Bridger PenningtonFund Launch & Investment Expert

Here are 3 Things to Remember When Raising Capital

21 Jan 2023 · 1 min

Watch on YouTube

1:06

In this concise instructional video, the speaker presents a diagnostic framework for entrepreneurs and fund managers who are struggling to raise capital. He breaks the capital‑raising process into three distinct phases: (1) “Get in the room,” which assesses whether the founder is accessing high‑net‑worth individuals and gaining entry to investor‑focused events; (2) “Convert,” which evaluates the ability to network, build relationships, and warm up prospects once inside the room; and (3) “Close,” which focuses on delivering a compelling pitch and converting interest into actual investment commitments. The speaker explains how he uses these phases to pinpoint the exact stage where a client is faltering—whether they are attracting attendees but failing to close, or they are good at networking but can’t secure a pitch slot. He references a longer, in‑depth YouTube video that expands on this diagnostic method, emphasizing that identifying the weak link helps tailor coaching and improve fundraising outcomes.

Chapters

For people struggling to raise capital, this is how I go out and diagnose where the struggle is at. So I look at capital raising in 3 distinct phases. So number one is get in the room. Number 2 is convert, and number 3 is close. So number one, get in the room. What that means is, are you in the vicinity of high net worth individuals? Are you around the potential investors? Are you even getting in the room? Number 2, once you're in the room, how good are you at networking and talking to them, making relationships, and turning them into potential investors that want to move to number 3 and eventually hear your pitch and hopefully will eventually close in your fund. So if I'm looking at your fund, I'm gonna ask you, what are you struggling with? Maybe you're getting a lot of people to come and hear your pitch, but man, no one's investing. So maybe we need to work on your close and pitch. Maybe it's, hey, I'm getting around a lot of high net worth individuals. Like I get in all these great networking events, but once I'm there, like nothing happened. I'm really bad at converting a room and finding the right people in the room and warming them up to the idea of me giving them a pitch. We have a whole in-depth video on YouTube about raising capital. This kind of gives you an overview of how I diagnose somebody I'm working with. And it's actually helped me a ton with figuring out where's my hole when I'm trying to raise capital.