The Art of Raising Capital: Finding Your Highest and Best Use of Time
Raising capital is a crucial part of growing any business, but it's also a complex process that requires careful consideration of how you spend your time as an executive. This article will explore the art and process of raising capital, highlighting the importance of determining your highest and best use of time in this endeavor.
The Art of Raising Capital
Raising capital involves obtaining the funds needed to fuel your business's growth and achieve your goals, such as expanding operations, developing new products, or entering new markets. However, this process can be demanding and time-consuming.
The process of raising capital is dirty work. And only some people can raise capital well, let alone find the work rewarding. Therefore, raising capital successfully is based on several critical factors.
Step 1: Identify Your Strengths
Every executive should begin by assessing their unique strengths and talents. What are you best at? Where can your skills and expertise have the most significant impact on your company's success?
Step 2: Prioritize Your Time
Once you've identified your strengths, it's crucial to prioritize your time accordingly. If tasks like cold outreach and vetting suitable investors aren't your strong suit, focusing on other business aspects that align with your strengths might be more beneficial.
Step 3: Determine the Best Path, In-House Team vs. Outsourcing
Here's where an important decision comes into play. You have two options: building an in-house team or outsourcing the capital-raising process to a specialized firm like Thinkfish.
- Building an In-House Team: If you choose to build an in-house team, be prepared for a significant commitment of time and resources. You must recruit, interview, hire, onboard, train, and coach new staff members. While this approach provides more control, it can be time-consuming and costly.
- Outsourcing to Thinkfish: Alternatively, you can opt for a done-for-you staffing and investor relations outreach solution, such as the one offered by Thinkfish. With a successful track record of helping hundreds of companies, Thinkfish can take the burden off your shoulders, allowing you to focus on what you do best.
In conclusion, recognizing your highest and best use of time is crucial in raising capital. As an executive, your time is your most valuable asset.
By aligning your efforts with your strengths and considering whether to build an in-house team or outsource to experts like Thinkfish, you can make the most of your time and increase your chances of securing the capital needed to drive your business forward.
Remember that the decision ultimately depends on your unique circumstances and goals. Choose the option that best suits your needs and positions your company for success in the competitive world of capital raising.
The Nuts and Bolts of Raising Capital: The ThinkFISH Investor Outreach Process
At ThinkFISH, we realize funding is hard for founders, real estate firms, and everyone else seeking equity capital. In contrast, the list of willing and able lenders is always long. But when it comes to raising capital, there are several essential questions every founder or person raising capital needs to ask:
- What is my highest and best use of time as a founder and leader? Doing a task that is not of the highest and best of your time is simply another lost opportunity cost.
- What is the best process for raising capital? It takes a lot of hard work, a bullet-proof process, and people committed to doing the hard work. If a founder agrees, delegate the tasks and responsibilities to those with the experience to do the job right the first time.
- Who’s the best person to meet with qualified investors and make the pitch? Founders and clients of ThinkFISH tell us they are best suited to pitch to investors.
The ThinkFISH Process for Raising Capital
Given the hard work involved with finding, reaching, and engaging prospective investors to invest, let’s look at the many steps taken daily by the ThinkFISH team of over thirty professionals:
- 1. Research and Planning
- We research and identify accredited investors likely to be interested in your startup or real estate venture.
- We clearly outline your value proposition to communicate the value you offer.
- Developing Sales Materials
- We create compelling sales copy using persuasive and clear messaging tailored for LinkedIn, email, and warm outreach to potential investors.
- We review and optimize best-in-class pitch decks highlighting the key features, benefits, market potential, and your team.
- Technology Platform Licensing and Integration
- We ensure the digital platforms we license are fully operational, secure, and ready to deploy your message and drive qualified investors to your calendar.
- These platforms include LinkedIn, email servers, calendar links, and access to remote meeting solutions such as Zoom.
- Outreach and Relationship Building
- We launch LinkedIn campaigns using the client-approved sales copy to connect with and message targeted investors.
- We send personalized emails to a curated list of potential investors with a compelling message and invitation to discuss further.
- We leverage our existing network for introductions and referrals to potential investors.
- Scheduling and Confirming Meetings
- We qualify investors who seek to book a time for a pitch meeting, thereby saving you time and money.
- We send confirmation and reminder emails or messages to ensure high attendance rates.
- The Investor Pitch
- We help you perfect your story and pitch with the ThinkFISH Pitchdeck Mastery coaching process. We help you craft a strong narrative that connects emotionally with investors, outlining the problem, solution, and journey for investing with you.
- We empower you to schedule a compelling, live demonstration or a detailed walkthrough of your investment thesis and offer.
- We engage potential investors by sharing testimonials, success stories, or endorsements from credible sources to build trust.
- Follow-up and Relationship Maintenance
- We help you with the art of timely, professional follow-up with investors. Follow-up includes sending a thank you message after meetings and providing additional information or answers to any questions.
- We coach you to nurture relationships with potential investors about your company's progress, milestones, and news or press.
- Negotiation and Closing
- We coach you to present your investment terms, expectations, and agreements.
- We ensure you have the processes and platform to finalize the investment with legal documentation and funds transfer.
- Post-Investment Relationship
- We help you maintain regular communication with investors, providing updates and seeking advice when necessary.
- We support you continuously to keep investors informed and engaged, potentially opening doors for further investment or referrals.
In conclusion, ThinkFISH understands the challenges founders, private equity, and real estate firms face when raising capital. It's crucial to focus on what truly matters and delegate tasks efficiently to experienced professionals. Founders are often the best-suited individuals to make the pitch to investors, but the journey to securing funding involves a series of well-planned steps.
So, if you're a founder or seeking equity capital, remember that the path to success involves hard work, delegation, and a dedicated team like ThinkFISH to guide you through the process. We can help you achieve your funding goals and advance your venture.