If you don't do THIS, investors will leave you last minute... - Natu Myers of Raises.com
Natu Myers
I get companies funded by investors to protect & grow capital (Post-Rev, Series A & Growth) | Global Investment Banking
If you don't do THIS, investors will leave you last minute... - Natu Myers of Raises.com
?(Transcript from video)
So this is going to prevent you from losing all the capital that you've raised for your your deal, your private equity deal or your private equity fund before it's too late. So we've seen somebody go through an interesting issue and, you know, you always want to and so might as well use this video to learn about how they've encountered this issue so that it prevents you from going through the same problem. And this would shave off, I guess it will prevent you from shaving off a few years of your life span being stressed last minute. So, you know, in a really in a really small local private equity fund in this one was a private equity fund in Canada. And for this one, what happened was people were very like the deal went through and everything at the end, but so people flaked on their commitments last minute. So because the problem with like people doing one off syndications and things like that is people flake sometimes last minute. And so dealing with that process over and over again can be a bit annoying. So then a lot of people who have done an A syndication for those who don't know, it's basically in grassroots English using the cap, using the equity capital of other people to use that money to buy houses and or types of real estate, you know, in real plain English. So in one of those deals, they had something called a capital call, and they put that in place because they had like a lot of capital raised. (why should investors invest in you)
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And last minute when a deal was about to close, you know, I think a few investors in the deal flaked and disappeared. And because they flaked and disappeared, well, they said, oh, they came up with excuses last minute. And because of that, the deal needed to close or else like the person's reputation was at stake. And the person probably took years after we built that reputation of the other investors that didn't that already committed and the actual deal that was selling. And you'll be just really a big mess. And there was a lot of flying back and forth to do due diligence on the deal and the sunk cost. So they have to make sure they got the thing done and the guy's livelihood was depending on it. So what happened? What happened after the story? So then the the way that it was dealt with was in the next deal that the person did and the way that the person got the people is to have the investors put in a down payments like a 10% deposit to secure their spots for the amount of equity that they would want to raise. And when they put that down, payments in it will be nonrefundable. So an investor would put in, let's say they wanted to buy like 1000 shares priced at like 1000. So basically they wanted to get they had to invest a million, for example, they would have to put like a 10% down payments, 10% of that million in a down payment. (why should investors invest in you)
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INVESTMENT BANKER | CEO | GAME CHANGER 25 yr track record. Built 6 of her own successful companies including Cahill International: working with elite CEOs to set ambitious goals & create the path to achieve/exceed them.
1 年Hi Natu, I would change the title to : " if YOU don't do this" Just a thought on grammar . Best, Clare