Finding and targeting the right investors
Hot Seat Webinar: Anchor Investors, Deal Structure, Outreach
Family Office Club Hot Seat Webinar Featuring Live Strategy Sessions with Investors & Founders
Founders, sponsors and fund managers who want practical ideas on finding investors, discussing terms and getting replies from busy family offices.
5 key takeaways
- Start with investors who trust you. Richard describes three kinds of trust. Investors understand the industry, they already know you, or they can meet you in person easily. For Al's beef business, he suggests searching investor groups and family offices in Omaha and nearby farm-belt cities.
- Find one investor others will follow. A corporate venture arm or a respected leader in the space can speed up a raise, even at a 1% stake. Richard says strong custom terms can sometimes bring that investor in for a much larger share, such as 20% or half of the deal, and many sponsors talk to a securities attorney about how to structure that.
- Good terms need not mean giving up equity. Richard says better terms can mean normal pricing with faster return of capital, a royalty for a set period, a board seat or a different share class. Many sponsors talk to a securities attorney about how to structure these ideas.
- Keep materials short and clear. Busy investors will not read long documents. Richard recommends a one-line description, a one-minute founder video and a one-pager with less text. Brian's 120 page deck was split into a 50 page deck and a separate deck for investor review.
- Add value first and follow up. Richard says few people add value before pitching, so a free tool or checklist can stand out. In Richard's experience most deals take about 20 follow-ups, and silence often does not mean no.
What this talk covers
A protein business raising capital for a Nebraska beef plant, and a senior housing operator who raised 75 million, bring questions to Richard C. Wilson in this live Family Office Club hot seat webinar. Richard answers without a script. He covers how to find local investors who already trust an industry, how to win one anchor investor that others may follow, and why deal terms can change how a raise is received.
The second half turns to materials and outreach. Brian, who closed 300 million in senior housing deals, asks how to build a one-pager and reach family offices. Richard points to a one-line pitch, a one-minute founder video, a book, industry communities and a short target list. He closes by noting that cold email reply rates fell from 8.5% to 1.9% in five years.
On the record
- Brian said his senior housing group closed 300 million in transactions in about 14 months and raised 75 million from individual investors.
- Richard said cold email reply rates were 8.5% five years ago and 1.9% last year.
- Richard said the Family Office Club LinkedIn newsletter reached 80,000 subscribers, which he compared to the response from its 200,000 person email list.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Family Office Club Hot Seat Webinar Featuring Live Strategy Sessions with Investors & Founders. 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, royalty and share classes and offering documents. Do not use AI to write your own legal agreements.
Said on the call
"Being really successful is simple. You just do the things that nobody wants to do. You work hard, you follow up, and you systematically show up every day and work the plan."
"Most deals take an average of 20 follow-ups to get anyone to invest at all."
"Pull marketing is putting out value, and it pulls investors into your funnel."
- 1Build a list of 100 to 300 targets
- 2Research LinkedIn, phone and email
- 3Add value before pitching
- 4Reach out and follow up systematically
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
How can a company raise money for one part of its business?
Richard suggests getting the main operation running first. The new part can then be raised separately, and many sponsors talk to a securities attorney about how to set that up. Richard also mentions ideas such as a gross revenue royalty for investors.
What is a deal origination team?
Richard says some large private equity platforms use teams of four to 12 people who knock on doors and call people to find deals. In his view, seeing 2,000 opportunities in a niche gives better choices than seeing 20.
How can a raiser stand out when email replies are falling?
Richard recommends authentic videos, a clear one-line pitch, a book or other pull marketing, and a researched list of 100 to 300 targets. He also says to add value before asking for anything.
Put this into practice with the one-liner builder. See all finding and targeting the right investors resources.
