Finding and targeting the right investors
How to Raise Capital On Demand: Investors, Pipeline and Focus
How to Raise Unlimited Capital On Demand - PODCAST - Family Offices & Family Office Club
Anyone raising money for a fund, a real estate deal or a company who wants a simple process for finding and keeping investors.
Quotes from the session
"You always want to get at least 50 to even double the amount of commitments that you need for the actual capital you're trying to raise."
"Raising capital is a business just like anything else. It's a strategy, it's a business, it's a system."
"You need to always be raising, so you need to be consistently putting out content, consistently staying in front of your market."
Summary
A $100 million raise may need conversations with a thousand investors, according to the example in this talk. The speaker first sorts capital into three types: individual investors, institutional investors and debt investors. Most raisers want equity, which comes from institutional or private investors. Those investors want to preserve capital, grow it and keep pace with inflation, so the raiser has to show competence and a focused thesis.
The talk then lists three common mistakes. Raisers stop courting investors once a deal is funded. They talk about the deal more than the investor. They also have no business plan for raising. The speaker adds that commitments do not always become funded capital, so a raiser should collect more commitments than the target. A simple summary, a clear one-liner and a consistent online presence support all of this.
Key facts
- The example given is a $100 million raise that may need about a thousand investors in the pipeline, with perhaps 500 turning into actual commitments.
- The speaker suggests aiming for $150 to $200 million in commitments to raise $100 million.
- The speaker says a one-page executive summary can be enough to convey the value of an offering at the initial stage.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: How to Raise Unlimited Capital On Demand - PODCAST - Family Offices & Family Office Club. 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 offering documents, investor eligibility rules and capital call terms. Do not use AI to write your own legal agreements.
The 5 big lessons
- Know the three investor types. Capital comes from individual investors, institutional investors and debt investors. Most people raising capital are looking for equity, which comes from institutional or private investors.
- Match the deal to the appetite. Each investor and lender has a different appetite and different return requirements. The speaker says to bring the right deal to the right audience at the right time instead of forcing a deal on people who are not interested.
- Stay focused and be consistent. Raisers who jump between deals and groups can look less credible to investors. A solid thesis, a clear core competency and a track record, or a partner who has one, help convey confidence.
- Never stop courting investors. The first mistake named is taking the foot off the gas once a deal is funded or the pipeline is full. The speaker says to keep sharing content and building relationships all the time.
- Reverse engineer the raise. Work backward from the amount needed to the number of investors in the pipeline. Then ask for 50 percent to double the commitments required, because commitments do not always turn into called capital.
- 1Set the amount of capital needed
- 2Estimate how many investors are required
- 3Fill the pipeline with new investors
- 4Collect extra commitments
- 5Call the capital
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 are the three types of investors?
The talk names individual investors, institutional investors and debt investors. Individuals include retail and high net worth people. Debt investors include banks, institutions and private investors who invest in debt.
Why should a raiser collect more commitments than needed?
Commitments do not always equal the capital actually called. An investor may be in another deal or waiting on something by the time the call comes, so the speaker suggests getting at least 50 percent to double the target.
What are the biggest mistakes when raising capital?
The speaker names three. Raisers stop courting investors after a raise, spend too much time on the deal instead of the investor, and have no business plan for raising capital.
Put this into practice with the how much to raise calculator. See all finding and targeting the right investors resources.
