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