Finding and targeting the right investors
5 Stages of Inbound Capital Raising
5 Stages of Inbound Capital Raising
Fund managers, sponsors and founders who raise from family offices and want a repeatable process instead of relying on cold calls or one network.
Quotes from the session
"Iterating is all about speed of implementation and learning from real market feedback so that you can adapt and not be stuck in a rut."
"You basically have to decide what sandbox you're going to play in and compete in. That makes it so you're only competing with one or two other people globally."
"You might decide what sandbox you want to play in, but what's your sand castle going to look like so that you attract investors quicker than the others around you?."
The short version
Inbound capital raising applies direct response marketing, which Richard C. Richard says can bring three to five times the results per hour of relying on one old school method. He spoke from Mumbai after a family office conference. There he saw many people relying on cold calling, one event series or their personal network to raise capital.
He walks through five stages in order. First analyze competitors, investor preferences and where the market is going. Then position, architect, execute and iterate. The talk is a preview of a book he was writing in India over the next 10 days. Each stage builds on the one before it, and the last stage feeds market feedback back into the plan.
From the source
- Richard says inbound capital raising can bring three to five times the results for every hour spent, compared with relying on one old school strategy.
- The five stages are analyze, position, architect, execute and iterate.
- Architecting can include joint venture partners, strategic partners, public relations, syndication of content, podcasts and expert interviews.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: 5 Stages of Inbound Capital Raising. 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.
The 5 big lessons
- Old school methods limit results. Richard saw cold calling, a single event series and personal networks used as the main way to raise from family offices. He says inbound methods can bring three to five times the results per hour.
- Analyze before you act. Start by assessing competitors, investor mindset, investor preferences and market direction. Then read that against the reality of your own firm, your team and yourself.
- Position in a small sandbox. Choose a niche where you compete with only one or two other people, either globally or in a local market. Positioning comes after the analysis and sets what you build next.
- Architect value-first content. Decide who you will target and how education and intellectual property will draw them in. Spread it through joint venture partners, strategic partners, public relations, syndicated content, podcasts and expert interviews.
- Execute with systems, then iterate. Execution means habits, key performance indicators, checklists and operating procedures for you and your team. Iteration then uses real market feedback, because the first analysis or positioning may be off.
- 1Analyze market and investors
- 2Position in a niche
- 3Architect value-first content
- 4Execute with systems and KPIs
- 5Iterate on market feedback
Related questions
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
- How do I raise capital for my business?I raise capital by building a repeatable system for attracting the right investors, establishing credibility, and developing relationships before asking for money.
Questions about this video
What are the five stages of inbound capital raising?
The stages are analyze, position, architect, execute and iterate. Each one builds on the previous stage, and iteration uses market feedback to adjust the earlier choices.
What does it mean to position yourself?
It means deciding which sandbox you will play and compete in. The goal is to compete with only one or two other people globally or in your local niche market.
Why is iterating a key step?
Richard says it could be the most important step. Your first analysis may be off, and you may only learn that after meeting investors, so you may need to change your positioning or your approach.
Put this into practice with the ready to raise checklist. See all finding and targeting the right investors resources.
