5 Changes to a Deal Structure and Investor Pitch That Improved Raises
5 Changes to My Deal Structure & Investor Pitch That Massively Impacted My Capital Raising Results
Capital raisers and sponsors who want a clearer one pager or pitch deck and a practical way to shape terms around each investor.
Worth quoting
"We've got to start taking a step back and say, okay, let's listen to the investor."
"When they're underwriting the deal, they're underwriting you as well."
"Do we make it clear and understandable when we're offering something to someone, we're giving them a dish of something, and do they understand what's on that dish?."
Summary
A one pager has one job, which is to earn the next conversation. James, who raises capital for self storage and flex industrial projects, explains how he cut his page down to what matters. He puts the returns on the front, uses photos in place of paragraphs, and adds a QR code to his calendar so an interested investor can book time right away.
He also covers a founder video of about a minute and a half, which replaced a paragraph and a half of backstory. He shows downside protection, such as buying flex industrial at 45 dollars a foot when building new costs 125 to 150. The last change is listening to investors first, then building custom terms, with two examples from recent deals.
Facts and figures
- James bought a flex industrial property at 45 dollars a foot, while new construction would cost about 125 to 150 a foot.
- One investor put in 2 million dollars and received a 10% return with terms built around their needs.
- A second deal was structured at 8%, with a CD paying 4% and James paying the other 4%.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: 5 Changes to My Deal Structure & Investor Pitch That Massively Impacted My Capital Raising Results. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around custom investor terms, deal structure choices and investor tax considerations. Do not use AI to write your own legal agreements.
Five points worth keeping
- Put simple returns on page one. James lists the 10% preferred return, the profit sharing and the type of raise right on the front. He says a confused mind says no, so he avoids multilevel waterfalls.
- Make the page a clear storefront. Investors walking by should understand what is offered and see a door to step through. James uses photos of the asset class and a QR code to his calendar so the next step is easy.
- Use a short founder video. His video runs about a minute and a half and tells why he does what he does. A QR code to it freed up a paragraph and a half on the page. He also adds the link to his email signature and texts it after short meetings.
- Show downside protection, not just upside. James frames his page around the opportunity, the economics, the basis, the sponsor and the next step. His example is a flex industrial property bought at 45 dollars a foot when new construction costs 125 to 150.
- Listen first, then build custom terms. James asks investors why a deal is not right for them and takes notes. He then shapes terms around what they need, as in two recent deals, one with a 2 million dollar investor and one at 8% with a strategic partner.
- 1The opportunity
- 2The economics investors can earn
- 3The basis and downside protection
- 4The sponsor and team
- 5The clear next step
Related questions
- What is an investor teaser and what goes in it?An investor teaser is a one-page, one-sided PDF that tells an investor what your deal is and why it is compelling in two or three ways.
- How long should an investor pitch deck be?Keep your investor pitch deck to about 10 to 19 pages.
- What financial slides should a fund manager's deck include?A fund manager's deck should show the numbers an investor tests first.
Questions about this video
What should be on the front of a one pager?
James puts the returns on the front in plain terms, such as a 10% preferred return and profit sharing. He also covers the opportunity, the economics, the basis, the sponsor and the next step.
Why use a founder video?
Many investors underwrite the sponsor as well as the deal. A video of about a minute and a half lets them see who the founder is and why they do the work, without needing a call first.
How did James get a deal done with custom terms?
He listened to what an investor needed and built terms around it. In one case an investor put in 2 million dollars and received a 10% return plus over a million dollars in losses reported on a K-1. Tax treatment varies, so investors should check with their tax advisor.
Put this into practice with the pitch deck grader. See all pitch decks resources.
