Now that We can Advertise, Here is the Next Challenge
Entrepreneurs from all over the country are rejoicing at the SEC’s lifting of the ban on advertising for private placements. Every entrepreneur in town is thinking that life just got a lot easier. In some ways, it has. I’ve already fielded dozens of calls from entrepreneurs and others in my network looking to raise capital and fund their deals.
The one thing is clear and obvious: as one aspect gets easier, the fundamentals become more important.
Remember in the 1980’s when all documents looked horrible coming out of a typewriter? Then Microsoft released Word and everyone could create decent looking output?
Did that eliminate the need for designers? On the contrary, so you could stand out, they became more necessary because Word pushed the bar up dramatically. If you wanted to look really good, you needed a designer more than ever.
Now, investors who weren’t previously exposed to opportunities are going to be exposed to a plethora of investments designed to daze and amaze them. Unfortunately, many will be confused too. The slogan “a confused mind says no” will seize the day.
The fundraisers who will be the most successful will be the ones who communicate the most clearly to put the best deal on the table, and who treat the investors the most fairly and with the most respect.
I review private placements on a regular basis. And among the things that I look for are clarity, specificity of purpose, terms of the deal for the investors, how much money is going to the promoter, how easy it is to follow the concepts in the document, and what is the likelihood for success. If these things aren’t crystal clear and easy to understand, the reader gets bored. I get bored too as professional analyst of these docs – and when we get bored, we move onto another opportunity.
If you want to be successful in this new era of raising capital, then you are going to have to prepare your documents and deals that are better than your competitors, that are better than the other people who are advertising in the marketplace, because your prospective investors are being bombarded by their materials. And if you stand out as a stand-up person, and if you stand out as somebody who’s put together a better program that looks better, that reads easier, and it’s both clear and understandable, then you’ll be the one who gets the money.
The investor really only has one simple question: If I give you my money, “what do I get?”
You have to get crystal clear about two points and articulate the following:
1. Give the investor a deal he/she can say yes to; and
2. Create a deal that you, the promoter, are satisfied with.
If you want to be a player in this new world of fundraising, then you need to be with us in Las Vegas at our upcoming Deal Making Symposium. There aren’t many ways to learn how this business works, but learning from and networking with our group of high-quality professionals is certainly the best way for you to do it.
Call my office right away to make your arrangements. See you in Las Vegas.
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If you have an opinion or thought on this topic, please write a comment in the form below. Share this blog with your friends. Thank you for being one of our loyal readers. We appreciate you and are rooting for your success. Often dubbed a "Growth Architect" by his clients, Joel Block advises companies on explosive growth strategies by driving revenues and sales. Well known in the capital markets, Joel is a successful entrepreneur, speaker, advisor and is an astute investor.
Joel is CEO of Bullseye Capital , a full-service real estate company supporting owners and buyers of real estate assets with brokerage, leasing, property management, and mortgage services. Joel is also the founder of the Bullseye Capital Real Property Opportunity Fund, LLC which is an investment company that acquires distressed real estate by working with accredited investors.
A leader in real estate syndication, we offer seminars to assist others in acquiring the skills needed to raise syndicate capital to acquire properties. Imagine knowing how to pool funds to purchase any real estate investment, whether single family, multi-family, commercial, or anything else. For more information and complete details, please go to http://www.syndicatefast.com/.