Common Capital Raising Mistakes and Tips from a $7 Billion Raiser
Common Capital Raising Mistakes & Expert Tips from $7 Billion Capital Raiser
First time and early stage capital raisers who want to avoid common credibility mistakes before approaching investors.
Summary
Promising a 50% IRR does not move investors forward. The speaker says conviction in the person and the model matters more, along with how the manager adds value and what is unique. A professional domain name and email address, which cost about $9, also show that a founder takes the work seriously. Without them, investors may read the project as just an idea.
The talk draws on Chip, who has raised over $7 billion across 30 years. He still says it is hard, and that finding 100 investors can take 600 people or more. He also stressed offering exactly what investors ask for. The speaker adds that first time raisers rarely jump to a billion dollar deal, and suggests building experience, a strong board, and small parts of the deal first.
- 1Start with a small component
- 2Build a track record
- 3Add a great board
- 4Scale to the full deal
Five points worth keeping
- Do not over promise returns. The speaker calls massive over promising a sign of amateur hour. A claim like a 50% IRR is not what lets investors move forward.
- Win on conviction in the person. Investors want high conviction in the person and the model. They look at how the manager adds value, what is unique, and whether it makes sense.
- Show you take yourself seriously. A professional domain name and email address cost about $9. Without them, investors may see only an idea and may assume you need a lot of help.
- Expect persistence, not ease. Chip has raised over $7 billion across 30 years and says it is still hard. He says finding 100 investors can take 600 people or more.
- Climb in steps and match demand. Chip repeated that the offer should be exactly what investors are asking for. The speaker also says most raisers move up in stages, so a big unfamiliar deal needs experience, a great board, or smaller parts done first.
Worth quoting
"If you don't take what you're doing seriously, no one's going to take you more seriously than you take yourself."
"Massive over-promising is a sign of amateur hour for people raising capital, because they're focused on the wrong thing."
"He says that you are a genius if, after 30 years, you can go to 600 people to find 100 investors."
Facts from this talk
- The speaker says Chip has raised over $7 billion across 30 years.
- He says finding 100 investors can take 600 people or more.
- A professional domain name and email address cost about $9, according to the speaker.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Common Capital Raising Mistakes & Expert Tips from $7 Billion Capital Raiser. 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.
Related questions
- What is a pre-seed round and who invests in it?A pre-seed round is the earliest outside money a startup raises, often before it has real revenue.
- How do I raise capital from Middle East investors?Start with a warm introduction from someone the investor already trusts.
- How do I value an early-stage company with no revenue?You value it on proof instead of earnings.
Questions about this video
Why is promising a high IRR a mistake?
The speaker says a promise like a 50% IRR is not what lets investors move forward. Investors respond more to high conviction in the person and the model.
Does capital raising get easier with experience?
Chip has raised over $7 billion across 30 years and says it is still hard. He says finding 100 investors can take 600 people or more.
How should a new raiser approach a very large deal?
The speaker says most people move up in stages instead of starting with a billion dollar deal. Bridge the gap with experience, a great board, and by doing small parts of the deal first.
Put this into practice with the ready to raise checklist. See all capital raising mindset resources.
