SLAM DUNK FUNDRAISING – PART 1
Karl Dakin
Capital Coach | Stakeholder Investor Campaigns | Design, Stage, and Manage or Support | Reduce Time, Money, and Risk of Raising Funding | Increase Probability of Success! | Opportunity Management
QUICK CALENDAR
In addition to this Instant Funding newsletter, I host the Successful Funding show, appear as a guest on various podcasts and television shows, speak at various events, and present my own educational programs. Presented here is a quick listing of upcoming opportunities to share information, learn, or meet in person or via videoconferencing. More info below.
Don Cohen – TODAY – Friday, March 15, 9 am MDT – LinkedIn Live
Successful Funding – Financial Record Preparations – Tuesday, March 19, 8 am MDT – LinkedIn Live
Successful Funding – Reg CF Crowdfunding – Thursday, March 21, 8 am MDT – LinkedIn Live [SPECIAL THURSDAY SHOW]
NO SUCCESSFUL FUNDING SHOW ON MARCH 26.
Successful Funding – Business Acquisitions – Tuesday, April 2, MDT – LinkedIn Live
SuperCrowd 2024 – Impact Crowdfunding – Wednesday/Thursday – April 17/18 - Online
?Successful Funding – Community Building – Tuesday, April 23, 8 am MDT – LinkedIn Live
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SLAM DUNK FUNDRAISING – PART 1
?When asked about the quickest way to raise funding, I recommend that a small business go to an accredited investor (1) who knows them, (2) who has money ready to invest, and (3) who is strongly motivated to choose them over other investment alternatives.
?What the person who asks the question hears is “Go pitch to a wealthy person”. They skip over having a relationship with the investor candidate that is strong enough that the candidate trusts the leadership of the small business, believes in the market that the small business is pursuing, and that the products/services of the small business will be quickly and widely welcomed by prospective customers.
?What the person who asks the question hears is, “You are good enough!”. They skip over the need to present the small business in a manner that demonstrates superiority over everyone else when competing for the money of the investor candidate. It is assumed that fundraising can start immediately without any additional preparation or improvement in the business.
?What the person who asks the question hears is, “Go raise funding now.” They skip over the need for any strategy, identification of investor candidates, crafting of offers to match the needs of investor candidates, and any infrastructure or communication channel needed to convey their offer to the investor candidates.
?These entrepreneurs are people of action who want to email thousands of people they don’t know, who are selected by a maillist company that does not know the small business or the people on the lists and wait for the money to show up. Somehow, the spammed person receiving the email is expected to pull this one email out of their inbox and think to themselves that they should stop what they are doing and make a significant decision to invest immediately solely upon the email, website, or downloadable documents without any due diligence review of the business, its leadership, or its market.
?Almost always, the small business hears nothing but ‘crickets.’ Time goes by, and no money is raised.
?This scenario is repeated many times every day, everywhere.
?From any logical perspective, this type of fundraising sounds foolish. So, why is it done all the time?
?I am not a psychologist who can explain human behavior. I am only an observer. I have watched this method of raising money so many times that I anticipate the entrepreneur will default to it unless they have enough experience in raising funding to have learned that it does not work.
?Anything I say in this Instant Funding newsletter will be countered and drowned out by promotions by sellers of email lists, vendors selling ad words, angel groups pointing to their membership, crowdfunding platforms talking about dollars raised, media stories about investing in three stocks that someone else invested in and television shows presenting entrepreneurs like a gladiatorial event.
?All I can do is deal with reality.
?An investor candidate can only invest in a small business if they know they exist.
An investor candidate should not invest in an entrepreneur that they do not trust.
An investor candidate cannot invest if all their money is already invested elsewhere.
An investor candidate seeking a high rate of return will only invest in a small business that can achieve a high rate of return.
An investor candidate does not have to search far and wide to find small businesses seeking funding and will not invest heavily in a search for an investment opportunity (financial institutions and managed money will search but will also raise the bar on whom they will pick).
领英推荐
An investor candidate with money to invest does not have enough money for each investment opportunity.
An investor candidate wants a sure ‘win’, not a possibility.
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SUCCESSFUL FUNDING
Next Tuesday, on March 19 at 8 a.m. MDT, on my Successful Funding show my guest will be Lucas Marquardt who provides part-time CFO services through Precision Financial LLC. We will be talking about ‘getting ready to receive funding.’
In one week, in a special Thursday show on March 21, 8 a.m. MDT, my guest will be Tom Bassford, CEO of EquityVest – a Regulation CF equity crowdfunding platform. This new platform enables access to capital by “Faith-Driven Entrepreneurs, Businesses, And Causes They Believe In.”
There will be no Successful Funding show on March 26 as I will be engaged in teaching a course on International Transactions for the University of Denver in the country of Belize where students will be immersed in how business is conducted in a different country.
?The Successful Funding show on my LinkedIn profile will repeat weekly at 8 am MST on Tuesdays. You may register to attend by going on LinkedIn, searching for Events, clicking on the Events button, searching for Successful Funding, and then clicking on the Attend button. You should receive an email with a link to save to your calendar. You can also click the Share button and obtain the URL link to the show to put it in your calendar.
You may view all of the Successful Funding shows in my Posts on my LinkedIn profile at: https://www.dhirubhai.net/in/karldakin/
???DON COHEN
?I was a guest on Don Cohen’s show last week, yesterday and today.
You can view a recording of last week's show at:
?Other shows where I have been a guest can be viewed on Don Cohen's Linkedin profile page under Posts.
?SUPERCROWD 2024
?I will co-host and present at SuperCrowd 2024 , "The Impact Crowdfunding Event of the Year,” held online on April 17th and 18th.
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Karl Dakin, the Capital Coach
Dakin Capital LLC
Capital Coach | Stakeholder Investor Campaigns | Design, Stage, and Manage or Support | Reduce Time, Money, and Risk of Raising Funding | Increase Probability of Success! | Opportunity Management
1 年What is your reality in raising funding?