Guides · Capital raising mindset

How to Build a Capital Raising Team

Most people start a raise by polishing the deck. I think the team comes first. At a recent panel on teams who have raised $50 million, one principal said it plainly. The right team that can execute is one of the most important things.

Here is how I would build one. These steps come from what I heard on that panel, from our monthly Hot Seat webinar, and from a fireside chat with Joel. At Family Office Club we see the same pattern at our events again and again.

The steps

Step 1. Start with people, not product

Before you pitch anyone, look at who is on your side. A panelist who runs a business said you can have a great product and a great service. Without the right infrastructure, and that starts with people, you will not succeed. So write down who handles what in your raise. That means the pitch, the investor follow up, the documents and the numbers. If a job has no name next to it, that is a gap. Fill the gap before you go out and start asking for money.

Step 2. Build the foundation before the raise

Some people try to force the raise before the business is ready. I would not do that. The panelist said you need to build the foundation first and believe in it yourself. That takes time. Your team should know the offer cold and agree on what you are raising and why. Run a beta test or an early version if it fits your business. A team that has seen the thing work will speak about it with more confidence. Investors can tell when the people in the room believe what they are saying.

Step 3. Plan for six months or more

A team needs a realistic clock. The panelist said it is not a process that takes two months. It could take six months or more to get some traction. Set expectations with your partners and staff on day one. Decide who stays on the raise during the slow weeks. Decide how you will keep morale up when the first meetings do not turn into checks. If your team expects a quick win, they may quit just before the first investor says yes.

Step 4. Pick people who love the work

Another panelist, Matt, told entrepreneurs to show real passion for what they are doing. He said that if you do not enjoy it, it shines through. You have to love what you do. I would apply that to every hire and partner on your raise. Ask yourself if each person believes in the mission. Investors meet your team as well as you. A team member who is bored or doubtful will show it on a call. Pick people who want to be in the conversation.

Step 5. Define each person's top tasks

Give every team member a short list of what they own. In our webinar we talked about defining the top seven things each person does. You can then set up AI tools around those tasks to help with each one. We teach founders, investors and capital raisers to build an intelligence center for each major division of the company or each person on the team. Start with the list, though. The tools only help once the roles are clear. Review the list every few months as the raise changes.

Step 6. Put the basics in place together

Make sure the whole team shares the same materials. At Family Office Club we recommend six things on capitalraising.com that people often get wrong when raising capital. Assign an owner to each one and check them off as a group. A data room and a clear track record matter here too. In our webinar I said that if investors have not met you, they are unlikely to put in much money unless you have an amazing video, a track record they can verify and a great data room.

Step 7. Add people who build trust

Even with everything in place, I said you will raise almost zero dollars if you cannot build trust and a relationship. So put someone on the team who can do that well. Their job is to show how you add value to the investor. Think about who the right network is. For a sports focused fund, I suggested pro athlete investor networks, agents and people local to the teams. Match the person on your team to the audience you want to reach.

Step 8. Choose partners by who they are

When you add advisors or co-investors, look at the people. Joel said they tend to invest in projects based on the people involved. His own football story began when his attorney asked him to help with a team. He thought it would be a small passive investment, and one thing led to another. The lesson for your raise is to bring in partners you already know and trust. Many sponsors talk to a securities attorney about any legal questions that come up when adding partners.

From my talks

What I have said on this at our events

One gap I see in most raises is time. People tell me they are doing three meetings a week or five to eight hours a week on raising capital, and then they wonder why the results are thin. Someone on your team probably needs to spend 20 or 30 hours a week raising capital, if not more. I also think one of your partners should be the head of capital raising, or you should find someone who fills that role. Put a name on it.

Where people go wrong

• Building the deck and the product while no one owns the investor follow up.
• Forcing the raise before the foundation and the team are ready.
• Expecting traction in two months when it can take six months or more.
• Adding team members who do not enjoy the work or believe in the offer.
• Skipping trust building and relying on paperwork alone.

From the source

• One panelist said a raise could take six months or more to get some traction, not two months.
• In our webinar I described defining the top seven things each team member does, then building an AI intelligence center around them.
• Joel's attorney brought him into the Vienna Vikings, a team that had been around for about 50 years.

General education only. Not legal, tax or investment advice.

Talk to a securities attorney to explore options around capital raiser compensation, partner agreements and offering documents. Do not use AI to write your own legal agreements.

Questions about this guide

Related questions

• How do I raise capital from Middle East investors?Start with a warm introduction from someone the investor already trusts.
• How do I value an early-stage company with no revenue?You value it on proof instead of earnings.
• How do I negotiate valuation with an early investor?Start with a valuation you can defend with traction and numbers, then expect the investor to push back.
• What is a pre-seed round and who invests in it?A pre-seed round is the earliest outside money a startup raises, often before it has real revenue.

Use the dilution calculator alongside this guide.