Entrepreneurship and wealth building

9 Lessons From 16 Years Running an Investor Club

9 Insights After 16 Years Running Our Investor Club | Ep 11

Founders, capital raisers and family office principals who want a simple set of habits for focus, persistence, structure and trust.

What you will hear

Richard C. Wilson opens with focus. He says a small firm that goes deep on one to three areas can beat a large firm that does everything, and he uses a disposable camera against an expensive one as the example. He notes that he is found ahead of Goldman Sachs when people look to start a family office. He then describes playing a unique game and building choke points, such as a leading website, a LinkedIn group and books.

The talk then turns to habits. Persistence is one example. The billionaires.com deal took 12 years of follow up every three to five months, and the Dental Club deal took 14 months. He also urges going deep on deal structures and talking through options with advisors. He closes on integrity, health and being a class act, meaning kind, honest and patient with investors.

5 key takeaways

1. Focus on one to three areas. Richard says a small player can often compete with a large firm by going deep on a narrow area. In his view, large firms are known for everything, so they are rarely known for one thing.
2. Combine passion, money and demand. Using the hedgehog idea, Richard C. Richard says to weigh what excites you, what makes money and where your strengths fit. He also looks for future demand and little competition.
3. Build choke points, often cheaply. His team built a top family office website, a top LinkedIn group, books with Wiley and 42 acquired LinkedIn groups. He says some choke points cost no money.
4. Persist through long negotiations. The billionaires.com deal took 12 years of follow up. The Dental Club deal took 14 months and the price came down to about a fifth of the three million dollars first asked.
5. Design your own deal structures. He describes several structuring ideas he has seen in the market. He says a distinct approach can help set an offer apart, and many sponsors talk to a securities attorney about how to structure it.

Said on the call

Facts from this talk

• The club started in 2007, and the talk covers lessons from about 15 to 16 years of running it.
• The Dental Club deal took 14 months to negotiate, and the price fell to about a fifth of the three million dollars first requested.
• His team bought privateequity.com for 138 thousand dollars and later sold it for 420 000 dollars.

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

Talk to a securities attorney to explore options around deal structure options, offering documents and investor eligibility rules. Do not use AI to write your own legal agreements.

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

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