Small Business and Yield Investor Mandate: Jake, Recently Liquid
Small Business & Yield Investor - Recently Liquid Private Investor Mandate Interview
Fund managers, sponsors and business owners who want to understand how a recently liquid investor screens opportunity zone and cash flowing deals.
Worth quoting
"Somebody who gives me a professional type of deck and makes it really simple and easy to understand the investment, that's really helpful for me."
"I'm looking for real estate in opportunity zones. I'm also looking for businesses in opportunity zones."
"I do have a friend who happens to have been a cannabis banker for the last, like, 10 years, and, you know, knows the ins and outs."
What you will hear
Jake recently sold his technology business and is now investing his own money, with a plan to grow it over the next five to ten years. His focus is cash flowing projects in qualified opportunity zones, in both real estate and operating businesses. He wants to move away from the startup style of deals he knew before.
Richard C. Wilson also asks what gets an investor to reply to outreach. Jake says he was surprised how little of a plan most people had. He prefers talking to a direct owner and likes a professional, simple deck. He sticks to industries he knows and leans on trusted friends with expertise for the rest.
Facts and figures
- Jake plans to grow his own capital over the next five to ten years after selling his technology business.
- Jake focuses on qualified opportunity zones, in both real estate and operating businesses.
- Jake knows a friend who has been a cannabis banker for about 10 years and who helps him assess that sector.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Small Business & Yield Investor - Recently Liquid Private Investor Mandate Interview. 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 opportunity zone rules, investor eligibility rules and deal structuring options. Do not use AI to write your own legal agreements.
What to take from this talk
- Cash flow over startup risk. Jake sold a technology business and now wants cash flowing projects. He is moving away from the startup mentality, though he knows what it takes to grow something from zero.
- Opportunity zones are the focus. Jake looks at both real estate and operating businesses in opportunity zones. He says the hard part in real estate is finding the right deal among so many projects.
- Structure helps, but readiness matters. Jake does not claim to be an accountant or lawyer on opportunity zones. He likes deals where the pieces are in place and the project is ready to move forward.
- Simple decks and direct owners. What breaks through for Jake is a professional deck that makes the investment easy to understand. He also values speaking with the direct owner or the person who started the fund, not only an investor relations contact.
- Invest where you have expertise. Jake skips energy and medical because he knows little about them. A trusted friend with real experience can help an investor assess an unfamiliar sector. Richard C. Wilson notes that this helps everyone feel more at ease.
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 kind of deals is Jake looking for?
Jake wants cash flowing projects in qualified opportunity zones. He is open to real estate and to operating businesses, and he is moving away from startup style deals.
What gets Jake to respond to outreach?
A professional deck that is simple and easy to understand helps. Jake also prefers to speak with a direct owner or the person who started the fund.
Why does Jake avoid some sectors?
Jake invests where he has expertise. He does not look at energy or medical businesses because he knows little about them. He can lean on a trusted friend with experience when a sector is outside his background.
Put this into practice with the data room checklist. See all investor mandates resources.
