Fundraising breaks into three phases: getting in the room with investors, converting contacts into prospects, and closing deals. Most founders fail at one specific phase. Identify which one, and you can fix it.
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.
