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