Finding and targeting the right investors
Capital Raising FAQ: Finding Investors, Fees and Follow-Up
Capital Raising FAQ Webinar
Capital raisers at any stage who want practical answers on finding investors, following up, thinking through fees and deal structure.
Said on the call
"The smaller you are, the more focused you need to be. It's more credible to say, "We buy hospitality assets in this four-square-mile area."."
"No one will take you more seriously than you take yourself."
"I would just get the deal closed and satisfy them by adjusting the terms, and be long-term greedy, don't be short-term greedy."
What this talk covers
Richard C. Wilson of Family Office Club answers common capital raising questions in a live webinar. He draws on 114 live events and 257 pitch deck reviews. He opens with three trust curves that every deal must move up: leadership, industry and the opportunity itself. Investors who already know the team or the industry start further along.
The questions cover finding investors for a specific niche, investors who go quiet after a good call, fees on direct investments, and ways to raise money without giving up equity. Richard also explains why starting with small deals builds a track record. He stresses video calls over email and a tight one-liner.
Facts from this talk
- Richard says Family Office Club has run 114 live events and reviewed 257 pitch decks.
- In Richard's experience, the amount a GP contributes varies widely from deal to deal.
- One sponsor in the talk bought a $110,000 deal and syndicated it to six investors at about nine thousand dollars each.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Capital Raising FAQ Webinar. 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 deal structure options, fee arrangements and debt note terms. Do not use AI to write your own legal agreements.
What stood out
- Three trust curves decide deals. Richard says every deal must move up three curves: trust in the leadership, trust in the industry, and trust in the opportunity. He suggests targeting investors who are already part of the way up one of them, which is why many people start with friends and family.
- Know where your investor spends time. Instead of chasing investors, learn what they read, which associations they join and which podcasts they hear. Richard compares it to sitting still by the water like a grizzly bear so the fish come to you.
- Smaller firms need a tighter focus. Richard suggests that a team of two or three people with a short track record may want to think carefully about how they approach fees and avoid claiming many markets. Richard says a narrow focus raises credibility and a better structure helps investors lean in.
- Start small to build a track record. Richard shares a story of a deal sponsor who failed to raise a thirty million dollar deal. The sponsor then bought a $110,000 deal, syndicated most of it to six investors, and grew from there.
- Write a tangible one-liner. Richard says almost nobody has one. Of 257 pitch decks reviewed, he saw about two dozen one-liners and half were weak. He recommends a credible, checkable number and a clear reason why the firm matters.
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
Why do investors go quiet after a good conversation?
Richard says the pitch may look like many others, or a trust curve may not have moved up yet. Sophisticated investors see a large volume of deals, so a unique one-liner and clear value help a firm stand out.
How can a company raise money without giving up equity?
Richard describes debt-style approaches and revenue royalties as ideas some companies explore instead of selling equity. Terms vary widely by deal and market, and many sponsors talk to a securities attorney about how to structure them.
What do institutions want in direct investments?
Richard says direct investments give institutions more control and transparency, and the trend has grown over the last five years. Many sponsors talk to a securities attorney about structure and think carefully before copying standard fees by default.
Put this into practice with the one-liner builder. See all finding and targeting the right investors resources.
