SMART CITIES / FUNDING 1ST STEPS

FUNDING FORTUNES

"A robust revenue model is your golden ticket—polish it until it shines."

?An enterprise must provide an investor candidate with more than a stated direction. Too many pitch decks state simply an intent to ‘sell more’. To this must be added ‘who, why, when, where at what cost’ that addresses the changes that will occur with growth and competition. Lack of this information portrays the leadership of the enterprise as engaged in hopeful guessing.

?QUICK CALENDAR

?TOMORROW, Tuesday, February 25, Successful Funding show, Investors - 8 am Mountain Time, 10 am Eastern https://www.dhirubhai.net/events/successfulfunding-insightsoninv7299485340057092097/theater/

April 2 - Investor ID Webinar - 8 am to 9 am Mountain Time, 10 am to 11 am Eastern Time -Targeting High Probability Investor Candidates: Finding Your Funding Soulmate – 1st in Four-Part Weekly Series starts on - https://dakincapital.com/event-6036637

?FUNDING POINT – SMART CITIES / FUNDING

After identifying the key components of my definition of a smart city, I squarely ask, “Who is going to fund all of this?”

A smart city, even on a micro-scale, represents a level of complexity that may defeat needed funding. I approach smart city funding like the question, “How do you eat an elephant?” The answer is “One bite at a time.”

I view a smart city as a bundle of revenue streams. Many of these revenue streams may represent sustainable businesses that may be independently funded. Many are dependent upon the prior establishment of other revenue streams to become viable. This results in a need for sequencing the formation of the smart city, with priority given to ‘anchor tenants’ like one would plan for within a shopping center development.

Like a shopping center development, major infrastructure is required, and the capital cost must be advanced. However, a ‘field of dreams’ approach is unacceptable. Tenant commitments to operate out of the shopping center must be obtained to obtain funding. With these commitments, a variety of funding options are commonly available.

An anchor tenant for a smart city may be an enterprise that produces and sells its goods and services in other geographic areas. It may be a:

·?????? Manufacturer

·?????? Distribution, call, or data processing center

·?????? Utility

?Preference would be given to forward-looking enterprises with growth potential and long-term economic resilience.

?The business must have major local ownership (not necessarily majority), where profits remain local and which is not readily susceptible to acquisition by out-of-city interests. The future is unpredictable, but every effort should be made to follow stable trends and avoid old and flash-in-the-pan businesses that may become rapidly technically obsolete or politically out of sync.

?Selecting an anchor tenant for a smart city requires all the talent and work of any private equity fund investment. That said, the selection is to enable and benefit a smart city operation, not primarily as a return on investment.

?Unlike simply funding a single enterprise, like a shopping center, a smart city must consider all the associated infrastructure. In addition, the optimal design may be for the smart city to provide all of its power, water, sewer, and communications – going off the grid. To be safer, this more significant cost must be met entirely by the size and scale of the anchor tenant. Extending these costs to secondary tenants may be possible, but these commitments to tenancy within the smart city must also be secured.

?A smart city design should include identifying those facilities and equipment that multiple enterprises may share to spread their capital costs. This approach is like a shared working space or basic incubator where businesses share a coffee maker, IT server, receptionist, and a combination of desks and chairs. However, the offering is elevated to include unique and expensive equipment that attracts tenants who cannot stand their cost alone.

There are many ways to back into a new urban development that will never achieve the results of a well-planned, proactive building of a smart city.

?RESOURCES ON SMART CITIES / FUNDING

Technical articles on revenue sharing from Google Scholar include:

?Citizenship, Justice, and the Right to the Smart City

?Informed and Interconnected: A Manifesto for Smarter Cities

??New investment models for urban innovation ecosystems

??

Books available on Amazon:

?Smart Cities and Finance: Investing in Urban Innovation?

?Sustainable Real Estate: Investing in Green Buildings and Smart Cities: Micro Book

?PropTech and Real Estate Innovations

ASK CAP

CAP is my AI avatar produced by Knowledge Avatars and trained by me on topics of funding and entrepreneurship. CAP is available on the Dakin Capital website where you may ask questions about funding without charge.

I asked CAP:

How would you fund a smart city by selecting a business as an anchor tenant?

CAP responded:

?To fund a smart city by selecting a business as an anchor tenant, you can follow a structured approach:

1. Identify Potential Anchor Tenants: Look for sectors such as technology, renewable energy, or telecommunications that align with the smart city's vision.

Companies in these sectors are often interested in innovative environments.

2. Create a Value Proposition: Develop an attractive package that outlines the benefits of being an anchor tenant, such as future tax incentives, access to cutting-edge infrastructure, and opportunities for collaboration and innovation.

3. Public-Private Partnerships (PPP): Build a partnership between the government, private sector, and other stakeholders.

This can improve credibility and attract more investors.

4. Secure Seed Funding: Use the anchor tenant's commitment to secure initial funding from venture capitalists, private equity, or government grants, showcasing the reduced risk due to the tenant's involvement.

5. Leverage Debt Financing: Use bonds or loans to finance initial development; the anchor tenant can offer stability that helps secure favorable terms.

6. Attract Additional Tenants: Once established, use the anchor tenant to attract additional businesses and residents, creating a self-sustaining financial ecosystem.

?Each step integrates the anchor tenant strategically to draw investment, build credibility, and accelerate the smart city's development.

SUCCESSFUL FUNDING SHOW

TOMORROW, Tuesday, February 25, on my Successful Funding show, I will present my insights on investors: their capabilities, preferences, and motivations. 8 am Mountain Time, 10 am Eastern

?You may view the show live or listen to a recording afterward at this link:

?https://www.dhirubhai.net/events/successfulfunding-insightsoninv7299485340057092097/theater/

TUESDAY, I hosted my Successful Funding show, where the topic was funding Smart Cities. Dr. Tom Frey, the futurist, will be my guest. We will discuss several ways in which a city of the future may differ from today and how the concept of a Smart City as a sustainable business enterprise answering to its residents as stockholders could reduce bureaucracy.

You may view the recording of the show at:

https://www.dhirubhai.net/events/successfulfunding-fundingsmartc7297263217062383616/theater/

EDUCATION PROGRAM

Targeting High Probability Investor Candidates: Finding Your Funding Soulmate

The webinar of this education program will be presented three more times this year:

·?????? April 2, 9, 16, 23

·?????? July 2, 9, 16, 23

·?????? Oct 1, 8, 15, 22

The education program includes:

· Artificial Intelligence Avatar - Attendees will have one year of online access to a custom AI avatar on the topic of identifying investor candidates.

· Book - Attendees will receive a digital copy of a book on matching their businesses and funding needs with investor candidates who need the businesses to succeed to attain their own goals.

· Workshop - A half-day webinar will be presented on Zoom on Thursday, January 16, 2025, from 11 am to 1 pm Eastern Time, 9 am to 1 pm Mountain Time by Karl Dakin.

· Consult -? Each attendee will receive one-half hour of consultation with Karl Dakin on their funding challenges.

Discover how to secure funding more effectively and efficiently. By targeting the right investor candidates, you can tailor your entire campaign, from offer to closing, to match these candidates - achieving greater success in less time and with reduced costs.

This avtor is designed for entrepreneurs, small business owners, community leaders, charities, service providers, and economic developers responsible for raising funding.

Readers of this Instant Funding newsletter qualify for the discounted price of $400 (marked down from $500). Go to Register. Select the Funding Fans ticket and use the discount code FundingFan2025.

GOT 15 MINUTES AND A QUESTION ON FUNDING - GIVE ME A CALL

I recognize that many readers of this Instant Funding newsletter have questions about funding that are not answered by the newsletter. I am available for a 15-minute phone/video call about your funding questions. This is to let you know there is no charge for this call. Just contact me to schedule a time at [email protected].

SUBSCRIBE

You may subscribe to the daily edition (Monday through Friday) or the weekly edition (all daily editions compiled on Fridays) to this Instant Funding newsletter.

?

Karl Dakin, the Capital Coach

Dakin Capital LLC

[email protected]