, comment and subscribe!

For a comprehensive guide, head to CallingTheCapital.com for a free download of “Calling The Capital: 20 Ways to Incorporate Urgency Into Your Capital Raise,” or grab it from Amazon.

Free PDF Version: https://bit.ly/3Ki1vaB
Amazon: https://amzn.to/3K8DFNI

Hall T. MartIn: https://www.linkedin.com/in/halltmartin/

Ten Capital Network: https://tencapital.group/

Interview with Salvatore Buscemi: Fundraising Expertise and the Power of a Strong Network

Today, we have a special guest: Salvatore Buscemi, from the Harlem River Navy or HRN. Sal is a seasoned fundraising expert and he’s here to share his wisdom on how to close an investor. For startups and investors alike, this is a must-watch!

Sal’s career has spanned various roles in the financial services sector, starting at Goldman Sachs in 1998 and eventually managing his own institutional balance sheet by raising $30 million for buying distressed loans. He’s also the author of the book “Raising Real Money, Real Estate Funds Uncovered”.

Listen as he shares the journey of creating Harlem River Navy and the unique mix of real estate and life science investments they manage. Sal offers a rare glimpse into their investment approach, their successful portfolio, and their future plans. He also discusses the power of a strong network and its impact on deal flow.

Join us as we dive into these insights, and don’t miss the opportunity to ask your questions during the Q&A session.

Links:

Website: https://salvatorebuscemi.com/
Free Download: CallingTheCapital.com

#Fundraising #Investing #HarlemRiverNavy #SalvatoreBuscemi #GoldmanSachs #RealEstate #LifeSciences #Networking