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.
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Hall T. MartIn: https://www.linkedin.com/in/halltmartin/
Ten Capital Network: https://tencapital.group/