In Part I of this guide, I shared with you my background and experience, and perhaps the three most important aspects to consider when raising capital. They are:
1. Being ready
2. Staying ready
3. Always be raising
In Part II of my guide to raising capital, I have summarised eight lessons that I have learned from some of the most prominent investors from within the Asia-Pacific and UK ecosystems. Some of these investors include Wee-Meng Thoo from Leonie Hill Capital, Anthony Thomson from 86 400 and Steve Baxter from Transition Level. These investors often run workshops for founders and investors at our Emergence Conference.
1. Capital raising is a full-time, not a part-time job!
2. Slow and steady wins the race. On your first interaction with any potential investor, do not overwhelm them with every insight into your business, but rather provide them when asked and, of course, have all the information READY in advance.
3. Do not get trapped in the following mentality: I have spoken to them once to twice and they have not invested yet, so they are not a real investor.
4. Investors are increasingly looking at three main metrics, Cost per Acquisition of a Customer, Return on Investment and Lifetime Value. These metrics show cost, profit and longevity.
5. Wondering how much to raise? $150K or $1M? Always go for the bigger raise, it is better to widen the investor net, and saves you having to raise again in 6 months’ time.
6. Your time is precious, do not waste it. Be firm in your decision to raise capital or not. Make a clear distinction.
7. There are risks everywhere when raising capital, but if you don’t take the first step you are not in the game. Investors often look for skin in the game.
8. Do not think that you can raise significant capital without spending some of your own money to do so. It is vital to receiving investment from potential investors, that they know you have skin in the game.
If you would like to know more about my experience in raising capital, get in touch with me on LinkedIn here, or fill out this form to speak to a WI Capital Raising Consultant and tell us more about your ambitions to raise capital.
Read part three of this series here.
A Wholesale Investor insight by Steve Torso, Co-Founder and Managing Director
Wholesale Investor is Australasia’s leading investment platform that connects innovative, emerging companies that are looking to raise capital with our active, engaged and growing ecosystem of over 21,500 high-net-worth investors, fund managers, family offices, PE and VC firms, government bodies and industry participants.
