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How To Plan For Raising Capital With Investors?

Author: Roxie D. Thomas Author Ranking Blue | Posted: 17-05-2007 | Comments: 0 | Views: 9 | Rating:  (53) Article Popularity - Blue (?) Got a Question? Ask.
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In planning for a successful funding campaign, you must expose your investment opportunity to enough investors.

The Kugarand Theory of Investing states that for every ...

1 investor who invests,

3 say they will invest, and

15 investors were exposed to your investment opportunity to get to the three to get to the one Investor who actually invests.

For example, if your company is raising $1 million dollars and has a minimum investment of $25,000, then your company is seeking 40 investors,

($1,000,000 / $25,000 = 40). For your company to get the 40 investors to invest, you will need to exposure 600 investors to your investment opportunity,

(40 x 15 = 600 investors).

Find out how many investors you will need to expose to your opportunity using this formula.

A = How much money are you raising?

B = What is your minimum investment amount?

A/B = C

C = Number of investments needed

C * 15 = Number of investors who need to be exposed to your investment opportunity

Now that you understand exactly how many investors need to be exposed to your investment opportunity, you can plan accordingly.

Investor relation campaigns expose, generate and promote investment opportunities to investors through strategic planning of your company's investment opportunity. Activities to gain exposure include:

• Participation in investor events
• Customized investor events
• Press releases and promotion
• Direct mail campaigns to investors
• Email marketing campaigns to investors
• Investor phone calls
• Web marketing
• Investor interest articles
• Public online investment portals
• Private secure online investment portals with confidential investment information and due diligence documents

Investor relations campaign should include the following:

• Simplified method to communicate opportunity to investors so they will take the time to learn enough about the opportunity to be enticed to invest more time in learning more.

• Combination of group presentations and one on one investor meetings to provide an opportunity for the client to "tell their story"

• Passive marketing to the interest areas of the investor community through email, press releases, and interview on radio and TV broadcasts.

• Direct Mail to reach those investors that do not respond to other means of communication, targeted based on geography and industry preference.

• System to capture investor interest and respond accordingly

• Ongoing communication strategy to communicate updates to investors so they can see the progress and move a semi-interested investor to an interested and motivated investor

• A centralized point of information so that no matter how the investor first hears of the opportunity they have a source of information they can go to.

Learn more at www.launchfn.com

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About the Author:
As a venture catalyst with LAUNCHfn & NBAI, accelerates the capital raising process by delivering resources and capital. $23.7 Million in funding transactions have been completed since 1994 through the Private Equity Investor Forum. View my Linked In Profile http://www.linkedin.com/in/roxiethomas
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