Finding and targeting the right investors
Capital Raising Tips from Investor Club Leaders
Capital Raising Strategies: Expert Insights from Top Investor Club Leaders
Founders and sponsors preparing to approach angel groups, investor clubs or family offices who want to know what those investors screen for.
Said on the call
"If your deal is truly amazing, people will refer other people to it before they've even put their own money in, many times."
"They don't have a one-liner. They don't have a one-pager. Their pitch deck is 44 pages long instead of 15 pages long."
"We primarily look for three things when we make investments. Number one, a large market, early in that market, and the team."
What this talk covers
Investor club leaders on a panel answered one question: what should capital raisers do to get funded? Manny said to seek a warm introduction through a past founder, a lawyer or a LinkedIn contact. He also said to fit the investor's focus and to show a team rather than one person. His three screens are a large market, an early stage in that market, and the team.
Richard C. Wilson added that a truly amazing deal gets referred before investors put in money. He said many raisers lack a one-liner and a one-pager, and send a 44 page deck instead of 15 pages. He also recommends a 1 to 3 minute founder video. He described two free AI tools, one that scores a deck and one that writes one-liners.
From the source
- A pitch deck of 44 pages is too long, according to Richard C. Wilson, who recommends 15 pages.
- The pitch deck success score tool analyzes a deck in 25 ways and gives feedback on how to improve it.
- The capital raising one-liner AI tool returns seven one-liners in 30 seconds using 20 criteria, then can produce seven more on request.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Capital Raising Strategies: Expert Insights from Top Investor Club Leaders. 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.
What stood out
- Seek a warm introduction. Manny suggested having a founder from a past investment reach out. A lawyer or a LinkedIn contact can also make the introduction. This can help a raiser stand out from the many people sending cold emails.
- Match the investor's focus. Manny said his group does not do solar, healthcare or biotech. It focuses on high-tech, early stage startups, mostly seed. Checking fit first can save time for both sides.
- Show a team and a plan. Panelists wanted a team member who has raised capital and exited well. They also liked a runway of 6 months to a year, a clear exit goal and realistic views of the market. One panelist said they are not looking for dreamers.
- Keep coming back with progress. One panelist valued the person who returns in 6 months and says what they have learned or done since. One panelist said staying power matters because results rarely match the pro forma exactly.
- Tighten the pitch materials. Richard C. Wilson said many raisers have no one-liner and no one-pager. He said a deck should run 15 pages, not 44. He also recommends a 1 to 3 minute video of the founder showing the product and team.
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 three things does Manny look for in an investment?
Manny named a large market, being early in that market, and the team. He said the team and the market can swap order, but those are the three main screens.
How long should a pitch deck be?
Richard C. Wilson said many decks run 44 pages and should be 15 pages. He also suggested a one-liner, a one-pager and a 1 to 3 minute founder video.
What AI tools did Richard mention?
He described a GPT tool called pitch deck success score that analyzes a deck in 25 ways. He also described a one-liner AI tool that gives seven one-liners in 30 seconds based on 20 criteria.
Put this into practice with the pitch deck grader. See all finding and targeting the right investors resources.
