Mastering the art of capital raising can be a difficult task when you’re just getting started.
But if you want to succeed as a capital raiser, you need to present yourself as an experienced professional. Investors need to know they can trust you to manage their capital with care and expertise, and partners need to know they can rely on you.
In this blog, we’ll explain how you can approach your next capital raise like a true professional, whether it’s your first or your tenth deal. We’ll also share our favorite resources for growing your network, developing new skillsets, and more.
5 Ways to Professionalize Your Capital Raising Approach
1. Perfect Your Pitch
When seeking out new partners or asking for capital from investors, presentation matters. Craft a compelling and concise pitch highlighting your unique value proposition, market opportunity, and competitive advantage. Your pitch should focus both on the opportunity itself, and on the experiences and bona fides that make you a credible capital raiser.
Remember, when people choose to invest in your deal, they’re also making an investment in you. A polished pitch can demonstrate that you know what you’re talking about and deserve their trust.
2. Build a Robust Network
No one can raise capital alone, so if you’re not already surrounded by a strong community, now is the time to start building one. And don’t only focus on finding investors, either.
Look for opportunities to connect with other capital raisers who you can learn from and maybe even partner with on deals. If you’re not sure where to start, consider joining a capital raising mastermind that gives you access to a large network of other fund managers.
And don’t be afraid to ask questions or seek out advice! We’ve found that many people in this industry are willing to collaborate and share their expertise if you only take the time to ask.
3. Communicate Like a Professional
As a capital raiser, you’re responsible for making sure your investors feel comfortable, confident, and up-to-date on the status of their investments. Maintain open lines of communication with consistent email updates, easy-to-access documentation, and the ability to call or email you with any questions they may have.
And if the challenge of managing investors feels too daunting, using a capital raising platform like Avestor can allow you to streamline your processes and cut down on the time you spend on investor relations.
4. Learn from Rejection
Rejection is part of the fundraising journey. Instead of getting discouraged, view rejections as opportunities to learn and refine your approach. Treat “no’s” as opportunities to learn and iterate, and don’t be afraid to ask for feedback from investors and other industry professionals.
5. Choose the Right Capital Raising Structure
The decision to raise capital through a fund, a syndication, or a fund of funds will dramatically impact your approach to capital raising. Make sure you clearly understand the pros and cons of each structure before making your choice.
Download Our Free Guide: 6 Questions to Ask Yourself Before Your Next Capital Raise
Avestor’s Arsenal Of Resources For Successful Capital Raising
In order to raise capital like a true professional, you need to take advantage of the best tools and resources available to you.
When you raise capital through an Avestor Customizable Fund, you’re not only accessing top-of-the-line software, but you’re also opening yourself up to a vast network of resources that will help you grow your business. A Customizable Fund with Avestor includes:
- Legal and Regulatory Support: We help you build your fund strategy, set you up with attorneys, create your PPM, streamline your blue sky filings, and offer you the lowest rate for your ERA filings.
- Deal Structuring: When you start a Customizable Fund, our team helps you determine your deal strategy, offers financial models, and will even run background checks on your deal partners.
- Marketing Support: All Avestor fund managers gain access to GoHighLevel’s CRM, which includes contact management, email templates, and free automation tools.
- Continuing Education: We’re committed to helping you grow through our exclusive Mastermind and other educational resources. These include training sessions, weekly deal sharing meetings, an in-person retreat, and a comprehensive online course that teaches you how to launch and scale a fund.
Raising capital is a challenging yet rewarding endeavor that requires diligence, perseverance, and strategic thinking. By implementing these expert tips, you can increase your chances of success and start to raise capital like a pro.
Ready to learn how we can help you reach the next level? Book your free strategy call today.
