How do you build credibility around your business when attracting investors?
Entrepreneur, Private Equity, Capital Raising
At some point your business will need resources to reach a next level. Alchemy Equities is about helping businesses get access to funding and support to make that happen.
A key element of getting access to resources is building credibility around your business, particularly if you wish to attract private equity funds.
Key strategies to build credibility when attracting private equity funds:
• Work hard.
• Balance your entrepreneurial enthusiasm with experience: build a team with that includes people with significant experience.
• Exposure and network. Make sure whoever is on your team also has exposure and a network that helps build the business
• Create solid communication around building the credibility of the team: investors want to see a team of people who complement each other, not an individual.
So how do you create that kind of communication?
When attracting equity funds, either through angel investors, venture capital in Australia or via the platform the Australian Small Scale Offerings Board, how you communicate your investment offering is critical. When you work on building credibility, look at how your collateral is communicated:
• Show attention to detail. If you don't sweat the small stuff your clients and investors will question your capability to execute what you promise.
• Consistency. Be clear and a 100% consistent about what you want to communicate.
• Don’t bluff it. Be honest and authentic about what you're doing, including what you’re not getting right. Communicate to your audience how you’re dealing with issues; that’s what ultimately builds trust.
• Adjust you communication to your target audience. The people you’re communicating to are savvy. Choose language that’s appropriate.
• Make sure your valuations and milestones are realistic and the amount you are wanted to attract is reasonable.
• Be strategic - show that you have the long term vision and understand the steps required to get there.
Key items required to communicate your offer include:
• A compelling story. Why do they care? Do they want to hear more about your business opportunity?
• Elevator pitch – short, succinct, compelling and jargon-free
• Executive Summary- 2 page summary of the key business points, partners, share structure & milestones
• Offer document – complete overview of the business opportunity, professionally written and presented with an eye for detail and compelling breakout focal points.
• Video – direct to camera to prove the effectiveness of the team to communicate the business opportunity and build trust.
• Web and other marketing collateral – must harmonise with the other materials. Show attention to detail,
• Social media – build followers. The more followers the better the chance of raising early capital and attracting partners and media attention.
Kate Ingham is a Partner at Alchemy Equities, a boutique private equity firm located in Sydney which focuses on raising private equity funds for growth companies. Kate talks here about why writing matters: http://tinyurl.com/3ef7ted
, Equity Capital Raising
, Private Equity
, Private Equity Funding
, Private Equity Funds
, Startup Funding
, Venture Capital Financing